In 2025, Europe's space budget surged 12% to €13.5 billion, standing in stark contrast to a global decline of 3%. This growth is primarily fueled by increased national defence budgets, especially from Germany, which has committed €35 billion to space security through 2030. As ESA projects a further 20% increase in government space budgets starting in 2026, driven by defence programs, developers and startups in the space sector must be ready to tap into this expanding market.
The global landscape shows a significant shift: while defence accounted for 67% of the US space budget and 53% globally, Europe lags with only 16%. This presents a unique opportunity for European companies to capture a growing share of the defence-related space market, especially as Germany and France ramp up their military space initiatives.
Key areas to watch for new tenders include ESA's security and dual-use calls, German national procurement, and French military space programs. Developers should position their capabilities as dual-use and stay updated on procurement opportunities to capitalize on this defence surge.
Originally published at vira.space.
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