European space economy: the challenge shifts to software, data and security

The new edition of the Eu Space Market Report 2026 by Euspa, the EU agency responsible for managing and developing Europe’s main space programmes, redraws the boundaries of the European space economy: value is no longer concentrated solely in satellites, but increasingly in digital services, data and integrated applications. At the core of this growth are satellite navigation, Earth observation, secure communications and space surveillance, all of which are becoming strategic infrastructures for the economy, security and crisis management.

For the first time, the report also formally includes Secure Satcom and Space Situational Awareness (SSA), alongside the traditional GNSS (Global Navigation Satellite System) and Earth Observation segments. The message is both political and industrial: Europe’s competitiveness will depend on its ability to integrate technologies and services into interoperable ecosystems.

According to Euspa estimates, the global GNSS market will grow from more than €300 billion in 2024 to over €580 billion by 2034. Services will be the main driver of expansion, accounting for nearly 80% of total market value by the end of the period. The focus is therefore shifting from satellites and hardware to software platforms, signal authentication, synchronization and vertical applications integrated with cloud and digital networks.

Earth Observation is following the same trajectory. Global revenues are expected to rise from €3.5 billion to €7.9 billion by 2034, driven primarily by value-added services. Applications range from agriculture and energy to infrastructure, insurance, finance and climate monitoring. Satellite data is increasingly becoming an operational tool for industrial decision-making and risk management.

The growth of Secure Satcom

Secure connectivity is also becoming a strategic priority. The Secure Satcom segment is expected to grow from just over €200 million in 2025 to around €1.2 billion by 2040. Beyond maritime surveillance, demand is expected to expand in civil protection, law enforcement and security operations. European programmes such as Govsatcom and Iris2 aim to strengthen strategic autonomy, infrastructure resilience and reduce external dependencies.

The report also highlights the growing importance of integrating Earth observation, navigation and satellite communications. The convergence of these technologies enables advanced services for infrastructure monitoring, predictive maintenance, smart mobility, emergency management and operational continuity of critical networks.

Three major factors are driving market growth: geopolitical tensions, climate change and urbanization. As a result, demand is increasing for tools capable of ensuring territorial control, rapid response to extreme events and more efficient management of cities and infrastructures.

Europe maintains a strong position, accounting for around 42% of the global Earth Observation market on the supply side. However, the report warns that international competition is accelerating thanks to commercial constellations and software-defined models. For Brussels, the real challenge will be turning public assets such as Galileo and Copernicus into scalable services and high-value industrial markets.

Euspa’s message is clear: the European space economy can no longer be viewed merely as a symbol of technological sovereignty, but as a concrete driver for software, data, secure connectivity and strategic digital services.

Wireless & Towers 2026, scheduled from October 7 to 9, 2026 at BolognaFiere, is the first international trade fair and conference in Southern Europe dedicated to transmission towers, infrastructure, technologies and equipment for telecommunications, broadcasting, satcom, geospatial services, security, smart cities, emergency management and territorial monitoring.

The event is part of the new European exhibition hub Urban Tech 2026 – The Urban Technology Show, focused on e-mobility, traffic, commuting, security, telecoms & data, and environmental technologies.