Italy’s Space Economy Worth €8 Billion: More Than 350 Companies and 23,000 Jobs

Italy continues to rank among the leading countries in the global space economy. In 2021, the sector generated €8 billion in output, supported around 23,000 jobs, and produced €2 billion in value added, equivalent to 0.14% of Italy’s GDP.

These figures come from the OECD’s new report, The Space Economy at a Glance 2026, which examines the development of the space economy and its growing impact on industrial, technological and strategic activities.

An ecosystem spanning major corporations, SMEs and startups

According to the OECD analysis, Italy’s space industry includes more than 350 companies. The ecosystem encompasses major corporations and system integrators, medium-sized businesses, small and medium-sized enterprises, as well as a growing number of startups.

The sector brings together highly specialized expertise across aerospace, electronics, telecommunications, software and advanced engineering. The result is a high-tech industrial ecosystem in which space activities and digital capabilities are becoming increasingly interconnected.

The structure of the industry also reveals a significant degree of industrial concentration. Upstream activities, mainly involving the production of goods and services for space applications, accounted for 67.3% of space-related value added. Manufacturing represented 50.9%, while large companies accounted for 78.2%. The contribution of multinational corporations was even higher, at 90.4%.

Italy increases its focus on space research

Italy’s position also stands out when looking at research and development spending.

In 2024, the civil space sector accounted for 6.3% of total public R&D funding in the OECD area. France and Italy recorded the highest shares, both at 14.1%, followed by Hungary and the United States.

Italy also maintained a significant position in space-related intellectual property. Between 2020 and 2023, the country accounted for 1.7% of global space patent applications, broadly unchanged from the 2010–2013 period.

The OECD nevertheless points to an improvement in Italy’s specialization in space technologies. Although the country still has a negative revealed technological advantage, its relative position compared with overall national patent activity has improved over the past decade.

Public investment and new priorities

In 2025, Italy’s budget for civil space activities reached $2.224 billion, equivalent to approximately €1.968 billion. In real terms, the figure was higher than in the previous two-year period and exceeded pre-pandemic levels.

Several factors contributed to this growth, including funding from the National Recovery and Resilience Plan, increased financial commitments to the European Space Agency and new national initiatives.

Among the areas receiving the largest share of resources in 2025 was Earth observation. Italy is pursuing the Iride programme in this field, based on data gathered from six different families of satellite constellations.

Also in 2025, Italy adopted its first comprehensive law governing space activities. The legislation introduces measures designed to strengthen the technical, financial and environmental security of the sector and establishes a €35 million space economy fund for 2025, aimed at supporting investment, innovation and industrial development.

An established industrial base

The OECD report highlights Italy’s long-standing role in the development of European space activities. In 1964, with the San Marco 1 satellite, Italy became the fifth country in the world to place a satellite into orbit.

Today, Italy is one of the European Space Agency’s major contributors and has developed a broad industrial base. Growth opportunities extend across several segments, from space transportation and Earth observation to telecommunications, exploration infrastructure and downstream services based on satellite data.

Italy is also home to Esrin in Frascati, the European Space Agency’s centre dedicated to Earth observation. The facility supports the operations of Earth observation missions, data exploitation and several European space programmes.

The global space economy continues to expand

The growing importance of the sector is not limited to Italy. In 2025, public budgets for civil space activities across OECD countries reached an estimated $46.4 billion, up from $40.5 billion in 2022.

At the same time, space-based applications have become increasingly important to strategic sectors. Telecommunications, transport, energy, agriculture and supply systems are becoming more dependent on satellite infrastructure and services.

According to the OECD, space systems already underpin more than half of critical infrastructure and services across OECD countries. In some markets, the share of GDP linked directly or indirectly to services based on satellite technologies is particularly significant.

The growing importance of space is also reflected in national regulations. Over the past decade, the number of countries with dedicated space legislation has increased by 50%, approaching 60 in 2025.

The OECD argues that regulatory frameworks need to evolve alongside the sector’s new commercial dynamics. The challenge is to create conditions that encourage investment and innovation while ensuring security, accountability, sustainability and the protection of space infrastructure.

Private capital is playing a growing role

Private investors are also increasing their exposure to the space economy. Estimates indicate that $11–13 billion in private capital will flow into the sector in 2025, representing the highest level since 2021.

Investment is concentrated primarily on established companies and capital-intensive activities, including space-system manufacturing and launch services.

However, maintaining long-term competitiveness will also require continued support for civil research and development. The growing focus of governments on defence requirements could otherwise alter the balance of resources available for civilian space activities.

Space is becoming increasingly central to the economy

The expansion of the space economy is transforming the sector from a highly specialized industry into a critical infrastructure underpinning an increasingly broad range of economic activities.

Satellite technologies are now essential to communications networks, energy systems, transport and numerous vital services. As a result, the ability to develop space technologies, infrastructure and expertise is set to play an increasingly important role in national industrial strategies.

Italy starts from a strong position, with more than 350 companies, thousands of workers, diverse technological capabilities and a significant presence in European space programmes. The challenge in the coming years will be to turn this industrial and scientific base into further growth, innovation and international competitiveness.

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