The space economy has evolved from a niche pursuit into a mature industrial force, driving innovation and public policy across Europe. According to the OECD's latest Space Economy at a Glance report, EU member states collectively invest just over 0.04% of their GDP in space, but national priorities diverge sharply.
Italy has emerged as a standout performer in civilian space spending. Over the past 15 years, Rome has doubled its budget, and it now allocates more relative to GDP than any other European country except Luxembourg, overtaking France. The OECD describes Italy's space sector as "a strategic high-value industrial and digital ecosystem, comparable to specialised niches in aerospace, electronics, telecommunications, software and advanced engineering," with an estimated output of €8 million.
Luxembourg has also tripled its space budget since 2010, though from a smaller base. Japan, meanwhile, has doubled its spending and leads all OECD countries in space investment relative to GDP.
France and Germany lead in absolute terms
In absolute public investment, France and Germany remain Europe's top space-faring nations. In 2025, Berlin allocated €2.5 billion to civilian space programmes, Paris €2.4 billion, and Italy around €2 billion. These funds cover a wide range of activities, from manufacturing and operating space infrastructure to using satellite data and supporting research and development.
France and Italy are particularly research-intensive, with space accounting for 14% of each government's civil R&D spending in 2024—more than double the OECD average of 6.3%.
Military space tells a different story. Germany is by far the largest investor, with plans to spend €35 billion on space-related defence capabilities by 2030. France has allocated €10.6 billion for 2024–2030, with space making up 25% of its government space spending in 2025. For comparison, the United States devoted 46.3% of its space budget to military purposes last year. The OECD notes that comparisons are complicated by classified and dual-use programmes.
China's military-civil space spending remains opaque, but rough estimates suggest it could be the world's second-largest government space spender.
UK dominates satellite fleet, mostly private
When it comes to satellites, the UK is far ahead, with 757 in orbit as of June, compared to France's 104, Italy's 80, and Germany's 65. The vast majority—98%—of British satellites are privately owned. The space industry underpins around 18% of UK non-financial GDP, up from 16% in 2021, driven largely by positioning, navigation, and timing services, which alone support 14% of GDP. Meteorological satellite services contribute 11%, while satellite communications and Earth observation each support about 7%.
Europe's private space sector remains a mixed picture. In 2025, only about 12.8% of global private space investment went to European recipients, compared to 67% directed to the US. That gap underscores the challenge for European startups and established players alike, even as the continent's public investment grows.
The OECD report highlights that space is increasingly shaped by defence and security needs, a trend likely to accelerate as Europe seeks strategic autonomy. For more on how European defence is evolving, see Rheinmetall's CEO on robots and space. The intersection of space and security also raises questions about governance, as seen in debates over military space aesthetics.
As Europe's space ambitions grow, the balance between civilian and military priorities, and between public and private investment, will shape the continent's role in the global space economy.
