The time to invest in the downstream space market is now

EU Space Week, which kicks off next week, will emphasise the revolution sweeping the space industry, driven by entrepreneurs and innovative space-related businesses. But if you come expecting billionaires taking rocket ships on joy rides, you’ll be sorely disappointed. That’s not the revolution I’m talking about.

What gets me excited is the plethora of practical, everyday services and solutions that we use here on Earth, all of which depend on such space-based technologies as Galileo, Europe’s GNSS system, and Copernicus, the European Earth Observation programme.

What I’m talking about are the personal navigation devices in our vehicles and mobile phones, the precision agricultural equipment being used on farms, the data that allows us to better protect our natural environment against the effects of climate change, and the tools that help emergency first responders quicky respond to distress signals and save more lives.

There’s nothing small about the downstream market

Sure, these solutions may not get the big headlines that a space rocket launch does, but make no mistake, there’s nothing small about the downstream market.

According to EUSPA research, the global GNSS downstream market is forecasted to see revenues reach EUR 220 billion by the end of this year and up to EUR 510 billion by 2032. The downstream market also includes an Earth Observation sector expected to double its revenues, from approximately EUR 2.8 billion to over EUR 5.5 billion within the next decade.

Add these figures up and what you get is a clear opportunity for European companies – an opportunity that Europe has done a remarkably good job at leveraging. For example, with an approximate 25% market share, Europe currently enjoys a strong position within the global GNSS downstream market, which includes any application, device or service where GNSS based positioning, navigation and/or timing is a significant enabler or key to the application’s functionality.

Europe performs particularly well in the road, maritime and agricultural sectors. In fact, several European companies are global leaders in the manufacturing of GNSS components and receivers for road and maritime applications and the development of the system integrators used by the agricultural industry.

However, European companies tend to lag in such fast-growing sectors as consumer solutions and drones. According to the recently published GNSS Investment Report, this, combined with increased, across-the-board competition from global downstream markets, could chip away at Europe’s market share and future competitiveness.   

This highlights why it is more important than ever that Europe keep on top of market trends by seeking more funds, developing strategic oversight and promoting risk-taking. In other words, let’s continue to move forward through innovation.

We need to invest more and we need to invest now

The challenge with innovation, however, is that it requires funding. Based on what myself and my colleagues here at EUSPA have heard from European start-ups and companies, there’s a clear gap in what businesses need in order to innovate at their full potential and the funding and support that is currently available to them. The result is that some European companies struggle to get their innovations from drawing board to prototype, let alone to market. And those who do are often quickly acquired by foreign investors.

EUSPA is dedicated to filling some of these gaps by, for example, being a leading source of critical market intelligence. The European Union also provides numerous funding opportunities, including the very successful Horizon Calls, CASSINI activities and a range of innovation competitions, all which EUSPA helps manage.

But we absolutely need to invest more.

Compared to the funding for space-related R&D happening in the United States, Europe is at a clear disadvantage. For instance, the US invests about two times as much as Europe in civil space R&D.

But there’s plenty of exciting innovation and disruption happening here in the European downstream market. We just need to elevate its position on the world stage, and that means investing.

To start, let’s intensify our commitment to funding and innovation, expand space’s place within policy discussions, and issue strong legislation that promotes and protects companies that are working in the space sector.

Historically, Europe has held a role as a leader in space. Let’s all do our part to keep it that way.