Industrial policy

In 2006, the combined turnover of the European space manufacturing industry (launcher, satellite and ground segments) was €5bn and the sector employed around 29 000 people. Worldwide, the market for the space sector is currently estimated to be in excess of €120bn when taking into account the whole space value-chain: space segment suppliers, ground segment suppliers and the services and user-equipment sector.

Space is institutionally driven all across the world. Two-thirds of the European space segment turnover comes from institutional customers, while in the US it is around 85%, where industry is not only less dependent on the commercial market, but budgets for space are five times larger. The European space industry has maintained its competitiveness, achieving 40% of the international commercial market, despite adverse exchange rate movements.

The commercial market is highly cyclical. And emerging space powers, such as China or India, are now becoming significant competitors. To ensure the continued strength of the European sector, it is essential that European public authorities are able to define clear policy objectives for their space activities and invest in them.

Public investment is necessary to reach an industrial critical mass and stimulate further private and public funding. Effective aggregation of common needs in space is essential to avoid wasteful duplication of effort. The EU itself is increasing its expenditure on space to over €2.8bn between 2007 and 2013.

A focused European industrial policy will stimulate companies competing throughout the value chain, help to manage cyclical variations in demand, and ensure investment in technology and skills is maintained.

The regulatory framework (including standardisation) also needs to encourage innovation and investment.