The global space industry has become a multibillion-dollar market and is expanding rapidly. A study by Roland Berger and the Federation of German Industries (BDI) values the sector today at roughly $600 billion (€516 billion) and forecasts growth to about $2.32 trillion by 2040 — roughly four times Germany’s federal budget for 2025.
Investment patterns show two clear segments: the upstream market, which covers launch infrastructure, ground systems and satellite manufacturing, has attracted about $150 billion; downstream applications — satellite communications, positioning, navigation and timing, and Earth observation — have drawn roughly $450 billion. These downstream services are increasingly central to commercial data businesses and industrial digitalization.
The so-called NewSpace era has shifted space activity from being a government-dominated endeavor to a market driven by private companies. Since around 2000, states have moved into the role of customers while startups and established firms supply launch services, satellites and data products. Advances such as reusable launch vehicles and dramatically lower launch costs — McKinsey estimates a 90% decline in launch costs over the past 20 years — have opened new commercial opportunities.
Beyond headline names like SpaceX and Blue Origin, a diverse international ecosystem now competes in spacecraft, satellites and space-enabled services. In Germany, a growing cluster of firms is building rockets, satellites and data-driven applications. Three domestic launch companies — Isar Aerospace, Rocket Factory Augsburg and HyImpulse Technologies — are advancing rocket development and testing in southern Germany.
German firms also play important roles in satellite systems and downstream services. OHB develops satellite systems and components used on European launchers; the Exploration Company works on reusable space vehicles. Other startups and scale-ups turn satellite data into commercial products: OroraTech monitors wildfires from space, Constellr maps heat signatures linked to human activity and environmental stress, and LiveEO analyzes satellite and drone imagery to monitor infrastructure networks such as railways.
Satellite data is already used across traditional industries — smart farming, logistics, Industry 4.0, infrastructure monitoring and autonomous mobility — and customers range from startups to large system integrators. Industry leaders stress that services like communications, precise positioning and Earth observation have become indispensable to both civilian and military critical infrastructure.
Industry groups including the BDI and the German Aerospace Industries Association (BDLI) argue that the government should increase investment and reduce regulatory hurdles to help domestic companies scale. Germany pledged around €5.4 billion to European Space Agency (ESA) programs at the end of 2025 and plans roughly €35 billion for military space capabilities over the next five years, signaling a stronger public commitment.
Despite these moves, Europe and Germany still trail the United States in market share. In 2024 the US accounted for about 40% of the global space market, Asia about 20% and Europe roughly 17%. Roland Berger calculates that Europe would need an additional €237 billion to hold its share through 2040; raising Europe’s share to 25% would require even larger commitments, and Germany would need to increase national investment substantially (from current levels cited in the study) to play a larger continental role.
Consultants and industry leaders emphasize that money alone won’t guarantee success. They call for policies that shorten time to market, cut bureaucracy, reform procurement, and create bolder state contracts that help turn technological innovation into viable businesses. Germany already contributes technology to many international programs and has a strong base to build on, but catching up to the US will require coordinated public-private action.
In short, Germany’s space ecosystem is growing fast — from launchers and satellites to data-driven downstream services — and the country is deepening its commitments. To convert this momentum into lasting market share and secure critical infrastructure capabilities, industry and government say stronger investment, smarter regulation and clearer industrial strategies are needed.