Background
The European Space Agency (ESA) has been operating since 1975, where it has developed the space industry as a niche sector with a fairly set commercial, institutional, and technological environment. This has served European decision-makers well as it has allowed European space capabilities to develop gradually as a high-tech sector based around one-off projects and narrowly defined programmes. This stable environment provided a platform for growing expertise to deliver world-class space technologies, missions and programmes for activities including space science, earth observation, space exploration, positioning, navigation and timing (PNT), connectivity, space transportation, and ground segment engineering, operations and space safety.
However, emerging trends and challenges have changed this stable environment, meaning that the ESA now needs to adapt to a new global industrial situation. The ESA has ascertained that this has been driven by four factors:
- Rapid and worldwide increase in public investment in space: Although the United States remains the biggest player in the market with 64% of the global share, China holds 12% and is investing heavily while Europe holds 11% of the global share in the space industry. Elsewhere, other nations, such as India, are also entering the market
- Commercialisation and the growth of the private sector in space, which impacts the pace and scope of innovation: The space sector has traditionally been one of public-sector investment, but this landscape has changed with more private companies investing in space innovation
- The digitalisation of society making space technologies and markets increasingly crucial for the economy: The digital economy is providing new funding and investment streams for the space sector in support of satellites for mobile devices, navigation, communications, and more
- Growing emphasis on space technologies for defence and security: An increased focus on space technologies in relation to military applications, such as surveillance, communications, navigation and defence has increased spending on defence aligned with space
These changes look set to increase the value of the global space economy from US $630 billion a year in 2023 to an estimated US $1.8 trillion by 2035. This corresponds to an average growth rate of 9% per year, but Europe is losing ground compared to nations like the United States and China, which requires a unified response from ESA nations.
Meeting the Challenge
Against this backdrop of a changing environment for the space sector, Europe needs to develop a strategic vision with significant increases in investment. This vision needs to take account of the shifting global context and address future needs based around ambitious long-term goals while anticipating changes and taking account of any disruptions. This will help Europe safeguard and expand competitiveness, autonomy and resilience in space. To meet this challenge, the ESA has developed ‘Strategy 2040,’ a blueprint for future activities and medium to long-term priorities that will help to realise the European space agenda.
The priorities set out within the strategy include:
- Ensuring that ESA’s space activities and programmes can optimally respond to the diverse societal needs and policy priorities at local, regional, national and European level
- Ensuring Europe remains and grows as a top-tier global space actor through clearly defined objectives and corresponding leadership roles
- Creating a clear vision and coherent narrative for ESA’s space programmes
Societal Needs and Space
In order to match the strategy to the needs of European society, the ESA analysed sources from international organisations, government agencies, private organisations and research institutions in order to identify key global trends and challenges. This involved an investigation into statistics and information around climate change and the environment, the energy transition, geopolitics, economic volatility, technological disruption, public health, demographics, urbanisation, public opinions around science, technological advancements and cybersecurity, and potential resource scarcity.
As a result of this research the ESA identified four overarching themes that each have a strong potential for space contributions, including:
- Sustainability of Life on Earth: With Europe experiencing global warming on a scale that is twice as fast as the global average, climate change and biodiversity loss are key issues as the continent aims to become the world’s first to be climate neutral. Space assets have the potential to help protect the environment and manage resources sustainably. Whether this is monitoring environmental changes, supporting sustainable resource management or assisting with disaster response, satellite data can play a key role in areas such as land and water management, urban planning, and optimising renewable energy sources like solar and wind power. These efforts expand beyond the terrestrial environment to also include the need to maintain the responsible and sustainable use of space itself, such as in keeping the space environment free from debris and pollution
- Europe’s Leadership in Science and Technology for Innovation and Competitiveness: Science, technology and innovation are all seen as essential parts to Europe’s long-term prosperity and global competitiveness, with all requiring a strong education, research, and development ecosystem that promotes collaboration between academia, industry, and government, and ensures adequate funding for cutting-edge projects. Networking and knowledge transfer are important to this as collaborative strategies boost research and commercialisation. Not only does this require diverse funding mechanisms, foreign investment and international partnerships to grow the European space sector, but also the integrating of non-space solutions into space sector endeavours
- Resilience of Europe’s Society and Economy: Space assets can create greater resilience through real-time weather information to predict extreme weather events, emergency response solutions, commercial applications, and more. This is now being coupled with defence requirements, which is bring extra funding streams from the security and defence sector, a trend that is expected to increase towards 2040. Although there are no mechanisms yet in place to highlight the fragmentation of the public sector, growing emphasis on resilience and security is reducing strategic dependencies and creating an environment where Europe can lead in areas such as ‘net zero,’ Artificial Intelligence, quantum technologies, space and aeronautics, biotechnology, chemicals, robotics and, mobility
- European Cohesion and Global Reach: As the world becomes fragmented, the ability of Europe to act as a unified force is becoming increasingly important. Facing geopolitical division, economic disparity and global uncertainties are vital in maintaining Europe’s position as a promoter of stability, peace, and prosperity both within and beyond its borders. By strengthening the cohesion between European nations through shared values of democracy, human rights and sustainability, the continent will be able to maintain an important position to shape international norms and address global challenges. Space endeavours require nations to work together in sharing expertise, planning, and resources. This helps build trust and encourages the exchange of knowledge, strengthening cross-European relations which can lead to greater cooperation in other areas.
Strategic Goals
The assessing of European societal needs allowed the ESA to identify five overarching goals that will drive efforts through to 2040. These five goals are:
- PROTECT OUR PLANET AND CLIMATE: The objectives of this goal are to, i) address climate change, environmental degradation and pressure on natural resources through the development of relevant technologies, missions, applications and services. ii) Create a greener, circular economy for space with zero debris along with global standards for sustainability. iii) expand capabilities for space weather services and planetary defence to position Europe as a global leader in space safety.
- EXPLORE AND DISCOVER: The objectives of this goal include, i) unravel the mysteries of our planet and the wider universe through ESA’s global leadership in Earth and space science. ii) Expand the capabilities of ESA for a new era of space exploration in low Earth orbit (LEO), around the Moon and reaching out towards Mars to push the boundaries of human knowledge and inspire future generations of scientists and explorers.
- STRENGTHEN EUROPEAN AUTONOMY AND RESILIENCE: This goal includes i) securing autonomous and competitive access to and mobility through space via new (and potentially reusable) transportation systems and services. ii) Develop next generation technologies and systems for connectivity, PNT, and Earth orbit to create a more connected and safer future for citizens. iii) Develop solutions for the management and prediction of natural and anthropogenic emergencies and disasters.
- BOOST EUROPEAN GROWTH AND COMPETITIVENESS: The aims of this goal are to i) increase innovation through the development of cutting-edge European space technologies. ii) Unlock new markets and drive economic growth to foster a more prosperous society through strengthened industrial capacity and competitiveness. iii) Attract significant private investment by positioning Europe as a commercial hub for the global space economy. iv) Leverage world-class technical facilities and investment to establish Europe as a space research hub that attracts top STEM talent.
- INSPIRE EUROPE: The aims of this last strategic goal include i) reinforcing the European space ecosystem through world-class project management spearheaded by improved cooperation between key European stakeholders. ii) Inspire young people and future generations from diverse backgrounds using the ESA model. iii) Create greater influence for ESA member states and the EU in diplomacy and global affairs through the harnessing of space capabilities.
As noted by the Chair of the ESA Council, Renato Krpoun, these goals will provide a platform for renewed ambition and enhanced investment in the space sector to create technologies that are “essential pillars for economic growth, scientific advancement, national security, and societal resilience,” with the ESA Strategy 2040 acting as a “bold vision for the future, outlining clear objectives that will enable Europe to expand its reach and capabilities in space.” This will, in turn, “allow Europe to become stronger, more competitive, and ready to lead in this critical domain of the future,” with Renato adding, “Strategy 2040 marks the beginning of this next great chapter in ESA’s mission, ensuring that Europe’s space sector remains a powerful vehicle for progress and prosperity.”
Josef Aschbacher, the ESA Director General, noted how these strategic goals will, “enable Europe to address key societal needs, stand shoulder-to-shoulder with global players, and advance the frontiers of science and technology,” adding, “This will empower European industry to access new profitable growth markets and contribute to a sustainable future for Earth.”
Summary
The space industry has become an essential tool for economic progress, scientific discovery and societal resilience, with space-based technologies now integral to daily life and underpinning sectors including communications, climate monitoring, navigation and defence.
Strategy 2040 offers a blueprint for the future of the ESA that addresses the rapidly evolving landscape of global space activity as a driver for economic growth, technological innovation, national security, and environmental sustainability. The strategy aims to ensure Europe remains at the forefront of space innovation, driving prosperity and technological leadership as well as enhancing Europe’s competitive edge and autonomy, while delivering tangible benefits to European citizens.
Strategy 2040 aligns with the broader economic and political priorities of Europe, whether that is addressing climate change and sustainability or enhancing digital and technological sovereignty.
By investing in space, Europe is investing in its future as a global leader, while also protecting international interests and ensuring the wellbeing and prosperity of its citizens.
ESA’s strategy is designed to respond to the most pressing challenges of our time, providing the tools and solutions to enable Europe to navigate the complexities of the 21st century and beyond, while ensuring that Europe remains competitive, resilient, and innovative.
This strategy is a call to action for European leaders, policymakers, and the public to recognise the critical importance of space and support the investments necessary to realise Europe’s full potential in this area.
You can see the full ESA Strategy 2040 document here:
https://esamultimedia.esa.int/docs/corporate/ESA_Strategy_2040_InDepth.pdf