MILAN - European space industry sales have bounced back in 2025 after a rough 2024, according to Eurospace's latest Facts and Figures report, presented July 7. The hero of this comeback? Military demand for Earth observation satellites, which have now become the continent's top revenue-generating space sector, pushing telecom systems into second place.

Satellite applications - covering Earth observation, telecom, and navigation - grew 23.5% compared to 2023. Meanwhile, launcher systems sat there not growing much, because apparently rockets are so last year.

“Historically, telecommunication systems were the number-one area of revenue for the European industry,” said Pierre Lionnet, managing director of Eurospace. “But we now see that Earth observation systems have taken over telecommunication as the main revenue segment.” In 2025, Earth observation manufacturing sales outpaced telecom by 24%. That shift is driven by growing military demand, with Spain, France, Germany, Poland, and Finland leading the charge.

Professional services - tech assistance, engineering, innovation roadmaps - also showed steady growth, as national and European agencies outsource more tasks to industry players. “This is an interesting shift,” Lionnet noted, “because it has been a major area for industry revenue growth.”

Despite Earth observation's rise, the European Space Agency remains the industry's biggest customer. ESA-related revenues jumped 560 million euros (+20%) from 2024 to 2025, thanks to policy reforms that let the agency spend money faster - a concept that presumably required multiple committee meetings.

The second-largest revenue source came from non-European commercial customers, covering components, equipment, and complete satellites. “All the exports have seen growth in recent years, which was unexpected,” Lionnet said. That growth is split roughly equally between full spacecraft systems and equipment, including launcher fairings and deployment systems - important for Amazon's LEO constellation deployment.

Institutional programs still account for over 70% of total industry revenues, proving Europe's space economy is not yet a private-sector party. But commercial and export sales increased 35% since 2024, driven by launch services. “With seven [Ariane 6 and Vega C] launches in 2025 compared to only three in 2024, there were major business opportunities for the European supply chain,” Lionnet said, noting that sustained demand for Amazon's LEO launches has become a key driver of Ariane 6 activity.