Investing.com – The European Space Sector is struggling with a stormy period marked by the delays of the project, exceeding costs and increasing competition from global players.
Airbus, a leading player in the industry, has absorbed 1.5 billion euros in his satellite division in the last two years, while Tales (EPA 🙂 Alenia Space is expected to announce losses in 2024. Providers are also under pressure; Avio’s Vega C Raket remains grounded after the failure of 2022, and Ariane 6, already postponed in four years, managed only one flight from his debut in July 2024.
The European satellite industry is additionally stressed by the increase in the constellation of low Earth orbit, which disturbed traditional demand for geostational satellite.
“The space obviously becomes all strategic, both in terms of commercial communication, but also in the sphere of defense,” said Bofa analyst in the midst of the rapid progress Spacex, Blue Origin and space programs in China, India and Japan. Spacex performed 134 Falcon Rocket launch in 2024, with a 96% successful rate in increased landing.
Bofa marked concern about the fragmented chain of supply of Europe, pressure of inflation and risk of execution that could overthrow the project on the eve of its critical review of 2028 design.
European space companies are increasingly considering consolidation to remain competitive. Airbus Executive Director Guillaume Faury recently hinted at potential partnerships, aligning with many years of pressure on a unique approach. Bofa analysts claim that Europe has to adopt a global way of thinking, repeating the success of a vertically integrated SPACEX model.
