Rewriting Spain’s New Space Momentum: Private Capital, Public Funding, and the Drive Toward Civilian and Dual-Use Space

The Spanish aviation sector is in a period of high expectations and tough competition. The conflict in Ukraine has forced geopolitical reassessment and drawn more capital into aerospace opportunities. Private actors like SpaceX and the Kuiper project from Amazon are reshaping the landscape, while thousands of small satellites begin to populate orbit, gathering data and imagery from across the globe.

In this context Jordi Hereu, head of public participation at the satellite operator Hispasat, notes that space is the battlefield of the 21st century. He describes it as a strategic, global domain that will demand cooperation among veteran firms and agile startups alike. Hispasat ranks as Europe’s third-largest satellite operator.

Carlos Fernandez de la Pena, CEO of the Italian multinational in Spain, Telespace, recalls that a decade ago space was dominated by large companies, Air­bus, and state agencies. Since then, the idea of New Space has emerged—an ecosystem built around smaller, lower-cost satellites. Hispasat’s data shows private investment across 1694 European companies over ten years reaching about 252.9 billion euros.

Together with falling production costs, this wave of private capital has sparked a boom in new ventures. The shift favors service value over satellite size or orbit distance, bringing both large and small players into the same arena. SpaceX is a New Space company and also a global leader in launches. Telespazio plays a central role in most European space development projects.

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iris2

European space projects announced this week, including iris2, aim to knit together New Space with major industry players. The plan involves a consortium that includes Airbus SE, Thales Alenia Space SAS, Eutelsat Communications, SES, Hispasat, Deutsche Telekom, Orange, OHB, Hisdesat Servicios Estratégicos, Telespazio, and Thales. The initiative carries a 6 billion euro backing.

Beyond these big programs, nano-satellites are changing the economics of space. In contrast to large 36,000-kilometer, multi-ton satellites, the new nano-satellites weigh around ten kilograms and orbit at much lower altitudes. This democratization of access is drawing startups into the market while major operators accelerate their involvement in small-satellite networks.

The push for regional space capabilities continues with launches across the Basque Country, Catalonia, Andalusia, and the Canary Islands. In Catalonia, a local service provider was chosen to operate a nano-satellite network in Andalusia and the Canary Islands. While consolidation accelerates, the speed of deploying satellite networks is deemed essential for future growth.

New initiatives and a strengthened Spanish space agency structure have unlocked more private funding while national support grows. The European Space Agency has increased Spain’s contribution, rising from 300 million euros, with the Spanish government boosting its support since 2019 by 50 percent.

The Atlantic satellite network, a flagship for the Spanish aviation department, aims to deploy 16 satellites with a total public-private investment of around 4.533 billion euros between 2021 and 2025, including eight satellites from Portugal.

Spain’s private network sector also includes Sateliot, touted as the first global 5G satellite network, and BeetleSatCon, a constellation of ultra-light satellites designed for secure Ka-band point-to-point communications.

Jaume Sanpera, CEO of a satellite firm, acknowledges Spain’s considerable potential but warns that fledgling New Space ventures will need continued public funding to remain independent. He argues for supporting companies with durable intellectual property, crucial patents, and real value creation. The goal is to nurture world-class players that can sustain growth with public investment and private collaboration.

Low-orbit nano-satellites are cutting costs and driving new entrants in need of public backing

Lack of funding stands as the biggest hurdle for new space firms. Because space is strategic, international investors often require that headquarters be located in the home country of the main shareholder. As the nano-satellite sector grows, major operators are expected to pursue strategic moves in the near future.

Despite looming consolidation, investor optimism remains high in Spain. Sanpera predicts continuous double-digit growth for the sector, arguing that any company failing to achieve this pace will lose market share.

The Ukraine conflict underscored the importance of satellite services for defense. Hidesat, a state-backed defense contractor, leads the charge, while other players supply components and specialized surveillance or telecommunications services. The potential for IoT-based defense applications and secure NATO communications is seen as a major growth avenue. Hereu concurs, noting that Spain can contribute both industrial know-how and innovative capabilities with startups pushing launches and nanosat technology forward.

Fernandez de la Pena emphasizes Spain’s aim for technological independence to launch satellites and run its own communications, navigation, and Earth observation programs. Telespazio, a major European player, employs around 120 people in Spain and seeks a growth plan to triple its footprint. The company turns over roughly 700 million euros and lists about 3,000 employees across Europe.

Spain’s space sector remains predominantly civil, with defense space accounting for a significant share of high-resolution imagery. A key development area is applying radar and terrestrial drone data with low-orbit, nano-satellite imagery to create powerful analytics capabilities.

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Rafel Jordan, CEO of Open Cosmos, notes that Spain is in a favorable moment but emphasizes that civilian markets will drive most future growth. He believes Spain is well positioned to undertake full space missions, including satellite launches and the integration of related technologies. Open Cosmos focuses on applications for sustainability, climate monitoring, and natural resource management, highlighting that space has dual uses for civil and defense purposes. Jordan adds that in ten years Spain could handle space projects comprehensively, with a major leap in data analysis through advanced processing algorithms for satellite data.

The latest figures from ICEX and the industry association show aviation invoices around 12 billion euros annually and employment above 50,000. Space data remains underutilized, with R&D investment around 10 percent of turnover, and foreign markets accounting for a large share of revenue. About 75 percent of New Space employees hold university degrees, underscoring a high-value, productive sector.

Allen Space, a Pontevedra-based company focused on standardized products for small satellites and CubeSats, has a 15-year track record and operates in 16 countries. They emphasize that the path forward hinges on funding expansion and maintaining strong teams. Public or private support that backs know-how and trusted partnerships will be essential for a robust future in Spain’s New Space landscape.