Washington — A new report from LAMA Economic Research and the Computer & Communications Industry Association Research Center finds that the proposed EU Space Act (EUSA) could significantly slow innovation, raise costs, and reduce economic growth across Europe’s rapidly expanding space sector, when global space economy is valued at €471 billion and growing at 11% annually. The report concludes that this growth depends heavily on the rapid deployment and scaling of EUSA-impacted low earth orbit (LEO) satellite systems, which provide lower latency and higher data capacity than traditional satellite infrastructure.
The report, Economic Implications of the European Union Space Act, is the first detailed independent quantification of the EUSA’s expected impact across the EU space value chain, from satellite manufacturing to downstream broadband, earth observation, and navigation services. The report finds that LEO satellites accounted for 73% of the total satellite manufacturing market in 2024 and are the primary vehicle for new commercial space services.
Key Findings:
- Reduced Economic Growth: The EUSA could slow adoption of space-based connectivity by up to 9%, costing 0.06 to 0.27 percentage points in annual GDP per capita growth: €12 billion to €52 billion in lost EU GDP annually.
- Higher Costs for Satellite Deployment: EUSA technical and compliance requirements could increase manufacturing and design costs for LEO satellites by 10% to 46%.
- Reduced Demand: Increased costs reduce demand for LEO satellites by 18% to 48%.
- Annual Losses Across the Sector: EU satellite systems providers face revenue losses between €381 million to €630 million, including spacecraft exports declining by €207 to €342 million. Providers of space-based services could see additional losses of €210 million to €311 million, with cumulative losses reaching up to €2.1 billion by 2030.
The following can be attributed to Trevor Wagener, Chief Economist and Research Center Director, CCIA:
”The EUSA as presently drafted would sacrifice Europe’s leadership in the fast-growing space economy at the altar of regulation. Europe needs to lead in economic growth, not in growth of compliance burdens.”
The following can be attributed to Karina Perez, Director of CCIA’s Space & Spectrum Policy Center:
“Space is inherently global and requires international coordination alongside a streamlined path to regulatory approvals. The EUSA as proposed fails to provide this certainty, instead it adds regulatory burdens that slows down deployment and connectivity.”
