European space technology possesses data available for sale — but where can the buyers be found?

      The European space industry is experiencing significant growth. However, in spite of this expansion, the sector is facing difficulties in attracting commercial buyers for what is arguably its most valuable product: data.

      At the upcoming Living Planet Symposium 2025 in Vienna, the European Space Agency (ESA) and leaders from the private sector will outline bold ambitions for Europe’s space endeavors and will emphasize the need for greater collaboration to bridge existing commercial gaps. Josef Aschbacher, ESA’s director general, has underscored one major area of focus. “Earth observation is a key priority for the European Space Agency,” he stated.

      ESA has recently completed several successful missions, such as its small satellite Φsat-2, which has begun sending high-definition images back to Earth to aid in managing disasters related to wildfires, earthquakes, and floods. This satellite is also capable of detecting ships, collecting data on illegal fishing, and monitoring marine pollution.

      Nevertheless, for European startups aspiring to create innovative services leveraging space technology, the industry can appear quite insular. Daniel Smith, the Trade and Investment Envoy for Space for the Scottish Government and founder of AstroAgency, pointed out significant divisions among the various stakeholders, which hinder accessing space data.

      He noted the gap between launch providers, upstream and downstream space companies, and European businesses that prevents them from taking full advantage of space-related information. “A lot of work remains to be done, as these companies struggle with commercialisation," Smith explained to TNW. "They find it tough to sell that data to other sectors since the space sector itself is not keen on purchasing the data.”

      Crafting the right message

      This year, ESA’s budget is €7.68 billion (approximately $7.91 billion), marking a 1.4% decrease from the previous year and significantly less than NASA’s $25.4 billion budget for 2025. It also falls short of the financial estimates for the China National Space Administration (CNSA).

      To address funding shortages, maintain a competitive position in space, and fulfill its ambitions, ESA is turning to the private sector. The agency aims to take the lead in Earth observation services but can only achieve this by collaborating with the local private sector, which, according to Smith, is often unaware of space technology applications.

      This presents a significant challenge. If European companies do not cultivate genuine demand for space technology services, the entire industry could be jeopardized, affecting spaceports, satellite manufacturers, and rocket producers.

      Smith remarked, “I’m witnessing Earth observation firms ceasing operations, some of which have been around for over a decade, simply because they can’t commercialise.”

      Although governmental entities like ESA provide grants and incentive programs, applicants frequently overlook monetisation and commercialisation aspects, Smith added.

      Consequently, they miss out on substantial opportunities. Earth observation mainly relies on data gathered from low-Earth orbit (LEO) satellites, which have numerous applications. LEO is already well recognized for its contributions to weather forecasting and climate change monitoring. Industries like agriculture, energy, infrastructure, logistics, maritime, and finance utilize satellite data to create tangible impacts, depending largely on leadership vision and data capabilities.

      Emerging innovative use cases are noteworthy. For instance, the Scottish tech firm Space Intelligence employs satellite data to establish credibility in the carbon offset financial market. According to Smith, unlocking the full potential of Earth observation requires a shift in perspective regarding the technology: “Space technology ultimately relates to Earth, not space.”

      Monetizing space data

      The space industry is typically categorized into upstream and downstream sectors. Upstream entails everything from manufacturing to launch activities, including rockets, spaceports, and satellite operations. In contrast, downstream services provide ready-to-use space data for private enterprises.

      Downstream space data providers, supported by software developers and coding experts, collect satellite data, analyze it, and make it accessible for private businesses. The information generated from LEO orbits can hold immense value, driving advancements in the European space sector and enhancing the development of spaceports, rocket launchers, and satellite companies. However, commercialising this data remains a challenge.

      Smith highlighted that many space companies are having difficulty selling their Earth observation data to other industries. “The space sector and rocket firms are not interested in acquiring the data,” he stated. “They prefer to enable data use and launch satellites, creating a significant gap.”

      The reasons behind European companies' hesitance to use space data are varied, encompassing a lack of understanding regarding practical applications, stereotypes associated with space—like the perception that it is slow and costly—and the industry's inability to open up and effectively communicate its value to potential private partners.

      Where startups can begin

      European companies interested in applying Earth observation data for new initiatives must focus on downstream space services, Smith suggested.

      A positive case is Spire, which operates a large network of affordable nano-satellites in LEO, gathering extensive, detailed data. This data supports diverse applications, from monitoring greenhouse gas emissions and