35-billion bet: How Germany now wants to catch up with the USA and China in space – Germany's leap to becoming a new space power

Long underestimated, now vital – Nothing works without them: Why your life would collapse immediately without satellites

Hardly anyone realizes how deeply space travel is already embedded in our everyday lives. From navigation in our cars to instant bank transfers to evening video streams – our modern lives hang on a silken thread of invisible infrastructure hovering thousands of kilometers above our heads. But while we've become accustomed to this convenience, a dramatic transformation is taking place in orbit. Space travel has evolved from a prestigious scientific project into a key strategic industry, whose global market is expected to grow to an incredible €2 trillion by 2040.

In this new race, Europe is threatened with being crushed between the superpowers USA and China, which are expanding their dominance with gigantic investments and tens of thousands of satellites. The German government has recognized the signs of the times: With a historic investment of 35 billion euros, Germany intends to reduce its dependence and establish its own robust security architecture in space. Because space is no longer just an economic area, but also a potential theater of war where enemy satellites can spy on, disrupt, or even destroy our systems.

This new era is no longer driven solely by government agencies, but by a dynamic "New Space Economy." Visionaries like Elon Musk have revolutionized costs with reusable rockets and paved the way for hundreds of startups. Young companies in Germany, such as Isar Aerospace and Rocket Factory Augsburg, are also joining the fray, vying for a place in the fiercely competitive rocket building market.

This article sheds light on the profound transformation of a long-underestimated industry. It explains why Germany is suddenly investing billions in space, the concrete dangers posed by space debris and cyberattacks, and the fascinating visions—from lunar mining to asteroid mining—that could shape the future. It is the story of a technological breakthrough that is about nothing less than Germany's strategic sovereignty, security, and prosperity in the 21st century.

Strategic shift in the sky: Why space is becoming the new arena of power

Space travel is facing fundamental change. What was once considered a prestige project of a few nations is evolving into a key strategic industry of the 21st century. Experts predict ten percent growth for the global space industry in the coming years—a growth rate that traditional industries can only dream of. But while the global market for space-based infrastructure and services is set to quadruple from just under €500 billion to €2,000 billion by 2040, Europe is in danger of falling behind.

The German government has recognized the signs. With Defense Minister Boris Pistorius' announcement that he will allocate a total of 35 billion euros for space projects and a security architecture in space by 2030, the topic of space travel has reached a political level in Germany that has previously only been achieved in Italy, France, Japan, and the USA. Walther Pelzer, member of the Executive Board of the German Aerospace Center (DLR), beams at this topic: The new German government has raised space travel to a level that finally adequately recognizes the strategic importance of this industry.

It's no longer just about scientific discoveries or the fascination of the cosmos. Space travel has become a critical infrastructure. A satellite failure could have fatal consequences in modern life – from cell phone outages to plane crashes to bank transfer failures. During a speech at a space conference alone, 39 Chinese and Russian reconnaissance satellites fly over the conference grounds – a symbol of a new era in which conflicts are no longer fought solely on Earth, but also in space.

This article sheds light on the diverse dimensions of an industry that has long been in the shadows but is now becoming an indispensable foundation for security, business, and technological progress. From its historical roots and current developments to its challenges and visions for the future, the following analysis paints a picture of an industry undergoing transformation.

From state monopoly to start-up race: A brief history of space travel

The history of space travel begins with the Sputnik shock of 1957. The launch of the first artificial satellite by the Soviet Union not only triggered a technological race between the superpowers but also laid the foundation for international cooperation in space. As early as 1958, European scientists such as Pierre Auger and Edoardo Amaldi met to discuss the establishment of a joint Western European space agency. Europe recognized early on that national projects could not compete with the superpowers.

The founding of ESRO and ELDO in 1962 marked the first attempt at coordinated European space exploration. While ESRO successfully launched seven satellites between 1967 and 1972, ELDO's Europa rocket proved a fiasco—none of its eleven launch attempts were fully successful. It wasn't until the merger of the two organizations to form ESA on May 30, 1975, that the turning point came. With the development of the Ariane rocket, which has been in service since 1979, the Europeans achieved their breakthrough into one of the most important satellite launchers ever.

For decades, space travel remained the domain of government agencies. High development costs, technological complexity, and political interests left little room for private players. This era ended with the founding of SpaceX in 2002. Elon Musk's vision of commercializing space travel and drastically reducing costs revolutionized the industry. With reusable rockets, SpaceX succeeded in reducing launch costs several times over, thus paving the way for the New Space Economy.

This new era is characterized by private investment, shorter innovation cycles, and a multitude of new business models. Hundreds of startups are entering the market, from rocket manufacturers and satellite operators to providers of space-based services. Germany is also playing a role in this new competition. Three companies – Isar Aerospace, Rocket Factory Augsburg, and HyImpulse – are developing their own launch vehicles and have received a total of €25 million in funding from the DLR microlauncher competition.

The transformation is remarkable. While it took 20 years for Jeff Bezos to successfully launch a rocket with Blue Origin, German startups have already come a long way, despite setbacks such as the explosion at Rocket Factory Augsburg in Scotland in 2024. The combination of government support and private investment is creating an ecosystem that could make Europe competitive again.

The technological foundation: The crucial components of space infrastructure

Modern space travel rests on several technological pillars, the interplay of which enables the diverse applications. The first and most obvious component is the launch vehicles. For decades, heavy rockets like the Ariane dominated the market. However, the New Space Economy has shown that flexible, smaller launch systems offer significant advantages for transporting small and medium-sized satellites. German startups are taking different approaches: Isar Aerospace is developing the Spectrum rocket with an engine based on proven technology. Rocket Factory Augsburg uses the Helix engine, which is based on Ukrainian turbopump technology. HyImpulse is taking a unique approach with hybrid engines that burn solid paraffin with liquid oxygen.

The second pillar is the satellites themselves. While individual, multi-ton satellites used to remain in orbit for decades, constellations of hundreds or thousands of smaller satellites increasingly dominate today. SpaceX already operates over 8,500 satellites with Starlink and has applied for permits for a total of over 40,000. These mega-constellations enable global internet coverage with low latency, but they also pose new challenges.

The third component is ground infrastructure. Without ground stations, control centers, and data processing capacity, satellites are worthless. Germany has a central facility for controlling European satellites, the ESA Control Center in Darmstadt. The newly established Cyber ​​Security Operations Center in Darmstadt protects 28 satellites, ground stations, and control systems from cyberattacks—a sign that the vulnerability of space-based infrastructure has been recognized.

The fourth pillar is Space Situational Awareness. The mapping of all flying objects in the sky, as offered by the Ariane Group, makes it possible to monitor satellite movements, detect disruptions, and warn of threats. AI models constantly analyze movements in orbit and issue warnings. Until now, Germany used a mapping system from the USA that was incomplete. With European systems, Europe has been able to gain greater sovereignty in this important area.

The fifth dimension is the dual-use nature of the technology. Earth observation satellites, which provide high-resolution imagery for agriculture or disaster relief, can also be used for military reconnaissance. Communications satellites, which bring broadband internet to remote regions, are also crucial for controlling drones and networking troops in theater. This merging of civilian and military use is characteristic of modern space travel and raises complex ethical and legal questions.

Europe's dilemma in orbit: The struggle for strategic autonomy

The current situation of European space travel is characterized by a paradoxical situation. On the one hand, Europe possesses highly developed technology and excellent engineering expertise. Germany alone operates just over 80 satellites of its own and invests approximately €2.5 billion annually in space. On the other hand, Europe lags significantly behind in global competition. The European market share currently stands at only 17 percent, while the USA invests approximately €72 billion and China €18 billion annually. The USA operates over 10,000 satellites, China around 900.

These figures highlight the strategic challenge. To increase the European market share from the current 17 percent to 25 percent, Germany alone would have to increase its investments by €93 billion by 2040. European investments as a whole would have to increase by €412 billion. This investment gap is not just a matter of national prestige, but also affects Europe's strategic autonomy in an economic and security system increasingly dependent on space infrastructure.

This dependence is particularly evident in the defense sector. Currently, two Intelsat satellites, which the German Armed Forces also use, are being tracked by two Russian reconnaissance satellites. NATO Secretary General Mark Rutte has warned against Russian plans to place nuclear weapons in space to combat satellites. Russia and China have rapidly expanded their space warfare capabilities in recent years. They can jam, blind, manipulate, or kinetically destroy satellites.

Germany's response to these threats is comprehensive. The announced €35 ​​billion will be invested in a resilient structure of satellite constellations, ground stations, secure launch capabilities, and services. Specifically planned are the hardening of systems against interference and attacks, improved situational awareness through radars, telescopes, and sentinel satellites, the creation of redundancies through several networked satellite constellations, and secure transport capacities into space. Germany is relying on a mix of small launch vehicles for flexible launches and, in the medium term, European heavy-lift carriers.

Civilian use is equally important. Space-based services are now indispensable for telecommunications, navigation, weather forecasting, disaster preparedness, and environmental monitoring. The European Earth observation program Copernicus continuously provides data for monitoring sea ice, icebergs, glaciers, subsidence, and oil spills. The Galileo satellite navigation system enables precise positioning independent of the American GPS. This sovereignty in critical areas is priceless, but requires continuous investment and technological innovation.

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Practical test in space: How space technology is changing war, the economy, and everyday life

The practical significance of space travel is most clearly evident in concrete applications. The war in Ukraine impressively demonstrated the strategic role of space-based systems. The Ukrainian armed forces rely on the internet provided by Starlink and use it to control their drones. The fast and flexible satellite communications have successfully neutralized Russian electronic jamming measures. According to Elon Musk, all attempts to hack or disrupt Starlink have failed. Systems like Starlink will be indispensable in future wars – and the US has a huge lead in this regard.

The military application goes even further. Ariane Group's Space Domain Awareness enables complete mapping of all flying objects in the sky. It allows you to see which satellites are flying where, whether they are being tracked or jammed by other satellites, and whether there are any unusual maneuvers. AI models constantly analyze the movements and issue warnings. This capability is essential for the German Armed Forces and other armed forces, which need to protect their own systems and detect potential threats early on.

In the civilian sector, space travel is revolutionizing numerous industries. Agriculture uses satellite-based precision processes to optimize irrigation and fertilization. Logistics companies are completely dependent on satellite navigation. The financial industry requires highly precise time signals from satellites to synchronize transactions. Insurance companies use Earth observation data for risk assessment. The energy industry monitors pipelines and power lines from space. All of these applications have become so commonplace that their dependence on space infrastructure is often overlooked.

Commercial applications are developing rapidly. The German company OroraTech has developed a platform that aggregates external and proprietary satellite data into advanced algorithms for wildfire detection. Decision-makers receive real-time information about fires, saving lives and minimizing damage. The Exploration Company, based in Munich, is developing its Nyx space capsule, a reusable transport vehicle that is intended to deliver cargo to the ISS or other destinations in low-Earth orbit starting in 2028. With a payload of 3,000 kilograms, Nyx is expected to be able to transport more than comparable systems – and at 25 to 50 percent lower costs.

Earth observation has become a multi-billion dollar market. Geopolitical uncertainties have massively increased demand for geospatial data and satellite images. Government agencies use them for everything from analyzing weather patterns and agriculture to tracking changes and movements along international borders. In the first quarter of 2024, funding for space startups rose from $2.9 billion to $6.5 billion. Investments in geospatial data surpassed satellite communications for the first time, demonstrating the growing demand for such data.

Crowded skies: risks and downsides of the new space age

Despite all the enthusiasm for space travel, the significant problems and controversies cannot be overlooked. The most pressing issue is space debris. Estimates suggest that approximately 130 million objects classified as junk are already orbiting Earth. Around 40,000 of these are larger than one meter and can be tracked by ground-based radar stations. However, the majority of these objects are too small to be detected—and yet still dangerous. At speeds of over 30,000 kilometers per hour, even the smallest particles have destructive power.

Kessler Syndrome, named after NASA scientist Donald Kessler, describes a catastrophic chain reaction: If the density of space debris becomes so high that collisions increase exponentially, this could render parts of Earth's orbit unusable for space travel. Each collision generates additional space debris and increases the risk of further collisions. The International Space Station already has to regularly perform evasive maneuvers. German astronaut Matthias Maurer recounted one of his most dangerous experiences in space, when space debris hurtled toward the space station.

The mega-constellations are exacerbating the problem. SpaceX already operates over 8,500 Starlink satellites. China is planning two comparable projects, Guowang and Spacesail, with a total of 27,000 satellites. The number of objects in orbit is growing exponentially. While modern satellites have a limited lifespan of about five years and then burn up in the atmosphere, the sheer number dramatically increases the risk of collision. Researchers are raising the alarm that the more than 7,000 Starlink satellites are not performing as planned and could compromise space exploration.

The second major controversy concerns cybersecurity. Satellites are highly vulnerable to cyberattacks. The German Federal Office for Information Security emphasizes that space infrastructure represents a single point of failure where enormous damage can be caused with manageable effort. Satellites are used for an average of 15 years; many older models from the early 2000s are still in use and were not developed with security by design. These legacy systems usually use older software that cannot be easily patched. Hardware vulnerabilities can represent a vulnerable point of attack throughout a satellite's lifetime.

At the 2022 Black Hat Security Conference, it was demonstrated that $25 equipment could be used to execute manipulated software code on Starlink terminals. Although Starlink responded, the example demonstrates a general vulnerability. The increasing number of satellites and market participants, not all of whom can demonstrate convincing IT security practices, is exacerbating the problem. Money is a factor – more IT security features drive up development costs, which is why some compromises are made.

The third controversy concerns the militarization of space. The 1967 Outer Space Treaty prohibits the stationing of weapons of mass destruction in space and calls for peaceful use. However, the boundaries between civilian and military use are becoming increasingly blurred. The dual-use nature of modern satellite technology makes a clear distinction impossible. China and Russia are rapidly expanding their capabilities for warfare in space. Germany also plans to develop offensive capabilities in space in order to remain defensible. This development raises fundamental questions: Can space truly remain a space of peace, or will it become the next battlefield?

The fourth controversy is ethical. Is the use of immense resources for space missions justifiable, or wouldn't these resources be better used to address more pressing problems on Earth? Space tourism, where flights cost several hundred thousand to millions of dollars, exacerbates this question. Will space tourism provide new impetus and unlock financial resources, or will it simply contribute to commercialization while urgent problems on Earth remain unsolved?

Gold rush in the cosmos: humanity's next big goals in space

The future of space travel will be shaped by several major trends. The first is the return to the moon. NASA's Artemis program envisions landing humans on the moon again this decade. This time, the first woman will be among those involved. Germany plays a central role: The European Service Module (ESM), which is largely built in Germany, is essential for the Orion spacecraft. It houses the main engine, supplies power, regulates climate and temperature, and stores fuel, oxygen, and water supplies for the crew. Without Germany, the USA would not be able to fly to the moon.

The lunar missions are more than symbolic acts. Starting in 2032, NASA plans to test mining on the moon. Initially, oxygen and water will be extracted, and later possibly iron and rare earth elements. Developing resources on the moon is key to reducing costs and developing a circular economy. Water can be purified for drinking water, serves as protection against space radiation, and can be split into oxygen and hydrogen—the basis for rocket fuel. Launching from the moon is much more efficient than from Earth due to the low gravity.

The second major trend is asteroid mining. The US company AstroForge is planning a mission to asteroid 2022 OB5, a metal-rich M-class asteroid, as early as 2025. In addition to iron and nickel, such asteroids can contain valuable platinum group metals. The asteroid Psyche, which a NASA spacecraft is currently traveling to, could be worth $10,000 quadrillion due to its iron content alone—more than the entire global economy. Although commercial mining may still be decades away, the technological foundations are being laid now.

The third trend is commercial space tourism. Virgin Galactic has been offering regular flights for around $450,000 since 2023. Blue Origin has been conducting suborbital tourist flights since 2021. In September 2021, SpaceX launched four space tourists into space for three days with Inspiration4, reaching an altitude of 580 kilometers. In September 2024, the altitude was increased to 1,400 kilometers—a new record for space tourism. NASA opened the ISS to tourists in 2022, with a stay costing $55 million per person. Elon Musk even plans tourist flights to Mars and settlements on the Red Planet in the future.

The fourth trend is international competition, particularly with China. China is pursuing a comprehensive space strategy with clear goals and massive investments. Over the past five years, China has made impressive progress: demonstrating in-space refueling, testing a fractional orbital bombardment system, launching a manned space station, and collecting samples from the far side of the Moon—a success the US has yet to achieve. China plans to conduct the first manned lunar landing by 2030 at the latest, which puts pressure on the US.

China is also investing in space-based solar energy, which could beam electricity from orbit to Earth. If China scales this capability and exports the resulting energy, it could gain control over global power grids, comparable to OPEC's control over oil. This strategic dimension makes it clear that space travel is far more than technological innovation—it is an instrument of geopolitical power.

Beyond the Horizon: Germany's Destiny in Space

Space travel is at a historic turning point. What was long considered a niche sector is developing into a key strategic industry of the 21st century. Projected growth rates of ten percent annually and the quadrupling of the global market to €2 trillion by 2040 underscore its enormous economic potential. But the significance of space travel goes far beyond economic indicators. It affects fundamental issues of security, sovereignty, technological progress, and ultimately Europe's position in an increasingly multipolar world order.

Germany and Europe have recognized the signs, but are still reacting too hesitantly. The announced €35 ​​billion by 2030 is an important step, but it is not enough to close the gap with the US and China. To increase the European market share from 17 to 25 percent, Germany alone would need an additional €93 billion by 2040. These investments must be accompanied by structural reforms: faster approval procedures, more venture capital for startups, closer integration of research and industry, and a clear commitment to the strategic importance of space travel.

The technological challenges are considerable. While Germany boasts excellent engineering and established companies like OHB and Airbus Defence and Space, as well as promising startups like Isar Aerospace and Rocket Factory Augsburg, there is a significant gap compared to SpaceX, which dominates orbit with over 8,500 Starlink satellites and has revolutionized launch costs. The reusable rockets that SpaceX has perfected are the main reason for America's leadership in space launches. China is rapidly catching up in this area.

The downsides must not be ignored. Space debris threatens the long-term usability of orbit. The cybervulnerability of space-based systems poses a significant security risk. The increasing militarization of space contradicts the original ideals of the Outer Space Treaty. And the ethical questions about prioritizing investments in the face of pressing problems on Earth remain unanswered. Sustainable development of space requires international regulation, technological solutions for debris disposal, and critical reflection on goals and means.

Nevertheless, the opportunities outweigh the risks. Space travel is no longer a distant dream, but an integral part of our everyday lives. Without satellites, telecommunications, navigation, weather forecasting, disaster management, and numerous economic sectors would collapse. Dependence on space-based services will continue to grow. Those who possess technological sovereignty in this area will secure their strategic ability to act. Those who fall behind will become dependent on other powers.

Germany and Europe face a choice: Do they invest heavily in this future technology now and create the necessary structural prerequisites for a competitive space industry? Or do they leave this strategically crucial field to the US and China? The coming years will show whether Europe has the courage and vision to treat space for what it is—not an overlooked industry, but the foundation for security, prosperity, and sovereignty in the 21st century. The stars are aligned, but time is running out.

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