Europe’s New Space-Security Nexus: What ESPI Report 94 Reveals About the (Re)Convergence of Space and Defence Industries

As Europe redefines its strategic priorities in a changing geopolitical landscape, a quiet but transformative shift is unfolding: the growing convergence between the space and defence industries. The European Space Policy Institute’s latest report (ESPI Report 94 – The (Re)Convergence of Europe’s Space and Defence Industries, March 2025) offers an in-depth look at this evolving trend.

For Ireland—a neutral country in defence matters but an increasingly active player in the space economy—this report provides a valuable perspective on how the European space sector is evolving, and what opportunities lie ahead.

A Strategic Shift in Europe’s Space Ecosystem

The war in Ukraine has underscored the vital role of space technologies in crisis response and national security. Satellite imaging, secure communications, geolocation, and orbital surveillance are no longer optional—they’re critical. According to the report, agreements involving space applications in defence and security have quadrupled between 2020 and 2023. The shift is clear.

Importantly, the majority of these investments are for dual-use technologies—those that serve both civilian and security purposes. At the European level, the focus remains on building resilient infrastructure, improving crisis management, securing communications, and supporting humanitarian and environmental monitoring.

An Expanding Market Across the Value Chain

This convergence is also reshaping the industrial landscape. Space companies are developing solutions with security applications, while traditional defence groups are entering the space sector through acquisitions, partnerships, and new divisions.

Key European players such as Thales Alenia Space, Airbus, Indra, and Leonardo are leading high-tech projects in collaboration with SMEs, research labs, and national or European agencies. The report highlights that France, as a long-standing leader in the European space sector, ranks among the top initiators of new contracts in this area. Its strategic vision—linking industrial innovation, technological sovereignty, and European cooperation—positions it at the forefront of this transformation.

What Role for Ireland?

Ireland, while maintaining its neutrality, is rapidly developing its space sector. Through its participation in ESA and EU space programmes, Ireland is already contributing to areas such as Earth observation, satellite connectivity, and space situational awareness.

ESPI’s report underlines the importance of European programmes like the European Defence Fund (EDF) and IRIS², which aim to strengthen cross-border industrial collaboration. Irish companies working on AI, space data processing, or advanced sensors can participate in dual-use projects, without challenging Ireland’s established neutrality.

A Differentiated Approach to Strategic Engagement

The report suggests that each European country must define its own path in this convergence. There is no one-size-fits-all model—rather, a shared framework within which each state can pursue its national priorities and industrial ambitions.

For Ireland, this could mean:

• Expanding participation in EU calls for civil and dual-use space projects.
• Positioning SMEs and startups within strategic technology supply chains, especially in AI, data systems, and cybersecurity.
• Continuing the development of national space capabilities that align with Europe’s goals for resilience and technological autonomy.

Conclusion: A Changing European Space Order

ESPI Report 94 makes it clear: the European space landscape is shifting. And with it, new opportunities are emerging—not only for large aerospace companies, but also for agile, innovation-driven ecosystems like Ireland’s.

For Ireland, this convergence represents more of an opportunity than a dilemma: the opportunity to contribute to Europe’s collective resilience and innovation, while maintaining a consistent foreign policy stance.

Security and space are no longer separate spheres. Their growing overlap invites all European actors—neutral or not—to imagine new forms of cooperation and engagement that are technologically ambitious, strategically aware, and future-ready.

🛰 Download the full report: ESPI Report 94 – The (Re)Convergence of Europe’s Space and Defence Industries

📬 Stay updated: Subscribe to our newsletter !