Reaching for the stars
Christophe Pouchoy, International Thematic Equity Manager, La Financière de l’Échiquier (LFDE) | November 2025
The world is embracing microgravity manufacturing, private space stations and satellite data, and is using space as key infrastructure. Communication, navigation, Earth observation and changes in the space ecosystem are opening up an unprecedented window of opportunity. Currently valued at over $600 billion, the space market is projected to grow to $1.8 trillion by 2035.[1] This thriving ecosystem is becoming the centre of attention for strategic, technological and economic challenges. Evidence of this can be found in the 23 October agreement between Airbus, Thales and Italian manufacturer Leonardo, which is specifically aimed at merging their satellite activities.[2]
Entrepreneurial and commercial momentum has made access to space easier and cheaper, inspiring new visions of how it can be used. Alongside established industries such as launchers, with companies like Rocket Lab and Avio, satellites and lunar modules, new businesses are flourishing around space data. This has become a valuable product for users such as Deere & Co., which uses it to improve its agricultural software, Garmin, which uses it for its navigation systems, and Trimble, which uses it for its construction and surveying software. On top of this are technology companies that supply essential components and software for rockets and satellites, as well as defence companies, all of which illustrate the dynamism of the sector.
One of the catalysts of the space sector is space defence, where investment remains high and is stimulated by ambitious projects such as the Golden Dome, the American missile defence shield, which is estimated to cost $175 billion[3] over the next three years.
While the main players today are North American, led by RTX and Kratos Defence & Security Solutions, a group of European champions is emerging. Space surveillance and protection have become issues of national sovereignty. The defence budgets of European Union member states are expected to increase from 2-3% to 5% of GDP in the medium term.[4] BAE Systems, Thales, Safran, Avio and Leonardo are already capitalising on this historic shift, symbolising the rise of European defence and aerospace companies. These groups are also positioning themselves in cybersecurity, drones and dual civil-military technologies, all of which are enjoying structural growth. With well-filled order books, these flagship companies could become the driving force behind Europe’s stock market. The agreement between Airbus, Thales and Leonardo to establish a European leader in satellite manufacturing will bolster the sovereignty of the European space sector and its infrastructure and telecommunications, Earth observation and research services. Another example of growth in the European defence sector is Indra Sistemas, which will benefit from Spain’s programmes to modernise its military capabilities, particularly its advanced land, air and cyber defence systems.
As pioneers constantly seeking innovation and performance, we have been supporting changes in the space ecosystem since 2021, convinced that this theme will help to provide a response to many global challenges. This is a major revolution whose impacts will be transformative.
Disclaimers. These data and opinions are provided for information purposes only and do not constitute an offer to buy or sell a security, investment advice or financial analysis. Past performance is not an indication of future performance. The securities and sectors mentioned above are given by way of example. Neither their presence in the portfolio nor their performance are guaranteed.