Analyst Report News

Global governments’ space budget reaches $103bn in 2022: Euroconsult

The government has set a new record for its spending on space defence due to investments in early warning systems and space security.

This year has seen a cumulative spend of $103bn in 2022, a 9% increase since last year and a record high for the space sector, according to the Government Space Programmes report by Euroconsult, evidencing a continued increase in global governments’ space budgets.

Despite the recent pandemic crisis, governments have increased their investments in the sector to further support the development of their industry and sustain their ambitions.

The newly released 2022 edition of Euroconsult’s Government Space Programmes report provides detailed insight into rising government space budgets in civilian and defence applications for the decade ahead, highlighting spending patterns and specific areas of investment from nations around the globe.

This growth is notably significant in the defence area, reaching 16% in 2022 and topping a new record at $48bn. Current geopolitical tensions have confirmed space as a strategic operational theatre for hybrid warfare tactics, pushing governments to sustain their investments in ‘traditional’ space applications such as Telecommunications, Navigation and Earth observation, but also more prominently in Space Security & Early Warning systems to further protect their space assets. On the civil side, government expenditures are increasingly driven by Human Spaceflight missions, which now attracts more and more new entrants encouraged by the socio-economic benefits and prestige brought by these programs.

While civil expenditures have historically always been higher than defence spendings, the gap between the two continues to decrease and is expected to reach 50/50 parity by 2031, according to Euroconsult’s projections.

In terms of national rankings, the US remains, by far, the largest investor worldwide. However, its share of global spending has been reduced, from 76% in 2000 to 60% in 2022 as more and more countries join the sector. This year, Euroconsult counted more than 86 countries invested in space activities. Some regions have shown a particular dynamism over the past few years, notably in the Middle East with countries such as Saudi Arabia, the UAE, Qatar and Oman accelerating their development in the sector.

Charlotte Croison, Senior Consultant at Euroconsult, said: “The new edition of the Government Space Programmes report confirms the growing interest of countries in the space sector, notably in the defence area where space militarization has never been stronger.”