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Italy accelerates towards the future with investments of up to 7.3 billion euros
The Space Economy sector is experiencing a moment of great transformation and dynamism at a global level, with an estimated value of 630 billion dollars in 2024 and a growth projection of up to 1.8 trillion dollars by 2035. This momentum is fuelled by increasingly substantial investments, both public and private, and by the adoption of innovative technologies such as Artificial Intelligence (AI) and autonomous systems. Italy, with a strong tradition of excellence in the space industry, is positioning itself among the protagonists of this scenario, thanks to a series of strategic initiatives and investments. 2024 has already proven to be a key year for the Space Economy, with private investments that exceeded 6.5 billion dollars in the first quarter alone, more than double compared to the previous year. At the European level, the European Space Agency (ESA) has recorded a record budget of 7.8 billion euros, a 10% increase compared to 2023. In Italy too, the space industry is showing signs of extraordinary growth: with a value of 2.9 billion euros in 2021, it is expected to reach new milestones thanks to investments of approximately 7.3 billion euros planned up to 2026. Among the main Italian players in the sector is AIKO, a Turin-based scaleup specialized in advanced AI-based software for space applications. CEO and co-founder Lorenzo Feruglio underlines the importance of technological innovation and public-private collaboration to overcome current challenges, such as long return on investment times and growing international competition. The Italian space industry is characterized by a strong specialization in key sectors such as microsatellites and launchers, areas in which the country boasts advanced technological expertise. However, there remains a significant dependence on public investments, which could limit the flexibility of companies to compete on international markets. Furthermore, access to global markets remains a crucial challenge, making it essential to invest in emerging technologies to consolidate Italy’s leadership in the international landscape.
Among the cutting-edge technologies, AI, autonomous systems and deorbiting are gaining relevance, opening up new possibilities to optimize space operations and reduce the risks associated with the management of orbital debris. These developments are essential to make space missions more efficient and sustainable, while contributing to the safety of the space ecosystem. 2023 marked a record year for launch activities, with 223 attempts and 212 successes, which allowed over 2,800 satellites to be placed in orbit, a 23% increase compared to the previous year. The growing demand for satellite services, including Earth observation (EO) and telecommunications, is driving the expansion of satellite constellations and the adoption of autonomous technologies.
Italy has already invested around €3 billion in 2022 to support ESA programmes, ranking third after Germany and France in mandatory programmes and first in optional programmes. A further €2 billion has been allocated through the National Recovery and Resilience Plan (PNRR), in collaboration with ASI and ESA, demonstrating the country’s commitment to strengthening its role in the sector. The integration of AI into space operations has revolutionised satellite management, improving their autonomy and efficiency. Thanks to hardware advances, satellites are now able to process data directly on board, reducing transmission times and optimising the quality of information transmitted to Earth. This is particularly relevant for complex missions, such as Earth observation, which in 2023 generated a market of €230 million, up 15% compared to 2022.
Deorbiting, or the safe removal of out-of-use satellites, is another area of growing interest. Innovative technologies in this field not only reduce the risk of collisions in space, but also help keep low Earth orbit operational, ensuring sustainable use of space resources. The years to come promise to be crucial for the aerospace sector. Italy, with its strong tradition of technological excellence and institutional support, is well positioned to address the challenges and seize the opportunities offered by the Space Economy. However, to support this growth, a clear and homogeneous regulatory framework at European level will be essential. Issues such as the management of orbital debris and the intellectual property of extraterrestrial resources remain poorly regulated, risking holding back investment and limiting entrepreneurial initiatives. Lorenzo Feruglio of AIKO highlights the importance of initiatives such as ESA’s Zero Debris programme, which aims to create a safer and more structured space ecosystem. “Greater regulatory coordination and policies to support innovation are essential to foster growth in the sector and ensure Europe’s competitiveness in the global landscape,” said Feruglio. The Italian space industry is at a turning point, with the potential to consolidate its leading position in a rapidly evolving global market. With targeted investments, technological innovation and public-private collaboration, Italy can successfully address future challenges and help shape the future of the Space Economy. With a strategic vision and constant commitment, the country is preparing to explore new frontiers in space and reap the benefits of a booming sector.
Alessandro Fiorentino