The expanding space economy: strategic opportunities for the Dutch space sector - and far beyond

• Space is becoming critical infrastructure - Connectivity, security, data services, and economic growth increasingly rely on satellite networks.
• The Dutch space sector has strengths to leverage - as a subcontractor providing high-value subsystems and enabling technologies for European and global space programmes.
• Focus, funding and mindset will determine success - Targeted investment and stronger engagement with end users are essential to convert technological excellence into lasting economic impact.

Space is bigger and expanding faster than many realise. The same is true for the space economy. In 2024, overall Opens in a new tabmarket revenue was estimated at roughly 450 billion euros. The satellite industry accounts for nearly three-quarters of this total, with the remainder coming from government space budgets and activities such as commercial human spaceflight. The global space economy is expected to grow to around 2 trillion euros by the early 2040s, or by around 9% a year. By early, 2026 for example, Opens in a new tabBlue Origin announced plans for a second satellite network alongside its existing LEO constellation. Both networks are expected to ultimately comprise several thousand satellites, comparable in scale to Elon Musk's Starlink network today.

This expansion is driven increasingly by commercial demand for connectivity, Earth observation, navigation, security, and data-driven services. The proliferation of satellite constellations is transforming space from a niche domain into critical infrastructure for the global economy. At the same time, geopolitical tensions and countries' growing concerns over resilience and sovereignty are reinforcing government investment in space capabilities. Together, these forces are creating sustained, long-term growth that favours countries with strong technological capabilities, integrated ecosystems, and the ability to translate innovation into scalable solutions.

The Netherlands is well positioned to benefit from this growth through its dense and highly connected space cluster. At its heart lies Opens in a new tabESA’s European Space Research and Technology Centre (ESTEC) in Noordwijk, which acts as a gravitational centre for companies, research institutes, and talent. Around ESTEC, a diverse ecosystem has formed, including established players, innovative SMEs, scale-ups, and leading knowledge institutions such as TNO, NLR and universities. "We're not going to create a new ASML in the satellite industry, that's how realistic we have to be," says Steenbakkers. "But the Dutch space sector can certainly be a valuable subcontractor for innovative, technologically advanced components in larger space programmes."

The Dutch space sector can assume such a role on the back of a number of distinctive technological strengths it has built up. "In some domains, Dutch companies really have world-class solutions to offer to allow us to punch above our weight," according to Steenbakkers. These strengths include laser communication which offers advantages in speed, security and energy efficiency; advanced sensors and scientific instruments; high-efficiency solar panels for space-based energy supply; and state-of-the-art precision manufacturing capabilities. "Importantly, from a commercial point of view, these technologies align well with the shift towards smaller satellites produced in volumes of hundreds or thousands."

The planned launch of PAMI-1 in 2027 illustrates how global trends and national capabilities come together in practice. PAMI - short for Platform for Autonomous Military Intelligence - is intended to be the first in a series of satellites providing space-based intelligence, surveillance and reconnaissance to the Dutch Ministry of Defence. Lead contractor for the project is Delft-based FSO Instruments, which industrialises laser communication technology developed by TNO. FSO's parent companies Demcon and VDL are involved in the construction of PAMI-1, while Cosine in Sassenheim supplies the satellite's primary optical sensor. "I think it's a shame, and also telling to be honest, that most people are unaware we can develop and build such a truly impressive system in the Netherlands," says Steenbakkers. "To me PAMI-1 shows the potential of the Dutch space ecosystem. It not only showcases our capabilities, it's also proof that the Netherlands can be a reliable partner in European and allied space programmes."

At the European level, initiatives such as IRIS², the new EU secure satellite constellation, represent major long-term opportunities. IRIS² - short for Infrastructure for Resilience, Interconnectivity and Security by Satellite - aims to deliver resilient and sovereign communication services for governments, critical infrastructure and commercial users. Beyond Europe, similar programmes in the United States and Asia, as well as commercial mega-constellations, offer export and partnership opportunities for Dutch suppliers. By positioning itself as a provider of critical subsystems and enabling technologies rather than complete platforms, the Dutch space sector can be a partner in multiple international value chains.

Deliberate choices and coordinated action are needed to achieve such a position. "Agenda setting and the required willingness to make tough selections are critical," says Steenbakkers. "By selecting a limited number of focus areas that combine Dutch technological strengths with high-growth market segments, the sector can concentrate resources and build scale." Government can play a stimulative role by reintroducing targeted incentives, similar in ambition to the Groeifonds. Such instruments not only provide funding, but also align incentives and accelerate innovation. "I'm hopeful in this respect," says Steenbakkers. "I expect the Ministry of Defence to become a main driver for future growth. They know what they need and they have the budget to support it." At the same time, the Dutch space cluster would benefit from a more outward-looking approach. Engaging more actively with end users, non-space sectors, and international partners will be essential to fully capture market value.

A strong and globally connected Dutch space cluster would deliver substantial benefits to the broader economy. Directly, it would generate high-value employment, exports and technological spillovers. Indirectly, space-enabled data and services would strengthen other sectors that are critical to Dutch competitiveness. In insurance for example, satellite data improves risk modeling for climate-related events such as forest fires and flooding. In agriculture, Earth observation supports precision farming and crop monitoring, enabling higher yields. In smart cities, space-based connectivity and monitoring enable better traffic management, infrastructure planning and resilience. By embedding space capabilities into these domains, the Netherlands can amplify the economic impact of its space sector far beyond its own boundaries, turning strategic investment today into long-term national advantage.