06/03/2025

As geopolitical tensions escalate, nations worldwide are increasing their defence budgets, with a critical focus on space technology. 

The UK previously announced an increase in defence spending to 2.5% of GDP, with plans to reach 3% as quickly as possible. During a summit held in London over the weekend, the UK also revealed additional measures, including repurposing the £28bn National Wealth Fund, shifting its focus from cleantech infrastructure to defence. Furthermore, European Member states are encouraged to raise their defence budgets by an average of 1.5% of GDP, potentially unlocking €650 billion for defence investments. With a further €150 billion loan program envisioned to support a proposed five-point plan, labelled “ReArm Europe”, that will see Europe increase advanced defence and security technologies. 

A major beneficiary of these increased budgets is the space domain, which is now integral to modern security and defence strategies.

The Integral Role of Space Technology in Defence

As defence strategies evolve, space technology has emerged as a cornerstone of modern military operations. 

• Intelligence, Surveillance, and Reconnaissance (ISR): Satellites equipped with advanced sensors provide real-time data, enhancing situational awareness and decision-making. 
• Missile Defense Systems: Space-based infrared systems detect and track missile launches, offering early warning and interception opportunities. 
• Secure Communications: Satellites facilitate encrypted communication channels essential for coordinating military operations across dispersed units. 
• Navigation: Global Positioning System (GPS) satellites enable precise navigation to support military operations.

The dual-use nature of space technology—serving both civilian and military purposes—has led to increased private sector involvement. Companies like ICEYE, initially focused on environmental monitoring, have pivoted to defence applications by providing satellite data to governments. This trend highlights the symbiotic relationship between commercial innovation and military requirements.

The convergence of heightened security threats and rapid advancements in space technology is reshaping global defence strategies. Europe's proactive measures to enhance its defence capabilities, coupled with the strategic integration of space technology, reflect a commitment to safeguarding national and regional security in an increasingly complex geopolitical environment. As nations navigate this new frontier, balancing technological innovation with responsible stewardship of space will be paramount to ensuring long-term stability and peace.

As the space domain becomes more integral to ensuring global security and stability, balancing technological advancements with responsible space governance is essential. For nations seeking to ensure long-term peace and security, investing in space technologies is not just strategic, it is essential for building a safer, more interconnected world.