Investing in Space: NATO Opens the Door to Commercial Space Industry

With a new Commercial Space Strategy and defense spending set to soar, NATO is officially inviting private companies into the high-stakes world of military space. Could this be the next trillion-dollar opportunity?

NATO Launches Its First-Ever Commercial Space Strategy

For the first time, NATO has released a Commercial Space Strategy with three core goals:

Leverage commercial solutions to support defense missions,

Guarantee uninterrupted access to space in peace, crisis, or war,

Build secure and coherent partnerships with the private space sector.

This strategy marks a major shift: private space firms are no longer on the sidelines. From Earth observation to communication satellites, the alliance wants commercial capabilities to become a backbone of its future operations.

Defense Spending Set to Hit 5% of GDP by 2035

At the urging of former U.S. President Donald Trump, NATO members have pledged to more than double defense spending to 5% of GDP by 2035:

3.5% for pure defense,

1.5% for strategic infrastructure like cyber and space systems.

With hundreds of billions on the table, space-focused defense players — from Lockheed Martin to Planet Labs — are set to benefit massively.

Space: NATO’s New Frontline

NATO officially recognized space as an operational domain in 2019. By 2021, the alliance confirmed that space-based attacks could trigger Article 5, its mutual defense clause. In 2026, NATO will publish its Space Doctrine, expected to solidify how space integrates into military planning.

Private sector involvement is seen as critical to bridging capability gaps and accelerating innovation — particularly as China, Russia, and the U.S. intensify their space ambitions.

The Battle to Replace Starlink in Ukraine

Since Russia’s invasion of Ukraine, Starlink has played a crucial role in providing communication for both civilians and the military. But concerns over Elon Musk’s personal politics and control over access have spurred European leaders to seek alternatives.

That’s where Eutelsat comes in. After merging with OneWeb, the company now controls over 650 low Earth orbit satellites and recently raised €1.35 billion in new funding — with the French government taking a 29.99% stake. Eutelsat stock surged 31% after speculation it could take over Starlink’s role in Ukraine.

Global Race for Space Leadership Heats Up

France: President Macron calls for Europe to reclaim status as a global “space power.”

China: Successfully tests a domestic space operating system onboard a satellite.

South Korea: Plans $1.53B investment in reusable launch vehicles by 2035.

India: HALS wins a $59M contract to produce small satellite launch rockets.

Japan: Honda successfully tests reusable rocket tech.

Meanwhile, NASA’s budget cuts raise questions about U.S. dominance, with some suggesting China may gain ground in lunar exploration and beyond.

Upcoming Space Launches

June 28 – SpaceX Starlink launches from Florida and California

June 29 – Blue Origin’s New Shepard crewed mission from Texas

July 3 – Russia’s Soyuz delivers cargo to ISS

Market Moves & Industry Shifts

Planet Labs lands NATO contract for intelligence services.

Airbus Space turnaround progressing after €1.3B in losses.

Sierra Space opens new defense solar array tech facility in Colorado.

Conclusion: A Defining Moment for Space Commercialization

NATO’s strategy signals a new era of collaboration between governments and the private sector. Space is no longer just about exploration — it’s a frontline for defense, cybersecurity, and geopolitical leverage.

For commercial space companies, this isn’t just opportunity — it’s a mission.

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