What Europe’s new space giant means for businesses

Businesses in Europe today depend on a constant flow of data, and an increasing amount of it comes from space. For CIOs and COOs, the stability, control, and expense of this space-based data are important business matters.

But Europe’s space industry hasn’t been united, which has made it tough to compete with bigger companies from around the world. Three of Europe’s biggest industrial companies are trying to fix this weakness.

Airbus, Leonardo, and Thales are merging their main space operations into one new company to bring together the expertise and data systems that support European businesses and national security.

The size of Europe’s new space business will be considerable; it’s planned to include Airbus’ Space Systems and Space Digital units, Leonardo’s Space Division, and Thales’ large involvement in joint ventures like Thales Alenia Space and Telespazio.

With about 25,000 workers and an initial yearly revenue of about €6.5 billion, the aim is to be a one-stop shop for everything from space equipment to related services. In other words, everything except for launching things into space.

For business leaders, the idea makes sense for two main reasons: stability and new ideas. The companies think that by combining what they have, they can build a unified, integrated, and stable European space player that is big enough to compete with any global rival.

For a CDAO (Chief Data and Analytics Officer) who uses data from Earth to power AI models on platforms like Google Vertex AI or AWS Bedrock, this could mean accessing better data streams at better prices. For a CIO in charge of a global supply chain, the goal of autonomy means more reliable GPS and communication services.

Although the plan is clear, making it happen will be tricky. This is still just an agreement, and Europe’s new space business isn’t expected to start running until 2027. A few big issues must be solved first.

The first is uniting the different ways of doing things. Combining different engineering, manufacturing, and project management methods from three national leaders is a huge task.

The second is how it will be managed. The ownership is carefully split, with Airbus owning 35 percent and Leonardo and Thales each owning 32.5 percent. Making sure the different companies and national interests work together within this balanced governance structure will be important for the new company to be quick and adaptable.

Lastly, the deal depends on customary conditions including regulatory clearances. Combining to form a single dominant European company will inevitably get close attention from regulators, even with the strong political support for European control.

In a joint statement, the CEOs of the three companies – Guillaume Faury of Airbus, Roberto Cingolani of Leonardo, and Patrice Caine of Thales – called the new business a turning point for Europe’s space industry.

“This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market,” the CEOs explained.

“By pooling our talent, resources, expertise, and R&D capabilities, we aim to generate growth, accelerate innovation, and deliver greater value to our customers and stakeholders. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain and its many applications.”

Business leaders should pay attention to this planned 2027 merger. It shows Europe’s plan to be independent and make a space business big enough to compete everywhere. Tech and operations chiefs need to find out how much they rely on Airbus, Leonardo, and Thales.

The main benefit is the chance for faster new ideas and combined research, which could give better, all-in-one data services. Right now, they need to talk with these partners about their change plans to lower risks and get ready to take advantage of all the new things this €6.5 billion company wants to make available.

See also: How Vodafone is tapping AI to automate 5G network operations

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Tags: airbus, connectivity, data, europe, leonardo, networks, satellites, sovereignty, space, telecoms, thales