Germany’s leading industrial association, the BDI, has found that the country’s new space technology market truly is taking off. In a new study, the BDI documented EUR 308 million taken in by the sector in 2020 – nearly double the sum raised in 2019.
The study also recorded 125 new space companies in Germany, of which roughly one-third were less than five years old. They are spread all over Germany, although the hotspots are Berlin and Munich.
“A new branch is arising right in front of our eyes,” enthused the director of the BDI’s space division, Matthias Wachter, to the Handelsblatt business newspaper.
The study also calculated that roughly two-thirds of all new space companies do business with companies outside the sector: Handelsblatt cites the example of Berlin earth-observation start-up LiveEO working with Germany’s rail company Deutsche Bahn.
Business analysis company Capitol Momentum says that German new space companies focus on three main areas: satellite carrier systems, earth observation and consultation.
The sector as a whole has been bolstered by German new space companies’ success in recent rounds of financing and plans to establish a small rocket launching pad in northern Germany.
“A country like Germany with a large engineering footprint positions itself as a top location, especially considering its plans to commercially launch small carrier rockets from the North Sea” says Germany Trade & Invest new space expert Christoph Mester. “Spillovers to other areas of business will create a completely new value chain that will enable other new applications, for instance, in autonomous driving. While new space is still an evolving industry, it is rapidly growing and establishing business relationships with big players here in Germany.”