The global space economy is entering a transformative era thanks in large part to expanding defense budgets and accelerating direct-to-device (D2D) capabilities. According to Novaspace, the space industry is projected to reach nearly $1 trillion by 2033 from its current value of around $600 billion, with downstream solutions and sovereign space investments fueling much of this growth. But behind the headlines of consolidation, mega-mergers, and the rise of new entrants, the true drivers of long-term value will be scale, trust, resilience, and the ability to deliver proven outcomes.
Defense Budgets and Sovereign Space
Space has become a measure of national power. What was once the domain of a handful of nations is now a global priority, with 94 countries investing in space systems. In 2024, government space budgets reached $135 billion, with $73 billion dedicated to defense, more than half of the total. For these governments, connectivity is a vital matter of security, sovereignty, and economic competitiveness.
A recent deployment by the French Navy illustrates this point. During a five-month mission covering 40,000 nautical miles and involving 20 allied nations, the aircraft carrier Charles de Gaulle relied on medium Earth orbit (MEO) satellite connectivity to sustain operations. “Aircraft carriers such as the Charles de Gaulle are essentially floating military bases,” said Philippe Glaesener, Senior Vice President of Global Government at SES. “They require secure, resilient low-latency satellite connectivity service at all times to support the diverse and complex data needs of the personnel onboard – from surveillance and intelligence, navigation and access to cloud applications, to daily communications.”
The trend extends beyond a single mission. As the demand for sovereign space capabilities continues to broaden, it signals the need for secure and resilient satellite services on a global scale. “The surge in government space budgets reflects the strategic importance of space,” said Charlotte Croison, Manager at Novaspace. “Governments worldwide are not only expanding their capabilities to secure their assets in orbit but are leveraging space to enhance their geopolitical standing and foster economic growth.”
The Direct-to-Device Revolution
If sovereign investment is strengthening the backbone of the space economy, D2D is creating its next frontier of applications. Novaspace projects more than 300 million monthly D2D subscribers by 2030, creating a multibillion-dollar revenue stream across commercial and defense sectors. While consumer smartphone connectivity dominates much of the public conversation, the strategic implications are far broader.
For humanitarian responders, defense organizations, and enterprises in austere or disrupted environments, D2D adds a new layer of resiliency and accessibility. “Direct-to-Device is a huge play,” shared Adel Al-Saleh, CEO of SES. “I have spoken to many D2D players and most of them require partnerships, particularly in MEO, for their backhauls and resilience enhancement coverage. This is not just about going direct-to-device but also about moving traffic which represents a substantial emerging business.”
For defense and mission-critical applications, the possibilities are even more disruptive. “Direct-to-device means new functionalities, getting into autonomous vehicles, moving into over the horizon, ISR at the group one level, perhaps even being able to multicast that information from a group one UAV to company, battalion, brigade, division or even back to Washington, D.C., as necessary,” said Michael Geist, vice president of product management, SES Space and Defense. “Those are just different applications that don’t exist today or exist with any scale today that can be enabled by a direct-to-device capability.”
Artificial Intelligence and the Next Wave of Efficiency
As many as 50,000 spacecraft are expected in orbit by 2030. Managing this complexity will be as critical as launching new assets, and AI is rapidly emerging as the enabling force. From spacecraft design to network management, AI is driving efficiencies that make satellite systems more adaptive and reliable. “We are just grasping the impact of what artificial intelligence technology will mean for the entire sector, from the design to the production to the exploitation of assets and the value creation of all the data and services enabled through satellite systems,” said Pacôme Révillon, CEO of Novaspace.
Perhaps the greatest opportunity lies in unlocking the value of satellite-enabled data. Low-latency, high-throughput connectivity, paired with AI-driven analytics, enables real-time decision-making in areas where timing is critical: defense operations, logistics, disaster response, and beyond. In this way, AI is able to reduce operational friction while magnifying the impact of space-enabled connectivity on the ground.
Partnering for a Better Future
The global space economy is expanding rapidly, but growth alone is not enough. Nations and enterprises alike need partners who can deliver secure, resilient, and adaptive connectivity in an increasingly complex environment. For governments, enterprises, and humanitarian actors alike, this means partnering with organizations that have proven their ability to deliver at scale, adapt to emerging threats, and sustain trust.
