Investing.com – Europe’s space sector is facing a rough period marked with project delays, expense, and rising competition from world players.

Airbus, a leading industry player, earning € 1.5 billion satellite division fees in the past two years, while Thales (EPA 🙂 Alenia Space is expected to post defeats in 2024. The launch providers are also in pressure; The Vega C rocket at AVIO remained grounded after a failure of 2022, and Ariane 6, has been delayed for four years, managed by a flight since the debuted of July 2024.

European satellite industry is overwhelmed by increasing the constellations of the low Earth orbit, which interferes with traditional demand for geostationaries satellites.

“The space has clearly become more strategic, as in terms of commercial communication, but also in the fields of defense,” said the Bofa analysts between the speed of spacex, blue origin, and progressions Programs in the space in China, India, and Japan. Spacex conducts 134 falcon rocket launches in 2024, with 96% sucess rate in booster landings.

The BofA flagged concerns about the broken supply chain, inflation pressures, and murder risks that can disrupt the project before the critical review of the design of 2028.

European’s space companies are especially thinking of consolidation to remain competitive. The Airbus CEO Guillaume Faury has recently announced potential association, which is agreed to a year of pushing for a joint approach. The Bofa analysts argue that Europe should adopt a global thinking, named the success of the vertically integrated model in Spacex.