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Investing.com —\u00a0Europe\u2019s space sector is grappling with a turbulent period marked by project delays, cost overruns, and mounting competition from global players.<\/p>\n
Airbus, a leading player in the industry, has absorbed \u20ac1.5 billion in charges in its satellite division over the last two years, while Thales <\/span><\/span> <\/span><\/span> (EPA:) Alenia Space is expected to post losses in 2024. Launch providers are also under pressure; Avio\u2019s Vega C rocket remains grounded following a 2022 failure, and the Ariane 6, already delayed by four years, has managed only one flight since its July 2024 debut.<\/p>\n Europe\u2019s satellite industry has been further strained by the rise of Low Earth Orbit constellations, which have disrupted traditional demand for Geostationary satellites.<\/p>\n \u201cSpace is clearly becoming more strategic, both in terms of commercial communications, but also in the sphere of defence,\u201d BofA analyst said amid rapid advancements by SpaceX, Blue Origin, and emerging space programs in China, India, and Japan. SpaceX conducted 134 Falcon rocket launches in 2024, with a 96% success rate in booster landings.<\/p>\n BofA flagged concerns over Europe’s fragmented supply chain, inflation pressures, and execution risks that could derail the project ahead of its critical design review in 2028.<\/p>\n European space companies are increasingly considering consolidation to remain competitive. Airbus CEO Guillaume Faury recently hinted at potential partnerships, aligning with a year-long push for a unified approach. BofA analysts argue that Europe must adopt a global mindset, echoing the success of SpaceX\u2019s vertically integrated model.<\/p>\n<\/div>\n<\/div>\n