Eutelsat and SES race to dominate Europe's booming space economy

European satellite operators Eutelsat and SES are positioning themselves for growth in a rapidly expanding space economy. With competition rising from new low Earth orbit (LEO) constellations, both companies are making strategic moves to strengthen their market presence.

The sector is projected to grow steadily over the next decade, driven by demand from telecoms, enterprises, and governments worldwide. Eutelsat has thrown its support behind OneWeb, aiming to serve global telecom, enterprise, and government customers. The company recently raised capital to bolster its balance sheet and fund investments in LEO constellations. This financial boost comes as competition intensifies, with Starlink already operating around 9,000 satellites and Amazon's Project Kuiper planning to launch 3,236 more. Amazon expects its first commercial Kuiper services to begin in 2026, following FCC approval for launches starting in 2024-2025.

Meanwhile, SES has expanded its global reach by acquiring Intelsat. Over 60% of SES's revenue now comes from its Networks division, with roughly a quarter generated from government contracts. The company also stands to benefit from the upcoming FCC C-band auction, scheduled no later than July 2027, which analysts value at over €1 billion in potential gains.

BNP Paribas recently initiated coverage of both Eutelsat and SES, highlighting their opportunities and challenges. The bank's analysis underscores the growing importance of European operators in maintaining sovereignty in space, particularly as China's GuoWang prepares to launch thousands of additional satellites. The broader space economy is forecast to grow at a mid-single-digit annual rate through 2033, reinforcing the need for strategic positioning in an increasingly crowded market. Eutelsat and SES are adapting to a more competitive landscape by investing in LEO technology and expanding their service offerings. The upcoming C-band auction and rising demand for satellite services could further strengthen their positions. Both companies remain key players as Europe seeks to secure its role in the global space economy.