The commercial use of space is booming and brings with it legal challenges. Learn all about the billion-dollar space industry in our blog series!
Space is increasingly becoming an economic hotspot. What was once the exclusive domain of government actors is now a rapidly growing commercial market in which private companies are playing an increasingly large role. Since 2010, the space industry has grown by a whopping 70% – a boom that is primarily attributable to the immense economic potential of space. This not only drives space travel itself, but is also expected to play a crucial role in the success of digitalization. Some even see it as a key opportunity to tackle the challenges of our time, be it the climate crisis, sustainable resource extraction, or the mobility transition. The so-called "NewSpace Economy" is attracting billions in investments and is thus becoming a breeding ground for technical innovation. According to economic forecasts, space could grow into a trillion-dollar industry by 2030. In short: space is no longer just an adventure for astronauts*, but has long since become a significant economic factor.
NewSpace players shape the space market
The transformation in the space sector is being driven primarily by so-called NewSpace players. On the one hand, these are start-ups that are entering the commercial space market with innovative ideas and developing specialized technologies and services, e.g. in the areas of 3D printing, robotics or sustainable rocket systems. On the other hand, there are established companies that are investing in these pioneering technologies and driving progress through targeted cooperation. The areas of activity range across a broad spectrum from space tourism, defense and resource extraction to space logistics and scrap disposal. The focus is particularly on everything to do with satellites, from their development and launch to innovative applications in communication, Earth observation and navigation.
EU Space Act aims to ensure security and sustainability
As the potential for innovation grows, so does the need for a clear legal framework that ensures orderly and sustainable development. The European Union (EU) has recognized the importance of this issue for Europe's security and economy and has specifically addressed it in its work program for 2025. The EU Space Act has been in the starting blocks ever since. The focus is particularly on the safety of space activities with regard to collision risks and space debris (the so-called "Safety Pillar"), the protection of space activities against physical and digital threats (the so-called "Resilience Pillar"), and the sustainability of all projects with regard to their impact on the Earth's ecosystem (the so-called "Sustainability Pillar"). According to the Commission Work Program 2025, the concrete draft legislation can be expected in the second quarter of 2025.
Traffic light coalition focused on competitiveness
The traffic light coalition also adopted a space strategy in September 2023. According to this strategy, the goal for the coming years is to establish Germany as a leading space nation. Modern satellites, sustainable technologies, and international cooperation are intended not only to increase competitiveness but also to advance the digital and ecological transformation. To implement this strategy, the key issues paper on the Space Act (WRG) was published in September 2024 , which addresses topics such as security, liability, and competitiveness in space. Whether and when the WRG will be passed soon remains to be seen. The decisive factor will be whether the new federal government sticks to the current draft or puts the project on hold for the time being. But the signs are good: In the 2025 coalition agreement, the black-red government of the CDU/CSU and SPD classified space travel as a key technology of the future . The national space program is to be expanded, and a space security strategy is to be presented. The creation of the Federal Ministry of Research, Technology and Space underscores the importance attached to the issue in Berlin.
Space brings numerous legal challenges
The boom in the space industry brings with it a multitude of legal challenges and touches on virtually every area of law. Not only are completely new legal issues emerging, but familiar topics that are already relevant on Earth are also gaining importance in space. These include:
- Investments, financing and transactions of companies (the so-called NewSpace actors), private equity and venture capital
- Intellectual property issues, e.g. in patent and trademark matters, particularly with regard to innovation protection
- Cybersecurity in telecommunications and space data protection
- Use of artificial intelligence
- Satellites (systems) and frequency usage rights
- Defense and Security
- Operating data centers in space
- Antitrust issues (e.g. market definition, export control)
- Liability law relating to space debris and all transport in space
- Public law, including on infrastructure in space
- Resources and Space Mining
- Health law issues in commercial space travel
- and much more!
In our blog series "CMS Space Law” you will receive an initial legal classification of exciting questions surrounding space law
The future of space holds numerous promising opportunities and entirely new business models – many of which can only be vaguely foreseen today. As technology advances, innovative opportunities will arise for companies and users alike. However, with these new potentials come legal hurdles that often seem complex. However, they can be overcome with a solid understanding of technology and law. In our new blog series, " CMS Space Law ," we will delve deeply into the legal issues surrounding space and offer you practical insights into current developments and potential solutions.