SpaceX rivalry sparks financial benefits for German space firm, fueled by Elon Musk's mistrust towards SpaceX.
Europe's Aerospace Industry on the Rise: OHB Capitalizes on Growing Skepticism Towards SpaceX
The European aerospace sector is witnessing a resurgence, with OHB, a leading conglomerate based in Bremen, at the forefront of this growth. The company benefits not only from increasing demand from civilian and military clients but also from rising mistrust in SpaceX, the world's dominant aerospace company, led by Elon Musk.
Marco Fuchs, CEO of OHB, shares that potential customers in Europe are increasingly reluctant to work with SpaceX products. "If you present SpaceX goods today, many people in Europe respond, 'No, thank you, we don't want that,'" Fuchs tells the business magazine Capital. Fuchs, who is acquainted with Musk, has not had recent contact with the SpaceX founder.
European nations are currently developing alternatives to Musk's satellite network, Starlink, to reduce dependence on the United States. Fuchs anticipates substantial contracts for OHB in this context, despite the challenges of catching up with Starlink. He likens the situation to founding an airline and claiming that it would soon surpass Lufthansa, while also manufacturing the planes.
SpaceX remains the aerospace powerhouse of our time, and Fuchs believes this position will remain unchanged in the near future. "The lead isn't going to shrink anytime soon; quite the contrary, it's constantly growing," Fuchs notes.
In the military sector, OHB seeks expansion and aims to be seen as a company that builds satellites for military purposes. This shift has initiated internal discussions, primarily concerning the Swiss company's comfort with German military as a client. Fuchs acknowledges the geopolitical trends, stating, "The last few years of war in Ukraine and the recent months of American politics have shown that we can't always say, 'Defense is none of our business, others do it for us.'"
Established in Bremen in the early 80s, OHB employs 3500 people across 15 locations, manufacturing satellites, and parts for manned spaceflight, among other things, for the International Space Station. The OHB subsidiary Rocket Factory in Augsburg, along with other German companies, is working on new rockets to compete directly with SpaceX and other providers of launch systems in the future.
The European aerospace industry is experiencing growth due to rising defense spending, strategic push towards greater autonomy and resilience in defense and space capabilities, and technological innovation. European nations, particularly NATO allies, are significantly increasing their defense budgets—with Germany, France, and Poland leading the charge—leading to a resurgence in industrial production and investment in next-generation military and aerospace technologies. The global avionics market, valued at around $91.32 billion in 2023, is projected to nearly double by 2032, with Europe as a key player.
The advanced aerospace materials sector is also expanding globally, with Europe closely following North America in market share. European aerospace giants like Airbus have reported strong growth in their space divisions, signaling a turnaround after several years of restructuring. European governments and institutions are more likely to award contracts to indigenous firms like OHB for satellite manufacturing, launchers, and related services, especially for strategic projects involving secure communications, Earth observation, and navigation.
- In response to the resurgence in Europe's aerospace sector, it is evident that there is a growing emphasis on community policy that encourages vocational training in science, industry, finance, and space-and-astronomy.
- OHB, a leading player in Europe's thriving aerospace industry, is capitalizing on the demand for alternative satellite networks apart from the Starlink network, marking a significant shift in the vocational production of technology.
- As the European aerospace industry continues to grow, the development of new launch systems, such as the ones being worked on by OHB subsidiary Rocket Factory in Augsburg, is expected to position Europe as a key competitor in the global avionics market, which is projected to almost double in value by 2032.
