SpaceX's rivalry with SpaceX fuels earnings for a German space firm
Growing Skepticism Amidst European Aerospace Industry Revival
The burgeoning European aerospace industry is seeing a key player emerging from Bremen—OHB. The company is capitalizing not only on surging demand from civilian and military clients but also on a growing mistrust towards the dominant player, SpaceX.
OHB, a stalwart in Europe's developing space technology sector, is positioning itself to capitalize on increasing European skepticism towards SpaceX, founded by Elon Musk. While OHB has collaborated with SpaceX over the years, rising reservations among European clients are becoming evident, according to OHB CEO Marco Fuchs. "The response today when presented with SpaceX products isn't encouraging in Europe. Many customers simply say no," Fuchs stated in an interview with "Capital." Fuchs acknowledges his personal acquaintance with Musk but has not recently crossed paths with him.
European alternatives to Starlink, SpaceX's satellite network, are being developed to mitigate dependence on the United States. Fuchs anticipates significant orders coming OHB's way. However, barring a miraculous leap, Europe is unlikely to rival Starlink. As Fuchs humorously put it, "It's like starting a new airline and announcing soon we'll surpass Lufthansa, and we'll manufacture the planes, too."
SpaceX's dominance in the aerospace sector is uncontested and is expected to remain so. "The gap is not shrinking anytime soon; quite the contrary, it continues to widen," asserted Fuchs.
In the future, OHB aspires to expand its footprint in the military sector and establish a reputation as a military satellite manufacturer. Internal deliberations have sparked due to this military focus. Fuchs professes comfort with the German military as a customer but acknowledges the repercussions of recent conflicts in Ukraine and volatile American politics. "Recent years have shown us that we cannot simply turn a blind eye to security matters, stating non-interference, when others can handle it for us," Fuchs commented.
Established in Bremen in the early '80s, OHB employs 3,500 people across 15 locations and manufactures satellites, components for manned spaceflight, and more for the International Space Station. The OHB subsidiary Rocket Factory in Augsburg is among a group of German companies working on new rockets aiming to compete with SpaceX and other providers of launch systems in the future.
Enrichment data suggests that the European Union is examining SpaceX's Starlink for potential unjust market advantages, particularly during the SES-Intelsat deal review. In addition, concerns about orbital debris are contributing to regulatory challenges for SpaceX's satellite launches. OHB might address these concerns by emphasizing the benefits of European space technology and services, fostering collaborative partnerships, and investing in competitive satellite communication alternatives.
- OHB, recognizing the growing European mistrust towards SpaceX, is planning to cultivate its position in the space technology sector by developing European alternatives to SpaceX's satellite network.
- In addition to its focus on space technology, OHB is also aiming to expand its presence in the military sector as a military satellite manufacturer, acknowledging the need for security considerations given recent geopolitical conflicts and volatile political climates.
- To offset potential regulatory challenges faced by SpaceX due to concerns about orbital debris and potential unjust market advantages, OHB might emphasize the benefits of European space technology, build collaborative partnerships, and invest in competitive satellite communication alternatives as a part of its community policy and business strategy.
