The commercial use of space is booming and bringing legal challenges with it. Find out all about the billion-dollar space industry in our blog series!
Space is increasingly becoming an economic hotspot. What used to be the exclusive domain of government agencies is now a rapidly growing commercial market in which private companies are playing an ever greater role. Since 2010, the space industry has grown by a staggering 70 % – a boom that is primarily attributable to the immense economic potential of space. This is not only driving space travel itself, but is also set to play a decisive role in the success of digitalisation. Some even see it as the key to overcoming the challenges of our time, be it the climate crisis, sustainable resource extraction or the mobility transition. The "NewSpace Economy" is attracting billions in investment, making it 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 been an important economic factor.
NewSpace players are changing the shape of the space market
Change in the space sector is being driven to a large extent by "NewSpace players". These include start-ups that are entering the commercial space market with innovative ideas and developing specialised technologies and services, for example in the fields of 3D printing, robotics or sustainable rocket systems. They also include established companies that are investing in these pioneering technologies and driving progress through targeted collaboration. Their activities cover a broad spectrum ranging from space tourism, defence and resource extraction to space logistics and debris removal. The focus is primarily on all aspects of satellites, from their development and launch to innovative applications in communication, earth observation and navigation.
EU Space Act to ensure safety and sustainability
As the potential for innovation grows, so does the need for a clear legal framework to ensure orderly and sustainable development. The European Union (EU) has recognised the importance of this issue for Europe's security and economy and has specifically addressed it in its work programme for 2025. Drafting of the EU Space Act is now well underway. The focus is particularly on the safety of space activities with regard to collision risks and space debris (the "safety pillar"), the protection of space activities against physical and digital threats (the "resilience pillar") and the sustainability of all projects with regard to their impact on the Earth's ecosystem (the "sustainability pillar").
The previous Traffic-Light Coalition focused on competitiveness
The Traffic-Light Coalition Government 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 drive forward digital and ecological transformation. To implement this strategy, the key points document on the German Space Act (WRG), which addresses topics such as safety, liability and competitiveness in space, was published in September 2024. It remains to be seen whether and when the German Space Act will be passed. The decisive factor will be whether the new federal government sticks to the current draft or puts the plans on hold for the time being. But the signs are promising: In the 2025 coalition agreement, the black-red coalition government of CDU/CSU and SPD have classified space travel as a future and key technology. The national space programme is to be expanded and a space security strategy presented. The creation of the Federal Ministry of Research, Technology and Space emphasises the importance attached to this issue in Berlin.
Space presents numerous legal challenges
The boom in the space industry comes with a multitude of legal challenges and affects almost every area of law. Not only are completely new legal issues arising, but familiar topics that are already relevant on Earth are also becoming increasingly important in space. These include, but are not limited to:
- investments, financing and transactions of companies (the "NewSpace players"), private equity and venture capital
- intellectual property issues, e.g. in patent and trade mark matters, in particular with regard to innovation protection
- cybersecurity in relation to telecommunications and the protection of space data
- use of Artificial Intelligence
- satellite (systems) and frequency usage rights
- defence and security
- operating data centres in space
- competition law issues (e.g. market definition, export control)
- liability law in relation to space debris and all transport in space
- public law, including on the subject of infrastructure in space
- resources and space mining
- health law issues in commercial space travel
- and many more!
Our blog series "CMS Space Law" provides you with an initial legal classification of exciting issues relating to space law
The future of space holds numerous promising opportunities and completely new business models – many of which can only be vaguely envisaged today. As technological developments progress, innovative opportunities will arise for companies and users alike. However, these new opportunities also give rise to legal hurdles that often appear complex. Nevertheless, they can be overcome with a sound technical and legal understanding. In our new blog series "CMS Space Law", we will take an in-depth look at the legal issues surrounding space and offer you practical insights into current developments and possible solutions.
We will keep you up to date in our blog series on CMS Space Law with the latest articles on this topic.
You can find further information on our Insight page "NewSpace and Space Law".
