Space Defines Future Defence and Economic Growth, Emphasises Italian Firm’s CEO
Roberto Cingolani, ex-minister for the Italian government and current Chief Executive, stressed the mounting importance of space in relation to both future security and defence, and highlighted the integral role of satellite communications and technology. Cingolani delivered a compelling argument for enhanced investment from both public and private sources within the space sector as an approach to improving defence mechanisms and guaranteeing secure communications.
Leonardo’s Active Involvement in the Space Sector
Leonardo, a corporation under state-control, is ardently producing satellites, controlling infrastructure in orbit, designing sensors, and governing satellite services. This also includes handling launching and propulsion systems. Nearly 4% of Leonardo’s core profit in 2023 was a result of the space industry’s contribution, and there are grand plans to grow this sector substantially within its future business model. Such plans were revealed by Franco Ongaro, the Chief Space Business Officer.
Anticipated Growth in the Global Space Industry
Forecasts suggest that by 2040, the global space industry might be worth over a staggering $1 trillion, reflecting a substantial upswing from the $350 billion recorded in 2020.
Italy’s Government Plans and Leonardo’s Partnership Opportunities
Adolfo Urso, the Italian Minister of Industry, acknowledged the pivotal nature of space in steering economic growth. The minister pointed out the governmental strategy in relation to regulating this burgeoning space economy sector with a nationally applicable framework law and budget funds to the tune of 320 million euros, slated for disbursal over the coming two years.
Joint Ventures and Projects
Leonardo is actively seeking to unearth possible partnerships and manufacturing opportunities within the space sector. Notably, it has collaborated with Thales, a French company, on the delivery of satellite services. This includes space manufacturing through the joint ventures Telespazio and Thales Alenia Space.
However, Leonardo has not confined itself to only providing satellite services. It has embarked on the development of the first-ever military space cloud architecture project led by Europe. Additionally, Leonardo’s Telespazio’s Fucino space centre has been chosen as the primary control site for the constellation of EU satellite system, IRIS².
Positive Impacts on Leonardo’s Value and Standing in the Stock Market
Leonardo has additionally embarked on a recent assessment of its agreement with Thales relating to their space alliance, which is expected to fully consolidate Telespazio from 2024 onward. As geopolitical tensions escalate and military budgets inflate, this has had a positive bearing on Leonardo’s share value which has witnessed an impressive surge of 90% within the preceding year.
