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NATO Commits to Space: A Strategic Invitation to the Private Sector

This week marked a turning point for the commercial space industry as NATO formally extended its hand to private space and defense companies with the release of its first-ever Commercial Space Strategy. The move signals NATO’s intent to integrate private capabilities into its defense architecture as global threats evolve and member nations ramp up military investment.

Driven by U.S. leadership under President Donald Trump, NATO members agreed to increase their collective defense spending target to 5% of GDP by 2035, more than double the existing 2% benchmark. Of that amount, 3.5% is earmarked for core defense, and 1.5% will fund strategic infrastructure, including cyber and space-related technologies.

Why the Commercial Space Sector Matters to NATO

Space is no longer a secondary consideration. Since 2019, NATO has classified it as one of five operational domains — alongside land, air, sea, and cyberspace. In 2021, the alliance declared that attacks in space could trigger Article 5, NATO’s collective defense clause. With this week’s announcements, NATO is taking concrete steps to enhance cooperation with the commercial space industry, emphasizing:

• Leveraging commercial space solutions
• Ensuring secure and continuous access to space
• Establishing clearer, more coherent relations between NATO and private providers

The new strategy outlines that private companies must understand and meet NATO’s evolving security and cybersecurity requirements, and develop the manufacturing capacity needed to support both peace-time operations and active conflict situations.

Rising Defense Budgets and Strategic Alignment

This renewed defense push follows Europe’s own 800 billion euro ($936 billion) defense fund proposal from March 2025, and Germany's loosening of fiscal restrictions to allow more security-linked spending. The UK has pledged to reach 2.5% of GDP for defense by 2027, with Prime Minister Keir Starmer recently backing the 5% goal by 2035.

While Poland leads current contributors with 4.12% of GDP allocated to defense, the U.S. trails at 3.38%, suggesting significant scaling will be necessary across the alliance. Spain remains one of the more hesitant participants in meeting the 5% target, keeping intra-bloc negotiations complex.

Major Contractors Already Positioned to Gain

Big aerospace and defense contractors like Boeing, Lockheed Martin, and European firms are already competing for slices of NATO’s future budget, especially under President Trump’s $75 billion Golden Dome missile defense initiative, which is expected to grow even more expensive.

Meanwhile, private firms are beginning to secure contracts: Planet Labs, a commercial satellite imagery provider, recently secured a seven-figure deal with NATO to deliver real-time surveillance and intelligence data.

The Starlink Conundrum and Europe’s Response

One pressing issue for NATO is satellite communications in war zones — particularly Ukraine, where Elon Musk’s Starlink has been critical in maintaining internet and data services for both civilians and the military amid Russian attacks on telecom infrastructure. However, concerns are mounting about Starlink’s long-term reliability due to Musk’s volatile political ties, especially with President Trump.

In response, Europe is actively developing alternatives. France’s Eutelsat, which merged with Britain’s OneWeb in 2023, now operates over 650 LEO satellites and more than 30 geostationary satellites. The company has become a serious contender to replace Starlink’s dominance in Ukraine.

Last week, Eutelsat raised €1.35 billion in new capital — led by the French government, which is set to become its largest shareholder with a 29.99% stake. The stock surged 31% on the news, buoyed by market optimism that Eutelsat could emerge as NATO’s preferred provider in Eastern Europe.

What NATO’s New Space Strategy Means for the Future

NATO’s commercial space strategy is not about building a military-owned satellite fleet — at least not yet. Instead, the aim is to guide private players, helping them align with NATO’s procurement needs and security standards, while also ensuring dependable access to space-based capabilities in both crisis and conflict scenarios.

For companies in satellite manufacturing, Earth observation, and secure communications, this signals a major opportunity. With rising geopolitical tensions and a surge in defense budgets across NATO’s 32 members, the space sector is no longer a speculative bet — it’s becoming a core pillar of collective security.

In short, NATO isn’t just defending Earth — it’s extending its reach beyond it, and private space players are being invited to help lead that charge.

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