A survey by MHP Consulting found that two-thirds of aerospace decision-makers doubt the European space industry can scale effectively. The poll covered 577 respondents in Germany, Italy, France and the United Kingdom.
The findings point to a gap between Europe's technical strength in space and its ability to expand production efficiently. The survey suggests the sector still relies heavily on project-based structures, which make growth more expensive and operationally difficult.
That matters as demand rises for satellite constellations, defence programmes, secure communications infrastructure and other systems tied to Europe's strategic autonomy. The research argues that while the region has strong engineering expertise and systems knowledge, it has yet to translate those strengths into broader industrial scale.
Two-thirds of respondents rated the industry's scalability as low, while 27% identified insufficient financing and investment as a central obstacle to growth.
Scaling challenge
The report describes Europe's current model as one built around bespoke projects rather than repeatable products. In this structure, each additional system tends to add engineering work, integration demands and capital spending rather than deliver the lower unit costs often associated with volume manufacturing.
By contrast, product-led industries such as automotive manufacturing have used platforms, standardisation and reusability to expand output more efficiently. The survey suggests the European space sector could adopt elements of that model without abandoning the customised development often required in advanced aerospace programmes.
A hybrid approach, rather than a full shift away from project-led work, would be more realistic, according to MHP Consulting. Under that model, companies would retain flexibility in development while using more standardised platforms to support repeat production.
The debate comes as Europe seeks greater independence in communications, navigation and security infrastructure. Satellites underpin those systems, giving the space sector's industrial structure wider economic and geopolitical significance.
Investment pressure
Access to capital remains another pressure point. More than a quarter of respondents identified financing and investment shortfalls as a major barrier, a problem made more acute in a sector that often requires heavy upfront spending before revenues are realised.
That combination of project-led production and limited capital can create a difficult cycle. Companies face high costs to expand, while investors may be cautious about backing business models that do not yet show the cost advantages of more standardised manufacturing.
The research was carried out by Civey on behalf of MHP Consulting among decision-makers in the aerospace sector across four of Europe's main space markets: Germany, the United Kingdom, France and Italy.
Giuseppe La Marca, Partner and Sector Lead, Aerospace, at MHP Consulting, said: "If the European space industry does not change its industrial logic, they will not remain relevant in the global race for space."
The findings add to a broader debate over whether Europe can compete with established international rivals and newer entrants focused on faster industrialisation. In recent years, start-ups and overseas competitors have shown that some space systems can be built and deployed on shorter timelines and at lower cost than traditional aerospace models have allowed.
For European manufacturers and suppliers, the issue is not a simple choice between custom engineering and mass production. Instead, the survey frames the challenge as combining technological flexibility with a production model that can support growth without sharply increasing complexity.
The central question is not only whether Europe can continue to develop advanced technologies, but whether it can turn them into industrial output at the pace and cost required by a more competitive global market.