Defense in the Foreground: CEO Reflections from the Farnborough International Space Show

At Farnborough International Space Show 2025, Unibap CEO Johan Åman discussed the shifting dynamics of the space market, driven by defense needs. With edge computing and dual-use technologies taking center stage, Åman emphasizes the importance of a dual-geography strategy for companies as Europe steps up its defense commitments.

As background to recent developments, it has been clear for some time that defense is the driving force in the SmallSat space industry. With United States Space Force in the US surpassing NASA – National Aeronautics and Space Administration in budget and Space Development Agency (under Space Force) becoming the dominant purchaser of SmallSats, the market has been shifting toward defense applications. Europe, as always, was slow out of the starting blocks. While Europe discussed European Space Agency – ESA being one-third the size of NASA, European defense and commercial investments remained at only one-fifth (or one-sixth) of the US market.

Changing the Dynamics of the Governmental Space Sector

The SDA is of particular importance. With an average of 100 SmallSats planned per year, short lead times, fixed-price contracts, and rapid innovation cycles, the SDA has yet to prove its success. However, it represents the most serious attempt to change the dynamics of the governmental space industry.

Its approach closely resembles the commercial “NewSpace” model but incorporates quality requirements from traditional space programs. This “hybrid market” has attracted both established Prime contractors and commercial Challengers. The race is on—commercial players bring tempo, cost-efficiency, and innovation while adopting higher quality requirements, whereas traditional players leverage their reputation and expertise while adapting to innovation, cost pressures, and faster timelines. The SDA is even facilitating an entry point for Challengers through its HALO program, fostering increased competition.

SDA Recognizes the Importance of Real-Time Insights

The SDA is focusing on missile tracking, which has become even more prominent following recent announcements by President Trump regarding the Golden Dome, a comprehensive missile defense system for the US. Missile tracking and future spy satellites (ISR) will depend on real-time insights. Achieving real-time insights requires Edge Computing on orbit, running advanced AI/ML algorithms. Unibap is proud to support the US market through our partnership and deliveries to Moog Space and Defense Group.

Overview of Unibap’s edge computing solutions.

2025 – A Breakthrough Year for Edge Computing in Space

After being on the agenda for several years, Edge Computing enabling AI/ML in orbit is set for a breakthrough year in 2025. Two major high-quality constellations are scheduled for launch:

• IRIDE HEO’s first 25 satellites, financed by the Italian Government and developed by @Argotec.
• The US defense constellation SDA Missile Tracking Layer Tranche 1, consisting of approximately 50 satellites.

IRIDE HEO is a civilian and commercial Earth Observation (EO) constellation. Edge Computing and AI/ML in orbit will maximize its utilization by eliminating data bottlenecks and enhancing Return on Investment (ROI). This is achieved by enabling the addition of new customers “over the air” throughout its lifetime, thanks to software-defined satellites.

Missile tracking is exactly what it sounds like—military ISR focused on real-time insights from space, where there is no time to wait for downlink. Hypersonic missiles must be identified and alerted immediately, requiring high-performance Edge Computing in space.

AMD Enhances Satellite Performance

AMD-based Edge Computers have been selected for both cases. AMD has proven to combine superior performance and space resilience with low power consumption. Additionally, AMD offers easy-to-use Linux x86 environments.

Edge Computing in the radiation-intensive and power-limited environment of space is vastly different from running LLMs in a data center on the ground, next to a power plant. Unibap is proud to support both Italian-based ARGOTEC and US-based Moog Space and Defense with critical technology.

The European Awakening

Recent announcements, along with the threats of suspending intelligence flows and securing communications to Ukraine, have sent shockwaves throughout Europe, adding to an already heightened sense of alarm.

“While the US will remain the largest space market by far, Europe may become the fastest-growing, driven by increased defense spending.”

I had the pleasure of participating in a panel discussion at FISS2025 last week, immediately following the UK Air and Space Commander Allan Paul Marshall, on the topic of “The Role of Space Assets in Contested Geopolitical Environments, Including the Contested Far North.” The UK Space Commander outlined a clear strategy for ISR (Intelligence, Surveillance, and Reconnaissance) and secure communications, emphasizing sovereign assets, critical assets shared with trusted partners, and access to other assets.

Increasing Budgets and Commitment to Ukraine

The EU is rapidly increasing its defense spending, both internally and in collaboration with other European nations. Sweden, for example, has doubled its defense spending from 2020-2024, now reaching 2% of GDP, with discussions about raising it to 3.5%. Additionally, Europe is set to increase its commitment to Ukraine in the face of Russia’s ongoing unjustified aggression.

While the US will remain the largest space market by far, Europe may become the fastest-growing, driven by increased defense spending. Unibap is proud to participate in the Swedish-Danish sovereign demonstrator satellite Bifrost, launching in 2025, which will showcase European real-time insights from space.

European space companies will need to adopt a dual-geography strategy, with a dedicated presence in both the US and Europe.

Dual-Use Commercialization

The UK Space Commander emphasized the current situation where the commercial sector is generally ahead of the defense sector in terms of technology. As we have seen in Ukraine, and with the example of SDA, the need to integrate commercial technology into defense is time-critical.

Dual-use companies need to remain grounded in the commercial market to maintain advantages in tempo, cost, and innovation. They should then adopt their solutions for defense, rather than developing specifically for defense.

The main obstacle to the rapid adoption of dual-use technology by defense is the defense procurement process. SDA has shown the way in the US, and Europe needs to follow suit quickly. Dual-use companies cannot afford 5-year-long sales cycles. Which commercial company can manage such long ROI periods?

Summary

• Defense is driving the space market.
• Edge computing is having a breakthrough year.
• Companies must adopt a dual-US and Europe strategy.
• Dual-use technology is essential for defense.

/ Johan Åman, CEO of Unibap