European launch industry faces tough choices as reusable rockets reshape economics
Policy experts argue that Europe is caught in a difficult position regarding its space launch capabilities. The economic advantages of reusable rocket technology are becoming increasingly clear, putting pressure on European launch providers. This situation forces a strategic dilemma between investing in new reusable systems or maintaining existing expendable rockets.
A study in *Economics Letters* examined over 6,700 orbital launches from 1960 to 2025. It found that the United States' share of global payloads fell below 20 percent by 2012, then soared past 82 percent by 2024, driven largely by the reusable Falcon 9's high flight rate.
The research also quantifies a stark cost disparity. Delivering a kilogram to orbit costs roughly $3,225 in the US, compared to about $9,897 in Europe. This gap stems from larger vehicles, higher cadence, and reuse, leaving European providers with a difficult investment choice between new reusable systems and existing expendable rockets.
The widening cost and capability gap could force European governments and commercial providers to reassess their launch strategies. If Europe fails to adopt reusable technology, its aerospace sector may lose further market share and strategic independence, potentially affecting satellite deployment for communications, navigation, and Earth observation. Conversely, heavy investment in new systems could strain public budgets. The outcome may shape global access to space, influencing which nations can afford to launch critical infrastructure and scientific missions.