NATO’s European members need to reduce bureaucratic and financial barriers to fully leverage commercial-space offerings, according to industry executives. They discussed the challenges highlighted in a recent survey conducted by NATO’s Industrial Advisory Group, aimed at informing the alliance’s development of a commercial-space strategy set for release by June 2024.
Industry leaders pointed out several obstacles that commercial companies face when engaging with NATO. These include cumbersome procurement processes, overclassification of information, financial unpredictability, long contract timelines, and inadequate protection against adversarial attacks on their systems. Currently, NATO lacks its own orbital assets and relies heavily on contributions from member nations, especially the United States, as well as private companies. The risk of U.S. military resources being diverted due to conflicts in the Indo-Pacific region underscores the urgency for European nations to enhance procurement from commercial space industries.
The prospect of increased defense budgets and the potential for a more protectionist U.S. administration are pushing NATO to strengthen its space capabilities. NATO Secretary-General Mark Rutte emphasized that alliance members must invest more in defense, commending President-elect Donald Trump’s initiative to urge European nations to raise their military spending.
Ville Meskus, who leads defense-business development at ReOrbit and serves as deputy chair of SPACENET, highlighted that with current geopolitical tensions, the timing for a commercial space strategy is critical. He indicated that the focus should not solely be on funding but also on creating streamlined mechanisms and processes for rapid contract awards, particularly for startups.
SPACENET’s report includes recommendations urging NATO to adopt more flexible contracting methods catered to diverse companies and to develop financial models that support smaller firms. SPACENET’s chair, Philippe Glaesener, noted that the existing lengthy contracting process can span a year or two, which is too long for many startups needing quicker financial returns.
To address the financial concerns, industry respondents suggested that NATO should implement a program similar to the U.S. states’ Front Door program to expedite onboarding and contract delivery. Glaesener also expressed worries over potential cyber or kinetic attacks damaging commercial systems. Since commercial insurance typically does not cover wartime damages, companies seek assurances that they won’t be financially devastated following an attack.
NATO’s forthcoming commercial strategy is expected to clarify how the alliance intends to safeguard commercial systems. Ongoing discussions aim to establish insurance solutions for military action-induced losses and outline NATO’s role in defending commercial systems. Moreover, there is a call for NATO to develop a hybrid architecture that integrates military and commercial systems to ensure resilience in the face of potential threats.
Finally, if NATO can successfully strengthen its partnerships with the commercial industry, it may develop a multi-constellation network within one or two years, a development seen as urgent due to the current geopolitical climate. Glaesener remarked on the heightened willingness of member nations and NATO to enhance collaboration with commercial entities quickly to improve the alliance’s operational effectiveness.
