In a bold move signaling a pivot towards the cosmos, Italian aerospace giant Leonardo has unveiled an ambitious plan to focus on space ventures, looking to capitalize on the thriving defence market that spans the globe.
Leonardo’s Chief Executive, Roberto Cingolani, underscored the strategic importance of space for future defence and security, highlighting the need for enhanced satellite technologies and secure communication systems.
Once serving as a minister in Italy’s government, Cingolani is now steering Leonardo towards the stars, recognizing the untapped potential for growth in a sector that contributed just shy of 4% to Leonardo’s core profits in 2023. With the global space industry projected to skyrocket to over $1 trillion by 2040, according to Morgan Stanley, Leonardo is positioning itself to take a significant leap forward in its new industrial roadmap.
The firm’s spotlight on space was confirmed by Franco Ongaro, Leonardo’s Chief Space Business Officer, who revealed that the forthcoming business plan, set for release on March 12, will feature space industry endeavors as a central theme for the first time.
Backing this celestial ambition is Italy’s Industry Minister, Adolfo Urso, who proclaimed space to be a cornerstone for economic advancement. In alignment with this vision, the Italian government is setting the legislative stage with a national law aimed at governing the burgeoning space economy. This legislative commitment is bolstered by a substantial allocation of 320 million euros earmarked for space-related initiatives over the next two years.
Leonardo’s strategy involves a blend of partnerships and manufacturing muscle, as evidenced by its joint ventures with France’s Thales in satellite services company Telespazio and space manufacturer Thales Alenia Space. A recent invitation from the Ministry of Defence has Leonardo assessing the potential for pioneering a military space cloud architecture within Europe.
Leonardo’s ties with Telespazio have deepened recently, following the assignment of Telespazio’s Fucino space centre as the command hub for the anticipated IRIS² EU satellite constellation. Moreover, a refreshed agreement with Thales paves the way for Leonardo to fully incorporate Telespazio by 2024, further solidifying its commitment to space.
As global tensions simmer and military budgets surge, Leonardo, like its industry counterparts, is riding the wave of increased demand, with its stock value soaring by 90% over the past year. With the stars as its new frontier, Leonardo is set to navigate the vast opportunities of the space sector, charting a course for growth that’s truly out of this world.
