Eyes on Earth: Global Investment in Satellite Imaging Advances, but the United States Retreats

In May 2025, the European Space Agency (ESA) announced plans to seek funding from member states for an Earth Observation (EO) satellite system for security applications. Josef Aschbacher, ESA’s director general, highlighted that while defense programs account for 50% of government spending on space globally, they represent only 15% in Europe, underscoring the need to boost investment in defense-related space initiatives. In the same month, Abu Dhabi’s Space42 revealed plans to establish the Middle East and Africa (MENA) region’s first EO satellite manufacturing hub. This move is part of the United Arab Emirates’ (UAE) broader strategy to expand its EO space program and enhance its satellite-based remote sensing capabilities.

On the other hand, the Trump administration appears to be taking a different direction. In January, the Office of Management and Budget (OMB) identified over US$1 billion in potential cuts to the National Aeronautics and Space Administration’s (NASA) budget, including US$120 million currently allocated to space operations and space technology. In addition, the National Reconnaissance Office (NRO) has privately cautioned its commercial satellite imagery providers of possible funding reductions—cuts that could trim as much as one-third from the US$450 million commercial imagery budget planned for 2026. On top of that, NRO officials were notably absent from the GEOINT Symposium 2025 program—a key platform traditionally used to announce new investments and procurement plans for commercial imagery. This all stands in stark contrast to industry expectations, as commercial satellite imagery providers are experiencing growing demand for geospatial intelligence.

Past and Present Projects:

Over the past decade, the U.S. EO landscape has been taking on a hybrid approach, with government programs, such as those run by NASA, NRO, the National Oceanic and Atmospheric Administration (NOAA), and the United States Geological Survey (USGS), with commercial partnerships to strengthen national defense capabilities. Agencies like NRO and the National Geospatial-Intelligence Agency (NGA) have increasingly relied on commercial solution providers for high-resolution satellite imagery and advanced analytics. These partnerships offer cost-effective, rapidly deployable solutions that complement government-owned systems. For example, major contracts such as the Electro-Optical Commercial Layer (EOCL) and Commercial Radar Pilot Program are recent efforts to integrate private sector EO innovation and solutions.

Global Developments:

On March 7, the U.S. NGA suspended satellite imaging access to Ukrainian accounts registered with Maxar Technologies’ Global Enhanced GEOINT Delivery system. This unexpected disruption significantly impaired Ukraine’s ability to monitor Russian troops’ movements and respond to both military and humanitarian needs during a critical period of the conflict. Access was restored on March 12, following high-level discussions between U.S. and Ukrainian officials.

These highlights the indispensable role of satellite imagery in modern national defense programs. Without real-time geospatial intelligence, armed forces lose a vital layer of situational awareness, which can lead to delayed responses, slower operations, and heightened risks to both military personnel and civilians. Satellite imagery supports end-to-end operations, from real-time monitoring to damage assessment and supply chain coordination. Even a brief absence can paralyze time-sensitive decision-making and compromise national security objectives.

As global demand for satellite imagery surges, many countries are ramping up investments in both state-owned national EO programs—China’s Gaofen, Ziyuan, and Fengyun satellite programs, Europe’s Copernicus program, Singapore’s EO Initiative, India’s Indian Space Research Organization (ISRO) programs—and commercial innovations in this space, including collaboration and partnerships across countries.

The U.S. government’s recent funding cuts threaten to weaken this complementary ecosystem at a time when integrated, multi-source intelligence has never been more vital. These reductions could impact the commercial EO sector in several ways:

• Reduced Revenue Stability and Underinvestment: Large government contracts are often the largest and most reliable customers of commercial EO firms. Cutting or delaying contracts could lead to downsizing, delayed Research and Development (R&D), canceled satellite launches, and dampened investor confidence. This financial strain risks slowing innovation and impeding the deployment of next-generation capabilities—ultimately weakening national EO programs and allowing foreign competitors to gain technological and strategic advantages.
• Loss of Global Market Competitiveness: U.S. commercial EO firms operate in an increasingly competitive international environment. If they are weakened by federal funding pullbacks, they could diminish U.S. influence in global EO markets, losing market share internationally, be outbid in multi-national contracts, and fall behind in technological capabilities and service offerings.
• Weakened Public-Private Integration and National Security Risks: The strength of the U.S. EO strategy lies in hybrid architecture, where commercial and government systems work in tandem. Reductions in commercial funding jeopardize this balance. Funding cuts can compromise operational readiness, affecting time-sensitive missions that rely on commercial imagery, undermining national security resilience. Furthermore, it shakes investors’ confidence in the space industry—which is capital-intensive and high-risk—potentially stalling the growth of a high-value domestic industry.

Hence, both the commercial sector and government systems are essential to delivering satellite imagery solutions that meet today’s geospatial intelligence demands. Together, they create a resilient and adaptive infrastructure critical for effective operations. Sustaining this hybrid model through consistent support and investment is not just beneficial—it is a strategic necessity in an increasingly complex global security landscape.