While the world undergoes an unprecedented revolution in space, Israel, once a technological pioneer with independent launch capability, watches from the sidelines.
The world is going commercial in space. Yet Israel is not there.
The global space economy reached a record $613 billion in 2024, growing at 7.8% annually. Projections point to a $1.8 trillion market by 2035, with 78% of growth coming from the private sector, not governments.
Capability without strategy
Israel possesses one of the world's rarest and most complex capabilities: independent access to space. The successful launch of Ofek-19 last September once again demonstrated the precision, innovation, and engineering excellence we have cultivated. However, as long as this remains confined to the security sphere, it is a success that generates no economic leverage.
In a world where capital flows to commercial space, Israel is virtually absent.
While SpaceX conducted a company record of 134 launches in 2024, Israel conducted no commercial launches. In satellite Internet, where tens of thousands of satellites are expected to operate by 2030, there is no Israeli presence.
Even in emerging fields such as AI-driven Earth observation and in-space manufacturing, Israel is not a player.
When small nations overtake us
Luxembourg, a nation of 670,000, invests 0.135% of GDP in space – the EU's highest ratio. It has attracted over 80 space companies through dedicated legislation, investment funds, and European Investment Bank (EIB) partnership. Space contributes 2% to its GDP, targeting 5%.
Israel, with a GDP five and a half times larger, invests $80 million annually in civilian space – 0.015% of GDP. The per capita gap is 61-fold. Luxembourg has proven that you don't have to be a superpower to succeed; you simply have to decide to participate.
The problem is mindset, not just budget
Israel's challenge is not merely budgetary, it is also conceptual. The space budget operates on a project-by-project basis, focused on security needs, not as part of a long-term national plan. This produces impressive technological achievements but misses enormous commercial opportunities.
If Israel invested the same GDP percentage in space as other leading small nations, the annual budget would be $715 million, not $80 million. That $635 million annual gap could have built an entire industry: a constellation of dozens of satellites, a commercial launch vehicle, a dedicated venture capital fund, and thousands of hi-tech jobs.
Dangerous dependence and lost opportunity
Our satellites depend on foreign launches – a dangerous dependence as space becomes strategic. Meanwhile, India targets $44 billion by 2033, UAE has sent a Mars probe, and Turkey has launched a space agency. Israel? No strategic decision in two years.
The foundation exists but remains untapped
Israel is not starting from zero. Around 100 companies and start-ups operate in the space sector, including Helios, Ramon Space, and SpacePharma. Yet the sector remains nascent. Unlike other industries, global space giants do not operate R&D centers here – resembling the autotech sector before Mobileye's 2017 acquisition proved Israel's technological value.
A pattern of missed opportunities
This is not the first story of Israeli oversight.
Israel pioneered solar energy, yet today we import panels from China. We missed the electric vehicle revolution and leadership in artificial intelligence (AI). Each time: the same technological capabilities and the same absence of decision.
This time, the cost is far higher. Space is becoming the infrastructure of a new economy affecting agriculture, transportation, security, and communications.
By 2035, just five industries are projected to generate 60% of the global space economy.
If we are not part of them, we will become consumers of technologies that others develop.
Now it's Israel's turn.
Time is short, but it is not too late. Israel has rare engineering knowledge, dual-use technologies, and a developed hi-tech sector. Missing are strategic decisions and execution.
Five critical steps must be taken:
Declare space a national technology project
1. The government must make a decision to declare space a civilian-commercial national project; not solely security-focused. We need to create an integrating framework connecting the Space Agency, Economy Ministry, Innovation Authority, defense industries, and most importantly – the private sector. Such a framework attracts international companies, enables partnerships, and defines clear objectives.
This requires civilian space legislation regulating the sector. Luxembourg, the United States, and the United Arab Emirates have comprehensive frameworks governing licensing, liability, and resource utilization. Israel needs similar laws to provide regulatory certainty, attract investment, and enable commercial operations. Without legal infrastructure, the private sector cannot scale.
Connect to the financial world
2. The space industry is capital-intensive. Israel has an advanced financial center and billions in VC funds, but no real connection to space. We must create incentives for institutional investors, designate space as strategic for pension funds (as with biotech), and establish a multi-billion shekel space fund.
Build an Israeli satellite network
3. Israel must commit to a flagship constellation of 30-50 satellites in low orbit. Beyond technological capability, this offers Internet for remote areas, observation data for agriculture and infrastructure, and independence from foreign providers. It will attract private investment and transform Israel into a commercial space player.
A national Moonshot project – changing the space industry
4. Israel must announce one high-risk technological project with game-changing potential – a mission that would make the state strategically indispensable and fundamentally reshape the space industry.
This project could be revolutionary propulsion for deep space, in-space fuel production from local resources, or breakthrough affordable launch technology. Like the Apollo or the Manhattan Project, such an initiative attracts global talent, demands revolutionary innovation, and generates technologies affecting numerous industries.
SpaceIL proved that Israel can dream big. Now we need full government commitment to a project where the world will say: "Only Israel could have done this."
Strategic partnerships with the US and Europe
5. Israel cannot compete alone but can be a strategic partner. The government must create mechanisms for partnerships between Israeli companies and NASA, ESA, and Western commercial firms. Our technologies – sensors, computing, robotics, AI – are what they need.
The answer is decision, not just budget
Space is the economic growth engine of the 21st century – a nearly $2 trillion market transforming industries. Small nations have decided to participate, leveraging what they have and attracting global investment.
Israel, with technological capabilities, human capital, and 36 years of launch experience should be a player, not an observer. The problem is not technical or budgetary – it’s decisional.
Continue just watching, and we lose hundreds of billions and our place among leading technological nations. The window is open. Now is the time.
Data in this article is based on reports from Space Foundation 2025, McKinsey, Novaspace, Earth & Beyond Ventures, Deloitte Israel, and national space agencies.