The Baltic States are among Europe’s most digitally advanced and agile countries, yet they remain largely absent from discussions about Europe’s space achievements. Despite small populations and constrained budgets, Estonia, Latvia, and Lithuania have been quietly building space capabilities that are becoming increasingly relevant as the region navigates a tough geopolitical environment.
Building on a strong aerospace and scientific heritage alongside present-day digital expertise, the Baltics have developed notable strengths in satellite systems, software, data services, and downstream applications. Whether these capabilities, when combined, can elevate the region into a more prominent role within Europe’s space ecosystem is a question that has taken on renewed urgency since Russia’s full-scale invasion of Ukraine in 2022.
As Europe’s technology priorities increasingly shift towards dual-use and defence-relevant capabilities, this article explores how the Baltic space ecosystem is evolving — and what it means to develop space technologies in close proximity to an aggressive neighbour.
Three countries, complementary capabilities in space
Often viewed as a single bloc, the Baltic States in fact bring distinct strengths and experience to the space domain. Estonia has built momentum in cybersecurity and robotics, Lithuania stands out in lasers, optics, and biotech, and Latvia is emerging as a leader in quantum technologies and telecommunications.
These innovations build on a strong legacy of research and infrastructure, further strengthened through cooperation with the European Space Agency (ESA) and EU. Strategic assets such as the Irbene radio telescope in Latvia – the largest in Northern Europe – continue to play an important role in telecommunications, while delivering scientific, commercial, and strategic value. A recently launched project by Latvian tech company LMT Group and ESA aims to develop a dual-mode satellite IoT module to enable devices to remain connected across “dead zones” of global connectivity, like oceans, deep forests, and rural farmland.
Among the Baltic States, Estonia has taken an early lead, with the most mature space ecosystem and the longest-standing ESA membership – around 60 companies have signed contracts with ESA. While Estonia is well known for its IT strengths, the country also has strong expertise in hardware, particularly robotics, optical payloads and materials science. The country also focuses on space education and supports a growing pipeline of student-led space projects.
The southernmost Baltic state, Lithuania, has emerged as a strong hub for space technology, with NanoAvionics as its sector leader. Acquired by Norway’s KONGSBERG in 2022, the company has since signed a major contract worth €122.5 million with U.S.-based SpinLaunch to manufacture 280 satellites for a new constellation.
Lithuania has also given rise to a new generation of promising space companies, including Astrolight and BlackSwan Space, among others. Additonally, Lithuania is gaining visibility in space policymaking, with former Prime Minister Andrius Kubilius, now European Commissioner for Defence and Space, playing a leading role in shaping the upcoming EU Space Act.
Defence funding, dual use and the shifting balance in Baltic space
While some European nations may have harbored illusions regarding Russia’s intentions, the Baltic states certainly did not. Having endured occupation by the neighboring power with imperial ambitions, these countries knew all too well that they could never afford to be complacent.
However, five years ago, the current sense of urgency wasn’t there. The funding for civilian space exploration has always been limited and has historically hindered the deployment of new innovations. Integrating a defense and security focus into space innovations changes this by unlocking essential funding that was previously inaccessible.
Consequently, many space companies have also started looking towards the defence sector as a way to grow. For example, Latvian Deep Space Energy – a company developing sustainable power supply in space – was accepted into NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA), joining Lithuania’s space company Astrolight.
At the same time, defence has always been a part of space, albeit previously it was much less funded. Paul Liias, Head of Space Policy and Technology for Estonia, told us:
“The defense sector has always been one of the main customers for the space sector. The difference is that maybe five or ten years ago, no one talked about it – it was more silent knowledge. Today, everyone is talking about it much more and accepting the situation as it actually is.”
It is often said that crises accelerate innovation. Paul Liias points to space cybersecurity as a clear example — a field that has grown rapidly in importance in Estonia as a direct response to the current geopolitical environment: “Seven years ago, when we started seriously working on [space cybersecurity], it was very niche – no one really cared about it, and everyone said that there was no market. Now, unfortunately, we see that the need for such applications and services is growing.”
At the same time, experts warn that space exploration itself faces growing pressure, as policy and investment priorities increasingly shift towards dual-use and defence-driven applications. According to Paul Liias, while the market opportunities are getting better, now the industry has to choose because it cannot focus on everything:
“Since today the defence activities are more profitable, the space industry is more keen on them. When it comes to space exploration, where the benefits could be much less tangible and more long-term, it’s more difficult to justify the costs.”
Testing resilience at Europe’s eastern edge
Perhaps a less obvious competitive advantage of the Baltics lies in their diverse natural landscape, which offers valuable testing conditions for space and defence technologies. Angelina Bekasova,
Director for International Relations and Industry Development at the Latvian Space Industry Association, tells us that the extensive forests, broad access to the sea and inland waterways, and large agricultural areas — combined with low population density — create an ideal environment for testing satellite communications and related applications.
The Baltics’ geopolitical reality has unintentionally become a competitive advantage, positioning the region as a natural testing ground for new technologies. Eigirdas Sarkanas, expert in Space Policy, Technology, and Innovation at Innovation Agency Lithuania, points out that the proximity to an aggressive neighbour has created a clear sense of urgency, enabling real-world testing of solutions for border protection, Earth-observation applications, signal transmission and reception, and alternative communication systems under realistic conditions.
Another challenge increasingly shaping the region is the reliability of GNSS navigation and positioning services. Paul Liias told us that the Baltic States — together with Finland — offer particularly relevant conditions for testing these systems and gaining real-world operational experience. A decade ago, such vulnerabilities were often dismissed as hypothetical, but today they underscore why investment in resilient navigation and positioning technologies has become both necessary and urgent.
What will shape the future of Baltic space?
One of the Baltic space sector’s most mature and cooperative strengths lies in remote sensing – and it provides a natural foundation for scaling into security, defence, and dual-use applications. Baltic States already have a track record of cooperation in this area — between governments, industry, and universities.
A good example is the EO-BALP project, launched in 2023 by Latvia, Estonia, and Lithuania to develop Earth-observation-based solutions and implement them across the public sector. The initiative demonstrates that joint development at regional level can lead to practical, deployable outcomes.
In terms of major challenges for the Baltic space sector, two stand out: the lack of funding and a shortage of specialized talent. Estonia is already working towards filling that gap by investing heavily in space education — including programmes such as Estronaut for children. Paul Liias noted that Estonian universities now offer dedicated master’s-level courses in space cybersecurity — a unique focus area across Europe.
Angelina Bekasova emphasizes the need for dedicated national strategies to produce the next generation of Baltic space engineers and scientists:
“We need at least 10 years to develop space technology. So I think the Baltic space sector should think more strategically and invest now in education, in projects that would give young professionals practical skills, because in five years, they’ll be the ones working for the industry. We should also support the inspiring [space exploration] missions to increase the number of STEM students.”
Given the region’s geopolitical reality, adaptation is not optional. Space and defence increasingly need to evolve together — not only to address security challenges, but also to drive technological development and long-term economic competitiveness. For the Baltics, resilience and relevance on Europe’s space map will depend on deeper cooperation and a shared willingness to approach space development with a long-term, strategic vision.
This article was originally published on SpaceWatch.Global.
