The global space sector is evolving rapidly. No longer limited to scientific missions and Cold War rivalries, it has become a critical arena for commercial innovation, military strategy and geopolitical influence. Satellite launch costs have tumbled, significantly expanding the scope for new space-related applications. This Blueprint assesses the state of Europe’s space sector, the challenges it faces and how policy could help it in moving forward. It introduces the concept of the new space economy, outlines the major global trends reshaping the sector and analyses the two most important forces driving this transformation: governments and a burgeoning private space sector. Recommendations are offered on how Europe can foster space innovation and support commercialisation, and how it can ensure strategic autonomy in critical space capabilities.