The rise of Finland’s space economy – from student satellites to sovereign systems

In 2025, Finland’s space sector is small but sharply focused – home to advanced Earth observation, sovereign satellite systems and propulsion technologies, many developed not by legacy aerospace firms but by startups less than a decade old.

The momentum began at Aalto University, where the Aalto-1 and Aalto-2 nanosatellites, launched in 2017, marked the country’s first steps into orbit and seeded two of its most influential companies: ICEYE and Kuva Space.

Further north, the European Space Agency, the Finnish government and the Finnish Meteorological Institute are building a new Earth observation “supersite” in Sodankylä, Lapland. Surrounded by boreal forest, the facility will support global satellite data calibration and validation – reinforcing Finland’s role in the scientific infrastructure of Earth monitoring.

A blend of public research and private enterprise, Finland’s rise mirrors a broader trend: the emergence of decentralised, agile space economies shaping the next generation of infrastructure.

1. ICEYE – Delivering sovereign radar intelligence

Founded in 2015 by Antti Kestilä, Rafal Modrzewski and Pekka Laurila, ICEYE grew out of Aalto University student projects exploring new approaches to radar satellites.

Today, it operates the world’s largest synthetic aperture radar (SAR) constellation, with 54 satellites capable of imaging in all weather and lighting conditions. Its technology supports defence, insurance, maritime monitoring and disaster response.

In 2025, ICEYE introduced its fourth-generation satellites, achieving 16 cm resolution and extending coverage to 400 km swaths. That same year it signed a 158-million-euro contract with the Finnish Defence Forces, strengthening its role in sovereign intelligence.

“This agreement is a testament to the trust and shared vision between ICEYE and the Finnish Defence Forces,” said Laurila, co-founder and CSO. “It marks a pivotal moment (…) equipping Finland with a sovereign, space-based intelligence capability.”

2. ReOrbit – Software-defined satellites for resilience

Founded in Helsinki in 2019 by Sethu Saveda Suvanam, ReOrbit was born from frustration with the rigidity of traditional space systems. Suvanam envisioned satellites built “software first, hardware second.”

ReOrbit develops autonomous, reconfigurable platforms aimed at governments and defence customers that want to operate critical systems independently.

In September 2025, it closed a 45 million euro Series A – the largest of its kind in Finland – to scale up production. To support expansion, ReOrbit also opened an office at the Bristol and Bath Science Park in the UK.

“Closing a 45 million euro Series A is a milestone not only for ReOrbit, but for Europe’s space and defence sector,” said Suvanam.

3. Kuva Space – Hyperspectral imaging for Earth monitoring

Kuva Space began in 2016 as Reaktor Space Lab, a spin-off from engineering consultancy Reaktor. Finnish engineers launched Hello World in 2018 – the country’s first commercially built nanosatellite – showcasing small-satellite hyperspectral imaging.

Between 2020 and 2021, the company rebranded as Kuva Space and shifted from hardware to a data-driven model, with the mission to “paint a picture of the Earth.”

It is now building a constellation of microsatellites with patented sensors that detect subtle changes in vegetation, soil, water and pollution.

“We are the eyes in the orbit that are looking down and seeing what is happening on the surface of the Earth, with all the bioresources and human activities, and we provide this information to our customers,” said Jarkko Antila, CEO.

4. Aurora – Compact propulsion for sustainable orbit

Aurora Propulsion Technologies was founded in 2018 to tackle spacecraft mobility and orbital debris. Its ARM resistojet thruster uses water as a non-toxic propellant, while its Plasma Brake offers an electrostatic drag solution for satellite deorbiting.

In 2025, Aurora delivered its first flight-ready Plasma Brake to the WISDOM satellite, built by C3S, and signed a multi-unit thruster deal in South Asia, moving from prototype to series production. That same year, co-founder Perttu Yli-Opas was named to the Forbes 30 Under 30 Europe list.

These milestones follow a 2023 agreement to supply a Plasma Brake to SpeQtral’s quantum key distribution satellite in Singapore, underscoring Aurora’s ability to support high-value commercial missions.

“This mission is a great example of a business-oriented satellite that simply must have a deorbiting solution with a minimal footprint – which we’re more than happy to provide,” said Yli-Opas at the time.

5. VTT – Research foundations for imaging and planetary defence

Finland’s technical research centre VTT has played a role in the foundation of many of the country’s scientific spin-offs, and it has been equally influential in the space sector.

It built the payload for ESA’s W-Cube nanosatellite, launched in 2021 as the first ESA satellite ordered from Finland, which proved that extremely high 75 GHz frequencies can be used in future telecom satellites.

“The W-Cube satellite validated that much higher frequency bands than those used today can be utilised in satellite communications and achieve very high performance,” said Jussi Säily, principal scientist at VTT.

VTT also developed the ASPECT hyperspectral camera for the European Space Agency’s Hera planetary defence mission. The project brings together Finnish expertise: the University of Helsinki and Aalto University lead testing and scientific design, while Kuva Space built the data processing unit and life-support equipment for the CubeSats.

“Before we can reliably safeguard Earth from threatening asteroids, we need to understand both how asteroids respond to collision and how efficiently their orbits are altered,” commented Tomas Kohout, principal investigator for ASPECT.