European space startups are moving rapidly into defence markets, as demand for real-time satellite intelligence reshapes military planning.
Finland’s Kuva Space is among them.
- We started with environmental and sustainability use cases, says Tero Vauraste, who leads defence business development at the company.
Advertisement- But defence and security is our highest priority right now. We expect massive growth in the coming years.
The shift was formalised around 18 months ago. It reflects a broader change across the sector: capabilities once developed for civilian use are now being repurposed for military applications at speed.
Founded as a spin-out from Aalto University and Finland’s VTT research centre, Kuva Space has launched five satellites and is building a constellation designed to deliver near real-time intelligence from low Earth orbit.
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Its core technology, hyperspectral sensing, enables it to identify the material composition of objects on the ground.
- You can see whether something is made of metal, plastic or wood, Vauraste says.
- That’s something optical or radar systems cannot do.
In civilian settings, that data can be used to monitor crops or pollution. In defence, it can reveal camouflaged equipment, identify vessels through spectral signatures and track changes in infrastructure.
AdvertisementThe company currently operates two satellites in low Earth orbit (LEO), but expects around 100 units in orbit by the end of 2030.
According to Tero Vauraste only a handful of similar companies exist worldwide as the hyperspectral technology is still a relatively new invention in the space sector.
The transition from commercial to defence applications is not unique to Kuva Space or this specific technology.
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Across the Nordic region, small satellite companies are increasingly being integrated into military supply chains, as defence contractors seek ready-made capabilities rather than developing them internally.
For Kuva Space, the shift has been driven by demand rather than long-term planning.
- There is an urgent need for these kinds of solutions, Vauraste says, adding that procurement cycles remain slow.
For companies such as Kuva Space, the shift is already well under way.
AdvertisementCapabilities developed for civilian markets are being adapted for defence use at increasing speed, often with little distinction between the two.
What began as commercial innovation is now moving into military applications - not as a long-term ambition, but as an immediate response to demand.