Fraunhofer Institute for High-Speed Dynamics, Ernst-Mach-Institut, EMI
Independence in Space. Interview with Prof. Dr. Frank Schäfer, Head of business unit Space at Fraunhofer EMI
»Satellites are becoming commodities – and that is a huge opportunity for Germany«
The space industry is on the verge of a new era. While the United States and China continue to dominate, an increasing number of nations are making targeted investments in developing their own expertise and capabilities. These initiatives are part of a broader strategy aimed at strengthening technological sovereignty and ensuring national security. Prof. Dr. Frank Schäfer, Head of the business unit Space at Fraunhofer EMI, explains why Germany needs to act now – and what role Fraunhofer will play in this transformation.
Prof. Schäfer, the German government plans to invest around 35 billion euros in space projects by 2030. Is Germany ready for this transformation?
Frank Schäfer: Technologically, yes – industrially, not yet. Germany has excellent space companies, a strong SME sector and a vibrant start-up scene. What we currently lack are the production capacities to manufacture satellites at scale. For years, we produced highly specialized custom-built units – which made sense at the time. But the market has changed fundamentally.
How so?
Frank Schäfer: Satellites are becoming commodities. In 2025, the German government announced plans to build of several large satellite constellations for the Bundeswehr – several hundred new satellites are expected to be launched into orbit in the coming years. This marks a turning point. And it requires an industrial policy response, not a scientific one.
Does Germany have what it takes to deliver that response?
Frank Schäfer: Absolutely. Consider Germany's supplier industry: it masters high-volume manufacturing, complex supply chains and world-class logistics. According to a Roland Berger study, two thirds of SME suppliers see significant potential in the defense sector, and one third in aerospace. These are exactly the capabilities that the industrial space sector of the future will need – capabilities that have played hardly any role in the traditional space industry.
Where does Fraunhofer EMI fit into this picture?
Frank Schäfer: We bridge the gap between research and operational application. In summer 2024, we successfully launched our research satellite ERNST into space. Since then, it has been demonstrating the detection of missile launches from orbit – using a cryogenically cooled infrared camera. The experience gained from its development, construction and operation feeds directly into new industry partnerships.
Can you give an example?
Frank Schäfer: Together with industry partners, we are working to bring satellite components to industrial serial production. This is emblematic of exactly what we need: research excellence combined with industrial implementation capability.
In addition, we have been developing our own data processing units for years – the DPU, the "brain" of small satellites. It processes satellite data autonomously on board and already enables AI-based applications in orbit, such as cloud detection for Earth observation missions. This research product is now installed in several satellites – a major transfer success.
What other topics are driving your work?
Frank Schäfer: Two areas are particularly important to me. First, making use of the growing volume of Earth observation data. With our planning tool, the “Earth Observation Toolbox” (EOx), we help fields such as climate research, agriculture and disaster management to navigate the flood of satellite data sources. Second, security in orbit. As the number of satellites increases, so does the risk of collision. In our EMI-FragS project, we are investigating what debris clouds are generated when satellites collide, as well as the damage that even the smallest debris fragments can cause at orbital velocities – through both experimental testing and numerical simulation.
What is your message to decision-makers in business and politics?
Frank Schäfer: Now is the time to forge alliances. Industrially scalable satellite manufacturing requires close cooperation between politics, industry and research. Fraunhofer EMI is ready to actively shape this transformation – as a link between innovation and industrial scaling. With one clear goal: to sustainably strengthen Germany's and Europe's independence and security in space.
