As the capital of the French and European space industry, Toulouse is boosting its appeal but faces critical challenges. Enriched by the New Space movement yet destabilized by the Bromo effect and budgetary uncertainty, Toulouse’s space ecosystem in 2026 has undergone a complete transformation over the past decade. Toulouse must now be prepared to meet the demands of a wartime economy, as the space sector will be on the front lines in the event of a major conflict
According to the AD’OCC agency of the Occitanie region, nearly 14,000 people work in the space industry in the region, representing nearly 40% of the national workforce, according to INSEE. Boasting the historic trio of CNES, Airbus Defence & Space (ADS), and Thales Alenia Space (TAS), and home to leading engineering schools and exceptional research laboratories, Toulouse is now home to an extremely dynamic space ecosystem. Until now, the ecosystem has fluctuated with the performance of ADS and TAS, with recruitment following cyclical patterns. Now, however, it faces a complete reinvention: the decline of the geostationary space sector in favor of low-Earth orbit constellations, and the maturation of New Space as it undergoes industrialization. This rapid and profound evolution is currently dominated by defense needs.
Preparing for a wartime economy
“Are we, strictly speaking, in a war economy? The answer is no. Because if we were at war, I dare say we wouldn’t be producing like this.” On January 15, 2026, in his address to the armed forces, Emmanuel Macron urged the French space sector to be ready in case of conflict. Citing Ukraine’s efforts, he echoed the U.S. president’s frustration with his own industry. Everyone agrees that space is a battlefield, but is the French space sector ready for it? In Toulouse, it has become the top priority: “More than ever, we’ve seen a convergence with the defense sector,” Catherine Lambert, president of the Galaxie club—which brings together regional stakeholders—told Air & Cosmos. This convergence is marked by the November 2025 inauguration of the Space Command (CDE) operational center, presided over by Emmanuel Macron, who used the occasion to present the national space strategy, which includes a substantial defense component but has been criticized for its implementation. “There is a lack of clarity regarding operational needs, as well as a need for clarification on timelines and investments,” explains Catherine Lambert. Indeed, CDE operators are assessing whether the new applications are reliable. This is, in fact, the focus of a series of technology demonstration missions led by the DGA’s Defense Innovation Agency. But even these missions have been subject to prolonged delays.
The Yoda project (the DGA’s geostationary orbit demonstration satellite for tactical operations) learned this the hard way: “It took a year to align the interests of the DGA, the Armed Forces General Staff, the CDE, and the CNES,” noted Nicolas Multan, CEO of Hemeria, which shares project management responsibilities with the CNES.
Although the space sector is inherently dual-use, serving the defense sector is a real struggle for new players. “There’s a necessary transformation; we had to adapt our processes,” explains Cyril Brotons, director of industrial strategy and products at satellite manufacturer and operator U-Space (prime contractor for the DGA’s Toutatis mission to test close-proximity maneuvers in low Earth orbit).
Newcomers then find themselves navigating a talent market for experienced executives within the highly opaque decision-making processes of the DGA or the Ministry of the Armed Forces. For Yoda, “it also took a year to finalize the contract,” notes Nicolas Multan. The trick to navigating this administrative maze is to push classification requirements as far beyond the hardware as possible: “Use a standardized industrial approach to push classification as far downstream as possible in the production process,” suggests Cyril Brotons. This is a strategy already adopted by the Pentagon’s Space Development Agency (SDA) in its satellite procurement for its large PWSA early warning and secure communications constellation. Prime contractors provide a service rather than a specific satellite platform, which reduces public spending as well as costs for companies. The trend is expected to extend to all defense infrastructure that is not highly strategic. Moreover, the satellite platforms for the Yoda and Toutatis missions are not proprietary, unlike those built around a classified payload.
Combining innovation and production
As we have seen in the drone sector in Ukraine, the agility of New Space is essential for quickly delivering solutions that meet new defense needs. This enables a rapid response to jamming and data spoofing (decoys), while also complementing current intelligence solutions. This is what, for example, a new alliance between the Toulouse-based company COMAT and the French subsidiary of Satlantis is offering: a high-resolution multispectral polarimetric camera for decamouflage. This is an example of an innovative solution proposal based on existing industrial capabilities—the kind of responsiveness the defense sector expects.
As the capital of the satellite industry, Toulouse must be prepared to respond to the “accelerated use of low-Earth orbit constellations” called for by Emmanuel Macron. This assessment has already been made in Germany and Sweden, where they have opted for American (Planet) or Finnish (Iceye) companies that already have a stock of satellites ready for launch. It is unclear whether the Toulouse ecosystem is currently capable of being as responsive, even though assembly lines for satellite constellations are already in place, as seen at ADS, which is finalizing its assembly line for the 440 OneWeb communication satellites ordered by Eutelsat, or at Hemeria, which managed to produce 25 Kinéis Internet of Things satellites in 18 months. We can also see these examples among equipment manufacturers with Anywaves’ new satellite antenna factory. “We’re ready because we founded Anywaves to address the constellation market,” its CEO Nicolas Capet told Air & Cosmos.
To accelerate this transition, there are companies that specialize in optimizing production processes. This is exactly what the Toulouse-based startup Connektica offers to players in the space and defense sectors. The startup’s origins stem from the work of its founder, Jérémy Perrin, at the Canadian manufacturer MDA, where he succeeded in reducing the production time for a OneWeb satellite antenna by a factor of 20. The goal: to standardize, digitize, and automate product production and testing processes, and to break the mold. “This marks the end of the V-model [an organizational model frequently used in the development of complex satellites, Ed.]. Now it’s time for iterations between design and industrial aspects,” explains Jérémy Perrin. This modus operandi is also being offered to the drone sector.
Attracting top talent
The Toulouse region is attracting new players in the French, European, and even global space sectors (such as the American company Loft Orbital and the Japanese firm Astroscale). Most recently, the Monegasque company Venturi announced plans to build a large rover manufacturing plant in Toulouse, creating nearly 200 jobs. The region is home to the technical excellence of CNES, the prime contractors ADS and TAS, and now also the Space Command and NATO’s Space Center of Excellence (see A&C 2957). Through competitiveness clusters like Aerospace Valley and groups such as the Club Galaxie, stakeholders easily find networks to help them set up in Toulouse. These stakeholders are concentrated in “space hubs” near the CNES, ADS, or TAS (Canal Technology Park, B612, etc.). The city and the Region (via AD’OCC) facilitate the establishment of new entrants (short-term land incentives, networking services, administrative support). There is also a certain momentum in Montpellier, where the university’s space center (CSUM) is very active. Some New Space startups have decided to set up shop there.
The Connect by CNES and SpaceFounders initiatives, along with incubators and accelerators, have had a very positive impact on the creation and growth of New Space startups. But success has its limits, as Catherine Lambert acknowledges: “We provide good support for companies with a concept at a low TRL [Technology Readiness Level, Ed.], but it becomes more limited when we want to go further (test facilities, flight test missions).” Lambert also highlights the lack of support for export initiatives, although Connect by CNES funds international travel (shared booths at trade shows) and has opened a branch in the United States. The ecosystem also suffers—as it does throughout France—from “Darwinism” among startups, accelerated by defense-related challenges. Major industrial players keep a constant eye on agile startups that could strengthen one of their business lines. Possible acquisitions? Yes. We just saw one on Friday, February 13, with Safran acquiring the Toulouse-based company Syntony.
The Bromo Spectre and the Skills Challenge
Ever since the Bromo project—which aims to merge the space operations of ADS, TAS, and Leonardo—received government approval, Toulouse has been grappling with significant workforce strain and high employee turnover. ADS management is actively encouraging this trend. “We’re being pushed to move over to Airbus Aircraft,” a source tells us. “Management has invited startups to set up shop right across from the cafeteria,” confirms Philippe Terme of the UNSA union at ADS. This is an invitation to poach valuable employees on the spot, breaking with the group’s culture of long-term careers. The pool of experts is now in danger, according to LFI MP Arnaud Saint-Martin. Thierry Préfol, of the CFE-CGC union, prefers to strike a reassuring tone and denies that entire departments at ADS are being eliminated to avoid duplication: “We sent a joint letter to management signed by 14 unions from all affected sites and countries, in which we want to ensure that there will be no job losses and no site closures.”
According to Bromo, the mobility of skilled workers is slowing down the development of the entire ecosystem. Furthermore, the medium-term evolution of skills has become a central issue due to the emergence of new needs in the space industry. Aerospace Valley’s 2023 assessment is clear: the space sector is 70% engineers, yet it desperately needs technicians and skilled workers for its industrialization. This is, in fact, a national challenge, and the France 2030 program is funding the COMETES initiative, which aims to train 11,000 people over five years and adapt training programs. “Needs will double—or even triple—by 2032,” confirms Didier Delorme, Director of Development and Innovation at ISAE. He confirms the integration of issues related to satellite constellations into the curriculum, as well as the creation of an aerospace industrial engineering track. Montpellier will also create a specialized professional bachelor’s degree in AIT (assembly, integration, and testing). Is the space engineer destined to become a warehouse worker? We’re far from that, as the need for Research & Development continues to grow. On the other hand, we’re looking for students who already have hands-on experience. This reinforces the role of university space centers like the CSUM, which trains 15 students and 30 interns per year.
