Finland’s business promotion agency, Business Finland, has awarded research and development funding to space tech firm ICEYE, the organizations announced on Thursday. This move further underscores Europe’s continued push to bolster its rapidly growing space sector.
ICEYE, a privately held company, has seen rapid expansion in recent years and now operates the world’s largest fleet of 48 Synthetic Aperture Radar (SAR) satellites, delivering near real-time imaging to clients including Ukraine, NATO, and Japan.
As part of its efforts to cement ICEYE’s leadership in space and defence innovation, Business Finland has allocated €41.1 million ($47.2 million) towards the company’s €250 million ($287 million) investment plan.
“It will strengthen the entire space and defence sector and have a wide-ranging positive impact across the whole ecosystem,” head of Business Finland Lassi Noponen said in a statement.
Amid rising global security threats and the ongoing Ukraine war near its borders, the European Union has launched an €800 billion programme to strengthen its defence capabilities, with technology startups like ICEYE expected to play a pivotal role.
ICEYE explained that its satellite constellation uses Synthetic Aperture Radar (SAR) technology, which involves bouncing radar signals off the Earth’s surface from around 550 kilometers (342 miles) in orbit. As a result, the system can generate high-resolution ground images regardless of weather conditions or daylight, ensuring consistent, round-the-clock monitoring.
“We have clearly ended up being in the right place at the right time with this technology. There is a great need to develop such sovereign capability,” ICEYE chief of strategy Pekka Laurila said.
Besides providing satellite data, ICEYE also sells radar imaging satellites, catering to the growing demand from countries aiming to establish their own round-the-clock Earth observation capabilities.
According to ICEYE CEO Rafal Modrzewski, the surge in interest in space technology is fueled by both rapid technological advancements and the Ukraine war, which has underscored the critical role of satellite-based surveillance and intelligence.
“This technology will be critical for national security,” Modrzewski said.
ICEYE stated that its €250 million investment programme will enable the company to scale up satellite manufacturing, while also developing advanced sensors and enhancing its satellite platform technology. Together, these efforts aim to strengthen ICEYE’s position at the forefront of space and defence innovation.
