The global race for Low Earth Orbit (LEO) satellites could create a strategic opportunity for Brazil to expand its footprint in the space economy. Brazil boasts one of the most favorable geographic locations worldwide for space launches, an advantage set to gain immense relevance amid the surging demand for infrastructure supporting artificial intelligence, low-latency connectivity, and automation.

LEO satellite orbits the Earth at altitudes ranging from 160 to 2,000 kilometers. Positioned much closer to the surface than traditional geostationary satellites, they provide ultra-high-speed internet and low latency, enabling real-time data transmission to remote areas.

According to an analysis by Allianz Trade, the global market for LEO satellite-based services is projected to grow seven to eight times over this decade. Valued at approximately $16 billion in 2025, the segment could reach $120 billion by 2030. Furthermore, the broader space economy is expected to triple in size, surging from roughly $600 billion today to over $1.8 trillion by 2035.

Brazil’s Market Positioning

Within this landscape, the authors note that Brazil stands out due to a structural geographic advantage. Operating facilities near the Equator significantly reduces the fuel consumption required to place satellites into orbit, thereby streamlining launch operations. The Alcântara Launch Center in Maranhão ranks among the best-positioned facilities globally for such missions.

The Alcântara Space Center (Centro Espacial de Alcântara, or CEA) is the closest spaceport to the Equator in the world, situated just 2 degrees south. By comparison, the second closest is Europe’s Spaceport in French Guiana, at 5 degrees. Other major launch sites, such as the Wenchang Spacecraft Launch Site in China and the Kennedy Space Center in the United States, are located much further north, at 19 degrees and 28 degrees, respectively. This prime location allows Brazilian assets to generate up to 30% in fuel savings for equatorial orbit launches. This gives Brazil’s location a global advantage: by requiring less fuel, rockets can carry heavier payloads or additional equipment.

Despite this immense potential, the report points out that Brazilian infrastructure remains underutilized. Even after the 2019 Technology Safeguards Agreement signed with the United States that cleared the way for U.S. operators to use the base commercially, the number of launches remains modest. Expectations run high, however, that intensifying international competition will spur demand for new launch centers, broadening the horizon of opportunities for Brazil.

According to economists, the advancement of LEO constellations is directly intertwined with the expansion of artificial intelligence and technologies requiring real-time communication, such as autonomous vehicles, industrial robotics, and drones. Currently, around 40% of the Earth’s surface still lacks reliable 5G coverage, amplifying the critical role satellites play in bridging the connectivity gap in remote regions.

The Global Landscape

The findings stem from the study Low Earth, High Stakes: The Global LEO Satellite Race, published recently by economists at Allianz Research, the macroeconomic research division of Allianz Trade. The report underscores the heavy geopolitical undercurrents of this technological race. The United States currently leads the sector, bolstered by seamless integration across satellite development, manufacturing, and launches. Additionally, the U.S. captured nearly 60% of private space industry investments in 2025. During the same period, global private investment in space technology hit a record $12.4 billion, surging 48% year-over-year.

China is accelerating its expansion through state-backed investments, aiming to deploy nearly 30,000 low-orbit satellites by 2030 equivalent to roughly 40% of projected global capacity. Meanwhile, Europe has focused its strategy on specific segments of the space value chain, particularly launch capacity development, prioritizing technological niches over direct competition for satellite volume.

For developing nations, the report warns of a growing risk of technological dependence on major powers, with notable exceptions being China, India, and select Gulf economies. Within this context, Brazil also emerges as a distinct outlier. Its unique geographic conditions have the potential to turn Alcântara into a strategic asset, well-positioned to serve the global expansion of satellite constellations and solidify the nation’s footing in the new space economy.