Australia's inadequate space capabilities could be putting the country's national security at risk, a defence think tank has warned.

Key points: Future conflicts in Asia-Pacific could leave Australia without any space support

Future conflicts in Asia-Pacific could leave Australia without any space support Reliance on countries like US for satellite communication, intelligence, surveillance, reconnaissance

Reliance on countries like US for satellite communication, intelligence, surveillance, reconnaissance Successive governments "failed to support attempts to develop local space capabilities"

The Australian Strategic Policy Institute (ASPI) says the nation has relied heavily on other countries and that could be an issue if there was ever a conflict in the Asia-Pacific.

Dr Malcolm Davis, a senior analyst in defence strategy and capability at ASPI, said in the case of a crisis, Australia could be left without any space support.

"Space is no longer a global sanctuary from warfare," he said.

"The states that normally provide satellite support to us, like the Americans, might have to prioritise their own needs over us."

He said Australia relies on countries like the United States for satellite communication, intelligence, surveillance and reconnaissance.

And that poses a danger to defence and national security.

"If we're talking about conflict on Earth, a future conflict between say, US and China, or something emerging from the Korean Peninsula, or the South China Sea," he said.

"Both Russians and Chinese have made it very clear that they have counter satellite capabilities and they intend to use them.

"So we shouldn't assume that will never happen."

The benefits of independence in space

Dr Davis said successive Australian governments have failed to adequately support attempts within the country to develop our own capabilities.

Matthew Tetlow, the chief executive officer of Inovor Technologies, a company that makes nanosatellites, said there are a number of reasons for that.

"We were able to get it for free, and I guess in a constrained budget it was the easiest option to take," he said.

"I also think there's a risk aversion in Australia, which seems to be higher than most places."

Mr Tetlow said historically Defence has not trusted Australian industry to deliver products and systems.

"I think they haven't considered the fact that having the capability in Australia is valuable and you basically have to see it and grow it to get it to world-class level," he said.

"But I do think the tide is changing."

And Dr Davis said those changes would bring benefits to Australia.

"It boosts the space sector dramatically because suddenly we're producing our own satellites, launch vehicles and launching satellites into space," he said.

"Secondly it does boost STEM (science, technology, engineering and mathematics), which is really important.

"And thirdly in terms of national resiliency, national strength — having that sovereign capability where we can deploy our own satellites means that we are not dependent on others to provide that capability for us."

Space 2.0

Signals intelligence from Pine Gap is used in US wars around the world. ( Supplied: Kristian Laemmle-Ruff )

Losing space capability would also affect Australia's industrial production, which Dr Davis said was dependent on space systems in one way or another.

"Most of our economy is dependent on space systems to function, most of our transportation system network is dependent on space systems to function," he said.

That is an expensive business, although Dr Davis said new technology could make it more affordable for the Australian Government to develop its space capabilities.

He called it Space 2.0.

"There's been a huge price differential between the traditional old space of large satellites and the new space of Space 2.0 systems that are much smaller, much cheaper — they have shorter lives, but you can produce more of them," he said.

"You can deploy more of them. There's that innovative principle.

"I think the closest parallel that I would make is that old space is like mainframe computers, Space 2.0 is like the iPhone."

Dr Davis said the key to the Federal Government's announcement last year that it would create a space agency would be its charter and its funding.

Those details are expected next month.