Accelerated privatization led the entire space industry into a new era in just two decades. Space 4.0 manifests itself in many ways. Launch prices drop tremendously, while space gradually evolves into a demand-driven economy. Simultaneously, public investments keep growing, and manned exploration seems to revive. This evolution has shaken up some fundamentals of space systems engineering. Besides delivering excellence while dealing with complexity, time, cost and their relation to risk are now emerging as priorities. In this white paper, we describe why both public agencies and private businesses must focus on digitalization to be relevant in Space 4.0. And we explain how Simcenter™, part of the Xcelerator™ portfolio of solutions and services from Siemens Digital Industries Software, can help space companies innovate their products and processes faster through the digital twin.