Space-based missile defense is becoming a realistic option as countries confront increasingly sophisticated threats, according to the CEO of Canadian satellite technology company MDA Space.

Satellites could play an increasingly important role in detecting, tracking and potentially intercepting incoming missiles, CEO Mike Greenley told "Squawk Box Europe" on Thursday, arguing that such systems don't have to be more expensive than other advanced defense technologies.

Space-based systems could detect and track incoming missile threats and intercept them from land or space, he said.

He argued that having this technology is becoming increasingly necessary as "hypersonic missiles become more important as Russia, China has those capabilities." "From a North American perspective, monitoring the threat that could come over the top of the earth and be able to track and intercept that is a realistic part of life," he said.

While Toronto-listed MDA Space specializes in earth observation, radar and communication satellites, Greenley, like many of his space-tech peers, emphasized the dual-use applications in defense, as modern warfare becomes increasingly tech-heavy and sophisticated. Weapons in space? The U.S. recently confirmed for the first time that it has weapons deployed in space.

U.S. Air Force Secretary Troy Meink in September acknowledged that "on-orbit space control weapons" were capable of protecting U.S. forces from hostile action, without specifying the kind of weapons.

President Donald Trump is planning a $185 billion ballistic interceptor system, dubbed the Golden Dome, and has called to hike the U.S. defense budget to $1.5 trillion in 2027.

Asked whether Golden Dome's space-based components might be too expensive, Greenly said there are some "very cost-efficient opportunities" when it comes to monitoring and tracking incoming threats.

"Space-based interceptors that are positioned to be able to take out some form of a missile or threat that's coming into your territory [are] no more expensive than any other complex weapon system environment or monitoring and protection system environment," he said. Others in the industry have echoed the importance of space capabilities becoming a critical military asset.

ICEYE co-founder and CEO Rafal Modrzewski told CNBC in August that space is shifting from a capability that merely supports military operations to "a primary asset that will determine who is going to win or lose." It comes as governments around the world increasingly view the technology as crucial to securing their sovereignty, especially in light of the dominance of U.S.-based SpaceX and its satellite service Starlink.

Greenley said growing demand from governments and businesses seeking to reduce their reliance on Elon Musk's Starlink, alongside countries' ambitions to develop sovereign satellite communications networks, could drive the launch of numerous competing networks over the next five to seven years.