British space sector secures European Space Agency contracts worth £80 million more than government contributions in last quarter of 2024 - a record for any member state.
- British space sector secures European Space Agency contracts worth £80 million more than government contributions in last quarter of 2024 - a record for any member state.
- Recent increase in contract wins set to deliver wider benefits of more than £1 billion to the UK economy and support 3,800 highly skilled jobs.
- New figures show UK companies and universities increasingly influential in global efforts to explore and benefit from space, supercharging government's mission to grow the economy as part of Prime Minister's Plan for Change.
The Science Secretary Peter Kyle has hailed Britain's space sector as a 'launchpad for innovation and investment', generating thousands of highly skilled jobs across the country and propelling the Prime Minister's Plan for Change set to boost economic growth.
From supporting last week's commercial moon landings with innovative propulsion technologies, to securing record contract wins through the European Space Agency (ESA), the UK space sector is going from strength to strength.
New figures released today (11th March) demonstrate an increase in the UK's competitiveness for valuable contracts awarded by the European Space Agency. In the last quarter of 2024 alone, the UK space sector secured contracts worth £80 million more than government's contributions to the European Space Agency. This is the most successful quarter on record, and increases the total value of contracts secured for the UK sector through the European Space Agency to £844 million since June 2022.
A government-backed task force led by the UK Space Agency has driven efforts to extract maximum value from the UK's contributions to the European Space Agency, by improving the rate of geographical return - the principle that contracts are awarded in proportion to a country's investments. This initiative has improved the UK's return rate from 93p back in contracts for every £1 invested in 2022 to 99p in contracts for every £1 invested today. The wider benefits of this funding and international collaboration deliver £9.80 for every £1 invested over time.
The recent increase in contract wins will deliver wider benefits of more than £1 billion to the UK economy and support an additional 3,800 highly skilled jobs. These wins build on a UK space sector which currently employs 52,000 people and generates an income of £18.9 billion each year.
This demonstrates the space sector's role in turbocharging the government's mission to grow the UK economy as part of the Prime Minister's Plan for Change, and the value of strong international partnerships in science, innovation and technology.
Science Secretary Peter Kyle said:
These figures show not only the incredible results of a government working hand-in-glove with industry to get even more bang for our buck, but also send a clear message to the private sector across the globe: when it comes to space, science and tech, the UK is a launchpad for innovation and investment.
We are on a mission to deliver sustained economic growth, and it is fantastic to see such a vital industry helping us propel our Plan for Change, ultimately raising living standards for everyone."
These figures come hot on the heels of the Science and Technology Secretary's speech at the Tech UK Conference yesterday (10 March) on plans to drive a decade of innovation with our Industrial Strategy - laying out a vision for 2035 where technology, including space, is a force for good in improving people's lives.
The global space sector is an important driver of growth, forecasted to triple by 2035, reaching £1.4 trillion per year. A significant share of the UK economy (16% of UK GDP) depends on products and services provided by satellites, such as communications, navigation, timing and Earth observation.
The recent European Space Agency contracts, funded through the UK Space Agency, are accelerating innovation in space missions and capabilities, spanning from the Airbus-led Vigil mission, which will provide space weather forecasts up to five days in advance, to Thales Alenia Space's work on a next generation spacecraft to deliver instruments and cargo to the Moon's surface.
The UK government is also backing the UK's growing launch sector, with a recent £20 million investment into Orbex, which is planning to launch satellites into space using its Prime rocket from the SaxaVord spaceport in the Shetland Islands later this year. The investment positions Britain as a leading international partner and cooperator in Europe's space ambitions.
Recent success in attracting private investment include an £8.2 million seed funding round by Magdrive announced last month (February) and a £10 million Series B round by SatVu announced in November 2024. More investment deals and contracts are expected to be announced in the coming months.
Dr Paul Bate, CEO of the UK Space Agency, said:
While the value to the UK economy of our membership of ESA is many times greater than the sums invested, it is important for us to demonstrate the UK's competitiveness in securing industrial contracts.
First and foremost, the reduction in the deficit is down to the efforts of the UK space sector, so I would like to congratulate all those working on the new contracts. I would also like to thank the teams in ESA and the UK Space Agency for their hard work in delivering this exceptional result.
Josef Aschbacher, Director General of the European Space Agency, said:
ESA and the UK Space Agency are working hand in hand to empower the UK's space sector, including its adjacent industries and vibrant startup scene. The results of our collaboration stand for economic growth, technological and scientific autonomy, high-value jobs for Europe and the UK, but also for a shared European vision of space that is both ethical and sustainable.
The new figures announced today reflect ESA's longstanding commitment to help the UK in building one of the most attractive and innovative space economies in the world, whilst developing new scientific and industrial capacity and capabilities with partners across Europe.
Colin Baldwin, UKspace Executive Director, said:
The increasing number of ESA contracts being won by UK space companies reflects the work done by the UK Space Agency, ourselves and other stakeholders to give our members the tools and knowledge required to showcase their capabilities and expertise, and convert this into business-winning activities.
I hope our 200+ members - from start-ups to corporations - along with the wider UK space sector, will continue to demonstrate their quality, win more contracts, and deliver continued value for ESA and the UK economy.
DSIT
