UK space sector income reaches £17.5bn

Figures in the latest Size & Health of the UK Space Industry report show the number of space organisations identified across the UK rose from 1,293 to 1,590, creating 1,772 jobs. The sector now employs just under 48,800 people and supports an estimated 126,800 UK jobs across the wider supply chain.

The West Midlands, East of England and Wales saw the highest proportional growth in space sector income, while Northern Ireland, Yorkshire and the Humber, and the North East of England experienced the biggest proportional increase in number of space organisations. Employment rose by the largest proportion in the North West and East of England.

The 5.1 per cent growth in income shows a higher growth rate than recent years and outpaced both the growth of the global space industry in the same period (1.6 per cent) and the general UK economy, which contracted by 7.6 per cent.

Despite cost of living challenges, survey respondents were optimistic about the future with three in five expecting to grow their income over the next few years, 58 per cent expecting to employ more staff, and half anticipating higher investment.

Nearly three quarters of respondents cited support from the UK Space Agency as a key enabler for commercial success.

John Hanley, chair of the UKspace trade body, said: “Further growth in the UK space sector, particularly during what was an incredibly challenging time for most UK industries, demonstrates the sector’s resilience and ingenuity.

“It is gratifying to see the sector growing in areas of the country that have previously been under represented – we look forward to supporting these new entrants to the space sector through our new cluster membership of UKspace.”

The report shows that space continues to attract a diverse range of investors, mostly (89 per cent) from the private sector. Figures for 2022 (using Crunchbase) show that an estimated £635m was invested in UK-headquartered space companies through 34 identified deals, with acquisitions accounting for three quarters of the total investment value.

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There has been a steady upward trend in both the number of investments (from one in 2012 to 34 last year) and population of investors (from one in 2012 to 66 last year).

Seraphim Space was the top investor in 2022, followed by Octopus Ventures. Par Equity, Innovate UK and Scottish Enterprise have also been particularly active over the last ten years.

Dr Paul Bate, chief executive at the UK Space Agency, said that the £1bn increase and £635m investment generated by UK companies shows confidence in the sector, adding: “The UK Space Agency will continue to catalyse investment to maintain this positive growth and bring further benefits across the UK economy, the science community and to the planet as a whole.

“World-class satellite manufacturing, science and technology expertise have ensured the UK plays a key role in major international missions, and we are increasing our national capabilities in fast-growing areas.”

Paul Kostek, IEEE senior member and advisory systems engineer with Air Direct Solutions LLC (infrastructure), commented: “Space has moved from being a means to compete at an international level, whereby nations demonstrate their technical capabilities and prowess, to a serious commercial enterprise offering opportunities for new businesses and improving day-to-day lives.

“This includes boosting internet accessibility and monitoring the weather and environmental risks. However, the big challenge will be collaboration – individualism and competition may hinder progress.”