UK Space Sector Rockets Economy by £1 Billion
The UK space industry has blasted its way to a £1 billion boost in 2021, creating hundreds of new businesses and thousands of jobs nationwide, new data reveals.
- Sector income surged nearly £1 billion in 2021
- Almost 1,800 new jobs added across the UK space workforce
- Number of space organisations jumped by nearly 300
- Regions like West Midlands, North West, Yorkshire, Northern Ireland, and Wales saw strong growth
Pandemic-Proof Growth Defies Global Chaos
Despite COVID-19 chaos, the UK space industry showed stellar resilience, pulling in £17.5 billion in revenue last year — up from £16.5 billion in 2020.
The latest Size & Health of the UK Space Industry report revealed 1,590 space firms now operate across Britain, up from 1,293 the year before, with 1,772 jobs created. The sector employs nearly 48,800 people directly and supports around 126,800 more in the wider supply chain.
Michelle Donelan, Secretary of State for Science, Innovation and Technology: “With the global space economy expanding rapidly, investing in UK space capabilities will unlock fresh opportunities, bringing more jobs, skills and thriving businesses. The government is all-in to back this high-growth sector, boosting the UK’s standing as a rising space power and inspiring the next generation.”
Regional wins: The West Midlands, East England and Wales showed biggest income growth. Northern Ireland, Yorkshire and the North East of England saw the biggest rise in space organisations. Employment jumped most in the North West and East England.
Dr Paul Bate, UK Space Agency Chief Executive: “The £1 billion income boost and £635 million in investments show strong investor confidence. We’re driving growth that benefits the entire UK economy, science, and the planet. From satellite manufacturing to space tech, the UK is on the global stage, with gains from Northern Ireland to Wales and the North West. Nurturing skills everywhere is key to keeping this momentum.”
Space Firm Fortunes Soar Amid Challenges
Space sector income jumped 5.1% in 2021, beating global space growth (1.6%) and outperforming the broader UK economy, which shrank by 7.6%.
Optimism runs high despite cost-of-living woes — 60% of companies expect revenue growth, 58% plan to hire more staff, and 50% anticipate rising investments. Nearly 75% credit UK Space Agency support for their success.
Private Investors Bet Big on UK Space
Space attracts diverse backers, with 89% of investments coming from the private sector. In 2022, UK space firms secured around £635 million via 34 deals, mostly acquisitions.
Investment activity has soared since 2012 — from one investment then to 34 in 2022, and investor counts rising from one to 66. Top dealmakers include Par Equity, Innovate UK, and the Scottish Investment Bank.
Case Study: Cornwall’s Goonhilly Earth Station
Goonhilly Earth Station in Cornwall is expanding its deep space comms, recently supporting NASA’s Artemis 1 lunar mission and several prestigious space projects, including the European Space Agency and India’s Chandrayaan 3.
The site also pioneered tracking tech used for Virgin Orbit’s Spaceport Cornwall launch and recently acquired US-based COMSAT teleports.
Ian Jones, CEO of Goonhilly Earth Station: “Satellites quietly power vital services we take for granted — weather, navigation, security, and more. But none of this happens without ground communication hubs like Goonhilly, which monitor and control spacecraft. We’re a vital piece of modern infrastructure and proud to support cutting-edge space exploration and operations.”
