UK Space Sector Rockets Economy by £1bn Amid Pandemic
The UK space industry has boosted the economy by nearly £1 billion, creating thousands of new jobs and spawning fresh businesses across the country, new data reveals.
Space Sector Soars Despite Global Turmoil
- UK space sector income jumped from £16.5bn to £17.5bn in 2021
- Almost 1,800 new space jobs created nationwide
- Number of space organisations soared by nearly 300
- Big growth seen in West Midlands, North West, North East, Yorkshire & the Humber, plus Northern Ireland and Wales
Despite COVID-19 chaos worldwide, the UK space industry kept steady, expanding both income and employment. The latest Size & Health of the UK Space Industry report found the sector now employs nearly 48,800 people directly, supporting 126,800 more in related supply chains.
Government Backing Bolsters Space Boom
Science Minister Michelle Donelan hailed the booming sector, saying:
“With the global space economy expanding rapidly, investing in UK space capabilities can unlock new opportunities, bringing more jobs, skills and businesses to the UK.
The government is committed to supporting this high-growth sector, boosting the UK’s reputation as a growing space power, and inspiring the next generation of professionals.”
Regionally:
- West Midlands, East of England, and Wales saw biggest growth in space sector income
- Northern Ireland, Yorkshire & the Humber, and North East led in new space companies
- Employment rose fastest in North West and East of England
UK Space Agency Chief: Investment Signals Confidence
Dr Paul Bate, UK Space Agency CEO, highlighted a £1bn income rise and £635m investment as signs of strong investor faith.
“The UK Space Agency will continue to fuel investment to keep this growth blazing, delivering benefits across the economy, science and the planet.”
“World-class satellite tech and science keep the UK at the forefront of global missions while boosting national capabilities,” he added.
“The rise in space firms in Northern Ireland and northern England, sector income in the East, West Midlands and Wales, plus jobs in the North West shows growth is truly nationwide.”
Space Services Power Growth
Driving the boom are booming space applications like broadcasting, mobile satellite communications, plus satellite manufacturing and scientific instruments for missions.
John Hanley, chair of trade body UKspace, praised the sector’s resilience:
“Growing during such a tough time shows the sector’s grit and smarts. It’s great to see growth spreading to areas less represented before—we’ll back these new entrants through UKspace cluster membership.”
“The figures highlight space’s huge potential to inspire jobs and growth all over Britain. Strengthening partnerships is key to keeping the momentum and cementing the UK as a global space heavyweight.”
Confidence Defies Economic Headwinds
The sector grew 5.1% in income last year, outpacing global space growth (1.6%) and defying the UK economy’s 7.6% contraction. Despite the cost-of-living crisis, 60% of space firms expect income growth soon, 58% plan to hire more staff, and half foresee higher investments. Nearly three-quarters cite UK Space Agency support as vital for success.
Who’s Pumping Cash Into UK Space?
Private investors dominate, accounting for 89% of funding. In 2022 alone, £635 million flowed into UK space firms via 34 deals, mostly acquisitions. Investment numbers jumped from just one deal in 2012 to 34 last year, with investor count rocketing from one to 66.
Top investors include Par Equity, Innovate UK and Scottish Enterprise.
Spotlight on Goonhilly Earth Station
Cornwall’s Goonhilly Earth Station is a shining star, supporting NASA’s Artemis 1 lunar mission by managing communications for six cubesats in 2021.
It’s also worked with the European Space Agency and backed key lunar missions like ispace HAKUTO-R and India’s Chandrayaan 3 and Aditya L1. Goonhilly recently acquired US teleports and pioneered tracking antenna tech used by Virgin Orbit’s January launch from Spaceport Cornwall.
CEO Ian Jones explained:
“Satellite data underpins modern life — from weather forecasts to security and communication. Goonhilly plays a vital behind-the-scenes role, monitoring and commanding spacecraft that keep this all running smoothly.”
Data Source
This scoop is based on the Size & Health of the UK Space Industry 2022 report by know.space, analysing 1,590 UK space firms during 2020/21. Methodology tweaks are explained in the full report.
