UK Space Sector Rockets Economy by £1 Billion
The UK space industry has blasted its way to a £1 billion boost, firing up new businesses and creating thousands of jobs nationwide, fresh figures reveal.
Space Boom: Jobs, Businesses, and Big Bucks
- UK space sector income soared by nearly £1 billion in 2021
- Almost 1,800 new jobs created across the country
- Number of UK space organisations jumped by nearly 300
- Regions like West Midlands, North West, North East, Yorkshire & Humber, Northern Ireland and Wales saw massive growth
Despite global upheaval from the COVID-19 pandemic, the UK space sector stayed resilient, raking in £17.5 billion in 2021 – up from £16.5 billion the year before.
According to the latest Size & Health of the UK Space Industry report, the number of space organisations shot up from 1,293 to 1,590, creating 1,772 new jobs. The sector now employs nearly 48,800 people, supporting an estimated 126,800 jobs in the wider supply chain.
Government Backs Space Boom
Michelle Donelan, Secretary of State for Science, Innovation and Technology, said:
“With the global space economy expanding rapidly, investing in UK space capabilities unlocks fresh opportunities, creating more jobs, skills, and businesses across the nation.
The government is committed to supporting this high-growth sector, boosting the UK’s reputation as a rising space power and inspiring the next generation of space pros.”
Regions like the West Midlands, East of England, and Wales saw the biggest income growth. Northern Ireland, Yorkshire & Humber, and North East England led in the number of new space organisations, while employment rocketed in the North West and East of England.
UK Space Agency: Confidence Sky-High
Dr Paul Bate, UK Space Agency Chief Executive, said:
“A £1 billion jump in sector income and £635 million investment by UK companies proves investors and businesses believe in the UK space scene.
Our world-class satellite tech and science have put the UK front and centre on international missions. We’re boosting capabilities in fast-growing areas and fostering talent nationwide.”
“Northern Ireland and northern England boomed in new space firms. East of England, West Midlands and Wales grew income, while jobs climbed in the North West. To keep this momentum, we must nurture skills and expertise across the UK.”
Space Sector Shines Amid Challenges
The 5.1% rise in income beats recent rates and outpaces global space sector growth of 1.6%, plus the overall UK economy’s 7.6% contraction.
Despite cost-of-living worries, three in five firms expect income growth soon, over half plan to hire more staff, and half anticipate increased investments. Nearly 75% say UK Space Agency support is vital to their success.
Investors Flock to the Final Frontier
A diverse private sector bankrolls UK space ventures, accounting for 89% of investments. In 2022 alone, UK space firms attracted £635 million across 34 deals, with acquisitions making up 75% of that. Investor numbers have surged from just one in 2012 to 66 last year.
Top dealmakers include Par Equity, Innovate UK, and Scottish Enterprise.
Spotlight on Goonhilly Earth Station
Cornwall’s Goonhilly Earth Station is boosting deep space communications and recently helped NASA’s Artemis 1 lunar mission. It also supports European Space Agency projects and private lunar landers like ispace HAKUTO-R, plus India’s Chandrayaan 3 and Aditya L1 missions.
The team is developing cutting-edge space launch tracking antennas, plus advanced simulator tech. Their super-cooled antenna tech aids Virgin Orbit’s launches from Spaceport Cornwall.
Ian Jones, CEO at Goonhilly Earth Station, said:
“Satellites power services we take for granted – weather forecasts, navigation, security, communication, and climate monitoring. This info depends on ground stations like Goonhilly, which communicate with spacecraft to keep systems running.”
About the Data
The Size & Health of the UK Space Industry 2022 report from know.space covers the 2020/21 financial year. It surveyed 1,590 UK space-related organisations and includes 303 survey responses. The report details methodological updates and explains data limitations for transparency.
