The UK’s Space and Satellites Sector at a Glance 

Valued at £18.9 billion and supporting 45,000 jobs (2021/22 figures), the space and satellites industry has been a quiet overachiever, growing at an impressive average rate of 4.45% over the past 12 years - that's 3.5-4.7 times faster than the broader UK economy. This growth trajectory positions the sector to reach £25.8 billion by the end of this Parliament and £32 billion by the end of the next, potentially adding 28,000-50,000 new jobs.  

Supporting the Growth mission: Why and How the UK Should Invest in Space and Satellites 

Furthermore, it is a true sunrise sector, with rapid innovation and potential for growth.  

But there is potential for more. Its 11% Return on Investment is one of the highest among the UK’s key economic sectors; but its Gross Value Add contribution is low. This imbalance reflects the currently-untapped potential to widen use of space and satellite technology: as of now, it is a small, very high tech, relatively niche sector. But increased generation, types and use of satellite data, plus development of an industrialised manufacturing base, would see value returned across the economy. This combination makes space and satellites the sector with the most relative potential to support the Government’s Growth mission.   

Furthermore, the global challenges we face in this age of uncertainty - climate change, pollution, resource challenges, defence, and migration - all require satellite data to be solved. Without UK sovereign data and skills, we will be relying on foreign skills and technologies to meet our national and international legal commitments for the next 30 years. With UK sovereign data and skills, we can export these to other countries. 

The space and satellites economy is broad, and the UK has developed strengths in specific fields, including in small satellites, sustainability, and in emerging areas such as in-orbit servicing, artificial intelligence, and quantum computing. These capabilities, combined with a strong academic sector and a proven regulatory framework, make the UK an attractive destination for space businesses. 

But space is an unusual market. Costs and barriers to entry are high, and lead times are long. Every country in the world with a space sector has adopted a balance of private enterprise and Government support, with the largest space and satellite economies providing enormous government investment, even if their final goal is to develop a thriving private sector. To capitalise on the sector’s potential, the government will need an active industrial policy.  

How can UK policymakers unlock this space for growth? 

To date, the UK government has invested wisely in space and satellites. The strengths we have today are the result of past investments by the UK Space Agency and its predecessors. However, there are further steps policymakers can take to maximise the sector's potential, including: 

• Focussing further on strengths: Invest in areas where the UK already excels, such as small satellite production, in-orbit servicing, and earth observation technologies. 

• Ensure investments are aligned with Government Missions, as part of the funding process. 

• Streamlining Support: Consider simplifying the institutional landscape to enhance efficiency and clarity in the sector. 

• Engaging the Public: Shift the narrative to emphasize the practical, everyday benefits of space and satellite technologies. 

With the right support and strategic focus, space and satellites have the potential to be a key driver of economic growth, job creation, and technological innovation. As we face global challenges that require satellite data and space technologies, the UK has a unique opportunity to lead the way. 

Download the full report "Space for growth: How the UK's space and satellite sector can support the Growth mission" to dive deeper into our analysis and recommendations. 

This report was undertaken by The PSC, the UK's longest standing specialist public services consultancy. The report was written by The PSC's Space and Satellites team, including Phil Buckley, Dr Fiona Jamieson, Mark Buckley, Philippa Geering and Dr Antonio Weiss. The authors are grateful for input from over ten leading figures from the UK's space, defence and wider technology sectors. For more information contact phil.buckley@thepsc.co.uk.