Despite the global disruption caused by the COVID-19 pandemic, space organisations presented a robust picture, generating £17.5bn in 2021, compare to £16.5bn in the previous year.

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.

Secretary of State for Science, Innovation and Technology, Michelle Donelan, said: “With the global space economy expanding rapidly, investing in UK our 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.”

Space applications generally, which incorporate services such as broadcasting and mobile satellite communications, space manufacturing, including satellites and scientific instruments for space missions, and space operations and ancillary services were the biggest growth drivers.

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.

“These positive figures underline the opportunities that space offers to drive inspiration, aspiration and productive jobs across the UK. In order to capitalise on this, we must further strengthen our partnerships to maintain growth across the whole of the sector, allowing us to extend our reach and support the UK space industry in cementing its position as a leading player in the global space arena.”

High Growth, High Confidence

The report by know.space researched 1,590 UK-based space-related organisations, and included 303 survey responses on the outlook for the space sector.

The 5.1% 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%) and the general UK economy, which contracted by 7.6%.

Despite the challenges of the cost of living, survey respondents were optimistic about the future, with three in five expecting to growth their income over the next few years, over half (58%) expecting to employ more staff, and half anticipating higher investments.

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

Recommended

• Secureworks | The Importance of Attribution
• RGC Online Launches Scholarship for Tech Courses
• CodeClan CEO Urges Tech Entrepreneurs to ‘Pay-It-Forward’

Investment 

Space continues to attract a diverse range of investors, mostly (89%) from the private sector.

Figures for 2022 (using Crunchbase) show that an estimated £635 million was invested in UK-headquartered space companies through 34 identified deals, with acquisitions accounting for three quarters of the total investment value.

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

Par Equity, Innovate UK, and the Scottish Investment Bank have been the source of most deals during this time.