The UK’s science secretary, Peter Kyle, has hailed Britain’s space sector as a “launchpad for innovation and investment” amid the publishing of new figures which show record contract wins.

Released today, the figures demonstrate an increase in the UK’s competitiveness for valuable contracts awarded by the European Space Agency (ESA).

Specifically, in the last quarter of 2024 alone, the UK space sector secured additional contracts worth £80 million more than government’s contributions to the ESA—the highest single quarter return ever recorded by an ESA member state. This is therefore the most successful quarter on record, and increases the total value of contracts secured for the UK sector through the ESA to £844 million since June 2022.

A government-backed taskforce led by the UK Space Agency has driven the efforts to attain maximum value from the UK’s contributions to the ESA. The taskforce has achieved this by improving the rate of geographical return—the principle that contracts are awarded in proportion to a country’s investments.

This initiative has then improved the UK’s return rate from 93p back in contracts for every £1 invested in 2022 to 99p in contracts for every £1 invested today; the wider benefits of this funding and international collaboration deliver £9.80 to every £1 invested over time.

The government said that the recent increase in contract wins will deliver wider benefits of more than £1 billion to the UK economy, and support an additional 3,800 highly-skilled jobs. As it stands, the UK space sector currently employs around 52,000 people, and generates an income of nearly £19 billion each year.

”These figures show not only the incredible results of a government working hand-in-glove with industry to get even more bang for our buck, but also send a clear message to the private sector across the globe: when it comes to space, science and tech, the UK is a launchpad for innovation and investment,” Kyle commented.

“We are on a mission to deliver sustained economic growth, and it is fantastic to see such a vital industry helping us turbocharge our Plan for Change, ultimately raising living standards for everyone.”

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The recent European Space Agency contracts, funded through the UK Space Agency, are helping to accelerate innovation in space missions and capabilities, spanning from the Airbus-led Vigil mission, which will provide space weather forecasts up to five days in advance, to Thales Alenia Space’s work on a next-gen spacecraft to deliver cargo and instruments to the Moon’s surface.

The UK Government is also backing the UK’s growing launch sector, with a recent £20m investment into Orbex, which is planning to launch satellites into space using its Prime rocket from SaxaVord Spaceport in the Shetland Islands later this year.

Recent success in attracting private investment include an £8.2m seed funding round led by Magdrive announced last month, and a £10m Series B round led by SatVu announced in November 2024.

More investment deals and contracts are expected to be announced in the coming months.