British space sector sees surge in European Space Agency business

Lauded by the country’s science secretary Peter Kyle as a “launchpad for innovation and investment”, generating thousands of highly skilled jobs across the country, the UK’s space sector is celebrating its most successful quarter on record, with the total value of contracts secured for the UK sector through the European Space Agency (ESA) reaching £844m since June 2022.

The UK government believes that the recent increase in contract wins will deliver wider benefits of more than £1bn to the UK economy and support an additional 3,800 highly skilled jobs. The UK space sector currently employs 52,000 people and generates an income of £18.9bn each year.

It also notes that the global space sector is an important driver of growth, forecasted to triple by 2035, reaching £1.4tn per year. A significant share of the UK economy, as much as 16% of UK GDP, now depends on products and services provided by satellites, such as communications, navigation, timing and Earth observation.

The extent of the work carried out through the ESA by the UK’s companies and universities 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-generation spacecraft to deliver instruments and cargo to the Moon’s surface. In the last quarter of 2024 alone, the UK space sector secured contracts worth £80m more than the UK government’s contributions to the ESA.

The UK government said the wins demonstrate the space sector’s role in turbocharging the government’s mission to grow the UK economy and the value of strong international partnerships in science, innovation and technology.   

In addition, a government-backed task force led by the UK Space Agency has driven efforts to extract maximum value from the UK’s contributions to the ESA by improving the rate of geographical return, which is the principle that contracts are awarded in proportion to a country’s investments.

Commenting on the deals, UK Space Agency CEO Paul Bate said: “While the value to the UK economy of our membership of ESA is many times greater than the sums invested, it is important for us to demonstrate the UK’s competitiveness in securing industrial contracts.

“First and foremost, the reduction in the deficit is down to the efforts of the UK space sector, so I would like to congratulate all those working on the new contracts. I would also like to thank the teams in ESA and the UK Space Agency for their hard work in delivering this exceptional result.”

ESA director general Josef Aschbacher added: “ESA and the UK Space Agency are working hand in hand to empower the UK’s space sector, including its adjacent industries and vibrant startup scene. The results of our collaboration stand for economic growth, technological and scientific autonomy, high-value jobs for Europe and the UK, but also for a shared European vision of space that is both ethical and sustainable.

“The new figures announced today reflect ESA’s longstanding commitment to help the UK in building one of the most attractive and innovative space economies in the world, while developing new scientific and industrial capacity and capabilities with partners across Europe.”