The UK’S space sector has secured a series of contracts from the European Space Agency (ESA) worth £80 million more than the government’s contributions in the final quarter of 2024
This marks the most successful quarter for any ESA member state, significantly enhancing the UK’s position within the global space industry.
Where the UK stands in the space market
Overall, the value of contracts secured by UK companies and universities through the European Space Agency has reached £844 million since June 2022.
This performance shows the UK’s growing competitiveness in the global space market, particularly as companies in the sector continue to play a key role in developing cutting-edge space technologies.
The space sector is a key contributor to the UK’s economy, supporting 52,000 jobs and generating an annual income of £18.9 billion.
The latest contract wins are expected to generate more than £1 billion in wider economic benefits while creating 3,800 highly skilled jobs.
These developments work with other UK economic strategies designed to stimulate growth and innovation through sectors like space exploration, technology, and scientific research.
The UK’s partnership with ESA
The UK Space Agency has led efforts to maximise the country’s returns on investments in the European Space Agency.
By improving the geographical return rate, the principle is that countries should receive contracts in proportion to their contributions. The UK has increased its return from 93p per £1 invested in 2022 to 99p per £1 today.
This improvement shows the increasing value of the UK’s partnership with ESA and its significant domestic and international benefits.
The growth of the UK space sector aligns with the government’s ambition to become a global leader in science and technology, particularly in space.
The recent contract successes contribute to the broader goals outlined in the Prime Minister’s Plan for Change, which aims to boost economic growth, foster innovation, and create jobs in high-value industries. As part of these plans, the UK government has invested in various initiatives, including funding for commercial moon landings and the growth of the domestic satellite launch sector.
As well ESA contracts, the UK space sector also benefits from private investments. Some recent examples include an £8.2 million seed funding round for Magdrive in February 2025 and a £10 million Series B round for SatVu in November 2024. These investments fuel further innovation within the sector, with additional deals and contracts expected shortly.
The UK’s role in the global space sector is set to expand, with the space industry forecasted to triple in value by 2035, reaching £1.4 trillion annually.
The increasing demand for satellite-based services, such as communications, navigation, and Earth observation, drives this growth. The government’s investment in this sector is designed to position the UK at the forefront of this expanding market.
A key part of the UK’s strategy is supporting the development of new technologies and capabilities for space missions. Recent ESA-backed projects include the Airbus-led Vigil mission, which will provide advanced space weather forecasts, and the Thales Alenia Space’s efforts to design a next-generation spacecraft capable of delivering instruments and cargo to the Moon’s surface.
These projects demonstrate the UK’s leadership in space innovation and highlight the country’s increasing involvement in cutting-edge space exploration missions.
