UK space sector income reaches £17.5bn as jobs and services grow

The amount the UK space sector brings to the economy has grown by £1bn, helping launch new business and create jobs across the country, according to new figures.

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

The West Midlands, East of England and Wales saw the highest proportional growth in space sector income, while Northern Ireland, Yorkshire and the Humber and the North East of England experienced the biggest proportional increase in number of space organisations. Employment rose by the largest proportion in the North West and East of England.

Dr Paul Bate, chief executive at the UK Space Agency, said: “The £1bn increase in sector income and £635m investment generated by UK companies shows the confidence of investors and businesses in the UK space sector. The UK Space Agency will continue to catalyse investment to maintain this positive growth and bring further benefits across the UK economy, the science community and to the planet as a whole.

“World-class satellite manufacturing, science and technology expertise have ensured the UK plays a key role in major international missions, and we are increasing our national capabilities in fast-growing areas.

“We have seen a significant rise of space organisations in Northern Ireland and northern parts of England, of sector income in the East of England, West Midlands and Wales, and of employment in the North West. To ensure we continue this journey, it’s crucial that we nurture skills and expertise, both established and emerging, all over the UK.”

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.”

UK Space Agency
www.gov.uk/ukspaceagency