Recent contracts granted to the British space sector will deliver more than £1bn to the UK economy as figures released on Tuesday reveal a record quarter for the industry.
Britain’s space sector had its most successful quarter on record at the end of 2024 for contracts secured from the European Space Agency.
British companies received contracts worth £80m more than the UK’s contribution to the European Space Agency’s funding in the last quarter of the year, increasing the total value of contracts secured from the organisation to £844m since June 2022.
Among the recent contracts secured from the agency is a space-based weather forecasting project from Airbus, a spacecraft design for a plasma study to be provided by BAE Systems and the £28m satellite-building contract handed to Harwell-based Open Cosmos.
The figures have been celebrated by the government, which previously formed a UK Space Agency-led task force to increase the value extracted from Britain’s contributions to the European institution.
In 2022, the UK’s return rate was 93p in contract value for every £1 invested, which has risen to 99p today. The government claims the wider benefits of funding provided to the joint agency will deliver £9.80 for every £1 invested over time.
“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,” said Technology Secretary Peter Kyle.
“We are on a mission to deliver sustained economic growth, and it is fantastic to see such a vital industry helping us propel our Plan for Change, ultimately raising living standards for everyone.”
The UK space industry employs around 52,000 people and generates £18.9bn a year. The tech department has claimed the new contracts will add £1bn to the economy and support an additional 3,800 jobs.
“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,” said Dr Paul Bate, CEO of the UK Space Agency.
“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.”
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