Employment in the UK space sector hit 46,995 in 2020, up from 44,040 in 2019: an increase of 2,955 (6.7%).

Sector income increased in nominal terms from £16.4 billion to £16.5 billion, with exports counting for around a third (32%) of this total. Space manufacturing, including satellites, spacecraft, launch vehicles and scientific instruments, grew the most in real terms; up by £23 million to £2.27 billion.

In line with the UK Government’s commitment to increasing public and private R&D spending, investment in research and development saw a 19% boost to £836 million.

Levelling up the space sector is a key priority for the UK Space Agency and there are now 1,293 space organisations located across the UK, with Scotland responsible for around one fifth of the entire UK space workforce. Employment in the sector grew from 7,703 to 8,440 in Scotland, from 415 to 1,109 in Wales, and from 113 to 431 in Northern Ireland.

Spaceports in Scotland, Wales and England are expected to generate more jobs in the coming years, alongside the growth of regional space clusters, international investment, and emerging technologies such as in-space manufacturing and debris removal, supported by the National Space Strategy.

Science Minister George Freeman said:

The £16.5 billion space sector is a major contributor to a strong and secure UK economy, and it’s promising to see it generate thousands of new high-skilled jobs in the face of global economic headwinds.

We’re backing this innovative and resilient industry through the largest ever increase to R&D spending, which includes a significant uplift to the UK Space Agency’s budget, and the delivery of the UK’s first National Space Strategy.

As we support new SpaceTech clusters from Spaceports in Cornwall and Scotland to satellite manufacturing and robotics from Glasgow to Warwick to Stevenage, this will help level-up the UK. Looking ahead to the first satellite launches from the UK this year, this is an exciting time for this high growth sector up and down the country.

The figures published today come from the ‘Size and Health of the UK Space Industry 2021’ survey, conducted by BryceTech on behalf of the UK Space Agency.

Confidence in the face of global challenges

When adjusted for inflation, the total income of the sector dropped marginally in real terms by 1.7% in 2020, compared to a 9.9% drop in the wider UK economy over the same period, caused predominantly by the Covid-19 pandemic. Fewer live sports broadcasts had a negative impact on satellite broadcasting services, while travel restrictions temporarily reduced demand for mobile satellite services from maritime companies and airlines.

Despite these challenges, confidence within the sector remains high, with more than three-quarters (79%) of organisations predicting a rise in income over the next three years, 74% expecting further increases in employment, and more than half (53%) expecting growth in space exports.

Dr Paul Bate, CEO of the UK Space Agency, said:

The UK space sector has shown remarkable resilience in the face of challenges presented by the pandemic, thanks to the incredible efforts of all those within it, and its future is a bright and ambitious one.

We continue to work closely with partners across the industry, with academia and our colleagues across government to catalyse further investment, deliver new space capabilities and missions, and champion space for the good of humanity. This will help us overcome challenges, drive forward the pace of innovation and bring tangible benefits to people and businesses.

Catalysing investment

The survey also analysed UK space investments over the past decade, finding that 145 unique investors in 38 companies invested nearly £6 billion across 90 investment deals, between 2012 and 2021.

There has been a recent increase in this activity with the launch of the Seraphim Space Investment Trust in 2021, and a newly announced $50 million space and tech fund from US venture capital firm, Type One. Following the success of its funding round for Wales-based Space Forge last year, Type One has opened a UK office to manage ongoing investment and support early-stage space companies in the UK and Europe.

Will Whitehorn, President of UKspace, said:

UKspace is delighted to see that, despite the many issues faced by all industries over the last two years, opportunities within the space sector have continued to grow.

We see the evidence within our membership of exciting new enterprises, significant collaborations and the development of projects which provide benefits across society.

The space sector has the ability to improve the lives of people across the globe, and this report demonstrates that the UK is at the forefront of that movement.

Kevin Craven, Chief Executive of ADS, said:

This report highlights the significant and important contribution the space sector makes to the UK.

The UK possesses major strengths and capabilities, including in satellite technology and manufacturing, which, underpinned by the National Space Strategy and the Defence Space Strategy, supports the sector’s bright, long-term future.

2022 will be an exciting year for space and advancing projects, such as the UK’s first spaceports, will enable and support increased regional prosperity and employment in this flourishing sector.

Howard Nye FRAeS, President of the Royal Aeronautical Society, said:

Given modern-day societies’ dependence on space infrastructure and services, both in the civil and defence domains, and the high return to the UK economy from government investment in space technology and space systems, this report provides strong evidence of the UK’s continuing determination to remain a key player both as the fourth largest contributor to the European Space Agency, as well as in partnership with its allies around the world.

The report also provides clear evidence of the UK Government’s call for levelling up employment opportunities across the UK, which must continue through encouraging young people to enter the space domain.

Today I have received a fixed penalty notice from the Metropolitan Police relating to an event in Downing Street on 19th June 2020, and let me say immediately that I have paid the fine and I once again offer a full apology.  

And in a spirit of openness and humility, I want to be completely clear about what happened on that date.

My day began shortly after 7am, and I chaired eight meetings in No10, including the Cabinet Committee deciding Covid strategy, I visited a school in Hemel Hempstead, which took me out of Downing Street for over four hours.  

And amongst all these engagements, on a day that happened to be my birthday, there was a brief gathering in the Cabinet Room shortly after 2pm, lasting for less than 10 minutes, during which people I work with kindly passed on their good wishes.  

And I have to say in all frankness, at the time, it did not occur to me that this might have been a breach of the rules.

But of course the police have found otherwise and I fully respect the outcome of their investigation.  

I understand the anger that many will feel that I myself fell short when it came to observing the very rules which the Government I lead had introduced to protect the public, and I accept in all sincerity that people had a right to expect better.  

Now I feel an even greater sense of obligation to deliver on the priorities of the British people:

strengthening our economy,  

creating jobs and opportunities,  

levelling up the whole United Kingdom,

now, of course, ensuring that Putin fails in Ukraine, and easing the burden imposed on hard-working families caused by higher energy prices.

I will take forward that task with due humility, but with maximum determination to fulfil my duty and do what is best for the country I serve.

My thanks to Special Representative Ruiz Massieu for your detailed briefing and insights.

I would like, once again, to extend a particularly warm welcome to President Duque and thank him also for his very detailed remarks and insights on the situation in Colombia. Your Excellency, Mr President, your presence here today testifies to the importance you place on the role of the UN, and the Security Council, in supporting Colombia on its journey towards lasting and sustainable peace.

It has been a privilege for the UK to work alongside Colombia, and I offer my congratulations to you Mr President, to the parties, and to the Colombian people, for the progress that has been achieved, just over five years since the signing of the peace agreement. We recognise the investment the Government has made during this time to support the reintegration of former combatants into civilian life.

Colombia serves as an important example, that an enduring resolution of differences is only possible through peaceful dialogue.

During the past quarter, as we have heard again today, we have continued to see some significant progress in the implementation of the Peace Accord.

As the report notes, this year is a real turning point for the transitional justice system, and its three components continue to advance in their crucial work.

We look forward to seeing the final report from the Truth Commission in June, and the first sentences being handed down by the Special Jurisdiction for Peace. We recognise the fundamental importance, as part of this process, of perpetrators acknowledging their crimes before the victims themselves. And we share the Secretary-General’s confidence in the fortitude Colombians will continue to show, as they confront a painful past in order to move towards healing and reconciliation.

Notwithstanding the important progress made, our concerns remain for groups that continue to be disproportionately affected by violence, displacement and confinement. In this regard, as we’ve heard from SRSG Massieu today, we continue to be alarmed by the increase in violent incidents and insecurity in several areas, which has claimed the lives of former combatants, social and environmental leaders, human rights defenders, women leaders and those from indigenous and Afro-Colombian communities.

In my capacity as the UK’s Special Representative for Preventing Sexual Violence in Conflict, I saw directly when I engaged with the representatives of these groups in a virtual visit in late 2020, the powerful insights they provided in this respect.

I am sure I speak for all colleagues when we say we were shocked and saddened by the murder of Jorge Santofimio in Putumayo. His commitment to environmental protection and peace had made him a real example of the benefits that come through successful reintegration.

To address this violence, we urge the Government to continue to expand its efforts to provide adequate protection and security, improve state presence in conflict-affected areas, as we’ve heard today, and strengthen the institutions that can investigate and prosecute those responsible for these crimes.

While challenges to full implementation remain, as we heard from His Excellency President Duque, there has been progress. The election of 16 victims into special ‘peace seats’ in Colombia’s House of Representatives really does represent a historic step forward. It presents an opportunity to widen the democratic participation of victims and the communities most affected by conflict. We also welcome the restorative justice mechanisms that have been introduced.

As Colombia looks ahead to the Presidential elections next month, we again call on all political stakeholders to ensure that these elections will be peaceful and inclusive, and that elected parties maintain their commitment to the full implementation of the peace agreement.

In conclusion, Colombia’s experience shows us the importance of holistic and inclusive approaches to building and sustaining peace, as well as the real value of engaging the UN’s full peacebuilding architecture, including the Peacebuilding Commission and the Peacebuilding Fund to catalyse international support.

For our part, the UK remains fully committed to supporting the Peace Process in Colombia, as all parties continue on their path to lasting peace. We will continue to look to consolidate, to strengthen and to build upon the gains achieved thus far.