As the world plunged into a global pandemic in March 2020 due to the rapid spread of the Covid-19 virus, above our heads orbiting Earth were 2,666 satellites with many more having been launched since. As we descend into one of the greatest economic recessions of our lifetime, by complete contrast, the UK Space industry is set to experience exponential growth, making this one of the most exciting and thriving sectors of investment.
With an estimated value of £14.8 billion, the UK space industry has seen pledges from the British Government to grow from its current 5.1% share in the global space economy to a staggering 10% share by 2030. This would see the current £5.5 billion generated by the UK space industry exports market double in the next decade and with Brexit just around the corner, now more than ever the UK plan to up their game and nearly double the number of people actively employed in the sector, which currently stands at 42,000. A sensible approach given that the growth in exports of the UK space industry outperformed all other UK exports by nearly 30%.
So, what is all the buzz about and why is this such a lucrative industry for investment? In a year where all of us have experienced the most unprecedented impact on our work and family life, where staying connected to people is so fundamentally important for emotional wellbeing and mental health, and for the survival of businesses and keeping the cogs of industry turning, we have seen the paramount importance of technology and remote communication. The UK has identified four priority markets set to double in size, with one of these markets being connectivity services. Delivering broadband and 5G to everyone – land, sea, and air, all around the globe, is a significant focus to be delivered by low orbit satellites.
Another key area of focus is Earth Information Services, anticipated to be worth £20 billion in the coming years. With a movement for climate change awareness that went viral in 2015 after Greta Thunberg, a 17-year-old Swedish student went on a school strike to lobby the Swedish Government to meet the carbon emissions target, there has been a campaign increasing in momentum for the UK Government to focus on environmental impact. Sir David Attenborough insisted that climate change is our “greatest threat” in his Climate Summit speech and the issues surrounding our environment provoke an ever-increasing demand for answers to questions about our planet, its behaviour, and its changes. There will be a significant expansion in the products and services offered in real-time global awareness, analytics, navigation, security, and the advanced data economies.
There is so much more to explore, so it is no surprise that the other key focus areas are space robotics and low-cost access to space. A robotic spacecraft, or probe, enables us to conduct research without the requirement for a manned ship, keeping costs low. This is a huge area of opportunity for science and enterprise. Forecasted to be a £10 billion market, establishing financially economical ways to obtain accessibility to space has seen a rise in the space economy arena from businesses trying to promote and develop platform technologies to achieve this goal and technologies to support all four of the main UK space strategies.
The space industry is comprised of both commercial and non-commercial organisations. Businesses with commercial interests earn revenue from the manufacture, launch and operation of satellite and spacecraft and the use of the research data produced by these vessels.
Leading public space organisations such as the European Space Agency, RAL Space, Satellite Applications Catapult and UK Space Agency have all committed investment to the Harwell Space Cluster. Considered a gateway to the UK space sector it comprises 105 Space organisations and employs 1100 people. It is also home to the Science & Technology Facilities Council and boasts over £2 billion of infrastructure for public and private development and research. Influencing participants include global space giants such as Airbus Defence & Space, Lockheed Martin and Thales Alenia Space. Joined by a variety of SMEs and start-ups they work collaboratively on a broad range of ventures from the design of propulsion subsystems to satellite navigation systems. The Harwell Space Cluster contributes towards the UK’s strategy to increase its market share in the rapidly expanding space industry.
Non-commercial enterprises such as universities and research institutes play a vital role in contributing towards space specialist research and expertise across the industry supply chain. One such example is the £7 million investment from the UK Space Agency that has been pumped into 21 UK organisations set to find new and innovative ways to change the landscape of how we tackle climate change. One of these funded organisations, the University of Cambridge, has developed new research that will see thermal infrared earth observation space telescopes used to monitor the energy efficiency of buildings. With advancements such as this we will be able to take even greater strides towards achieving our carbon emissions targets for the future.
So, is talk of the space industry an alien concept to most or does it touch our everyday lives unknowingly? Space technologies have become rooted in nearly every aspect of daily life. From scrolling through Twitter, making a quick call, or checking the weather app before hanging out the laundry, satellites are at work to provide us with connectivity, information, and services on demand. More recently there has been a significant increase in online shopping, digital and contactless payments, remote working, distance learning, online entertainment and even robots who can deliver your groceries. All these things impact business and our way of life; and they all rely on Information and Communications Technology. With space technology becoming more and more relevant it is fundamental we continue to invest in the growth of this sector.
The UK space industry already supports £300 billion of UK economic activity using satellite services and is expected to grow further as new Government support unlocks commercial opportunities. This is a sector experiencing unstoppable growth propelling into prosperity through expansion and investment. An expanse of space offering an expanse of opportunity for greater revenue. Could the growth of the UK Space Industry see the UK as the world leader in space technology by 2030?