Advancing UK Aerospace, Defence, Security & Space Solutions Worldwide
  • Home
  • /
  • Space
  • /
  • UK's space sector expands faster than its economy

Space

UK's space sector expands faster than its economy

The UK space sector is expanding faster than the overall UK economy, contributing over £17.5 billion annually, employing more than 45,000 people and supporting £360 billion in economic activity through satellite infrastructure.

Image courtesy Heligan Group

According to Heligan Group, M&A activity across the sector has rocketed over the past decade from only five transactions in 2013 to 27 in 2023 and will continue to grow in 2025 due to increasing government funding, the falling cost of launches and the adoption of new technologies, such as satellite-based quantum key distribution technology.

Advertisement
Amentum rectangle

 
Simon Heath (above), Partner at Heligan Group, said: “Advances in technology such as reusable rockets, orbital refuelling, and in-space manufacturing via 3D printing are driving the wave of innovation in the space sector. A prominent development for the UK is the growth of small satellite technologies, which are revolutionising the space industry by providing cost-effective and accessible satellite services.”
 
UK SMEs are playing a transformative role in the global space industry, specialising in satellite components, propulsion systems, and space data analytics, with many outpacing larger firms by focusing on niche technologies. Many are hopeful that a Space X-scale company will emerge from the UK over the next decade with the rising risk of SMEs being acquired by larger integrators.
 
Simon said: “Most UK space SMEs operate outside traditional aerospace hubs, decentralising the industry and fostering innovation across the country; this broader talent base is crucial for the long-term competitiveness of the UK space industry. With this, SMEs face growing challenges, including a reliance on large upfront investments, investors remaining cautious due to long timelines, and government funds becoming increasingly competitive.”
 
Access to growth finance and investment in the UK space sector has seen improvement in recent years but remains a mixed landscape. Nevertheless, trends indicate increasing interest from venture capitalists and corporate investors. Corporate venture arms of major aerospace and defence organisations such as Airbus and BAE Systems are actively investing in innovative space technologies. The UK government has also remained a key player, offering funds and grants through The UK Space Agency and Innovate UK.
Advertisement
ODU RT

 
Simon added: “Over the next 24 months, we will see a variety of themes driving activity in the UK space sector. Space infrastructure investment will be a primary concern as strengthening the UK’s space resilience is a national security priority. There will also be consolidation, with the market being highly fragmented and full of young, IP-rich and fast-growing businesses. Lastly, technological advancements such as innovations in small satellite systems and reusable launch vehicles are lowering entry barriers, reducing investment risks, and creating new opportunities for space startups.
 
“It is exciting to see the UK position itself to become a leading force in the global space economy. Although it currently lags behind other nations in space launch capacity, this will change with multiple launches planned from UK soil in 2025, with UK SMEs playing a bigger role than ever. Rapid technological advancements and escalating geopolitical tensions have intensified reliance on private sector innovation, with sovereignty playing an important role in supply change.
 
“While the space sector is growing, it is a typically cash-hungry industry with profitability for many of the UK’s brightest companies still several years away. However, the space sector is one area where the UK government is highly supportive, and this is mirrored in the private sector, with several VC investors solely focusing on frontier technologies. 2025 will be an interesting year for the UK space sector as interest from venture capitalists and corporate investors continues to grow."
 
Based in the UK with offices in London and Birmingham, Heligan Group is an intelligence led investment and advisory group specialising in partnering with businesses that contribute to global safety and security.

Advertisement
General Atomics LB
Boeing X-37B Spaceplane launches on eighth mission

Space

Boeing X-37B Spaceplane launches on eighth mission

27 August 2025

The Boeing built X 37B Orbital Test Vehicle has launched on its eighth mission, aboard a SpaceX Falcon 9 from Kennedy Space Center, Florida and the vehicle is healthy on orbit and standard checkout.

Bright Ascension expands into US

Space

Bright Ascension expands into US

27 August 2025

Bright Ascension has officially launched its new US entity, Bright Ascension Inc.

UKSA to join DSIT

Space

UKSA to join DSIT

20 August 2025

The UK Space Agency (UKSA) is to join the Department for Science, Innovation and Technology (DSIT) by April 2026, helping to streamline support for the UK’s growing space industry.

SaxaVord appoints Scott Hammond as CEO

Space

SaxaVord appoints Scott Hammond as CEO

19 August 2025

Scott Hammond is the new chief executive of SaxaVord Spaceport, the company announced today following the death of his friend and co-founder Frank Strang.

Advertisement
ODU RT
Maxon showcasing drive systems at DSEI

Defence Security Space Events

Maxon showcasing drive systems at DSEI

18 August 2025

Maxon UK & Ireland is presenting its range of precision drive systems for defence applications at Defence and Security Equipment International (DSEI) UK, Excel London, from 9th-12th September.

UK Space Frontiers 2035 officially launched

Space

UK Space Frontiers 2035 officially launched

14 August 2025

The UK Space Agency, in partnership with the Science and Technology Facilities Council (STFC), has officially launched the UK Space Frontiers 2035: Astro, Planetary & Helio initiative, providing a strategic vision for the future of UK space science.

Advertisement
ODU RT