This morning in Brussels, key European leaders convened for a pivotal debate on the future of European security.
Members of the European Parliament, the Polish Council Presidency, and European Commission and Council Presidents, Ursula von der Leyen and António Costa, gathered to discuss the ReArm Europe plan, a framework designed to bolster EU defence capabilities. As geopolitical tensions continue to rise, the urgency of fortifying Europe’s security has never been greater.
The UK, while no longer a member of the European Union, remains a crucial player in the European defence landscape. However, it is not just in defence where the UK is making its mark. The British space sector has been making headlines with a record-breaking return on investment from the European Space Agency (ESA), signalling a renewed vigour in the UK’s approach to scientific and technological advancements.
Despite Brexit, the UK remains a founding member and key funder of the ESA. A core principle of the ESA is geographical return (geo-return), ensuring that taxpayer investments translate into industrial contracts benefiting the contributing nation. Historically, the UK had struggled to receive full returns on its investments. In 2022, for every pound invested in ESA, UK space organisations were receiving just 93p in return, after overhead costs.
Determined to rectify this shortfall, the UK Space Agency launched an ambitious initiative to secure additional contracts. The results have been striking. Newly released figures, unveiled at the Space-Comm Expo in London, reveal that the UK secured an unprecedented £80 million (€96 million) in ESA contracts in the fourth quarter of 2024 alone, the highest quarterly return ever recorded.
Between June 2022 and the end of 2024, the UK secured £844 million (€1.01 billion) in ESA contracts, exceeding the expected return of £732 million. This additional £112 million is set to significantly boost the competitiveness of the UK’s space sector, attracting private investment, fostering technological advancements, and expanding international collaborations. The UK now receives 99p back in contracts for every £1 invested, a remarkable turnaround achieved through strategic government-industry collaboration.
Science Secretary Peter Kyle hailed the achievement, stating: “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 powerhouse for innovation and investment.”
Dr Paul Bate, CEO of the UK Space Agency, echoed this sentiment, emphasising the importance of demonstrating the UK’s competitiveness in securing industrial contracts. He credited the remarkable progress to the dedication of the UK space sector and the collaborative efforts between ESA and the UK Space Agency.
To address past deficits, a joint UK Space Agency-ESA Industrial Policy Task Force was established. By identifying additional contract opportunities and improving access to specialist expertise, the UK Space Agency successfully expanded the reach of UK space companies. A critical factor in this success has been increased engagement with industry, resulting in the UK now having the highest number of registered entities on ESA’s procurement platform, including the largest presence of small and medium-sized enterprises (SMEs).
Josef Aschbacher, Director General of the European Space Agency, reinforced the commitment to the UK’s space sector: “ESA and the UK Space Agency are working hand in hand to empower the UK’s space sector, including its adjacent industries and vibrant startup scene. The results of our collaboration stand for economic growth, technological and scientific autonomy, high-value jobs for Europe and the UK, but also for a shared European vision of space that is both ethical and sustainable.”
The UK space sector, employing 52,000 people and generating an annual income of £18.9 billion, plays a crucial role in national security and economic growth. Satellite services alone underpin industrial activity worth £364 billion—16% of the UK’s GDP. The latest ESA contracts will further solidify the UK’s position as a leader in space innovation.
Some of the most notable recent ESA contracts secured by UK companies include:
- Airbus Defence and Space UK: Selected to design and build the Vigil spacecraft, which will provide space weather forecasts up to five days in advance, helping mitigate damage from solar storms. This project, based in Stevenage, will sustain over 150 highly skilled jobs.
- BAE Systems: Developing spacecraft designs for the Plasma Observatory mission, which aims to study space plasma and protect technology from solar winds.
- Open Cosmos: Awarded a £28 million contract to build three satellites for the NanoMagSat mission, enhancing navigation services and space weather risk assessment.
- Orbex: The Scottish company received £4.5 million through ESA to develop the UK’s first homegrown and UK-launched orbital rocket from SaxaVord spaceport in the Shetland Islands.
- Thales Alenia Space UK: Developing the Lunar Descent Element for ESA’s Argonaut Mission, contributing to lunar cargo transportation.
- Teledyne Space Imaging: Working on advanced sensors for ESA’s LISA mission, which will detect gravitational waves.
- Astronomy Technology Centre, Edinburgh: Secured a £10 million contract to develop cutting-edge space laboratories for laser hardware development.
The ESA Business Incubation Centre UK, backed by the UK Space Agency, has been instrumental in nurturing the country’s space startup ecosystem. Over 14 years, it has supported more than 200 companies, creating 1,000 high-productivity jobs and generating over £20 million in annual revenues, half of which come from exports.
The Centre has contributed to a cumulative UK economic impact of £350 million, representing an astonishing 20-fold return on investment for the government.
Independent analysis suggests that the UK’s membership in ESA delivers a return of £9.80 for every £1 invested, excluding overheads. The recent additional £112 million in contracts is projected to generate over £1 billion in broader economic benefits, reinforcing the UK’s space sector as a driver of sustained economic growth and innovation.
As the UK continues to strengthen its global standing in space exploration and technology, the record-breaking ESA contracts underscore the nation’s ability to compete on the world stage. With government and industry aligning their efforts, the UK’s space renaissance is well underway, positioning Britain as a formidable force in the next generation of space discovery and defence capabilities.
Main Image: UK Space Agency
