Space’s influence on economy and security grows, as new projects announced in Manchester
Source: gov.uk (2025-07-15)

From supercharged 5G systems to a funding boost for local space clusters, new projects have been announced today (Wednesday 16 July) by the UK Space Agency, as figures show growing dependence on satellite technologies.

As set out recently in the government’s Industrial Strategy, demand for space-based and space-enabled capabilities is growing fast globally.

New figures, released on the opening day of the UK Space Conference in Manchester, confirm the nation’s increasing dependence on space. Space and satellite services are now estimated to support wider industrial activities worth £454 billion to the economy, or 18% of GDP. This is an increase of £90 billion on the previous year.

The government has identified satellite communications as one of five national space capability priorities, and the UK Space Agency has awarded four new projects £4.5 million to push the boundaries of satellite-based 5G and 6G systems.

Among these, MDA Space UK’s SkyPhi mission aims to deliver 5G and 6G connectivity capabilities directly to devices via low Earth orbit satellites. Orbit Fab’s Radical project is focused on developing in-orbit refuelling systems for telecommunications satellites. SSTL’s lunar communications system will enable deep-space communications capabilities, while Viasat’s hybrid GEO-LEO network is designed to provide global 5G Direct-to-Device coverage.

These new projects aim to enhance satellite performance, reduce infrastructure costs, and position the UK at the forefront of next-gen connectivity.

An additional £1.6 million will go to the UK’s space cluster network to stimulate innovation and economic growth. This funding will enable space clusters to collaborate in areas of shared capability, supporting space companies to forge stronger local partnerships and take advantage of expertise across the whole of the UK, supporting future growth.

With more than 55,000 people employed by the space sector across the UK, and a further 81,000 jobs in the supply chain, there is significant potential for the sector to drive economic progress across the country.

Space and Telecoms Minister Sir Chris Bryant said:

The innovations on display at the UK Space Conference demonstrate our strengths in key technologies that will shape Britain’s future, from seamless connectivity and data services to advanced manufacturing and launch.

With satellite technologies supporting more than £450 billion in annual economic activity, and crucial to climate monitoring and national security, it’s vital that we are coordinating right across Government to unlock space’s incredible potential. We’re committed to working closely with this vibrant sector to accelerate our Plan for Change.

The UK Space Conference opens its doors in Manchester today, convening leading players in the UK space sector and beyond to discuss future growth plans and renew the sector’s focus on generating economic growth and advancing national security goals.

Industry Milestones and International Projects

During the conference, a new partnership between UK-based Viasat, SSTL, and MDA Space will be announced, as part of the European Space Agency’s Moonlight programme. The project will develop the first commercial lunar communications and navigation system, effectively establishing a data highway on and around the Moon. This infrastructure will support a wide range of exploration missions by enabling seamless, cost-effective communications between Earth and the lunar surface.

The UK will also spotlight its role in international climate science with the upcoming launch of MicroCarb, Europe’s first dedicated mission to measure atmospheric CO₂ on a global scale. A joint project between CNES (France’s space agency) and the UK Space Agency, the satellite, which will launch on 25 July, will provide crucial data on carbon sources and sinks, supporting efforts to meet Net Zero targets.

With its ability to distinguish between natural and human-made emissions, MicroCarb will be instrumental in helping policymakers craft effective climate strategies. Its advanced “city-scanning” mode can map emissions at an urban scale, a critical feature as the world intensifies its response to climate change.

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

The Industrial Strategy recognises we are living in the age of space, with satellite services hardwired into the UK economy and security. The UK Space Agency’s budget uplift to £682 million will help us drive forward our work to build stronger national capabilities and catalyse more private investment, in close collaboration with the sector, wider government bodies and international partners.

Together we are creating jobs, driving economic growth and tackling the key challenges. The UK Space Conference in Manchester is a powerful reminder that space is not just about looking up, it’s about moving forward.

Space Sector Growth and National Capabilities

The latest Size and Health of the UK Space Industry report (https://www.gov.uk/government/publications/size-and-health-of-the-uk-space-industry-2024), which analysed the 2022/23 financial year, shows the number of space organisations grew to 1,907, and employment increased by 7%. This is despite the wider economic challenges of that time and increased competitive pressures in the sector, particularly in the satellite communications market.

These challenges underline the importance of taking a more strategic approach to public space investments, with a renewed focus on the space capabilities necessary to drive economic growth and national security.

Analysis shows that UK Space Agency activity catalysed a total of £2.2 billion in investment and revenue in the UK space sector in the last financial year. A new report, also published today, shows that every £1 public investment in ESA programmes leads to £7.49 directly benefiting the UK economy.

Earlier this month, the UK Space Agency initiated a £75.6 million tender for the nation’s first mission to actively remove defunct satellites from orbit. This process will secure home-grown expertise and strengthen UK leadership in In-orbit Servicing, Assembly and Manufacturing, another key capability area.

Inspiring the next generation

Conference attendees will also have the opportunity to engage with British astronauts and reserve astronauts: Tim Peake, Rosemary Coogan, John McFall and Meganne Christian. These astronauts support the UK’s commitment to inspiring the next generation of scientists, engineers, and explorers, and reflect the spirit of innovation and resilience that defines the UK’s space ambitions.

Manchester is the 2025 host city, reflecting its strong industrial heritage and growing space cluster. The north west comprises more than 180 organisations and 2,300 space professionals, with companies including graphene specialists Smart IR and MDA Space UK expanding operations near Manchester Airport. The region is also home to the Jodrell Bank Observatory and hosts the global headquarters of the Square Kilmore Array Radio Telescope.

The UK Space Conference 2025 builds on the success of previous events in Newport and Belfast, with the latter generating £1.7 million in visitor spending alone.