Where does the UK sit globally when it comes to space investment?

The UK has made bold strides to become a key player in the global space industry over the past three decades, significantly increasing investment levels and nurturing the next generation of talent.

The industry’s growing partnerships with private companies and its focus on commercial space ventures helps to solidify the UK’s role as a leader in the rapidly evolving global space economy.

At ETL Systems, we have identified key trends in the UK’s space investment by analysing government spending over time, the growth in the number of jobs in the sector, and how our own contributions are helping to drive these increasing investments.

A substantial increase in space investment

The UK’s space spending has seen a remarkable rise since 1990. What began as an investment of $271 million has now surged to an impressive $1.45 billion in 2023. This dramatic increase is not only a reflection of inflation, it represents a genuine scaling up of the UK’s ambitions in the sector.

Government Spending over Time

Over the past three decades, the UK has expanded its focus from satellite communications and Earth observation to more complex and ambitious projects, such as space exploration missions and advanced aerospace research.

The UK Space Agency, established in 2010, has been instrumental in guiding this growth, coordinating national efforts and ensuring that investments are aligned with the UK’s long-term strategic goals.

The increased funding also underlines the government’s recognition of space as a critical sector for economic growth and national security, alongside its potential to drive innovation across multiple industries.

Steady and sustainable growth

Space spending in the UK has experienced steady growth, aligning with its strategy to develop a strong and sustainable space sector. For example, the Government has focused on steady year-on-year increases that allow the sector to mature at a manageable pace.

This approach has ensured that the UK’s space industry develops a solid foundation, with incremental advancements in technology and infrastructure.

The steady growth also mitigates risks, enabling the UK to respond flexibly to changes in the global space landscape, whether these are technological breakthroughs, shifts in international partnerships, or emerging commercial opportunities.

The UK’s careful and considered investment strategy is designed to build long-term resilience in the sector.

Focus on strategic investments

The approach the UK has taken to space investment is characterised by a focus on strategic areas that promise long-term returns. The findings suggest the UK has carefully selected key sectors where it can excel and have a significant impact.

Satellite technology, for example, remains a cornerstone of the UK’s space strategy. The UK is home to some key satellite manufacturers and operators, and its investments have helped drive innovations in satellite communications, Earth observation, and navigation systems.

Space research is another critical area, with UK universities, academics, and research institutions playing leading roles in scientific investigations and international space missions like Euclid and MicroCarb.

Furthermore, the UK’s collaborative efforts with international space agencies, particularly through its membership in the European Space Agency (ESA), allow it to share costs and benefits, enhancing the effectiveness of its investments.

This strategic focus ensures that the UK’s space sector not only grows but also thrives in a competitive global market.

Number of jobs per country

The UK’s investment in space goes beyond simply funding projects, it also focuses on job creation and fostering innovation. In 2021, the UK ranked seventh among G20 countries for employment in the space industry, with 48,772 people working in the sector. This workforce plays a crucial role in advancing the industry by contributing to its growth and development.

International Collaborations

The UK has long recognised that partnering with other nations and space agencies can multiply its impact in space exploration and technology development. Through its active involvement with ESA, the UK contributes to and benefits from a wide range of programs that would be difficult to undertake alone.

These collaborations allow the UK to participate in major space missions, from monitoring and surveillance initiatives to cutting-edge research on the International Space Station (ISS).

Additionally, these partnerships help spread the financial burden, making ambitious projects more feasible.

A global comparison

In 2015, Russia held the highest percentage of GDP allocated to space spending at 0.470%, reflecting its historical emphasis on maintaining a strong presence in space exploration and technology. However, by 2023, Russia’s spending had declined and the United States surpassed all other nations, achieving a significant 0.268% of its GDP devoted to space initiatives This shift illustrates the U.S.’s increased commitment to enhancing its space capabilities, driven by both government investment and a thriving commercial space sector.

Since 2015, some countries have experienced a decline in their space spending relative to GDP, likely influenced by economic challenges and changing national priorities. This evolution underscores a dynamic landscape in the space sector, reflecting both geopolitical interests and the rapid advancement of technology in space exploration.

The percentages of industry spending compared to GDP vary across countries for several reasons, especially in the space industry. Countries like the United States have historically prioritised space exploration for national security, technological advancement, and global leadership, with strong government backing influencing the proportion of GDP allocated to space.

Furthermore, the growth of the commercial space sector, particularly in the United States with companies like SpaceX and Blue Origin, has led to significant investments in space initiatives. These are largely driven by the market potential of satellite communications, the introduction of DTC business models within the sector, and space tourism.

While the UK’s spending on the space industry as a percentage of GDP was lower in both 2015 and 2023 compared to leading nations, its strategic emphasis on innovation and the commercialisation of space activities demonstrates a commitment to enhancing its role in the global space landscape. The UK government also plans to increase its share of the global space economy to 10% by 2030. This commitment has encouraged the growing involvement of private companies and start-ups in the UK space sector, further highlighting its potential for future growth and competitiveness in the industry.

Engaging the Next Generation

Data has revealed that over the last 12 months, the UK had the 3rd highest number of Google searches for space-related jobs, such as “how to become an astronaut”. While we know that the sector comprises hundreds of different roles, from engineers to scientists, it’s often astronauts that capture young people’s imaginations and ignite the fire that leads them to work within the sector.

This highlights the importance of providing accessible information on the wide range of careers available in the space industry and fostering interest through education to support future workforce development.

Google search data

To ensure the long-term vitality of the sector, we must engage and nurture the next generation of space professionals.

Recognising that future growth depends on a skilled workforce, ETL has invested in a range of initiatives designed to attract young talent into the industry.

Our internship and summer programs provide students and recent graduates with invaluable hands-on experience in space-related fields. These range from engineering and data analysis to project management and systems integration.

These programs are not just about technical training. They also aim to inspire a passion for space and innovation among participants.

Joanna Gower, Director of HR, People & Culture at ETL Systems, comments, “We recognise the importance of developing talent and fostering long-term engagement for careers within our sector. We have developed several company programmes to support and engage talent and develop skills across a wide scope of roles and career stages.

Our internships and early careers placements have provided a platform for aspirants in our sector to gain real-world experience in our industry. This complements their studies, but also to support their career aspirations. We recognise and proactively support the continued focus on developing talent within our sector, and seek to further this on a continued basis.”

Fostering the future generation at university

The longer-term success of the UK space sector relies heavily on engineers working across a range of disciplines. These span electrical, aerospace, mechanical and even robotics specialisations.

The engineering sector in academia is notorious for its rigorous qualification requirements and stringent pre-requisites to advanced study. The majority of university courses require the highest possible A-level grades in chemistry, maths and physics. The university courses themselves are often focused on time in the classroom, rather than out in industry developing vital skills.

This can result in new graduate engineers spending their first two years in the workforce catching-up on the skills they should have mastered during their studies. For example, while many graduates are mathematically proficient, they frequently lack programming expertise.

The New Model Institute for Technology and Engineering (NMITE) in the UK is challenging this traditional model and breaking the barriers to entry for aspiring engineers pursuing higher education. NMITE takes an approach that enables more students to study engineering by offering study in these qualifying subjects alongside the engineering curriculum, ensuring the UK has enough skilled individuals to fill critical STEM roles.

Through comprehensive education programs, hands-on training, and targeted skill development, NMITE aims to produce well-rounded engineers capable of seamlessly integrating into any role within the sector.

Peter Metcalfe, Associate Professor, Academic Lead for Curriculum Partners at NMITE, said: “We must recognise that while students bring their inherent strengths, we should focus our efforts on shaping their abilities to meet the demands of the industry. To do that, we first need to widen the door to opportunities.

“Requiring A-level maths as a prerequisite, for example, excludes a vast majority of capable students, especially girls, only 5% of whom pursue A-level maths after secondary school. Why create barriers when many of these skills aren’t fully utilised until later in their education?

At NMITE, we’re already ahead of the curve with an 18% female-to-male ratio, far surpassing the national average of 8%. But there’s still much work to do in ensuring we don’t restrict access to the space industry’s future talent. We need to invest in nurturing the skills they have, making the industry better for everyone.”

Conclusion

The commitment to innovation, collaboration and investment demonstrated by the trends explored in this data – both from the UK and from international governments with which it enjoys close relationships – is driving continued growth in this critical sector. As the satcoms and space industries grow, so too will interest and investment in education and employment in this sector. 

As well as continuing to develop cutting-edge ground segment technologies, ETL is committed to supporting the future of the UK space sector, with our summer programs and internships designed to capture the imagination of young people and encourage the next generation of engineers and industry pioneers.

Methodology

All data correct as of August, 2024.

Government spending:

ETL Systems collected data for each year using Euroconsult’s annual ‘Government Space Programs’ report.

Number of jobs in the sector:

ETL Systems collected the number of jobs per country from various sources, including Space.com, Statista, Gov.UK and Space.Gov.Aa. A full breakdown can be shared upon request.

GDP per year:

ETL Systems compared government spending per country for 2023 and 2015 with the GDP from that same year. Data collected from the World Bank.

Google Search Terms –

ETL Systems look at google search terms including “how to be an astronaut”, but also similar keywords, including (but not limited to): how to be an astronaut, how to become an astronaut, how do I become an astronaut, how can I become an astronaut, how do you become an astronaut, how to become an astronaut for SpaceX, how to become an astronaut in NAS…

A full list can be shared upon request.