Space Innovation and Growth Strategy

The UK space industry is set for big things according to a report from Space IGS, a joint government, industry and academia initiative.  Currently it is a medium-sized industry with revenues of £5.9 billion in 2007, directly employing around 19,100 people. It is also a sector where productivity is more than four times the national average - contributing some £145,000 per worker to UK GDP. 

The Space Industry doesn’t just cover spacecraft but also the manufacturing of the launchers and the ground equipment. Satellites perform many functions autonomously but need to be operated (supervised and controlled) from the ground. Satellites are also insured. These are termed Upstream industries. There is also the much larger Downstream market place. This sector includes the manufacture of mass market user equipment such as satellite TV dishes and set top boxes and devices for navigation and precision timing. Applications and software development using the in orbit infrastructure are of great importance in securing benefits from space. The Space Foundation estimated that in 2008 the Space Business was a $257B industry.

The UK currently enjoys a 6.5% share of this market despite its public investment being only 0.014% of national GDP (compared with 0.1% in India, 0.05% in Germany and 0.025% in Canada).  However, the most striking attribute of the UK’s Space sector over the last decade is that it continues its relentless growth on average at 9% per year. The report forecasts that the domestic space industry could have a 10% share of a worldwide market that is expected to be worth some £400bn per year by 2030.  However, that unless the government, the City and industry itself start investing more in space, the report warns that current competitiveness will be undermined.

Click here to read the full report

Photo from Creative Commons: Flickr: mwboeckmann