The UK space sector has achieved a major milestone, securing £844 million (€1.01 billion) in European Space Agency (ESA) contracts between June 2022 and the end of 2024—£112 million more than expected. This success brings the UK’s ESA investment return to 99p per £1 spent, significantly improving from 93p in 2022.
These contracts are expected to generate over £1 billion in wider UK economic benefits, strengthening the country’s space industry, technological advancements, and global competitiveness.
UK’s ESA Investment: Closing the Gap
The UK Space Agency has long aimed to bridge the funding gap between UK taxpayer contributions and the value of contracts received from ESA. Previously, the UK received only 93p in contracts per £1 invested after ESA overheads.
To address this, the UK government:
- Established a joint UK Space Agency-ESA Industrial Policy Task Force.
- Increased training and engagement with UK companies.
- Promoted new funding opportunities and streamlined application processes.
As a result, Q4 2024 saw a record-breaking £80 million (€96 million) in ESA contracts awarded to UK firms, the highest quarterly return ever recorded by an ESA member state.
Key Figures & Economic Impact
- Total UK ESA contracts (June 2022 – Dec 2024): £844 million (€1.01 billion)
- Initial expected return: £732 million (€875 million)
- Additional contracts secured: £112 million (€135 million)
- ESA contract return per £1 invested (2024): 99p (up from 93p in 2022)
- Estimated wider UK economic impact: £1 billion+
Science Secretary Peter Kyle emphasized the UK’s growing role in global space innovation:
“These figures show the UK is a powerhouse for innovation and investment in space, science, and tech. We are on a mission to deliver sustained economic growth, and this vital industry is helping us turbocharge our Plan for Change.”
How the UK Increased Its ESA Contracts
The UK Space Agency launched several initiatives to support companies in securing ESA contracts, including:
- 21 training courses across the UK (Bid Writing & ESA 101 Workshops).
- Expanding direct engagement with the space industry.
- Creating a new internal data tool to monitor ESA projects.
- Supporting startups and SMEs in entering ESA’s procurement ecosystem.
As a result:
- The UK now has the highest number of registered entities on ESA’s procurement platform.
- More SMEs are engaged with ESA than any other country.
Dr Paul Bate, CEO of the UK Space Agency, praised these efforts:
“The record figures announced today are thanks to the incredible efforts of the UK space sector. We have worked closely with ESA to improve access, and these results demonstrate the UK’s global competitiveness in the space industry.”
Major ESA Contracts Won by UK Companies
Several high-profile UK companies have secured significant ESA contracts, contributing to scientific advancements, national security, and commercial space exploration.
1. Airbus Defence and Space UK (Stevenage, Hertfordshire)
- ESA Contract: Vigil spacecraft mission
- Purpose: Forecast solar storms up to five days in advance to protect Earth’s infrastructure and satellites.
- Impact: Sustains 150+ highly skilled jobs in the UK.
2. BAE Systems (UK-wide)
- ESA Contract: Plasma Observatory mission
- Purpose: Study space plasma to understand how it affects life and technology.
- Impact: Supports BAE’s goal to expand its space capabilities.
3. Open Cosmos (Harwell, Oxfordshire)
- ESA Contract: £28 million for the NanoMagSat mission
- Purpose: Build three satellites to study Earth’s magnetic field, benefiting satellite navigation, space weather, and climate change research.
4. Orbex (Shetland, Scotland)
- ESA Contract: £4.5 million for UK’s first orbital rocket launch
- Additional UK Government Investment: £20 million
- Purpose: Support the construction and launch of the first UK-manufactured and UK-launched orbital rocket from SaxaVord spaceport.
5. Thales Alenia Space UK (Belfast, Northern Ireland)
- ESA Contract: Lunar Descent Element for Argonaut Mission
- Purpose: Deliver cargo, infrastructure, and scientific instruments to the Moon.
6. Teledyne Space Imaging (Chelmsford, Essex)
- ESA Contract: Constellation Acquisition Sensor (CAS) for LISA mission
- Purpose: Develop sensors to study gravitational waves in space.
7. Astronomy Technology Centre (Edinburgh, Scotland)
- ESA Contract: £10 million for advanced space laboratories
- Purpose: Develop laser technology for the LISA mission.
The UK’s Role in ESA & Future Growth
The UK has been a founding member of ESA since 1975 and remains one of its top funders. ESA collaborations have supported:
- Tim Peake’s space mission to the International Space Station.
- The development of key instruments for the James Webb Space Telescope.
- ESA’s Centre for Space Applications & Telecommunications (ECSAT) in Harwell, which leads 5G/6G, climate science, and space manufacturing research.
According to independent analysis, every £1 invested in ESA generates £9.80 in return for the UK economy.
Josef Aschbacher, ESA Director General, stated:
“ESA and the UK Space Agency are working hand in hand to empower the UK’s space sector. These contracts drive economic growth, high-value jobs, and technological advancements that benefit both Europe and the UK.”
The UK’s space industry has made significant strides in securing ESA contracts, strengthening its global competitiveness. With record-breaking contract wins, increased SME participation, and greater industrial collaboration, the UK is now well-positioned to expand its leadership in space exploration, satellite technology, and scientific research.
The £1 billion+ economic boost from these ESA contracts will further drive job creation, technological innovation, and international investment in the UK’s thriving space sector.
