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Industrial Strategy 2025: what it means for the telecoms and space sectors

24 June 20254 min read
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Industrial Strategy 2025: what it means for the telecoms and space sectors

techUK sets out a summary of the Industrial Strategy published on Monday 23 June. Click here for our analysis of the Digital and Technologies sector plan.

The UK Government’s Modern Industrial Strategy 2025 sets out a 10-year plan to boost business investment and support the growth of strategic industries. Advanced Connectivity Technologies (ACT) and space have been identified as foundational to the UK’s industrial and economic future, underpinning the country’s ambitions for innovation, national security, and digital transformation.

 

Advanced Connectivity Technologies (ACT)

The strategy highlights ACT — including full-fibre, 5G standalone (5G SA), 6G, and satellite communications — as essential infrastructure for future public services, smart industries, and digital connectivity. It recognises the UK’s strengths in telecoms R&D and test facilities such as the UK Telecoms Lab and SONIC Labs, and calls for stronger integration of digital infrastructure planning, which links to the 10 year Infrastructure strategy.

Within the strategy, the Government also released its sector plans around Digital and Technology. This document outlines;

  • The strength of the ACTsector: initial market analysis identified over 11,800 UK telecoms firms, with 2,800 firms undertaking ACT-related work either as part of their core or wider (hybrid) business, contributing an estimated global GVA £11.1 billion in 2024.

  • Productivity benefits: ACT is estimated to deliver £14.6 to the UK’s GDP by 2035.

This include key commitments, which techUK have long supported including:

  • £240 million over four years to drive the commercialisation of ACT technologies through closer collaboration between industry and academia.

  • £130 million for lab and testbed infrastructure, supporting the expansion of the UK Telecoms Lab and new partnerships between digital, compound semiconductor and satellite Catapults.

  • A focus on spectrum availability and innovation, with ongoing collaboration with Ofcom and international stakeholders to support efficient, flexible use of radio spectrum.

  • Plans to enhance international collaboration, including through the Global Coalition on Telecoms and bilateral partnerships with countries advancing next-gen connectivity.

The strategy also outlines the Government’s intention to support adoption of ACT through public sector procurement, helping to scale innovative 5G use cases in areas such as health, logistics and manufacturing.

 

Space: A Frontier Sector for Growth

Space is identified as one of six “frontier industries” under the Advanced Manufacturing Sector Plan, with a focus on building sovereign capability and scaling space-based services. These include five priority areas comprising satellite connectivity, navigation, and data for Earth applications.

Priorities for the space sector were included under the Advanced Manufacturing Sector Plan, which set the following approach:

  • Grow the UK space sector by focusing on specific capabilities to become a top European exporter by 2030.

  • Boost revenue by supporting the development of more industrialised space companies with revenues over £10 million.

  • Improve access to capital through diverse financing options to help companies scale and industrialise.

  • Increase competition and diversity at the top of the supply chain by strategically supporting key space companies.

  • Strengthen supply chain resilience to enhance national security, especially in critical technical and infrastructure areas.

Investment includes:

  • £80 million over five years to deliver on the Space Industrial Plan’s core technology goals, attracting private investment.

  • Additional support through programmes like the National Space Innovation Programme (NSIP) and Space Clusters Infrastructure Fund (SCIF).

  • £75 million in bilateral R&D funding to strengthen international partnerships for bilateral R&D funding and leveraging our ESA membership.

  • Regulatory reform through the creation of a Space Industry Advisory Group and the launch of a Space Regulatory Sandbox through innovative frameworks set by the Regulatory Innovation Office.

  • Workforce development initiatives to ensure long-term capability and resilience across the space economy.

The strategy emphasises the UK’s ambition to grow its space sector into a leading global exporter, increase access to capital, and diversify the upper tiers of the UK space supply chain by 2030.

 

Final Thoughts:

The sector plans set measurable targets that both Government and industry can use to track progress. Strengthening collaboration channels is essential to successfully achieve these ambitious goals. Combined with the recent Spending Review, the 10-year Infrastructure Strategy, this Industrial strategy finalises the significant policy June announcements for the telecoms sector and the wider economy. There is a lot to digest and how this will be effectively delivered to resolve some of the existing barriers will be crucial. techUK will be liaising with officials to help clarify certain announcements for members and align them to the existing work of the Communications, Infrastructure and Services programme.