A new frontier for space technologies at the UK Space Conference
The UK’s space industry is at a pivotal moment. Public investment in space is accelerating, targeting the development of capabilities that will drive long-term economic expansion. This shift reflects a broader recognition: space is no longer a niche sector—it’s a force multiplier for the entire economy.
New figures released during the conference underscore the UK’s growing reliance on space-based services. These services now underpin industrial activities valued at £454 billion, representing 18% of the nation’s GDP—an increase of £90 billion from the previous year. This surge highlights the critical role space plays in enabling everything from logistics and agriculture to finance and national security.
To maintain momentum, the UK Space Agency has committed £4.5 million to four pioneering projects aimed at advancing satellite-based 5G and 6G systems. These initiatives include efforts to deliver direct-to-device connectivity from low Earth orbit, develop in-orbit refuelling systems, and establish deep-space communications infrastructure. An additional £1.6 million will support the UK’s space cluster network, fostering innovation and regional economic growth.
A landmark partnership was also unveiled as part of the European Space Agency’s Moonlight programme. This collaboration will develop the first commercial lunar communications and navigation system, laying the groundwork for a data highway on and around the Moon.
The UK Space Agency’s activities have catalysed £2.2 billion in investment and revenue in the past financial year alone. A newly published report further reveals that every £1 invested in ESA programmes yields £7.49 in direct economic benefit to the UK.
Optical Communications Roadmap
At the conference, techUK hosted a panel of experts to discuss the Future of Ground to Satellite Communications. The UK is at a critical juncture in the development of optical communications, particularly in the space-to-ground and ground-to-space domains. While the appetite for innovation is strong, the sector faces a complex mix of technical, economic, and strategic challenges that must be addressed to unlock its full potential.
One of the most pressing issues is the gap between academic research and market-ready solutions. Many promising technologies remain at low Technology Readiness Levels (TRLs), hindered by long sales cycles, limited funding, and a lack of real-world testing environments. Atmospheric attenuation continues to be a major technical hurdle, disrupting data transmission and necessitating hybrid solutions that combine space and terrestrial systems.
The UK has laid important groundwork through investments in academia, SMEs, and collaborative partnerships. But to lead, it must foster an ecosystem where all players—from startups to primes—can co-develop technologies and share outcomes. Open-access testbeds, interoperability frameworks, and targeted funding for TRL 6–9 infrastructure are essential.
Ultimately, the UK needs a bold strategy to lead rather than follow. This means building systems and subsystems that are globally interoperable, aligning with allies, and investing in scalable, secure infrastructure. With the right vision and support, the UK can become a global hub for optical communications—laying the fibre in the sky for a new era of connectivity.
Conclusion
Looking ahead, there is strong optimism that the UK—and Europe more broadly—can play a leading role in the global space economy. Achieving this vision will require continued investment in competitiveness, innovation, and strategic partnerships. Rather than picking winners, the focus must be on identifying high-potential ventures and turning ambition into action. By doing so, the UK can help shape the future of space while addressing some of the world’s most pressing challenges.
Investment in skills, businesses, and regions will be defined by how effectively the UK confronts and resolves the challenges facing its space sector. Bridging the divide between research and market deployment, and between regional capabilities and national ambition, requires coordinated action. Policymakers and industry leaders must work hand in hand to build the infrastructure, talent pipelines, and collaborative frameworks that will shape the future of space technology.
The UK has the potential to be a substantial player in the global space economy—not because space is easy, but because the challenges it seeks to solve are among the most complex and consequential of our time. With strategic vision, targeted support, and a commitment to innovation, the UK can turn its strengths into leadership and ensure that space becomes a driver of growth, resilience, and global influence.
Contact us
Tales Gaspar
Tales has a background in law and economics, with previous experience in the regulation of new technologies and infrastructure.
Josh Turpin
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
