Space Industry is a Vital Driver of Economic Growth, adding billions to the UK’s annual GDP

Dr. Manjit Pope, president of SFA UK is one of Europe’s leading rocket scientists & executive leaders in space commercialization.

Space Force Association UK Leadership Sheds Light on the Space Industry as a Vital Driver of Economic Growth, adding billions of Pounds to the UK’s annual GDP

LONDON, UNITED KINGDOM, July 6, 2023/EINPresswire.com/ — Dr. Manjit Pope, Space Force Association UK President & International Development sheds light on the often-overlooked role of the space industry as a vital driver of economic growth, supporting an estimated £370 billion of the UK’s annual GDP. While space may be commonly associated with astronauts and high-profile ventures by billionaires, its significance as a “hidden utility” cannot be underestimated.

The international space sector’s economic contribution primarily stems from approximately 5,000 operational satellites addressing pressing global challenges such as transitioning to a low-carbon economy, digitizing industries, food security, and future mobility solutions.

According to industry analysts at Forbes, the global space sector has surpassed a valuation of $469 billion, with 77% of that value attributed to the commercial market. Projections indicate a potential annual growth rate of up to 11%.

Impressively, the global space sector has attracted over $47 billion in private capital since 2015, demonstrating a remarkable average annual growth rate of 21%. The United Kingdom has emerged as a significant recipient of this investment, securing 17% of the total capital inflow and positioning itself as the second most attractive destination after the United States.

This capital injection has been allocated across more than 600 companies spanning the entire space value chain, illustrating the diversity of business models within the sector. The investments distribution comprises three key stages:

Upstream: Involves spacecraft manufacturing and launch vehicles, with $22.6 billion invested across 210 companies.

Midstream: Encompasses spacecraft operations and in-orbit management, with $5.6 billion deployed across 152 companies.

Downstream: Focuses on spacecraft-derived data, applications, and services. This segment has seen $19.6 billion invested in 267 companies primarily engaged in earth observation (EO), satellite communications and connectivity (SatCom), and satellite position, navigation & timing (PNT).

Contrary to the perception that space investment is limited to specialist investors, the capital infusion has come from across the investor spectrum. Notably: The number of unique investors in space companies has more than doubled from 274 in 2020 to 558 in 2022. During the peak of space investing in 2021, 63% of all space investors were new to the sector. Significant venture capital and private equity firms worldwide, including 13 of the largest 15 venture capital firms and 8 of the largest 15 private equity firms, have invested in space sector companies. In 2022, 64% of corporate investments in the space sector originated from non-aerospace and defense companies, indicating expanding interest from technology, telecommunications, media, financial, automotive, and other sectors.The growing investor base has also contributed to numerous exit opportunities, with a total of 163 exit events recorded in the space sector since 2015 through private and public markets.

The UK boasts a rich heritage of commercial space innovation and houses a dynamic industrial base of more than 1,500 space companies. Leveraging its talent pool, world-leading infrastructure, and access to export markets, the UK remains open for business in the space sector. The UK Chapter of the US Space Force Association welcomes ongoing engagement with investors from the UK and abroad who are eager to explore capital deployment opportunities in this dynamic and rapidly expanding market.

The Space Force Association UK Chapter offers a unique way to work with the U.S. and other allied nations to help gain a competitive edge in the evolving space landscape. Company’s have the opportunity to stay ahead of the curve by accessing exclusive insights, cutting-edge technologies, and collaborative opportunities with top experts in the field. As a corporate member, you’ll be at the forefront of space defence innovation, enabling you to enhance your capabilities, forge strategic partnerships, and secure your position as a leader in the UK and international space defence industry. Collaboration with international networks and global partners will expand opportunities for access to new markets and further economic growth both in the UK and on the world stage. Its important for companies and organisations in the UK to gain access and to influence space denfece policy, commerce on a global scale and to establish ethical frameworks and space governance.

Take advantage of the opportunity to access exclusive benefits and enhance your presence in the UK space defence and commercial sectors. By joining the US Space Force Association and its international networks, you can significantly contribute to the growing space domain. Our collective efforts aim to promote innovation, encourage collaboration, and ensure a prosperous future for the UK space industry. to learn more contact Dr. Manjit Pope, Space Force Association UK President & International Development or visit the Space Force Association website or to review corporate partners and join Click Here.

Dr. Manjit Pope
Space Force Association, UK
+44 7718 542833
[email protected]
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