Record-Breaking £844m ESA Contracts Awarded to UK Space Companies

The UK space sector is making a mark across Europe, setting a new record with an impressive £844 million worth of contracts secured through the European Space Agency (ESA). The latest figures, released on 11 March 2025, show that British firms and universities earned £80 million more than the government’s contribution to ESA in the final quarter of 2024, which is more than any other member state in ESA’s history.

Science Secretary Peter Kyle praised the milestone in an official press release, calling the space sector “a launchpad for innovation and investment.” He added, “These figures show not only the incredible results of a government working hand-in-glove with industry to get even more bang for our buck, but also send a clear message to the private sector across the globe: when it comes to space, science and tech, the UK is a launchpad for innovation and investment.”

This success forms part of the UK’s broader economic strategy under the Prime Minister’s Plan for Change. With the space industry already employing over 52,000 people and generating £18.9 billion annually, the latest contracts are expected to add more than £1 billion in value to the economy and support an additional 3,800 high-skilled jobs.

Since June 2022, UK organisations have steadily increased their competitiveness within ESA, largely due to a government-backed task force led by the UK Space Agency. This team worked to improve the UK’s “geographical return,” a system that awards contracts in line with contributions. In 2022, the return rate stood at 93p per £1 invested. Today, that figure has risen to 99p. Over time, these contributions are forecasted to bring £9.80 in economic benefits for every £1 invested.

Dr Paul Bate, CEO of the UK Space Agency, credited the boost to industry expertise and collaborative efforts. “First and foremost, the reduction in the deficit is down to the efforts of the UK space sector. I would like to congratulate all those working on the new contracts.”

ESA Director General Josef Aschbacher echoed the praise: “ESA and the UK Space Agency are working hand in hand to empower the UK’s space sector… The results of our collaboration stand for economic growth, high-value jobs and a shared European vision of space that is both ethical and sustainable.”

Contract wins include major projects like the Airbus-led Vigil mission, which will provide early warnings for space weather events, and a next-gen spacecraft by Thales Alenia Space for lunar cargo delivery. 

These developments come alongside new investments in launch capabilities, including a £20 million boost to Orbex, which aims to launch satellites from the Shetland Islands later this year.

Private investment is also coming in. Recent highlights include an £8.2 million funding round for propulsion start-up Magdrive and a £10 million Series B round for satellite imaging firm SatVu. More funding announcements are expected in the coming months.

Colin Baldwin, Executive Director of UKspace, noted the growing confidence in the industry: “The increasing number of ESA contracts being won by UK space companies reflects the work done by the UK Space Agency, ourselves and other stakeholders to give our members the tools and knowledge required to showcase their capabilities and convert this into business-winning activities.”

With the global space sector expected to triple by 2035 and reach £1.4 trillion annually, the UK’s strong foothold in ESA and growing domestic industry could mark a defining era for British space ambitions.