By Guy Taylor
The UK’s space sector delivered £7bn in investment to the UK economy last year, new figures show, in an announcement that will provide welcome reassurance following Virgin Orbit’s disastrous failed UK launch, and subsequent bankruptcy, earlier in the year.
ADS group figures also show that productivity in the sector was 121 per cent higher than the UK average, with employee headcount growing by four per cent to a total of 48,800 people.
Kevin Craven, chief executive of ADS, said that the UK continues to be a “world leader” in space, but that “innovation and expertise must be fully utilised and leveraged to secure UK advantage””.
Aimie Stone, chief economist at ADS Group, said “with applications ranging from protecting the environment, delivering on national security priorities and a potential launch on the horizon, the vital contribution from the space sector to the UK economy highlights considerable new business opportunities in 2023.”
The figures will provide welcome relief to the UK’s space industry, which is still licking its wounds after the botched Cornwall launch of British billionaire Richard Branson’s Virgin Orbit in January.
The California-based company subsequently paused operations and placed some staff on furlough in early March, before eventually filing for bankruptcy in April.
Will Lecky, co-founder and director of know.space, a space economics and strategy consultancy, told City A.M: “While the Virgin Orbit launch was a setback, it is not the only game in town. We view that we are still in the relatively early days of a long-term growth story.”
“The UK can’t be complacent in what is a competitive global landscape, though it is well positioned to take advantage of new opportunities as we progress towards a $1trn global space market.”
He added: “The UK space sector has seen tremendous growth over the past few decades.”
According to previous ADS figures, total turnover from space organisations rose by nearly £1bn year-on-year to a total of £17.5bn in 2022.
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