Record UK contract wins through European Space Agency

A dramatic increase in the money flowing to the UK from European Space Agency (ESA) programmes has been announced today, with an additional £112 million (€134 million) in contracts secured for the UK space sector between June 2022 and December 2024.

These contracts are expected to deliver £1 billion in wider UK economic benefits.  

The UK is a founding member of ESA and one of its leading funders. A fundamental principle of ESA is that money from each country's taxpayers returns to that country, after ESA overheads, through industrial contracts, a process known as geographical return (geo-return).

However, for too long, the value of these contracts has fallen short of the UK's total investment – after overheads, in 2022 UK space organisations were receiving 93p back in contracts for every £1 invested.

Determined to address this issue, the UK Space Agency committed to reducing the deficit, with the full support of ESA.

New figures, released on the opening day of Space-Comm Expo in London, demonstrate the positive impact of these efforts. In the fourth quarter of 2024 alone, the work helped secure £80 million (€96 million) in additional contracts – the highest single quarter return ever recorded by an ESA member state.

Science Secretary Peter Kyle said:  

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 powerhouse for innovation and investment. 

We are on a mission to deliver sustained economic growth, and it is fantastic to see such a vital industry helping us turbocharge our Plan for Change, ultimately raising living standards for everyone.

In total, between June 2022 and the end of 2024, the UK secured £844 million (€1.01 billion) in ESA contracts, from an expected return of £732 million.

The additional £112 million will have a large, positive impact on the competitiveness of the UK's space sector, supporting businesses to attract further private investment, develop cutting edge technologies and expand internationally. It means the UK now receives 99p back in contracts for every £1 invested, after overheads.

Dr Paul Bate, CEO of the UK Space Agency, said:

While the value to the UK economy of our membership of ESA is many times greater than the sums invested, it is important for us to demonstrate the UK's competitiveness in securing industrial contracts.

First and foremost, the record figures announced today are down to the efforts of the UK space sector, so I would like to congratulate all those working on the new contracts. I would also like to thank the teams in ESA and the UK Space Agency for their hard work in delivering this exceptional result.

In 2022, the UK Space Agency identified several reasons for the historic deficit. These include the relatively high resource requirements for applying for ESA funding, limited awareness of UK contributions and deficits in certain programmes, and some gaps in understanding how smaller companies can engage effectively with ESA and put forward the strongest funding proposals.

To address the issues, a joint UK Space Agency-ESA Industrial Policy Task Force was established. This identified and secured additional contracts, and improved access to specialist expertise for UK space companies.

Josef Aschbacher, Director General of the European Space Agency, said:

ESA and the UK Space Agency are working hand in hand to empower the UK's space sector, including its adjacent industries and vibrant startup scene. The results of our collaboration stand for economic growth, technological and scientific autonomy, high-value jobs for Europe and the UK, but also for a shared European vision of space that is both ethical and sustainable.

The new figures announced today reflect ESA's longstanding commitment to help the UK in building one of the most attractive and innovative space economies in the world, whilst developing new scientific and industrial capacity and capabilities with partners across Europe.

The UK Space Agency delivered 21 training courses across the UK (Bid Writing and ESA 101 Workshops), increased promotion of existing ESA resources and rolled out a new internal data tool to enable a more comprehensive, strategic overview of the UK's entire ESA portfolio.

A boost in direct engagement with industry led to the UK having the most registered entities on ESA's procurement platform and the largest number of smaller companies (SMEs) in the ESA ecosystem.

Colin Baldwin, UKspace Executive Director, said:  

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 expertise, and convert this into business-winning activities.  

I hope our 200+ members – from start-ups to corporations – along with the wider UK space sector, will continue to demonstrate their quality, win more contracts, and deliver continued value for ESA and the UK economy.

The UK space sector employs 52,000 people and generates an income of £18.9 billion each year. Satellite services support wider industrial activity worth around £364 billion, - 16% of UK GDP – and play a vital role in national security.

About the UK's ESA membership

ESA is an intergovernmental organisation, created in 1975, with the mission to shape the development of Europe's space capability and ensure that investment in space delivers benefits to the citizens of Europe and the world.

The UK's membership of ESA has delivered many successes over the decades, from inspiring the nation with Tim Peake's flight to the International Space Station, to developing a key instrument on the James Webb Space Telescope and establishing ESA's Centre for Space Applications and Telecommunications (ECSAT) in Harwell.

ECSAT hosts several cutting-edge facilities and activities, including ESA's 5G/6G Hub, ESA's climate team, Spaceship ECSAT, ESA's Vulcan Facility, the ESA-RAL Advanced Manufacturing Laboratory, and ESA's Magali Vaissiere Conference Centre.

The benefits of the UK's ESA membership accrue over time, with independent analysis estimating a return of £9.80 for every £1 invested, excluding overheads. As such, the UK Space Agency anticipates the additional £112 million in contracts will lead to spillover benefits worth more than £1 billion to the UK economy.

Recent examples of ESA contractsAirbus Defence and Space UK

Vigil is a mission that will provide space weather forecasts up to five days in advance, helping to mitigate the potential damage that violent solar storms can cause to infrastructure on the ground and satellites in space. Airbus has been selected by ESA to design and build the Vigil spacecraft, with the majority of this work taking place in Stevenage, Hertfordshire. This contract will sustain more than 150 highly skilled jobs.

BAE Systems

BAE Systems won an ESA contract to develop spacecraft designs for a potential seven-satellite mission called Plasma Observatory. Space plasma is everywhere in the Universe and this mission aims to study how it is energised and transported through space, answering important scientific questions and helping to keep life and technology safe from the effects of solar winds. This work is supporting BAE Systems objective to develop a full space capability and become a leading UK space prime.

Open Cosmos

Open Cosmos, based in Harwell, won a £28 million contract from ESA to build three satellites that make up the NanoMagSat mission. These satellites will work together to study the Earth's magnetic field, providing crucial data that could be used to enhance satellite navigation services, assess space weather risks and contribute to climate change studies.

Orbex

In November 2024, Scottish launch company Orbex received £4.5 million through ESA. The UK Government invested a further £20 million in the company, via a convertible loan note, in January 2025, to support the construction and launch of the first UK-manufactured and UK-launched orbital rocket, from SaxaVord spaceport in the Shetland Islands.  

Thales Alenia Space UK

Thales Alenia Space won a contract from ESA to design, develop and deliver the Lunar Descent Element for ESA's Argonaut Mission. Argonaut is designed to deliver cargo, infrastructure and scientific instruments to the Moon's surface. The assembly, integration and testing of the propulsion system will be carried out in the company's space clean room facility in Belfast, Northern Ireland.

Teledyne Space Imaging  

Teledyne in Chelmsford is the prime contractor for the Constellation Acquisition Sensor (CAS) instrument being developed for ESA's LISA mission, which will study the ripples in space time known as gravitational waves. The UK imaging sensor manufacturer is using its world-renowned capabilities to deliver detectors and control electronics for the international space observation project.

Astronomy Technology Centre, Edinburgh

The Astronomy Technology Centre in Edinburgh was also awarded a £10 million contract through ESA to develop advanced space laboratories, where scientists will build laser hardware for the LISA mission.

ESA Business Incubation Centre

The ESA Business Incubation Centre UK, funded by the UK Space Agency and delivered by STFC, has operated for 14 years and supported more than 200 companies. The Centre's impacts include the creation of 1,000 high-productivity jobs, and annual start-up revenues of over £20m, half of which come from exports. In total this has led to a £350m cumulative direct UK economic impact (Gross Value Added), representing a more than 20x return on investment for the UK government.

Notes to editors

All subscriptions to ESA programmes are made in euros, so GBP figures are subject to foreign exchange rates.