Space-based services are already indispensible...

In 10 years the world will be even more dependent on the satellite infrastructure, for communications and broadcasting, accurate positioning and navigation, and observation and monitoring.


...and the economics of space will change rapidly...

New technologies and business approaches, in which the UK has shown itself to be a global leader, will result in dramatic and ongoing cost reductions and performance gains in these applications, creating multiple opportunities for expanding business and competitive positioning. Recognising this, the UK has set out to focus on the provision of the in-orbit satellite infrastructure itself, achieving this through selective partnering with other countries.

Key to this is UK Government and industry investment in future key technologies for the satellites themselves, including advanced telecoms systems, navigation, radar and optical sensors, small satellites, control systems, and in satellite operations management systems and applications development. The UK can lead in revolutionising the economics of space.

Space is increasing the pace of innovation and its technological reach

UK productivity in space, already one of the highest in the economy, is forecast to increase by a further 50% by 2015.

...driving expansion in markets...

In 15 years the global space industry is forecast to be worth $1 trillion. Space related revenues are projected to accelerate, growing by up to 15% per annum in telecom and navigation markets. The UK space industry itself is expected to grow and to deliver a 60% increase in real terms on its current, direct contribution to GDP by 2015. An additional £2.75 billion contribution is forecast from the spillover effects of the R&D it undertakes.

From its present areas of leadership in technology and applications and current 7.3% market share (fifth in the world) the UK can aspire to grow its share significantly, with high investment returns for industry and Government and associated social, political and security benefits.

Government can take action on regulation to stimulate free and competitive markets and growth in services that use the satellite and space infrastructure.

...and applications...

Making space an indispensable highway for gathering and communicating information in the 21st century global economy and across political systems.

...providing increased benefits

Estimates point to spillover benefits for the UK economy in transport and environment alone of nearly £16 billion pa.

Satellites and Telecommunication Services

Risk reduction R&D investments from Government together with matching investments from industry have created a world class industrial position for the UK.

Satellite telecommunications technology underpins the growing contribution of UK space to national economic growth generating real economic return benefiting the whole sector and many other parts of the economy, from satellite media and broadcasting to the telecoms sector. The satcom sector currently represents around 80% of the UK space commercial activity.

Satellite telecommunications in the period to 2015 will continue to:
- grow at six times the rate of GDP
- drive the space industry’s exceptionally high value added rating ahead of other hi-tech manufacturing sectors such as aerospace or software, a crucial index in the eyes of the Government
- generate billions of pounds in related downstream businesses, for example adding £1 billion to the media sector alone. Downstream revenue from commercial satellite operators has grown by 44% in the last three years and is predicted to continue to grow into the future.

A modest step up in the investment from public and private funds can establish the UK as world leader in the field. The recent launch of the Hylas programme by Avanti of London provides a successful model for this partnership approach.

Satellites and Positional Services

Positional services and applications, driven by satellite navigation and the precision timing delivered by those systems will grow dramatically in the next 5-10 years, as increased accuracy and more assured service is provided by the Galileo programme. Galileo, combined with the less functional GPS and 3G/4G mobile phone technology will bring positional services to all aspects of our lives. Satellite navigation will be part of every mobile phone, every car/plane/ ship, tracking every high value asset. The applications market will become central through cost effective implementation of road user charging, prisoner tagging, 999 location, etc.

The value of the indirect benefit to the economy of transport applications is estimated to reach £15 billion pa by 2015.

The UK is well positioned to benefit from this rapidly expanding market as UK industry, supported by Government investment in Galileo, leads the platform demonstration, navigation payload and ground control aspects of the infrastructure programme. There will also be opportunities for the UK to provide early service solutions.

The UK can lead Europe in this service and application sector through full engagement with downstream industry to allow first to market opportunities.

Satellites and Surveillance and Observational Services

Weather forecasting is already dependent on satellite technology. In the longer term, new services and applications based on near real time pictures from space will develop as this media becomes more cost effective through new developments in imaging technology coupled with small satellite technology (led from the UK). Today this is used by farmers, security forces, disaster relief workers and others. But as UK investment in R&D bears fruit it has the potential to support public policy objectives and also to improve the efficiency of public services by providing more capable tools and better information and a host of new applications will emerge covering detection of illegal fishing, border monitoring, pollution policing etc.

The value to the UK economy of the contribution of satellite data to better weather forecasting is on its own worth up to £1 billion pa. The ability to predict natural hazards as a result of satellite observations could save up to $1.5 billion globally.

An expanded space-based security system will be in place by 2015, primarily though not exclusively part of an international network, and this will be crucial in counter-terrorism and combating organised crime and people trafficking. Space based systems will not only be increasingly central to these functions, but will also reduce the economic cost of protective countermeasures. Again, the UK is well positioned to benefit from providing the satellites and support services, but this could be jeopardised if the UK fails to engage fully in ESA’s GMES (Global Monitoring for Environment and Security) programme and the associated EC user led support.

This market will grow rapidly and the UK is already one of the market leaders. A full and central role in the next round of European programmes will allow the UK to exploit this major opportunity fully.

Download the UK Space Vision 2025 overview