In our final blog this week to celebrate UKTI’s national ‘Export Week’ – we take a look at the opportunities for UK exports in the global Space industry – what’s the UK ambition, how can it be achieved, and where can we to look for future business?
The UK’s Space industry has been growing at around 7% per year over the last few years, reaching a revenue value of £11bn in 2013 – of which £4bn was derived from exports. Despite this strong base, 2013’s Space Innovation and Growth strategy (SIGS) set an ambitious target for UK industry – by 2020, grow revenues to £40bn, achieving 10% of the global space market. This target also included a desire to raise exports from £4bn in 2013, to around £25bn in 2030.
How can the UK achieve its 2030 export target?
The UK has a number of strong capabilities in which it is seen as a one of the world’s leaders – software design, systems integration, small satellites and global telecommunications. In order to help exports grow, the SIGS identified capabilities, matched them to current applications and then outlined some of the key areas where are the UK could benefit from future global growth in the market over the next 10-20 years.
Some of the key markets of the 15 overall which were identified, included = low cost access to space; persistent surveillance requirements; improving rail, air and other public services; e-connectivity through greater utilisation of broadband; and maritime surveillance and safety.
Not only is the understanding of potential market opportunities and how space applications can be used in other sectors important, but the regulatory environment in which UK companies operate is also a vital aspect in allowing companies to grow their business, attracting investment and attracting overseas business.
The UK government and industry must ensure that they continue to work heavily with the international regulatory authorities – to help define regulations in areas such as telecoms, and for space vehicles that offer low cost access to space. By doing this, the UK’s understanding and expertise in these areas can help lead global regulatory development, benefitting UK businesses. In addition, the focus will also be on ensuring the UK is the best nation for companies to set up and develop a Space-based business. Announcements such the recent Insurance Premium Tax exemption and an MoU between the UK Space Agency and Ofcom regarding access to Spectrum will go a long way in assisting with this.
Where are the opportunities?
A key area where the UK’s space industry can thrive, and develop its technological capabilities along the way, is in ensuring it remains a key part of future European Space Agency (ESA) projects.
Currently, the UK is the 4th highest contributor to the ESA budget – which has enabled industry and academia to be part of key projects such as Rosetta and the upcoming ExoMars programme. However, on the rate of return – the UK only ranks 5th in the EU. Other nations have put more money into ESA programmes, but as consequence, have received more work share. By increasing the sharing of resource and knowledge at an ESA level, the UK can better place itself to receive more work on large, future upcoming space missions.
Globally, the UK’s largest export markets in 2013 were the Rest of Europe (10%), Asia (7%) and North America (7%). Sales to Asia however have grown by 50%, and to N & S America by 11%. As emerging markets in Asia seek to develop not only their own space infrastructure, but also their own applications of space technology and communications – the UK is well placed to help deliver. Countries such as Japan for example, are looking at more ways to develop their space capabilities, but seeking to make their Space budgets go further and faster. The UK’s 40% share of all the world’s small satellites provides an unique opportunity for these needs.
The ability to grow the UK’s Space Exports by over 12x from today’s current levels will not be as easy task. But as more and more governments and private sector companies are understanding how space can benefit their needs, and be used in a wider range of applications, the UK must continue to be positive about achieving these goals as opportunities increase.
