- The UK is the most attractive destination for private
investment in space after the US
- Nine of the largest UK venture capital firms have invested in
space since 2015
- Key areas of investment in the UK are Earth observation,
manufacturing and satellite connectivity
- Growth of up to 11% forecast per year to 2030 across the
global space ecosystem
- 95% of space investments were in revenue-generating companies
in 2022 compared to 56% in 2015, demonstrating the growing
maturity of the sector.
New analysis from investment experts offers insight on the wealth
of opportunities found within the UK’s £17.5 billion space
sector.
The ‘Expanding frontiers – The
down to earth guide to investing in space’ report, produced
by PwC in association with the UK Space Agency, highlights
expected global space sector growth of up to 11% per year over
the next decade and a near doubling of venture capital
investments in revenue-generating space companies in the UK
between 2015 and 2022, with 63% of investors new to the sector in
2021.
The report details trends for new and established investors who
are interested in growing their space portfolio, including
opportunities with companies seeking to improve access to
healthcare and tackle global climate change challenges, from
decarbonising economies to increasing food security.
Craig Brown, Director of Investment at the UK Space Agency, said:
This report shines a light on the breadth and depth of space
investment opportunities. From today’s satellite communications
to the future of orbital assembly, space has taken on an
increased significance as a deeply embedded part of the global
economy that is poised to grow at up to 11% per annum to 2030.
As the number of satellites above us increases dramatically,
there are even greater opportunities to capitalise on the wealth
of data they collect and on the international efforts spearheaded
by the UK to keep the space environment safe and sustainable for
generations to come.
According to the report, the UK has been the leading destination
for space investment in Europe – and second internationally
behind the US – since 2015, receiving 17% of global investment.
Matt Alabaster, Partner at PwC Strategy&, said:
This report shines a light on the substantial contribution that
the space industry can make to solving some of our biggest global
challenges, from decarbonising our economies to increasing food
security and improving access to healthcare.
Our analysis shows that there are opportunities for investors of
all stripes; the industry contains asset-light and
technology-driven businesses, as well as infrastructure assets
and supporting services businesses, all of which stand to benefit
from the significant growth of the global space industry.
The Expanding frontiers report calculates a median 400% increase
in deal size for early-stage investments and highlights a number
of fast-growing UK space organisations, from satellite
communications firm, OneWeb, to Wales-based aerospace
manufacturer, Space Forge, which raised Europe’s largest ever
seed round for a space tech company in December 2021.
Joshua Western, CEO and Co-founder of Space Forge, said:
We’ve spear-headed new investment into the UK space sector from
homegrown and valued international partners. The growth in our
company and this sector is testament to the untapped potential of
the UK space ecosystem.
We are excited to be part of a dynamic and rapidly expanding
industry that makes a significant contribution to the UK economy.
Research shows that the UK has become a particularly attractive
market for venture capital firms, being home to the HQ of leading
space fund Seraphim Capital – which was the top investor in UK
space organisations in 2022 - and offices of US space and deep
tech fund, TypeOne VC.
UK space organisations have received investments from at least
seven of the most active global investors, and nine of the
largest UK-based venture capital firms, including University of
Cambridge Enterprise, Octopus Ventures and Molten.
Taking into account government, non-commercial (universities and
research institutes) and commercial organisations, it describes
the UK space sector as a “hidden utility” that underpins our
daily lives and supports an estimated £370 billion of the
country’s economy, mostly through satellite-based services.
The data follows figures in the recent Size and Health of the UK
Space Sector Report showing that £635 million was invested in
UK-headquartered space companies through 34 identified deals last
year, with acquisitions accounting for three quarters of the
total investment value.
Space sector income increased by more than 5% into 2021,
outpacing both the growth of the global space industry in the
same period (1.6%) and the general UK economy, which contracted
by 7.6%.
The full version of the PwC Expanding frontiers report is
available on request.
Read an executive summary
of the report here.
Read the
full report on the the PwC website.
