A UK Space Innovation and Growth Strategy 2010 to 2030
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Chairman’s Introduction
A UK Space Innovation
and Growth Strategy
2010 to 2030
1
Chairman’s Introduction
Contents
Minister for Science and Innovation’s Foreword 2
Chairman’s Introduction 4
Executive Summary 6
Recommendations 24
2 1
Chairman’s Introduction Minister for Science and Innovation’s Foreword
Minister for Science
and Innovation’s
Foreword
“The UK Space sector is a genuine
success story. We’re responsible
The Space industry has moved far beyond its
origins in programmes whose motivation was
national prestige. Today, it is integral to the
digital economy. Space-based technologies are
helping us to understand and address climate
This report maps out those opportunities
and points to an exciting future. Government
will respond to the report in full.
In the meantime, I want to thank Andy Green and
for world-class science in our change, keep our armed forces safe, and deliver
urgent aid when natural disasters occur.
his team for producing this innovation and growth
strategy. It is an ambitious, yet viable, blueprint
laboratories and on international The UK Space sector is a genuine success story.
for joint action by industry and government.
We’re responsible for world-class science in our
missions. We manufacture many laboratories and on international missions. We
manufacture many of the satellites surrounding
of the satellites surrounding the the Earth, and are experts in software design and
systems integration. The sector contributes £5.6
billion to the economy and supports 68,000 jobs.
Earth, and are experts in software Following a decade of consistent growth, the
design and systems integration. The market for Space services has distinguished
itself by being recession-proof. That trend should
sector contributes £5.6 billion to the
continue, given the emerging role for the sector
in many aspects of the low-carbon agenda as Lord Paul Drayson
well as in media and communications. Minister for Science and Innovation
economy and supports 68,000 jobs.
”
2 3
Chairman’s Introduction Chairman’s Introduction
Chairman’s
Introduction
“If ever there was a time to be bold
with industrial strategy it is now.
Space is a vibrant and high growth sector that
has achieved great things in a relatively short
amount of time and is now an essential part of
the engine that drives the global economy. It
has revolutionised capabilities in areas such as
Industry needs to invest to seize market
opportunities and deliver the national benefits.
Investment in Space will result in economic and
social returns including the creation of at least
100,000 high-skilled, high-value jobs. Industry
We should seize the opportunity to international communications, global navigation
and national security, and has also provided a
will help raise awareness of careers in the
Space sector in order to inspire young people
way to monitor the Earth’s climate. These are to choose science, technology, engineering and
take a successful UK Space sector fast growing markets in which the UK could
enjoy a stronger position.
mathematics related subjects and meet
the demand.
and transform it into a foundation It would have been safe to focus on what the If ever there was a time to be bold with
UK does well in Space and simply look for the industrial strategy it is now. We should seize the
stone of our future economy. opportunities in niche markets that use the opportunity to take a successful UK Space sector
”
UK’s industrial and science capabilities. But and transform it into a foundation stone of our
I have encouraged the team to be more wide future economy.
ranging — to look for specific opportunities that
enable the sector to go further, faster. This is Investment will also provide an opportunity for
less comfortable. In difficult financial times we the UK to take the lead on global issues such as
outline that the UK needs strong governance, managing food and energy supplies, monitoring
a National Space Technology Strategy, and we climate change, and reducing its carbon
advocate a national procurement of an Earth emissions by up to 40 million tonnes.
observation service.
I would like to thank the experienced team of
All this will cost money. However, our experts who worked with me on this IGT report
recommendations should enable the UK to for the UK Space Industry and I look forward to
cost effectively meet national needs for services seeing our recommendations becoming reality.
delivered from Space and to promote new UK-
based services into overseas markets. It is true
that these actions are attractive to industry. But
they also provide the basis to help energise an
economy emerging from recession. Andy Green, Chairman
4 5
Executive Summary
Executive
Summary and
Recommendations
Executive Summary
Space: a vibrant and high even more important to us for ensuring not only The overall world market for the Space industry is Space is an industry that punches above its
growth sector the quality of our lives, but also the very essence likely to grow from £160 billion in 2008 to at least weight in the UK economy. Oxford Economics,
of our existence. The supply of food, energy and £400 billion by 2030 — a 5% annual growth rate in the highly respected forecasting agency,
At half the age of the automotive and aerospace humanitarian relief, the security, safety and constant 2007 values. Although we expect growth estimates that the UK Space sector, including
sectors, the global Space industry has achieved support of our citizens and the combating of in government spending on Space to moderate, suppliers and induced employment and services,
an enormous amount in a very short time. climate change will all be supported by Space- particularly in the US and Europe, whilst contributes around £5.6 billion in value added to
Having set foot on the moon in 1969, astronauts based services, technologies and capabilities damage to fiscal balances is repaired, demand the UK’s GDP and supports around 68,000 jobs
now routinely live and work in an international to a far greater degree than they already are. in commercial and security markets is forecast directly and through its wider spending.
Space Station orbiting above us. We have also to grow strongly. In particular, high growth
sent Space probes to the far-flung corners of the This report sets out the opportunities for is expected in Earth Observation (EO), Global Science remains a very strong and key part
Solar System in pursuit of answers to the most the UK to take advantage of the coming Space Positioning Services (GPS) applications and of our success in Space, with the UK being the
fundamental questions about our origins. revolution, not just for the benefit of society global internet delivery. second-largest publisher of major Space science
as a whole, but also for sound commercial papers in the World, providing a knowledge base
These almost unbelievable endeavours have and economic reasons. for many other developments. The technology
been widely publicised, and have entered into the
UK Space: a hidden success story spin-offs from Space affect industries from
public consciousness as evidence of mankind’s Space has been one of the hidden success stories medicine to manufacturing. The end-user
unlimited imagination and boundless ingenuity.
The Space market of British industry over the past few decades. applications affect our lives in every way, from
However, what is less generally recognised is Between 1999 and 2007, the UK’s Space In 2007, it generated revenues of £5.9 billion in communication at home and work to security,
that whilst these high-profile expeditions were sector grew by an average of 9% per year. This the UK, of which £2.8 billion contributed directly safety, entertainment and travel.
grabbing the headlines, behind the scenes, Space impressive growth highlights the resilience of to the nation’s Gross Domestic Product (GDP).
was rapidly becoming a fundamental part of our our Space industry to the effects of economic The sector also accounted for 19,100 jobs as Exceptional growth from exploiting R&D
everyday lives and an essential engine of the and political turmoil, and is due to the diverse a direct result of its activities, with employee
Avanti was a small company operating its internet
global economy. Space-derived data and services, customer base for Space-enabled services — productivity more than four times the national service from London using space rented on existing
together with the infrastructure needed to deliver from commercial telecommunications, weather average. It consequently contributes some satellites. In 2005 it committed to buying its first satellite
them, have revolutionised capabilities in areas forecasting, global transport networks, military £145,000 per worker to UK GDP. Significantly, — a new breed that can change frequency and power.
as diverse as international communications, operations, civilian emergency services and both manufacturing and operations are capital This was only possible because a partnership of Astrium,
global navigation and worldwide radio and TV environmental monitoring. It is built on a mix intensive and require highly skilled people Avanti, BNSC and ESA came together to develop and
broadcasting. Furthermore, as global warming of market demand and strong UK industrial resulting in graduates filling nearly two-thirds de-risk this novel architecture. This satellite will launch
assumes ever greater importance, Space provides capabilities. The UK has long-standing and of all jobs. Space manufacturing is a uniquely in 2010 and will deliver a 10 Mbps broadband service to
governments and the scientific community with deep-rooted strengths in satellite manufacturing, advanced technology sector that builds very high- rural communities in the UK and benefit those not able to
value bespoke products, which have to operate connect to a service that most of us take for granted. By
a unique and comprehensive means to study satellite operations, Space exploration, remote
creating this supportive environment, the UK has helped
changes to the Earth, its ecosystems and climate. sensing and in the vast array of services that are with guaranteed reliability for up to 20 years in
Avanti secure £600 million of private investment over the
There is no doubt that over the past 40 years since enabled via Space-based systems. Although data a remote and hostile environment. Overseas
last 5 years to purchase satellites and set up services
the moon landings we have become increasingly for 2008 and 2009 is not yet available, increasing demand for products and services will always
and sell broadband capacity in Europe, the Middle East
reliant on Space for our security, commerce and revenues by both manufacturers and operators far outstrip domestic needs, meaning the vast and Africa. The city has reacted well to this growth
future well-being. Equally, it is no exaggeration to highlights that growth even through these difficult majority of the UK’s Space products and services model: Avanti’s share price has doubled between 2007
say that over the next 20 years, Space will become years has been positive. are exported. and 2010.
6 7
Executive Summary Executive Summary
Helping the trains run on time and QinetiQ provide entire systems integration
solutions, software and applications technology.
Rail operators increasingly need reliable, real- Inmarsat, Paradigm and Avanti Communications
time, information about their trains if they are to
are very profitable UK-based satellite operators
maintain the safety, security, and performance of
and BSkyB is one of the largest providers of
the network. They need access to performance
broadcast content using satellites with over
data and diagnostics as the network operates to
make real time decisions about how best to run the 12 million customers. Innovation in the sector
service. This data is critical if there is an incident is not just technical: Paradigm has provided a
and useful for assessing drivers. To really develop a world leading PFI solution for secure satellite
fleet-wide real-time information and management communications for the Armed Forces.
services needs a seamless communications service
across the network. By integrating terrestrial and The UK’s supply chain is relatively strong. It
satellite communications with traditional train
comprises many companies that have the high
reporting systems and satellite navigation services,
integrity manufacturing needed for Space
Nottingham Scientific Limited (NSL), a UK based
systems and companies generally have access
SME, is working with ESA and the train operators
to implement a proof-of-concept solution. This will to facilities that they need such as specialised
allow operating companies to communicate with clean rooms. However, the relatively low volume
their trains anywhere on the network and data to of some very high value, bespoke, components
be uploaded or downloaded in real time. Initial means that only a very few companies
applications will include train tracking, remote manufacture these and they are all located
engine monitoring, incident management and overseas. For example, radiation-hardened
driver training. application-specific integrated circuits are most
often procured from the US. The value of these
Advanced Manufacturing components can be significant: on one of the
and Services UK’s flagship programmes some £15 million of
Satellite manufacturing in the UK is worth £800 components were bought from abroad.
million, around 14% of the UK’s Space sector.
Many of these manufacturing capabilities are
Government support is key to
world-class. For example, Astrium, a pan-
European satellite manufacturer, builds one-
unlocking economic benefits
quarter of the world’s telecommunications The UK Government provides direct and indirect
satellites and chooses to manufacture the entire investment in the sector, by supporting research
payload and mechanical systems for these in and technology, Space science and missions. Not
its UK sites, together worth 50% of the value of only is it a customer, it is also a sponsor and it
the satellite. Surrey Satellites has developed offers further help by promoting civil and defence
an enviable reputation as one of the world’s exports. In 2008/09, Space received some £265
best small satellite manufacturers, integrating million in national project funding through ESA
commercial off-the-shelf components to contributions, the Technology Strategy Board and
supply complete small satellites to a growing Research Councils. However, this project funding
commercial and institutional market for represents good value for money as each activity
affordable Space capability. UK companies must demonstrate that the economic and social
are also developing disruptive manufacturing benefits exceed the investment, including the
technologies, for example, Reaction Engines Ltd opportunity costs of investing funds elsewhere
is developing propulsion technology for next in the economy.
generation ‘single stage to orbit’ Spaceplanes.
There is also the potential to link across
manufacturing sectors where UK is particularly
As part of her support for the ‘Innovation and
Growth Report’, the Chief Economist at the
With co-ordinated action we can create a
strong, such as autonomous systems, advanced
robotics, encryption and power systems.
Department of Business Innovation and Skills has
published an assessment of the economic impact
comparative advantage for UK technology and
of the UK’s Space sector. This draws on common services. We can secure greater wealth creation,
The UK also has a world recognised services data sources but the analysis is independent.
sector. Companies such as Logica, Finmeccanica more jobs and enhanced intellectual leadership
8 9
Executive Summary Executive Summary
10%
We have set a clear challenge to
firmly establish the UK as one of
the World’s leading Space nations
and grow the UK’s share of the
market share global market
10 11
Executive Summary Executive Summary
She concludes: to deliver more services to its citizens. Space
• Between 2000 and 2008 the global Space is a diverse sector resilient to fluctuations in
sector grew at a rate of 7% to 8% per annum in economic growth; it has high growth potential,
real terms with growth accelerating in the last it produces advanced technology, has low
three years. The UK grew at a rate of 9% per carbon credentials and strong scientific
annum in real terms during the period 2006 foundations. The UK should, therefore, allocate
and 2007. a disproportionately higher share of industrial
• Government investments in Space deliver funding to capitalise on the opportunities for
measurable direct benefits which are, on a growth that Space offers.
proportional basis, at least as big as those in
Space should have the opportunity of delivering
related areas. Space is a credible investment
more cost effective services for UK citizens.
within a wider portfolio of private sector
An advantage of providing services from
technology investments.
Space is that often this is truly national (if not
wider) — one solution can replace the need
Space combines high-value to integrate many local and intermediate
manufacturing and services, delivery systems. Aggregating requirements for
advanced technology and an ability cooperative services should, therefore, include
to deliver key government policy central government departments, devolved
objectives administrations, local government, agencies
and emergency services. It is the local part
Space is a complex market characterised by
of government that delivers the services most
strong government interventions prompted
visible to citizens and where the majority
by issues surrounding international standing,
of public spending is committed.
national prestige, influence in international
negotiations and military superiority. The US
Government alone spends over $60 billion on The time for positive action is now
Space annually, representing a mammoth 25%
We are at a crossroads in terms of the strategic
of the global market. Furthermore, France,
direction for the UK. The UK’s share of the world
Germany and Italy contribute as much to
Space market in 2007 was around 6%. This
indigenous Space programmes as they do to
substantial figure is about twice the size of many
ESA. Brazil, China and India, are also investing
other major UK industrial sectors, but less than
strongly in Space infrastructure. Therefore,
that of our leading industries. However, if we take
successful competition in the Space sector
a positive decision to go for growth, we can raise
requires industry, academia and governments
the market share significantly. But, if we fail to
working together at a national level. Fortunately,
step up our efforts there is a strong likelihood
thanks to past investments, the UK is well
that the sector will slide back to around the 3%
positioned for this competition. We have a
The UK does not have strong academic and industrial base and we are
mark. This might prompt the departure of some
of the large multi-nationals which have chosen to
a capability to collect valuable technologically ahead of Brazil, China and India.
Space is therefore one of the high-skilled, high
invest in the UK’s Space sector. It would certainly
data for monitoring climate technology sectors where the UK should focus
wipe out much of the UK’s past investment in
intellectual capital with a consequent loss of
change and supporting
its efforts. But we must recognise that this
our existing strengths.
should be a collaborative effort and UK
activities related to national Government intervention remains essential.
We should not overlook the fact that the UK is
and international security, With co-ordinated action we can create a
comparative advantage for UK technology and
a major stakeholder in this sector both directly
and via the European Commission. The time has
despite the fact that services. In doing so, we can secure greater come for us to use these investments to create
wealth creation, more jobs and enhanced
requirements for imagery
economic growth and provide the best possible
intellectual leadership. The UK Government is services for citizens at the best possible price.
exist across many already a significant investor in — and beneficiary
of — Space, but it could obtain more value from
We have therefore set ourselves a clear challenge
to firmly establish the UK as one of the World’s
Government departments its investment and at the same time use Space leading Space nations and grow the UK’s share of
12 13
Executive Summary Executive Summary
compete for domestic work. Therefore, we need Promoting Space investment in an
a pan-Government National Space Policy that export-led Space industry
harmonises the needs of the public sector and
Satellite Earth Observation (EO) provides
creates opportunities for wealth creation in the
valuable data for monitoring climate change
UK. Industry will step up to meet UK needs with
and supporting activities related to national and
innovative technical and commercial solutions.
international security. However, the UK does not
have a capability for collecting such data itself,
Applications and services using Space data
despite the fact that requirements for imagery
will be one of the most important elements for
exist across many parts of the public sector.
delivering growth — typically the lifetime return
Today, although the UK is involved in a number
from services is 10 times that of manufacturing
of pan-European EO programmes, as a nation,
— so an industry/government partnership must
we are reliant on Space EO data from other
aggressively develop these too.
nations, particularly the US. We also purchase
data from commercial suppliers. The reasons
The UK should, therefore, consider the
for this are varied, but it has been argued
measures needed to enable UK operators
that no single department has a significant
to grow. Indirectly, this will also provide new
enough requirement to warrant a separate UK
opportunities for UK-based manufacturers
the global market to 10% over the next 20 years. EO satellite service. However, when all of the
To succeed, Space must be seen as a strategic to compete for business and exploit emerging
This drives Space in the UK from a £6 billion to a public sector’s combined EO satellite usage is
sector in the UK and one that can offer an technology. A large communications satellite
£40 billion sector. Of course, we will not achieve considered together it seems more than likely
important infrastructure for our economic and and its launch can cost up to £400 million.
this overnight, and the scale of the investment that there is a sufficient user community to justify
security needs. Britain does not secure as good Furthermore, a return on this significant
needed to achieve this will only be manageable an indigenous capability. An important aspect for
a return on investment as other Space nations investment can sometimes take as long as seven
if it is selective. But, what we can do now is set a such a capability is that the UK chooses what to
because it lacks a single, strong focal point. The years to accrue. However, overseas competitors
trajectory for growth. It is vital that we create the view, at home or abroad, without interference or
UK’s current civil Space policy is not sufficient are able to take advantage of government-backed
right business environment and seize the market delay, and understands exactly how that data
to generate the change required — Space in loans or export credit guarantees to fund the
opportunities to deliver the national benefits. is processed.
the UK is a successful but small sector — but a procurement and launch of satellites. The UK,
We outline these elements below. better definition and commitment to a long-term on the other hand, operates schemes that may be
policy should deliver significantly more in terms suitable but are generally at a scale lower than If the UK wishes to play a prominent role in
future security, disaster relief and climate-
Providing the environment of innovation and growth. It should provide the overseas agencies, and this leaves the UK at a
framework for the UK to participate fully in the competitive disadvantage. change activities, the national need for access to
for success independent data is likely to increase. Moreover,
definition and build-up phases of new European
If we are to realise our vision, industry will need programmes. By delaying entry to programmes This report forms a starting point for a national the UK’s economic well-being and trading
to feel confident enough to aggressively and and funding in an ad-hoc manner, the UK policy and sets out options that will help deliver interests will be better served from independent
significantly increase the amount it invests in has lost both the best industrial work and the the 20-year vision. data that can be used to derive new climate
Research and Development (R&D), its capabilities ability to influence programmes to best meet change, emissions monitoring and emissions
and in its people. It will need to take the required national needs. Examples include Galileo and An important start to more agile governance trading models. Over a 20-year timeframe, many
risks involved in grasping new opportunities the Global Monitoring Environment and Security has been made by the current Minister of nations will build or procure an indigenous Earth
in order to be first to market with innovative programmes. The UK is generally perceived as a State for Science and Innovation with the Observation capability, and the UK will be seen as
services. We recognise that the majority of follower rather than a leader in Europe on large announcement of the establishment of a UK less relevant in the international arena if it cannot
investment to meet the growth target will have Space programmes. Executive Space Agency. Although this is a offer high quality analysis in this area. China’s
to come from industry rather than government. much welcomed decision, it is imperative that reluctance to accept independent monitoring
That will require private venture capital taking The UK Government has done much to promote the Executive Space Agency has the resources of its carbon emissions at the December 2009
advantage of opportunities offered in commercial Space in recent years but does not have a needed to effectively deliver the National Space Copenhagen Climate Change Summit highlighted
markets and Private Finance Initiative (PFI) coherent, overarching policy that encompasses Policy and the business and science opportunities the future role that Space-based assets will play.
style arrangements to meet future government civil, defence and security components. for the UK. Moreover, the UK Executive Space
requirements for end-to-end services. Likewise, Consequently, it is difficult to draw together Agency should cover civil space, security and The UK has deep-rooted strengths in Space
operators must be able and willing to raise the disparate government funding and requirements, defence requirements, be responsible for technology and a strong record in ground-
capital needed in financial markets. The overall and set out clear policy with associated procuring Space programmes and lead on all breaking systems exploitation. It also has
scale of the private investment required will be implementation guidelines. A fragmented Space-related activities in national and multi- tried and tested expertise in risk-sharing and
large, certainly exceeding several billion approach across the public sector wastes money national negotiations. innovative commercial business models. The
UK pounds. and reduces the opportunities for UK industry to UK’s Skynet 5 military satellite communications
14 15
Executive Summary Executive Summary
Smart Homes developed nations have such complementary Using Space to meet national ‘big
technology funding programmes. A national challenge’ objectives
In the near future Smart Homes will use new technology to increase the energy efficiency of dwellings.
strategy should be part of an integrated end-
Integral to these homes of the future will be ‘Smart Meters’, a technology proven to stimulate home owners There is a clear opportunity for the public sector
to-end process that drives manufacturing
to be more economical by providing information on energy usage, but also reduces costs by providing a link to to increase its use of Space-enabled services to
and applications technology from ‘blue skies’
the energy supplier removing the need for manual meter readings. All UK homes and businesses are to have obtain tangible benefits for UK citizens. These
concept development to research and then to
smart meters by 2012. benefits would be accrued through, for example,
demonstration and exploitation. Such a model
would naturally need clearly defined roles for lower costs to consumers for obtaining a service,
Low data rate 2-way satellite communications offer the prospect to connect all of the UK’s 26 million
academia, industry and Government. lower carbon emissions for running a service and
homes to the energy supplier’s control centre with a common system. One satellite, already available in
access to a service for all UK residents regardless
orbit, provides more than enough capacity. It is a green solution — the meters would link to modems which
themselves could be solar powered. of location. Already, Space telecommunications
Supporting disaster relief with
are vital for delivering important entertainment
commercial satellites and commercial activity such as live sporting
Space will have to compete with existing, local solutions and show it is lower cost than alternatives. But
the attraction of Space is one, national, integrated solution to a straightforward need, and technology and In 2004, DMC International Imaging started a events and up-to-date news coverage. In two
IPR that may be exportable to overseas markets. commercial service that provides quick-response years’ time, the London 2012 Olympics will be
satellite imagery of disaster areas that helps a showcase UK event which will be broadcast
programme has been delivered using an A characteristic of Space programmes is that a the international community plan its emergency to every corner of the Earth.
innovative service-based approach which disproportionately larger national and industrial relief efforts. This system has been deployed
has enabled the UK to export secure satellite benefit will accrue from a greater involvement in following the 2004 Asian Tsunami, Hurricane Space has the potential to enhance other aspects
communication services to a wide range of a targeted number of programmes as opposed to Katrina and the recent earthquake in Haiti. DMC of daily life. It will improve many future journeys
overseas organisations. There is considerable a fragmented, small-scale involvement in many International Imaging is a spin out company from be they by air, sea or rail. For example, Space can
scope for applying this business model to ESA projects. This will be even more important Surrey Satellites, itself a company that grew cost effectively improve rail journeys to work by
acquiring a UK-based EO capability, so that in as the European Commission assumes greater out of a spin off from the University of Surrey. replacing ageing signalling systems with a Space
addition to meeting national needs it can catalyse responsibility for determining a European Space Surrey Satellites has been highly successful in navigation-based application. This will enable
a significant export business. Strategy under the terms of the Lisbon Treaty. As developing small, low-cost, satellites and now more trains to run on the network at peak hours.
ESA becomes an executive agency for EU Space exports these globally. Although this success
The European Space Agency — policy, there will be increasing opportunities to is based on the innovative ‘affordable satellite’ Success in the business of Space will be based
winning a better return for compete for a share of European programmes concept, of equal importance was the vital on exploiting its unique benefits:
on a more commercial basis. support and protection the company received in • ubiquity of service, for example, delivery to all
British Space parts of the UK,
its formative years as part of the University of
At the moment, UK R&D funding for Space is In addition to establishing a UK national Space Surrey. Not surprisingly, the company retains • low-carbon delivery of broadcast and
largely provided through the European Space R&D effort, as we emerge from recession, the these close links with academia to this day. broadband services,
Agency. Although this creates benefits for Europe UK should also set a pathway for significantly • affordable deployment to remote and
that would not otherwise be possible due to increasing its ESA contributions more in line rural communities,
Rocket launchers
the high cost of research and demonstration with other leading ESA Members States. This • a resilient and secure alternative infrastructure
programmes, it also requires compromise for the will enable larger-scale Space programmes to Following the difficulties of the Sea Launch to terrestrial infrastructure,
UK in multi-national decision making. Moreover, be deployed from the UK and strengthen the Partnership, the prices of alternative rocket • export potential of services and systems.
UK dependence on ESA for preparatory and UK’s influence in ESA decision making. launchers have reflected a lack of supply. This
development programmes has resulted in some shortage is a concern. The UK needs to keep Space-based services: the UK’s
areas of UK technology development becoming a close watch on this situation but cannot ‘second’ ICT infrastructure
The wider global competitive
eroded to the point that they are no longer realistically enter this sector alone. However,
benefits of a national Space the UK needs to retain technological options that The UK should seize the opportunity of
industrially sustainable.
technology programme have potential for future application, for example fully developing satellite-based systems to
autonomous ‘single stage to orbit’ Spaceplanes complement the UK’s fibre optic and wireless
In order to increase the UK’s influence in ESA It is important that the UK continues to secure
that could launch satellites at significantly lower networks. Fibre optic and wireless will provide
programmes and to maintain capabilities in key a comparative advantage from developing and
cost and risk than today’s systems. the majority of the superfast broadband in the
technologies, the UK needs a complementary exploiting technologies for future markets in
UK as set out in Digital Britain. But access for all
national Space technology programme aimed at both the manufacturing and applications areas.
Space tourism provides an exciting new potential citizens to broadband will become important as
generating economic and social benefits for the The UK can best achieve this by establishing
market for Space. It is also possible that launch new services and entertainment are only available
UK, and reinforcing areas of national strength. a National Space Technology Strategy (NSTS),
vehicles such as Virgin Galactic’s White Knight via the internet.
Such a programme would enable the UK to underpinned by technology road-mapping from
assume a greater leadership role in ESA’s R&D research to market, with a ring-fenced budget, and Spaceship 1 could provide the basis not just
programmes and missions as well as increase separate and additional to ESA budgets. This for tourism but also low cost launch to the edge
our say when considering technical options. would not be extraordinary, as most other major of Space.
16 17Executive Summary Executive Summary
100,000
The proposed expansion
will provide an estimated
100,000 new jobs in the
UK, and to meet this
new jobs demand our schools and
universities will need
industry support
18 19Executive Summary Executive Summary
The internet will be increasingly used by Using Space to inspire and educate
Government to deliver lower-cost services for
The general public, some elements of the
citizens. ‘Smarter Government’ itself asserts
business sector and even parts of the UK
that it can be four times cheaper to deliver
Government have a limited understanding of
services over the internet than by post. The
the true value of Space. To counter this, the
Space sector is helping deliver a fast solution
Space industry needs to continue to improve and
to the Universal Service Commitment (USC)
build up a greater awareness of Space-enabled
for broadband from 2012, as set out in the
capabilities. This is particularly important given
Government’s ‘Digital Britain’ strategic vision
the need to influence a public policy and industrial
paper. The Government can also drive additional
agenda if we are to grow this sector.
investment by accelerating the procurement of
part of the next-generation superfast broadband
The proposed expansion plans will provide an
from Space as part of a national approach. Space
estimated 100,000 new jobs in the UK, and to
will have to deliver value for money to achieve
meet this demand our schools and universities
this. A UK solution also opens the door for export
will need industry support to raise awareness
opportunities in a global market for ‘internet
of the opportunities afforded by a career in the
from Space’ that we estimate is likely to be
Space sector. Industry will also need to offer
worth £29 billion per annum by 2030.
more training and apprenticeships to fill the
jobs that will arise from the planned growth in
By playing to the very high efficiencies of
manufacturing and services. Consequently, the
broadcast from Space and by optimising the way
Space industry will collaborate with other Space
that broadband internet services are delivered,
stakeholders to launch a publicity campaign
we estimate that the UK can achieve a reduction
to inspire young people to choose courses
of up to 40 million tonnes of CO2 per annum from
based on Science, Technology, Engineering
that required to run an equivalent terrestrial
and Mathematics — the so-called STEM-
broadcast and broadband service. Space is also
related subjects.
likely to be the only cost-effective way to deliver
a good choice of High Definition TV and broadband
to rural communities. Because it is quite separate The Space Age
from terrestrial infrastructure, it also provides The global data network is undergoing two
an important element of commercial and massive changes. Firstly, the volume of data
Government resilience to natural disasters being moved around the Earth is finally hitting
and terrorist attack. the vertical part of the J-Curve which was being
predicted during the dotcom boom.
Reusable launch vehicles
In the 1970s, the UK made a choice not to develop new rocket launchers. But this may not be the last word
— a growing demand for greener, more reliable and lower cost launching systems for satellites could
enable the UK to re-enter a profitable niche in this sector. Reaction Engines are developing novel propulsion
technology that will be needed for a single stage to orbit (SSTO) ‘reusable’ Spaceplane, research that is
combining company, ESA, BNSC and Technology Strategy Board funding. Bristol Spaceplanes are researching
alternative SSTO concepts. Virgin Galactic could provide an earlier satellite launch capability to the edge
of Space based on their now maturing White Knight and Spaceship 1 Space tourism vehicles. There is no
shortage of ingenuity and technology in the UK to help make something happen.
Revolutionising access to Space may have wider economic benefits. Can we reduce the build costs of
satellites if they can be launched at a fraction of today’s costs? Do we need to retain spare capacity in orbit
if satellites can be launched at very short notice? Will insurance costs reduce significantly if a Spaceplane
based on aircraft technology replaces a rocket?
These potential benefits, as well as the industrial manufacturing benefit, means the UK must continue to
develop such disruptive technologies.
20 21Executive Summary Executive Summary
The use of multimedia by consumers, and video • year-on-year growth of inward investment
in particular, is resulting in end-users doubling
their demand for data each year, but new
applications emerging in navigating, monitoring
for Space-related activities over the
20-year strategy,
• the UK plays a more strategic role in
We must make up our minds
and measuring our World are compounding this.
Secondly, governments globally have realised
the use of Space for European and world-wide
security,
where we want to go and where
that high-speed data connectivity is both a crucial
infrastructure and also needs to be universal
• the UK becomes the first 100% broadband-
enabled country in the world,
• a leadership role in global climate-change
we want to be in 20 years time
if major populations are not to suffer serious
economic and social disadvantage. Thus, high monitoring and up to 40 million tonnes of
data-volume applications and ubiquity will reductions in UK carbon emissions,
characterise the next phase of the evolution • reduced costs of delivering Government
of the Internet. services to all citizens, regardless of
their location,
This plays directly into the hands of the Space • increased student up-take of STEM subjects.
industry since those are the very two advantages
that Space technology has over terrestrial Implementation of the
technology. Already satellites dominate the 2010–2030 strategy
global TV market and this will accelerate. In
A joint industry and Government partnership is
future, no-one will make a journey which is not
needed to take our Space strategy forward and
enhanced in some way by satellite navigation.
this should take the form of a Space Leadership
Only satellites can deliver the social inclusion of
Council, jointly chaired by the Secretary of
universal global access to broadband and mobile
State for Business, Innovation and Skills and the
communications. And the only way to determine
President of the UKspace trade association. We
for certain how serious the climate change
envisage that this Council will oversee progress
problem is and how we need to manage our
and implement the specific recommendations
environment is to gather a vast amount of data
in this Strategy until the new Space Agency is
in real time — only satellites can do this. With
fully operational.
comparably low investment, satellites can provide
universal global coverage. As demand grows,
Over the last decade, industry and Government
capacity can be added in a scalable fashion.
have collectively failed to grasp the opportunities
Moreover, it can be moved if demand patterns
we identify in this report. Space in the UK has
change. Terrestrial technologies provide a
been characterised by review after review
patchwork solution to some of the issues evolving
allowing other countries to steal a march on us.
in the corporate, institutional and consumer
This must now cease and be replaced by positive
markets. Satellite technology development is
and practical actions. We must make up our
necessarily slower than elsewhere because of
minds where we want to go and where we want to
the physical challenges of operating in Space,
be in 20 years time.
but we have caught up with the terrestrial
telecommunications and computing advances of a
Today, through this Space Innovation and
decade ago. Finally, satellite technology is coming
Growth Strategy, industry has made its choice.
of age, and thus the next phase of evolution might
We will raise our game and go for growth and
rightly be characterised “The Space Internet”.
innovation. We ask Government to support us by
providing the critical opportunities and the clarity
Space-related benefits of commitment and purpose that the Space
community needs to succeed in this endeavour.
There will be extensive economic and social
Given the prize on offer, this is a challenge that
returns from Government and industry’s
we should all be prepared to meet.
investment in Space-enabled services.
Most prominent of these are:
• the creation of at least 100,000 high-skilled
high technology jobs over 20 years,
22 23Recommendations Recommendations
Recommendations
A trajectory for growth In the future, with the completion of Galileo and Keys to growth are therefore investment in Providing the environment
the upgrade of GPS to its third generation, many R&D, targeted and “smart” infrastructure for success
The global Space market is worth a massive
more applications will be enabled. Applications procurements, co-ordinated efforts to grow
$250 billion per annum and is driven
such as mobile location-based services and exports, academic research into industrial Recommendation 1
predominantly by commercial and consumer
indoor navigation systems, in particular, are exploitation, skills development and the creation
services. It includes satellites and their The UK Government should define
expected to become more widely used in a of a stable, long-term policy and regulatory
associated ground systems, which produce and implement a National Space
variety of industries like agriculture, tourism framework, with economic growth at its heart.
the Space-based applications as well as the
and transport.
Policy (NSP) that includes the UK’s
consumer services and the numerous bits of
Industry is ready to invest for growth in the Space
economic, social, industrial, defence
equipment used to exploit them. The section Major market growth is also expected in Earth sector and raise the UK’s share of the global and security interests. This NSP
of the market that exploits the satellite Observation (EO) data provision and services market to 10%. But, Space is a sector where should combine all Public Sector
infrastructure is by far the largest as it crosses where the market has traditionally been national success can only come from industry requirements and funding for
many industries such as agriculture, banking, dominated by government applications. As EO services that can cost effectively
and Government working closely together in
broadcast and transport. In all, the end-user data becomes more accessible to the consumer, a carefully planned and managed way. Both be delivered by Space in order
market segment accounts for between 80% through innovations like Google Earth, and as new industry and Government need to be clear about to provide new wealth-creating
and 90% of the total market. markets related to climate change and carbon their roles in the strategy and aware of what the opportunities for the UK.
emissions monitoring emerge, and existing requirements are. Therefore, we have developed
Over the last decade, the Space market has security markets grow, this will lead to a further Unlike many other industries, it can take as long
the following 16 recommendations and grouped
seen substantial and sustained growth, with the significant expansion of the market. Furthermore, as 20 years for returns on initial investment to
them into eight main themes:
UK industry growing at a steady 9% per annum new markets and applications are also anticipated cycle through the various phases of programme
since 2000. This expansion has been driven most from the integration of EO and position data with 1. Providing the environment for success implementation. This means that a consistent
strongly by the demand for telecommunications telecommunications services. 2. Promoting investment in an export-led UK policy environment is more important in the
and navigation services, which represent over Space industry Space industry than in many other sectors for
50% of the entire market. Both these sectors have However, for the service markets to prosper 3. Increasing the use of Space within the National promoting investment. A national approach to
been growing by more than 10% each year. This and grow, investment is needed in the satellite ICT infrastructure Space would provide industry with important
growth is expected to continue for the foreseeable infrastructures on which they depend as access 4. A safer world with more resilient infrastructure information about the likely requirements for
future as new technologies enable new services, to them is crucial. But, this access is reliant 5. Regulating Space for success Public sector services that are consistent with
faster speeds and greater access. on a whole spectrum of factors — from an 6. Using Space to inspire and educate national needs and affordable. This, in turn,
appropriately trained and educated skills base 7. Promoting a UK-wide SME Space sector instils the confidence for industry and academia
Over the coming decade, there will be significant to a healthy and diverse domestic Space industry 8. Making it happen to invest in the technology and services that
growth opportunities in the telecommunications and public awareness of the benefits and are likely to provide healthy returns and
field, particularly in broadband internet from opportunities of this exciting sector. The background information supporting economic value.
space, internet on the move, “smart homes” and explaining these recommendations
and mobile telephone services as well as High The recommendations for growth in this report is contained in the full report which is available To secure the highest benefits, Space should be
Definition (HD) and 3D TV. It is already almost recognise the high growth markets, the need at www.SpaceIGS.co.uk and can be seen as a strategic industrial sector in the UK
impossible to make a journey that has not in for innovation and the interdependence between downloaded along with complementary — one that can offer an important infrastructure
some way been enhanced by satellite navigation. service provision and the satellite infrastructure. Working Group reports. for our economic and security needs. We ask
24 25Recommendations Recommendations
that the UK Government recognise Space as a Crucially, if the Public Sector can come together
Recommendation 2 • be responsible for the administration of a
key high-technology industrial sector alongside to define common requirements that lead to national Space budget and provide the backing
aerospace, life sciences, biotechnology and viable and attractive commercial opportunities, for the UK to lead national and multi-national
We recommend that the UK
defence, and resource appropriately. the UK Space industry is prepared to step up programmes,
Executive Space Agency (UKESA),
with innovative ways of exploiting the technology • be responsible for procuring Space and
A major step forward is the announcement of and services in export markets as well as at
when established, should be Space-related programmes wherever
a UK Executive Space Agency. But the Agency home. Much technology in Space is dual use resourced and empowered to the procurement budget is held within
needs to operate within a clear policy framework. and more can be made of R&D if it is clear maximise the growth opportunities Government,
We propose a Cabinet Office-led process to how it can be exploited in both commercial for the UK Space sector. It should • promote the UK’s Space sector.
formulate and agree specific policy objectives and defence markets. Moreover, it is likely lead on all UK Space-related
that need to be agreed across Departments and the defence and security needs will be met activities including national and Space knowledge, expertise and talent are a
signed off at Cabinet level. This report does not by adapting commercial technologies so it is international negotiations and scarce global resource. Our universities produce
seek to define Government policy but it would important that defence customers are aware of delivery of the National Space Policy. generic talent in the form of scientists and
be appropriate, given the industry effort, for the the potential developments that are being driven It should have a remit including civil, engineers, and there are excellent research
early stages of policy to build on this Innovation by commercial demands. This would generate defence and security Space domains. centres producing MSc and PhD graduates
and Growth report by identifying a small number major wealth-creating opportunities. with relevant Space sector skills. However,
of consolidated Public Sector requirements that The UK Executive Space Agency (UKESA), the majority of Space industry recruits have
could produce early opportunities for industry. which will replace the British National Space no direct commercial experience on leaving
Centre (BNSC), should provide the mechanism academia. Quite naturally, industry provides
for delivering a National Space Policy that this through formal and on-the-job training.
maximises opportunities for the UK Space sector. We propose that UK Government benefits from
It is therefore absolutely vital that it is sufficiently this training by putting in place a framework to
Number Action Timeframe resourced and empowered, as a lack of these promote an exchange of cultures and experience
vital elements resulted in the BNSC’s inability between industry and the Agency through staff
A1.1 Define the National Space Policy that establishes the January 2011
to fully achieve this goal. The UK Executive secondments. In the early years, industry would
UK’s likely public sector needs from Space, highlighting Space Agency should aim to develop itself into be very interested in placing experienced staff
where early action by Government and Industry can deliver an organisation capable of being a champion in the Agency to rapidly build its capability,
national and economic benefits for the UK’s Space industry both at home and with the intent that this becomes a two-way
internationally, and in terms of functions process by 2015. As well as covering science
A1.2 The UK Government should recognise Space as a key January 2011
it should: and engineering disciplines, these secondments
high-technology industrial sector alongside aerospace,
• be empowered to lead on all Space-related should also apply to non–science-based
life sciences, biotechnology and defence and resource
activities for the UK in national and multi- personnel such as those engaged in finance,
appropriately
national negotiations and in prioritising economics and law. This activity should be
programmes, complemented by steps to expand both the
A1.3 Industry to specify innovative proposals to requirements January 2012 • have a broad remit which includes civil, public and private Space education sectors.
defence and security requirements,
A1.4 Regular joint Government and Industry review of Annual particularly where these will develop cross-
policy success cutting technologies and applications,
Number Action Timeframe
A2.1 UKESA fully operational January 2011
A2.2 10 Industry Secondments to Agency January 2012
A2.3 Two way Secondments underway January 2015
26 27Recommendations Recommendations
Promoting investment in an export- The strategy should be aimed at developing
led UK Space industry technologies that can be exploited in commercial
and institutional markets. Funding should come
Recommendation 3 from both industry and Government and be
additional to the UK’s spend on Space science
The UK Government and industry through the Research Councils if it is to be
should establish a National Space effective in contributing to growth. However,
the NSTS should be seen as part of an integrated
Technology Strategy (NSTS),
approach by the UK from academic ‘blue skies’
with a clearly identifiable budget
research through to technology demonstration.
separate and additional to ESA It will, therefore, need to be integrated into a
and research council budgets. This model that demonstrates how technology will
recommendation is a key building be pulled through from Technology Readiness
block in delivering the ambitious Level 1 through to exploitation and will need
innovation and growth planned and the support of Research Councils new to Space,
should be established quickly and such as the Engineering and Physical Sciences
funded properly. A National Space Research Council (EPSRC) and the Technology
Technology Steering Group should Strategy Board.
be set up immediately to oversee the
NSTS, chaired by industry, but with Technologies that play to UK strengths in
Government representation. autonomous systems, robotics, security, sensors,
Space communications and software should be
The UK will secure a greater comparative included in this national strategy based on the
advantage in research by deploying a National premise that there is a customer for the
Space Technology Strategy that is complementary end product.
to ESA R&D programmes. This strategy should be
owned by a National Space Technology Steering
Group (NSTSG), comprising industry subject R&D funding should
matter experts supported by relevant Government
officials. It should be facilitated through the be maximised as it is
Technology Strategy Board KTN (Knowledge
Transfer Network) Space Special Interest Group.
this budget that drives
The NSTSG will be responsible for producing a the ability to be first
technology strategy that is underpinned by road-
mapping, includes estimated programme costs
to market which with
and outlines the progression of products from technical superiority will
research to market entry. It should deliver the
first of its reports and a set of technology road allow the UK industry
maps to the Technology Strategy Board before
the end of September 2010.
to capture a greater
proportion of the huge
R&D funding should be maximised as it is this
budget that drives the ability to be first to market growth available
which with technical superiority will allow the
UK industry to capture a greater proportion of
the huge growth available. A £20 million national As part of the NSTS, the UK should also
programme should start in 2010, jointly funded continue to invest in technology for systems
by Government and industry, rising incrementally that could revolutionise Space services and
as it becomes affordable by Government and access to Space over the next 20 years. This
industry to around £100 million per annum by will help retain opportunities for the UK to
2015/16. The exact funding for years 2 to 5 should develop high-risk options that have ‘visionary’
be determined from the road-mapping activity. appeal and potentially very large commercial
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