UK space industry investment has nearly doubled in the past eight years and it has been the second-best global destination for investment behind the US, according to a new report from PwC and the UK Space Agency that comes just over two months after accusations it was a “toxic” country for space launches.
The space industry already represents a 'hidden utility' in the UK, supporting an estimated £370bn of UK GDP a year, around 18% of economic output, from a base of almost 1,600 space companies.
British companies have received 17% of the US$47bn of total global investment in space since 2015, the 'Expanding Frontiers' report said, with cash flowing into the global space growing on average 21% per year.
Key areas of investment in the UK have been Earth observation, manufacturing and satellite connectivity, while nine of the largest UK venture capital firms have invested in space in the period.
So far, 2021 was the peak year for global space investment, when 63% of all space investors were new to the sector.
"Our analysis shows that there are opportunities for investors of all stripes," said PwC partner Matt Alabaster, "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."
There is one listed investment trust focused exclusively on space technology, Seraphim Space Investment Trust PLC (LSE:SSIT) and one exchange-traded fund, Procure Space UCITS ETF (LSE:YODA).