Opportunities for UK Automotive in the Space Sector

Tuesday 22nd April 2025

There are growing opportunities for UK automotive businesses in the space sector. Diversification fuels success and UK automotive manufacturers can seize it in the expanding space sector.

The UK’s automotive engineering sector has long been a powerhouse of innovation, renowned for its precision manufacturing, advanced materials expertise and rigorous quality standards. As the nation propels its ambitions skyward, a significant opportunity is emerging for these businesses to pivot their skills and become vital suppliers to the burgeoning UK space industry.

Ramped up Investment

Over the past few decades, the UK has significantly ramped up its investment in the space industry. It is transitioning from a focus on satellite communications and Earth observation to more ambitious endeavours like space exploration and advanced aerospace research. This commitment is spearheaded by the UK Space Agency. Established in 2010, it strategically guides national efforts and aligns investments with long-term goals.

What started as a £200 million investment in 1990 has ballooned to an impressive £1 billion in 2023. This dramatic increase reflects not just inflation but a genuine scaling up of the UK’s aspirations in the sector. The government aims to capture 10% of the global space economy by 2030, a clear indicator of its intent to become a major player on the international stage.

Supply Chain

This bold objective creates a demand for a robust and agile supply chain. One where the proven capabilities of UK automotive engineering firms can find a new and exciting future.

The UK’s space investment isn’t just about funding projects; it’s about fostering innovation and creating jobs. The stringent demands of spaceflight – encompassing light weighting, extreme temperature resistance and ultra-reliable performance – are areas where the UK’s automotive sector already possesses significant expertise.

The core competencies honed in automotive manufacturing, ranging from advanced composites and precision machining to sophisticated electronics, are directly transferable. These skills are also highly valuable to space applications. This convergence presents a compelling pathway for automotive companies to diversify their portfolios.

Here are some of the current UK space projects you may not be aware of:

TRUTHS Mission

This is a UK-led mission to develop a space-based climate and calibration observatory. It aims to improve the accuracy of climate change forecasts and support strategies for achieving net-zero emissions.

Euclid Mission

The UK is significantly involved in the European Space Agency’s (ESA) Euclid mission, which aims to map the expansion of the universe and better understand dark energy and dark matter. UK scientists are playing a key role in analysing the data from this mission.

JUICE (Jupiter Icy Moons Explorer)

The UK is contributing to ESA’s JUICE mission, which is exploring Jupiter and its icy moons Europa, Ganymede and Callisto. The mission aims to investigate the potential for these moons to harbour life.

EarthCARE

The UK is participating in this ESA mission focused on improving the understanding of the interactions between clouds, aerosols and radiation, which play a crucial role in regulating Earth’s climate.

National Space Innovation Programme (NSIP) Projects

The UK Space Agency funds numerous projects through NSIP. Recent examples include projects focusing on satellite docking technology, satellite refuelling solutions, the development of heat-detecting telescopes for climate monitoring and advanced propulsion systems.

LaunchUK Programme

This initiative aims to establish the UK as a leader in the small satellite launch market. Activities include supporting the development of spaceports in Scotland and Cornwall and backing companies developing launch vehicles. For example, HyImpulse is planning a sub-orbital rocket test from the SaxaVord spaceport in Shetland.

Connectivity in Low-Earth Orbit Programme

This programme provides funding to UK companies and researchers to develop innovative satellite communications technology, aiming to improve connectivity from space.

SKYNET 6 Programme

This Ministry of Defence programme is focused on delivering the next generation of military communication satellites for the UK armed forces.

Faraday Dragon Rideshare Mission

Led by In-Space Missions, this project is developing a satellite rideshare mission focused on the Asia-Pacific region, carrying multiple payloads with various applications.

Project Aqualunar

This UK Space Agency-funded challenge resulted in a winning technology that uses microwaves to purify water frozen in the Moon’s soil, aiming to provide clean water for future lunar missions.

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