Key facts
- Glasgow is a European leader in building small satellites, with more built there than anywhere else in Europe.
- The Scottish space industry generated £335m in income in 2022-23, employing 2,811 people (excluding satellite TV).
- Germany plans to invest approximately €35bn in military space capabilities, including over 100 encrypted communications satellites.
- Finnish firm ICEYE, specializing in SAR satellites, secured over €1bn in funding, valuing the company at more than €10bn.
- Governments are increasingly becoming major customers for satellite technology due to geopolitical uncertainty and a desire for guaranteed access.
Glasgow has established itself as a leading European hub for the manufacturing of small satellites, a sector that has grown organically from the city's engineering heritage. Companies like Clyde Space, founded by Craig Clark, pioneered the development of CubeSats – small, modular satellites that are cheaper and quicker to produce than traditional spacecraft. The University of Strathclyde has played a crucial role by providing skilled engineers and conducting research, fostering a comprehensive value chain that includes component manufacturing, satellite production, and ground stations.
This ecosystem has attracted companies like Spire Global, which chose Glasgow for its European base, and has led to significant growth in the wider Scottish space industry. In 2022-23, the industry generated £335 million in income and employed 2,811 people. Professor Malcolm Macdonald of the University of Strathclyde noted that graduates now have local opportunities in the space sector, a stark contrast to when he graduated.
However, Glasgow's dominance faces increasing competition from other European nations. Germany's Defence Ministry plans to invest approximately €35 billion in military space capabilities, including over 100 encrypted communications satellites. This significant government spending, driven by geopolitical uncertainty and the war in Ukraine, is shifting the focus towards governments becoming major customers and demanding domestic ownership of strategic sectors.
Finland's ICEYE, a specialist in synthetic aperture radar (SAR) satellites, recently secured over €1 billion in funding, valuing the company at more than €10 billion, with the Finnish state increasing its stake. Experts like Will Lecky of know.space warn that such substantial public funding in other European countries creates an uneven playing field, potentially leading to a competitive disadvantage for Glasgow and the wider UK space sector as investment and activity flow elsewhere. The economics of government procurement in space are critical, as contract awards can dictate where companies invest and expertise develops.