UK government commits GBP 6.9 million to boost satellite communications sector

by Sophie Jenkins
London, UK (SPX) Nov 25, 2025

The UK Space Agency has announced a GBP 6.9 million investment to accelerate the development of next-generation satellite technologies. The new funding, delivered through the European Space Agency's ARTES programme, supports five efforts led by UK organisations and aims to expand the nation's role in innovative space communications.

Projects selected for funding span a range of applications, from satellite refuelling and logistics to advanced 5G and optical communication systems. These initiatives are part of the UK's strategy to strengthen capabilities in satellite communications, positioning, navigation and timing, in-orbit servicing, space domain awareness, and the use of space data for Earth applications.

The European satellite industry is projected to generate GBP 40 billion in revenue by 2033. The UK could secure up to GBP 800 million from just 2% of this market.

Space Minister Liz Lloyd emphasized that "Space technology and especially satellites, are essential to our daily lives. From the sat nav in your car to your mobile phone, from weather forecasts to your online banking - space is where it all happens.

By backing our UK sector, we're not only cementing our position as a European space leader - we're creating high-skilled jobs, attracting investment, and ensuring space technologies can connect communities to the space-enabled services they need."

Among the funded projects, Orbit Fab will carry out the Advancing Satcom Technology with Refuelling and Logistics (ASTRAL) programme, receiving GBP 2.9 million in total and GBP 1.3 million for its initial phase from ESA. The project will demonstrate UK-developed technology for refuelling electric propulsion satellites, which extends mission lifetimes and improves satellite manoeuvrability.

Cornwall's Goonhilly Earth Station will lead the AGILE project to develop Antenna Ground Interface and LunaNet Equipment. With GBP 1.6 million in funding, the initiative will create units allowing global antennas to communicate directly with lunar spacecraft via the LunaNet specification, supporting the growing wave of lunar missions.

Vicinity Technologies is awarded GBP 1.19 million to design 5G Non-Terrestrial Network payloads and user terminals for its Satellite Access Networks project. The group will build the full software stack for both space and ground segments, intended to provide reliable internet access in underserved and urban areas.

A GBP 356,000 grant goes to Archangel Lightworks for the Space Optical Link Integration Study (SOLIS). In collaboration with Eutelsat, the team will assess the deployment of Free Space Optical Communications within the Eutelsat OneWeb LEO network, aiming for faster, higher-capacity data transmission.

Inmarsat Navigation Ventures Ltd (Viasat UK) will receive GBP 881,000 to develop the International Virtual Satellite Operators Network (Phase 2). This service is designed for governments to plan, procure, and manage secure satellite communications across multiple providers.

UK Space Agency Chief Executive Dr Paul Bate highlighted that "Today's investment shows how the UK's space ambitions translate into real-world impact. By advancing satellite communications technology, we're not only building a globally competitive sector but also ensuring that communities - even in the most remote corners of the UK - can access the services they need. This is space delivering for people and powering our future economy."

The new ARTES projects, in partnership with businesses, universities, and research centres, are expected to stimulate high-skilled employment and deliver tangible advances in weather prediction, communications, and security.

Laurent Jaffart, Director of ESA's Connectivity and Secure Communications, commented, "ESA is committed to supporting a vibrant and striving telecommunications ecosystem in Europe, while achieving a zero-debris environment in space. This milestone, with support from the UK Space Agency, will further strengthen the European autonomy and sovereignty that we are collectively striving for with our Member States."

Dr Colin Baldwin, Executive Director of the UKspace Trade Association, remarked, "UKspace's Satellite Telecommunications Committee, run jointly with techUK, has made a strong case that our industry has the expertise, technology and talent to capture a significant portion of the global satellite communications market over the coming decade.

We are delighted to see so many of our member companies benefiting from and taking advantage of the UK Space Agency's investment in the ARTES programme at the ESA Council of Ministers meeting in 2022 continuing to develop new innovations which will help to achieve this goal."

The funding comes ahead of the ESA Ministerial Council in Bremen, where the UK's investment in future European space activities and economic growth will be decided. Independent analysis indicates that every GBP 1 invested in ESA produces GBP 7.49 in direct economic benefits for the UK.

In addition to ESA programmes, the UK space sector now benefits from expanded national funding, with GBP 2.8 billion allocated to the UK Space Agency through 2029/30.