Wed, 11 September, 2024
TWI was recently announced as the UK Technology Broker for the European Space Agency to help drive innovation and foster collaboration both within the space industry and between space and non-space sectors.
As one of the fastest-growing, dynamic and innovative sectors of the UK economy, the space sector is creating opportunities for those both within and outside of the industry. This includes technology transfer between terrestrial and space-based industries; ‘spin out’ (from space to Earth) and ‘spin in’ (from Earth to space’).
UK Space Sector Growth
The UK space sector is a high-value-adding industry that allows for technology transfer with other sectors with similar characteristics. This is in part driven by the significant growth within the sector, which saw income of £18.9 billion in 2021/22. In 2021, this growth saw the UK space sector outstrip both the global space sector and wider UK industry. Around 52,000 people are already directly employed in the UK space sector, with a further 128,000 jobs partially supported through supply chains, but there is still room for more engage with the sector.
Drivers for Growth
Growth within the space sector is being driven by three broad trends:
- Demand for Connectivity: Satellite internet connectivity can transform outcomes in health, education, and social mobility. However, 33% of the world’s population are unable to connect to the internet and take advantage of the many benefits it provides. The global demand for connectivity will continue to be a driver for the industry.
- Demand for Navigation and GPS Positioning: Navigational and GPS positioning data has myriad uses across a wide range of applications, from optimising the logistics of global shipping to implementing virtual toll charges for road networks. Almost every type of economic activity is tied to positioning, route, speed and timing data provided by satellite-based radio navigation systems. As more uses are found for these systems, there will be a continued need to provide and maintain the required technologies.
- Demand for Earth Observational Data: Life on Earth has undergone widespread digitalisation in recent decades and this trend looks set to continue with the rapid uptake of advanced digital technologies, including artificial intelligence. This demand for data from increasingly sophisticated Earth Observational Data satellites for applications such as studying weather patterns and tracking climate change continues to act as a key driver for the space sector.
Segmenting the Space Sector
The requirements of the space sector can be broadly broken down into two sectors; upstream and downstream.
Both of these require technologies to allow them to deliver to end users including governments, consumers, non-profit organisations, and industries ranging from agriculture to defence, energy, marine, and more.
The upstream segment is focused on the design, manufacture and operation of space hardware. This includes launch systems, vehicles, and satellites as well as hardware and software for supporting ground-based stations and systems. This segment has traditionally been difficult to enter due to high R&D costs and the stringent qualification processes for new systems and infrastructure.
The downstream segment focuses on applications for data and satellite services, including the associated user equipment. This segment is aimed at those who use space assets to solve Earth-based issues, such as satellite broadcasting (including internet services), GPS navigation and tracking, and Earth observational data.
While the push for new space technologies has opened up new applications for end users, the requirements of end users also promotes demand that feeds back up through the downstream and upstream segments to create new services and technologies.
Unmet Needs, Spin-In and Spin-Out
There are a re range of unmet needs in both the upstream and downstream space industry segments, creating opportunities for non-space companies to enter the industry. These include areas such as manufacturing, operations, applications, and supporting ancillary services.
These demands provide opportunities for spin-in and spin-out. Where spin-in takes technologies developed outside the space sector and applies them to space, spin-out repurposes technologies developed for space and applies them to terrestrial use.
Spinning a product into the space sector has been shown to enhance visibility and penetration into terrestrial markets as products proven in space projects benefit from enhanced market appeal.
Examples of spin-in include textiles developed for spacesuits, sails, and tethers, products like Velcro and Teflon, and industry's first Voice over Internet Protocol (VoIP) call made without the use of any terrestrial infrastructure to route the call.
Examples of spin-out include technology developed for autonomous rendezvous and docking of space vehicles to service satellites, which is now used in ophthalmology to track eye movements at a rate of 4,000 times per second while reshaping the cornea using a laser. There are also space blankets, which provide a lightweight thermal barrier and are now broadly used for emergency situations on Earth.
Technology Transfer, Capital and Solutions for Industry
75% of the income generated across the whole space sector value chain comes from applications within the downstream segment of the industry, demonstrating the importance of this area. The liberalisation of space activities has helped facilitate this growth through the growth of private capital that was led by NASA in the 1970s as regulatory environments adapted to incentivise private investment. As of 2023, private capital accounted for 77% of the global industry, while a focus on solutions has seen the industry move towards a more applications-based approach with the goal of meeting unmet needs. These factors have allowed more competition in the space sector as new companies from other industries help drive innovation and reduce costs.
Industries that have seen a high level of both spin-in and spin-out include aerospace, automotive, big science and fusion, which all have parallel aims and innovation that align with those of the space sector.
Prepare for Space
There are a number of services that we can provide as an ESA Technology Broker to help organisations outside of the sector to ‘prepare for space.’ These include both business and technical services, such as:
BUSINESS SERVICES
- Market Analysis
- Business Case Development
- Long-term Coaching
- Funding Guidance
- Networking Opportunities
- IP Strategy
- Export Control Checks and Training
- Marketing
TECHNICAL SERVICES
- Technology Assessment
- Space Qualification and Standards Guidance and Interpretation
- Prototyping and Testing
- Collaborative Research
- Technology Transfer Guidance
- Training and Workshops
- Project Management Support and Best Practice
You can find out more about TWI’s work as an ESA Technology Broker on the dedicated website, here.