1. The UK Space Scene - an industry perspective Houston April 2012 Stuart Martin Vice-Chair UKspace

2. UKspace – who we are? The trade Association for the UK Space Industry –We operate autonomously, but have two “parent” organisations – ADS & Intellect –40 Members across manufacturers, operators, systems integrators and service providers UKspace IntellectADS The voice of the Aero, Defence, Security & Space industries The voice of the electronics and IT industries The “upstream” sector Similar to AIA The “downstream” sector Similar to Tech America

3. The “Space Sector”

4. The Global Space Market 2010 Source The Space report 2011 The Space Foundation Global Market: US$277bn 7.7% growth in 2010 (5% in 2008 and 2009) 13% growth in commercial sectors

5. The Space Value Chain Source: Euroconsult 2008 Units: €billions

6. UK Industry Growth 2000 to 2009 Turnover rose at an average rate of 8.9% per year in real terms Downstream has grown at 9.4% per year, upstream by 5.7% per year

7. UK Space Industry Growth Strategy A joined-up industry, government, academia team developed an “Innovation & Growth Strategy”, Feb 2010 This aims to grow the UK share of the global (growing) space market, creating 100,000 new jobs and achieving a £40bn turnover by 2030 This requires maintaining the growth seen over the last decade to 2030! Financial crisis has impacted government’s ability to respond Other “space nations” are also reacting to the high-growth of the sector and increasing investment New entrants – China and India extremely active UK will not outspend, so we have to be smart

8. Growing the UK Share of the Global Market If we can maintain the current share of the global market then in 2030 we reach £25bn If our market share drops to an average relative to our GDP of around 3% then we reach £12bn in 2030 If we can grow market share to 10% then we reach the goal of £40bn by 2030 The growth is primarily in the area of applications & services

9. Growth Markets Satellite broadcasting has been the driver for the last decade but will flatten over next decade Satellite broadband and mobile communications set to grow rapidly; backhaul & VSAT markets stable Position, Navigation & Timing (PNT) set to continue high growth for at least the next decade – mobile location based services the driver Earth observation and climate services expected to grow into the next consumer / mass market with high growth expected for at least the next two decades Security & Defence generally (food, water, maritime, climate change mitigation & adaption…..) And the things we haven’t thought of yet!!

10. Growth Markets

11. The Vision for Catapult Innovate Investigation Idea creation Cross-fertilisation Analysis Business Modelling Industrialise & Commercialise Markets Technology Products Services Applications Growth Deployment Sustainability Export Potential Jobs UK GDP enhancement

12. Challenges The industrial community identified two “valleys of death” where good ideas fail to become commercial successes: ▫In the technology field “failure to industrialise” where the high entry barriers make demonstrating and proving the new technology impossible – in particular to demonstrate performance in orbit, but also ground testing (esp. for SMEs) ▫In the applications field “failure to commercialise” where access to space derived services or data is limited or not understood, to allow service prototyping in front of prospective customers And doing this all under one roof where possible to create the innovative dynamic between technologies and applications ▫Applications pull and technology push The development of an in-house research capability is also being investigated with our academic partners

13. Opportunities for growth Various sources confirm market size and growth, including the Space IGS, the [US] Space Foundation and OECD The Industry Delivery Team has used the OECD Space Economy at a Glance, 2011 report as the basis for planning SatcomsEOGNSS Distance learning and telemedicine 221 E ‐ commerce, incl. home and remote working 400 Entertainment 110 Location ‐ based consumer services 001 Traffic management, incl. fleet management 61210 Natural resources management, incl. energy, farming, food and fisheries 52111 Urban planning 262 Disaster prevention and management 3111 Meteorology and climate change 1173 Security 373 Financial services and insurance 022 High growth markets have been mapped against traditional space technology sectors And UK strengths and opportunities identified And underpinning technology requ’s identified Response from community reinforces initial delivery team assessments

14. Capabilities The two main offerings from the Catapult will be technology and expertise for proving and demonstrating application / service prototyping ▫Across each of the identified market areas there will be a mix of needs for both capability offerings: Technology Demonstration Service Prototyping Distance Learning & Telemedicine E-Commerce Entertainment Financial Services & Insurance Technology proving / demo includes in-orbit through TDS follow-on missions as well as access to national test facilities (anechoic chamber, thermal- vacuum, RF-test equipment etc) Service prototyping includes access to EO and GNSS data and satcom products and services through ISIC facilities (SRU, CEMS, video wall, AIC….)

15. Conclusions The UK space industry is a hidden success story, and continues to grow strongly Like other nations, UK is targeting space as high-growth sector, however The cooperative model between industry, government and academia is unique, … … and vital to bringing the ideas, the skills, the finance, the regulation and public sector customer base together effectively –UK good at doing this and ISIC and Catapult are good examples of a partnership in action We will not outspend the other nations so we have to be smart and make best use of all capabilities Wider cooperation with like-minded organisations will widen skill base and market opportunity