The North East of England has long been synonymous with innovation – from shipbuilding and heavy engineering to the digital revolution of recent decades.
Now, the region is setting its sights higher than ever before, with an ambitious plan to become a major player in the UK’s growing space economy.
The North East Space Strategy outlines a roadmap to transform the region into a world-class hub for space innovation, manufacturing, and research.
With decades of expertise in engineering, data science, and advanced materials, the region’s leaders believe the North East is uniquely positioned to seize the opportunities of the new space era.
From local legacy to global ambition
The strategy builds on a strong foundation. The North East’s space cluster already consists of over 50 organisations, employing around 1,300 people and generating more than £129m annually.
That represents nearly double the income and a 50% rise in employment compared to five years earlier – impressive growth for what was once a niche industry in the region.
This growth reflects the global momentum behind space. Worldwide, the industry was worth $400bn in 2021, with forecasts predicting it could surpass $1 trillion by 2040.
As satellites, sensors, and data analytics increasingly underpin everything from climate monitoring to telecommunications, the space sector is no longer confined to rockets and astronauts – it’s a cornerstone of digital infrastructure.
The North East wants its share of that future.
The vision: 10,000 space jobs by 2030
At the heart of the North East Space Strategy lies an ambitious vision – to make the region a vibrant UK centre for space businesses to grow.
The mission is underpinned by six key objectives, from building a thriving cluster and developing world-class infrastructure to aligning with national priorities in the UK’s Space Strategy and Defence Space Strategy.
One of the most striking targets is the plan to grow regional employment in the sector to 10,000 by 2030. That would represent a near tenfold increase and could make the North East one of the largest space workforces outside London.
To get there, the strategy emphasises three key pillars: talent, infrastructure, and investment. By creating the right ecosystem for businesses, researchers, and investors, the North East aims to establish itself as a fully connected space region – not just supporting the UK’s ambitions, but helping to lead them.
A region already in orbit
Far from starting from scratch, the North East already plays a quiet but crucial role in the global space industry.
Durham University’s Centre for Advanced Instrumentation contributed optics to the James Webb Space Telescope, one of the most sophisticated scientific instruments ever built.
Northumbria University has secured millions in funding to advance research in optical satellite communications and space weather.
The North East Technology Park (NETPark) in County Durham serves as the nucleus of the region’s emerging space ecosystem.
It houses the North East Satellite Applications Centre of Excellence (NESACoE), which since 2014 has supported hundreds of organisations, seeded more than 280 collaborations, and helped secure over £9m in funding.
NETPark is also set for expansion, with plans for new laboratory and office units as part of an £85m extension. Central to that vision is the creation of the Disruptive Innovation for Space Capability (DISC) centre – a facility designed to lower the barriers to entry for businesses developing new space technologies.
Strength in collaboration and research
The North East’s universities form a powerful research backbone for the regional strategy. Together, institutions like Durham, Newcastle, Northumbria, Sunderland, and Teesside universities produce over 50,000 STEM graduates annually, supplying a rich pipeline of talent and innovation.
Beyond academia, the region benefits from a network of innovation centres – including the National Innovation Centre for Data, the Offshore Renewable Energy Catapult, and the Centre for Process Innovation – all of which have applications in the growing space economy.
These assets have already attracted the attention of major international players. Global aerospace firm Raytheon strengthened its UK presence by acquiring Alnwick-based NORSS, a company specialising in space situational awareness and sustainability.
Meanwhile, Lockheed Martin has invested in Northumbria University and the wider ecosystem, backing initiatives in skills development, inter-satellite communications, and satellite charging technologies.
Such partnerships underline a growing confidence that the North East can compete on a global stage.
Why the North East? A competitive advantage
While space innovation can happen anywhere, the North East offers a compelling proposition for investors and entrepreneurs. The region’s operating costs are more than 30% lower than London, and high-quality office and lab space comes at a fraction of the price of other UK hubs.
Its strategic location also plays a key role. With close proximity to Scotland’s developing spaceports, extensive transport links, and seaports along the North Sea, the region can easily collaborate with neighbouring clusters in Scotland, Yorkshire, and the North West.
The Teesside Freeport, now the UK’s largest by area, adds another logistical and financial advantage for manufacturing and exports.
This combination of affordability, connectivity, and capability gives the North East a realistic chance to become a leading node in the UK’s growing space supercluster.
Opportunities in sustainability, data, and defence
The strategy identifies several key growth markets where the region can make an outsized impact:
- Resilient communications: Developing technologies for secure and reliable satellite-based networks that underpin national security and industry.
- Space sustainability: Enhancing space situational awareness to monitor orbital debris and ensure the responsible use of space.
- Earth observation for climate change: Using satellite data to track environmental trends, manage energy infrastructure, and support the UK’s Net Zero goals.
These priorities align closely with the UK Government’s National Space Strategy and Defence Space Strategy, both of which stress the need for innovation in communications, data, and defence.
The North East’s strengths in advanced manufacturing, data science, AI, and engineering position it well to deliver in these areas.
Moreover, the region’s existing industrial base, including expertise from the automotive, offshore energy, and digital sectors, can easily adapt to space-related applications.
Tackling the barriers to growth
For all its promise, the strategy also acknowledges challenges. The most immediate obstacles are in investment and skills.
Many small and medium-sized enterprises (SMEs) in the region struggle to access venture capital and national funding streams, which are often concentrated in the South of England.
The strategy proposes stronger engagement with the investor community, major manufacturers, and the UK Space Agency to bridge this gap.
On the skills front, the space industry’s highly technical nature creates a constant demand for specialised talent – from systems engineers to data analysts.
The North East plans to address this through a new Skills Academy, designed to train, attract, and retain workers across all levels of the space supply chain. The region’s universities are expected to play a leading role in aligning education with emerging industry needs.
A recent skills mapping study will guide the development of a regional roadmap, ensuring that training programmes remain responsive to technological trends and workforce demands.
The action plan: Six steps to launch
The delivery plan outlined in the strategy is structured around six priority areas designed to turn ambition into action:
- Champion the North East space industry — Promoting the region nationally and internationally, showcasing capabilities, and connecting businesses with investors.
- Provide world-class infrastructure — Establishing the DISC centre and expanding NETPark to accommodate new facilities and labs.
- Invest in skills and capabilities — Building a sustainable workforce through education partnerships and targeted training.
- Raise awareness among investors — Engaging financiers and attracting inward investment to accelerate growth.
- Expand space to adjacent sectors — Encouraging non-space industries to diversify and apply their technologies in new contexts.
- Foster regional collaboration — Strengthening ties with Scotland, Yorkshire, and the North West to create a northern ‘supercluster’ for space.
If implemented effectively, this plan could transform the North East into one of the UK’s most dynamic centres for space innovation.
A launchpad for the future
If the North East Space Strategy delivers on its promise, the region could become a vital pillar of the UK’s space ecosystem within a decade.
With its blend of heritage, innovation, affordability, and ambition, the North East is ready to move from the periphery to the centre of the nation’s next great technological story.
From building optical instruments for deep-space telescopes to developing the next generation of satellite communications, the North East’s journey into space is already underway. What happens next could redefine not just the region’s economy – but its identity, too.
