Over the past decade, the space industry in the North East of England has moved from a niche presence to a growing regional cluster – one with credibility, ambition, and momentum.
While historically much of the UK’s space industry has been concentrated around London, the South East, and a few other established hubs, the North East is gradually forging a distinct identity in satellite technologies, space applications, advanced manufacturing, and research.
Recent public‑data and industry‑sector reports highlight this transformation. According to one regional analysis, the number of space‑organisations in the region rose from 34 to 51 – a jump of nearly 50% in a matter of years, reflecting increasing business formation and inward investment.
Employment in the local space sector has also climbed, rising by about 12% to over 1,000 people. In monetary terms, the sector once generated around £88m in income for the region.
More recent summaries suggest even stronger growth: estimates from the 2024–2025 period place the number of organisations at roughly 80, with employment of over 1,340 people and regional income rising to around £171m.
These figures show the cluster is not only surviving – it is thriving and expanding. But numbers alone don’t capture the full story.
The North East’s recent surge represents a strategic effort to build capacity in manufacturing, research, training, and satellite applications that align with broader UK and global trends in space technology.
Institutional anchors and strategic investment: The birth of NESST
A major milestone in the region’s space aspirations is the development of a large new research and skills hub: the North East Space Skills and Technology Centre (NESST), based at Northumbria University in Newcastle.
With a total investment of £50m – jointly funded by the university itself, UK Space Agency, and Lockheed Martin UK – NESST aims to become a nationally significant centre of excellence for space research, training, and industry collaboration.
NESST is planned to open around 2026, and its creation reflects a strategic decision to anchor the region’s growing industry with world-class infrastructure capable of supporting research, manufacturing, and satellite readiness.
The centre is expected to directly create more than 350 jobs, and over time to contribute hundreds of millions in economic value to the North East. But NESST isn’t just a facility – it’s a signal. It shows that sophisticated space research and development can flourish outside the traditional hubs.
Planned work at NESST spans optical satellite communications, space weather studies, space-based energy concepts, and more. The ambition is to leverage academic excellence and industrial collaboration to position the North East as a serious player in the global space economy.
Additionally, past collaborations between Northumbria University and Lockheed Martin have already produced innovative work – from machine learning to detect nanojets (tiny plasma jets in space) to advances in solar‑power‑from‑space concepts.
The emergence of NESST helps answer a critical question for any space-oriented region: how to build and sustain high-value, high‑skill capacity. With proper infrastructure, training, and partnerships, North East England is now laying the foundation for long-term growth, inward investment, and talent retention.
Diverse capabilities
One of the strengths of the North East cluster lies in its diversity. Rather than focusing on a single niche, the region supports a range of space-related capabilities – from hardware manufacturing and assembly to digital services, data analytics, and satellite applications.
Local businesses include firms working on satellite communications, Earth observation data services, geospatial analysis, and parts manufacturing. There is also strength in sectors that complement space, such as AI, big data, cyber‑security, immersive technologies, and 5G/telecom infrastructure.
This broad industrial ecosystem is a competitive advantage: it allows space‑companies to draw on local talent pools and technological synergies.
Moreover, some manufacturing capabilities in the region include clean rooms, component‑assembly facilities, and support for Tier‑3 and Tier‑4 satellite manufacturing.
There’s also capacity for Tier‑2 subsystem work and even emerging potential for launch‑vehicle component assembly.
This breadth means the North East can serve a variety of market segments: small satellite builders, data‑service providers, manufacturing subcontractors, and system integrators – offering flexibility and resilience as the space market evolves.
Strategic advantages: Location, cost, talent base, and connectivity
What makes the North East especially attractive for space sector growth goes beyond its immediate cluster: geography, infrastructure, cost base, and talent.
From a logistical perspective, the region is well-placed. Its proximity to the North Sea offers potential advantages for collaboration with maritime or offshore launch/test initiatives. Meanwhile, its transport infrastructure – ports, roads, rail, and connectivity –makes it accessible and functional for businesses.
Cost-wise, the North East remains competitive compared with traditional South‑East or London-based clusters. Lower facility rents, more affordable labour, and modest operating costs all help make the region attractive for startups, SMEs, and large companies alike.
Underpinning this is a skilled workforce, supported by strong academic institutions. The region is home to multiple universities with expertise in engineering, computer science, data, sensors, materials science, and space-related research. This creates a talent pipeline – essential for sustaining long-term growth and innovation.
Combined, these factors give the North East a competitive positioning: an environment where companies can thrive, scale, and innovate, without the overheads associated with more expensive regions.
Ambitious vision: Targets for 2030 and beyond
Recognising the potential, regional stakeholders have set themselves bold goals. At the heart of the regional strategy is an ambition to grow North East space-sector employment to 10,000 jobs by 2030 – a massive increase from the current baseline.
That target rests on three main pillars: cultivating talent, building infrastructure, and attracting investment. If successful, the North East could become one of the largest space‑workforce regions outside London, and a major node in the UK’s broader space plan.
This long-term vision is not just about economic growth. It’s about transforming the industrial identity of the region: from traditional industries to high-tech manufacturing, research, satellite data services, and global‑market integration.
Challenges and what needs to happen for long-term success
Despite the strong growth and ambition, the journey ahead is not guaranteed. Several challenges remain before the North East can fulfil its vision of becoming a major UK space hub.
First, scaling manufacturing capacity and supporting full satellite or launch‑readiness remain difficult tasks. While the region has proven capabilities in Tier 3 and Tier 4 manufacturing, stepping up to full subsystem or launch-ready production will require investment, supply chain development, and possibly additional incentives.
Second, global competition – from other UK regions and international clusters – is fierce. More established space hubs elsewhere may continue to draw projects, talent and funding. For the North East to stand out, it must deliver consistent results, build reputations, and nurture innovation that leads to commercial and technical success.
Third, sustaining long-term investment and commitment is critical. Building infrastructure like NESST is a major step, but keeping it operational, fully utilised, and integrated with industry demands requires ongoing support, demand for services, and alignment with national and international space programmes.
Fourth, as space increasingly becomes data‑ and software-driven, the region needs to keep strengthening its digital ecosystem – ensuring that software engineers, data scientists, and satellite-ops specialists are part of the growth.
Finally, skills supply and retention matter. Training new generations of space-qualified workers is vital, but equally important is retaining talent in the region, rather than seeing them drawn away to more established hubs.
Why it matters – Not just for the North East, but for the UK space industry
The rise of the space sector in North East England is more than a regional success story. It represents a shift in how the UK’s space industry might be structured in the future — less London-centric, more distributed, and more inclusive of regions that offer strong manufacturing, research, and cost competitiveness.
For the UK as a whole, developing multiple vibrant regional clusters reduces geographic concentration risk, spreads economic benefit, and builds resilience. For instance, a diversified industrial base can better absorb market fluctuations, global supply‑chain disruptions, or policy changes.
Moreover, tapping into regions with strong engineering, manufacturing, and digital tech heritage can help bridge traditional sectors with high-tech space ambitions – creating hybrid strengths that combine manufacturing heritage with cutting-edge research.
For global investors and companies, a growing, well-supported cluster outside the traditional South‑East triangle offers new opportunities. It opens the door to more innovation, lower costs, alternative talent pools, and access to space-ready manufacturing and services without the burden of high operating overheads.
In short, if the North East’s space cluster fulfils its ambitions, it could contribute significantly to the UK’s national space capability, while distributing industrial growth more evenly across the country.
