UK expand LEO satellite programme with £30m in funding

UK expand LEO satellite programme with £30m in funding

by | Mar 5, 2026 | Connectivity, Innovation

The UK government has issued £30 million in funding as it expands its low-earth orbit (LEO) satellite programme.

Run by the UK Space Agency, the investment supports British businesses developing innovative satellite components and technologies. LEO satellites are becoming increasingly critical infrastructure because they offer more complete global connectivity than ever before, including in rural or mountainous areas. The biggest company in the sector, Starlink, have already become one of aviation’s critical partners, supplying high-speed inflight WiFi to a growing list of airline customers.

LEO satellite use goes well beyond streaming films at 30,000 feet and can support a range of aerospace applications, including avionics, flight operations, and air traffic control. Enhanced weather forecasting, navigation, and positioning have pushed the LEO satellite market to a £40 billion global market value that is growing by 10% year-on-year (YOY).

Space Minister Liz Lloyd said the £30 million investment would position the UK at the heart of this growing supply chain. A first funding round worth £18 million has already supported eight British companies and 26 highly skilled jobs. Lloyd commented:

Space is now the cornerstone of our modern economy. Satellite constellations have revolutionised how we operate, digitalising industries, optimising logistics and connecting all corners of the globe.

This new funding will support the development of smarter satellites with better hardware, the use of AI to make data delivery faster and improved connections between spacecraft.

This is part of the government’s commitment to keeping UK companies at the forefront of satellite communications, delivering economic growth and strengthening our defence and national security.

UK Space Agency CEO Dr Paul Bate added:

UK companies are developing world-class satellite communications technologies, from advanced antennas to optical links that can transmit data between satellites at the speed of light.

Our first C-LEO funding round is delivering real results, and this second call will help even more businesses take their innovations from prototype to product, ready to be integrated into the constellations of tomorrow

Join us at Aerospace Tech Week 2026, where we’ll be hosting key partners from the UK aerospace industry

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Airbus, Leonardo, Thales plan for €10bn satellite merger

Airbus, Leonardo, Thales plan for €10bn satellite merger

by | Sep 15, 2025 | Connectivity, Innovation

Airbus Defence and Space CEO Michael Schoellhorn has confirmed that European aerospace groups Airbus, Leonardo, and Thales could sign a deal before the end of 2025 to combine their satellite operations.

Called ‘Project Buomo’, the initiative would establish a pan-European satellite manufacturer to rival big businesses in the US and China. The plans had stalled over the summer, but Schoellhorn told Italian newspaper Il Correire della Serra on 14 September that talks were ‘on the right track’.

If it goes ahead, the join venture would be worth €10 billion (US$11.7 billion). Previous attempts to merge Europe’s satellite assets have failed due to competing national interests and security issues.

As geopolitical tensions remain high, Europe is keen to secure its native aerospace capabilities. Following Russian drone attacks on Poland earlier in September, Ukrainian President Zelensky even called for the creation of a joint European sky shield.

Meanwhile, Starlink, the low-earth orbit (LEO) satellite company founded by Elon Musk, was valued at US$350 billion in December 2025, making it the most valuable private company in the world. Project Buomo would create a credible European rival backed by regional companies.

If it goes ahead, the resulting cross-border satellite manufacturer would operate similarly to missile maker MBDA. Founded in 2001, MBDA is owed by Airbus, Leonardo, and BAE Systems. As well as big-picture European activities, the company is designed with sensitive national interests in mind.

Join us at Aerospace Tech Week 2026 to learn more about how LEO satellites will transform the industry.

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