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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