The Final Frontier: Wales is experiencing a space sector surge

Clare Bailey and Gary Carver

The Welsh space sector is experiencing rapid growth, underscored by the UK Space Agency’s first office in Wales at William Morgan House in Cardiff acting as an anchor for the space community. This development enhances the region’s strategic importance, fostering economic growth and knowledge sharing. Consequently, a dynamic cluster of pioneering space companies and innovative start-ups is emerging.

These companies benefit from flexible, high-tech office spaces that encourage collaboration and innovation, and are strategically located near universities and research centres. This supportive ecosystem has impacted the 27% year-on-year increase in office space take-up in the first half of 2024, reinforcing Wales’s position as a hub for space technology.

Wales is home to several leading space companies including Airbus Defence & Space, Raytheon, Qinetiq and Qioptiq. In addition to these established giants, innovative start-ups like Magdrive are making significant strides in the industry. Other notable start-ups, such as Smallspark Space Systems and Altitude Angel, are also driving technological advancements.

Over the past five years, the Welsh Government and Aerospace Wales have collaborated to develop the space sector network, raising its profile and enhancing its capabilities. A key initiative in this effort is the Wales Academic Space Partnership (WASP), which fosters cooperation between universities engaged in the space sector and strengthens links with industry within the so-called “arc of innovation”. This partnership ensures a continuous flow of cutting-edge research and innovation, further embedding Wales as a hub of space activity.

WASP plays a crucial role in integrating academic research with industry needs, creating a robust ecosystem that supports both established companies and emerging start-ups. By promoting collaboration and knowledge sharing, WASP helps drive technological advancements and fosters a culture of innovation across the region.

The Welsh space sector currently contributes £79 million annually to the economy and sustains over 600 jobs across more than 85 organisations, according to the UK Space Agency. This impressive economic impact is supported by substantial investments from the UK Government. Welsh universities also play a pivotal role in nurturing a skilled workforce through specialised programmes in aerospace engineering and astrophysics.

Institutions like Cardiff University, Swansea University, and Bangor University offer cutting-edge education and training, ensuring a steady supply of talent for the industry. Initiatives like internships, co-op programmes, and industry partnerships further bolster this talent pipeline, helping retain skilled graduates within Wales.

Wales is also a key player in the global market for compound semiconductors, which are integral to the development of satellite communication systems, robotics, and efficient LEDs. IQE, headquartered in Cardiff, commands a 55% global market share in compound semiconductor technology, with Cardiff-based Space Forge also making advancements in this area.

Job creation

More recently, the sale of the Centre 7, the 52,000 sq ft office at Cardiff Gate International Business Park, to the Welsh Government, also reflects Wales’ commitment to fostering the compound semiconductor industry. By offering a dedicated space for startups and expanding companies, the Government aims to stimulate innovation and job creation within this high-tech sector.

With a strong foundation of leading companies, innovative start-ups, skilled graduates, and supportive infrastructure, Wales is poised to emerge as a significant player in the global space industry. This growth trajectory promises to drive economic prosperity and technological advancement, solidifying its position as a hub for space innovation and exploration.

The Welsh space sector is clearly on the rise, and with the right investments in infrastructure and support, it can continue to thrive and lead in space technology and innovation. By expanding office space and fostering a collaborative environment, Wales can secure its place at the forefront of the global space industry, driving economic growth and technological progress for years to come.