Scotland’s space sector — International focus helps companies reach for the stars

Peter Ranscombe explores the health of the space industry in Scotland following the collapse of rocket company Orbex. 

When Orbex, the Forres-based rocket company, collapsed into the hands of administrators last month, shockwaves rippled through Scotland’s burgeoning space sector. The firm, which employed 163 people, had originally intended to launch rockets vertically – like the famous Apollo and Shuttle missions at Cape Canaveral in Florida – from the proposed Sutherland Spaceport, before switching its plans to the SaxaVord Spaceport in Shetland.

There was also a worrying sense of déjà vu for the wider UK space industry after Sir Richard Branson’s Virgin Orbit was shut down in 2023, having attempted the UK’s first horizontal rocket launch – from under the wing of a converted 747 jumbo jet – from Cornwall. Yet experts remain upbeat about the future of Scotland’s space sector.

“Undoubtedly, the loss of any company has an impact and we’re very sorry that Orbex went into administration,” admits Colin Baldwin, executive director of trade body UKspace. “This is a blow to the company and the team and community around them – and has resulted in a loss of talent as staff have inevitably pursued other opportunities. Those in the space sector know that pursuing innovation in space is hard.

“However, Scotland’s space sector is built on firm and deep foundations. The end-to-end capability that’s developing within Scotland, as part of the wider UK space sector, is still strong. Glasgow remains one of the global leaders in satellite manufacturing – and those satellites have been launched and are providing vital data and services to people across the globe.

“Furthermore, Scotland is characterised by a ‘can-do’ attitude, underpinned by significant pride in what Scottish space companies have already achieved. The broad nature of the Scottish sector means it has inherent resilience. The space community is undoubtedly rallying around to ensure that as much of Orbex’s talent and know-how as possible is retained.”

Glasgow-based rocket company Skyrora expressed its interest in acquiring Orbex’s assets last month. No update was available from Skyrora, nor Orbex’s administrator, FRP Advisory, ahead of this article being published.

Shetland set to host UK’s first rocket launch

SaxaVord remains on course to host the UK’s first vertical rocket launch this summer, when German firm Rocket Factory Augsburg (RFA) attempts to send its ‘One” vehicle into orbit. RFA says the cause of a “hot fire test” at the spaceport on Unst in 2024 has now been “fully understood and addressed”.

“Our business model has always been multi-client because at the outset we recognised that, in what is a very competitive rocket launch market, not all players would succeed,” explains a spokesperson for SaxaVord. “Orbex had never reached a position to start on site at SaxaVord and let us develop infrastructure for them to launch from.

“For us, fortunately, it’s business as usual as we work with our other clients on testing, test flights and launches in the months and years ahead. SaxaVord is very much ready for launch.”

Colin adds: “Assured access to space remains a UK Government priority, and Scotland is still on track to deliver the first successful launch from UK soil later this year. This will be a milestone that will boost the sector’s recognition in Scotland, across the UK and on the international stage.”

Scotland benefits from global links

That international focus is echoed by Naomi Pryde, Head of Litigation and Regulatory for Scotland at international law firm DLA Piper, and co-founder and co-chair of its space exploration and innovation team. “There’s a lot of buzz and excitement – Scotland is well loved and well respected internationally in the space sector,” she notes. “Like any emerging sector, Scotland’s space industry has faced challenges, particularly in capital‑intensive areas such as launch. But the wider ecosystem remains active and internationally focused, with Scottish companies operating and competing globally.”

There’s much more to Scotland’s space industry than sending rockets into orbit. Our nation is also an important hub for building small satellites and analysing their data.

“Space is often categorised into upstream, midstream and downstream: upstream covers the design, manufacture and launch of satellites; midstream focuses on operating and managing those assets once they’re in orbit; and downstream is about harnessing and commercialising the data and services that come back to Earth,” explains Naomi. “Scotland has capability across all three parts of that value chain, underpinned by strong research and development through our brilliant universities.

“Scotland is one of the few space ecosystems in Europe with genuine end‑to‑end capability. It can work across the full space value chain – from manufacturing and launch sites through to the processing, analysis and commercialisation of space‑derived data. Glasgow has earned the nickname ‘satellite city’ and it’s widely recognised for manufacturing more small satellites than any other European city.”

Experts call for further investment

“I think Scotland’s space sector is extremely healthy at the moment,” agrees Laura Edison, general counsel at Glasgow-based rocket company Skyrora and founder of Albalex, which is described as “a transatlantic compliance, training and RegTech consultancy”. She underlines Glasgow’s pedigree in producing small satellites or ‘cube-sats’.

“Scotland was known for its satellites, but now we also have spaceports, launch providers such as Skyrora and a huge supply chain that’s now well-established, where existing businesses – such as electronics, for example – now have a new market to serve,” she adds. “We’re able to have a very healthy, full ecosystem and supply chain within Scotland that can also serve the wider UK and beyond.”

Colin adds: “While there’s considerable focus on launch – which is still anticipated from SaxaVord this year – Scotland’s space heritage is deep and broad, with strengths in upstream, including small satellites, and downstream data processing and applications, across industry and academia and spanning start-ups to established players. This breadth of capability was evident in December at the Space-Comm Expo Scotland event. It’s this end-to-end ecosystem of connected capabilities, with strong support from the UK and Scottish parliaments, that makes Scotland such a vibrant ecosystem.

“Scotland’s space sector is a microcosm of the space sector in the UK. As such, it’s facing similar challenges to the rest of the sector; other nations are investing heavily in space capabilities, recognising the dual role space plays in economic growth and national security. Our returns on Government investment are significant; globally we punch above our weight built upon significantly lower Government investments compared with our international competitors. We need to continue investing in this success or risk falling behind on the international stage.”