Insights
The Humber Region: A Rising Force in the UK's Next Space Economy
April 27, 2025
The global space sector is undergoing a profound transformation. Once the exclusive domain of national governments and massive aerospace corporations, space has entered an era of democratisation, commercialisation, and unprecedented growth. Within this evolving landscape, the Humber region of Yorkshire is quietly establishing itself as a significant contributor to the UK's space ambitions and the broader space economy.
Before examining the Humber's specific role, it's worth understanding the scale of opportunity. The global space economy reached £319 billion in 2022 according to the Space Foundation's annual report, with commercial space activities accounting for nearly 80% of this value. By 2030, estimates from the UK Space Agency suggest this could grow to over £490 billion, driven by innovations in satellite technology, launch capabilities, and downstream applications.
The UK has set ambitious targets to capture 10% of the global space economy by 2030, as outlined in the National Space Strategy. This presents a substantial opportunity for regions that can effectively leverage their existing strengths to meet the needs of this growing industry.
The Humber region brings several distinct advantages to the UK space sector:
The Humber's deep maritime tradition has cultivated expertise in areas directly applicable to space challenges. Hull's long history of maritime innovation has produced generations of engineers skilled in developing systems that must operate reliably in harsh environments—a direct parallel to the demands of space hardware.
According to the Humber Maritime Alliance, the region maintains more than 400 businesses in the maritime supply chain, representing a vast reservoir of transferable engineering skills. The precision engineering required for maritime applications shares many commonalities with satellite component manufacturing, particularly in areas such as environmental sealing, vibration resistance, and long-term reliability.
The Humber has emerged as the UK's "Energy Estuary," establishing itself as a centre for renewable energy innovation—particularly offshore wind. This sector has created a cluster of businesses with expertise in:
The UK Space Agency's 2023 report on space sector diversification specifically identified energy expertise as having high transfer potential to space applications. The Humber's specialisation in this area positions it advantageously for contributing to space power systems, Earth observation applications, and climate monitoring technologies.
The establishment of C4DI (Centre for Digital Innovation) in Hull has created a thriving digital innovation ecosystem that serves as an enabler for space applications. With more than 200 tech companies now operating in the Hull and Humber region according to Tech Nation's 2023 report, the area possesses significant capabilities in:
These digital capabilities are increasingly central to the space economy, where the value chain is shifting from hardware to software and data. Earth observation, satellite communications, and positioning services all depend on sophisticated software systems and data processing capabilities—areas where the Humber's growing tech sector offers valuable expertise.
The establishment of Space Humber as a regional hub connected to Space Hub Yorkshire represents a significant step in coordinating and accelerating the region's space economy contributions. Operating from C4DI in Hull, Space Humber provides:
This structured approach to space sector development follows proven models from other successful UK space clusters, where having a dedicated organisation to coordinate activities has accelerated growth and investment.
Several initiatives already demonstrate the Humber's emerging role in the space economy:
At the forefront of the Humber's space ambitions stands Pan Galactic, a Hull-based company developing quantum-safe digital infrastructure for space applications. Recognised as UK Space Startup of the Year, Pan Galactic exemplifies the innovative potential emerging from the region.
As a founding partner of Space Humber, Pan Galactic not only contributes cutting-edge technology to the space sector but also helps establish the Humber as a legitimate player in the UK's space ecosystem. Their focus on quantum-safe communications addresses one of the most pressing challenges facing the future space economy: ensuring secure data transmission in an era where quantum computing threatens conventional encryption methods.
The company's success demonstrates how the Humber can nurture space enterprises capable of competing at the national level, combining regional engineering talent with forward-thinking digital innovation. Pan Galactic's presence in Hull serves as both inspiration and practical evidence that the Humber region can produce world-class space technology companies.
The Humber region's focus on environmental management, renewable energy, and flood resilience has created natural applications for satellite data. Local organisations are developing solutions that combine Earth observation data with ground-based sensors to:
According to Satellite Applications Catapult data, Earth observation represents one of the fastest-growing segments of the UK space economy, with a 12% annual growth rate. The Humber's existing environmental focus positions it to capture significant value in this area.
The region's manufacturing base is beginning to identify opportunities within space supply chains. Examples include:
A recent survey by Make UK identified that 14% of Yorkshire and Humber manufacturing businesses now see space as a potential diversification market, up from just 3% in 2018.
The synergies between maritime and space technologies are being actively explored:
Perhaps the Humber's most significant contribution to the next space economy lies in skills development. The region's educational institutions are responding to the opportunities:
According to the Space Skills Alliance, the UK space sector will require an additional 30,000 skilled workers by 2030. The Humber's focus on developing relevant skills pathways will help address this gap while creating high-value employment opportunities within the region.
While the foundations for the Humber's space economy participation are strong, challenges remain:
Many regional businesses with relevant capabilities don't yet recognise their potential role in space supply chains. Continued outreach and education will be essential to unlock this potential.
Space ventures often require patient capital and specialised investment approaches. Strengthening the regional investor ecosystem's understanding of space opportunities will be crucial.
Enhancing the region's research facilities to include space-specific capabilities would accelerate innovation and provide testing resources for local businesses.
The Humber's journey toward becoming a significant contributor to the UK space economy is still in its early stages, but the trajectory is promising. By continuing to build on its existing strengths, fostering collaboration between sectors, and developing specialised space capabilities, the region can carve out a distinctive and valuable role.
The establishment of Space Humber represents an important step in this journey—creating a focal point for space activities and ensuring the region's voice is heard in national space planning.
For businesses in the Humber, the message is clear: the next space economy offers substantial opportunities, and the region possesses many of the fundamental capabilities needed to seize them. Through continued collaboration, investment in skills, and strategic focus on areas of natural advantage, the Humber can indeed play a significant role in creating the UK's next space economy.
