Space tech: the next frontier of global innovation

Once confined to state-funded exploration, the space sector is now a commercial reality. From satellite broadband to orbital manufacturing, space is the next great platform for technological innovation. And investors are paying attention.

According to the Space Foundation, the global space economy reached an unprecedented $613 billion in 2024, with the commercial sector accounting for 78% of the economy. VC and private equity funding has grown rapidly, fuelling innovation alongside government investments. For UK tech firms, this a fast-emerging growth market with real commercial potential.

Moore Kingston Smith supports technology businesses operating at the intersection of deep tech, AI, and global infrastructure, including those entering or scaling in the space economy. From R&D incentives to global structuring and M&A support, we help clients turn innovation into sustainable growth.

Global momentum: US dominance, global acceleration

The US remains, for now, the epicentre of space tech activity, with private firms like SpaceX, Rocket Lab and Relativity Space dominating headlines. The commercialisation of space is being accelerated by government contracts, defence interest and a vibrant venture capital ecosystem.

However, global rivals are moving quickly. China is launching more missions than ever and positioning itself as a top-tier space power. India’s cost-efficient moon and satellite programmes have catalysed private sector involvement. Europe is investing in resilience through programmes like IRIS² and coordinated ESA-backed ventures.

The UK is an increasingly a strategic hub for space-based innovation. With regional clusters, government-backed accelerators and a collaborative regulatory environment, the UK offers a launchpad for ambitious space tech ventures. Projects like SaxaVord Spaceport and companies such as Orbex and Astroscale highlight the breadth of the UK’s ambition, while partnerships with US firms, ESA collaborations and growing links with Indo-Pacific players are giving UK companies a chance to embed themselves in global supply chains, especially in AI, data and hardware.

Key trends shaping the sector

Advanced propulsion systems

Nuclear thermal propulsion and nuclear microreactor technologies are revolutionising spacecraft speed and efficiency. These technologies could cut travel time to Mars and enable deeper space missions.

Commercial space stations and in-orbit manufacturing

Companies like Axiom Space and Blue Origin are developing private space stations for research, tourism and manufacturing. Microgravity manufacturing on these stations could produce materials and products impossible to make on Earth.

Space-Based Solar Power (SBSP)

SBSP systems aim to capture solar energy in orbit and beam it back to Earth via microwaves. These systems offer consistent, weather-independent energy, with pilot projects already underway.

Debris management and sustainability

With thousands of satellites in orbit, space debris is a growing threat. Technologies like active debris removal (ADR) and sustainable satellite design are being developed to keep space safe and usable.

Earth monitoring and climate change

Satellites are increasingly used to track climate change, monitor extreme weather, and support disaster response. Innovations in hyperspectral imaging and lightweight sensors are enhancing data accuracy and coverage.

How Moore Kingston Smith can help

Spacetech is a lens through which to understand the next wave of innovation-driven business models. It is capital-intensive, IP-rich and highly regulated. Getting the structure right early can save time and cost later, and open doors to the right investors.

Moore Kingston Smith helps clients turn innovation into sustainable growth, including:

• International expansion and structuring – optimal group structuring, especially for US collaboration, and transfer pricing.
• R&D – UK tax reliefs, patent box and grant schemes.
• Corporate finance and growth funding – early-stage capital, strategic sale and private equity and venture capital investment.
• IP – protection and commercial strategy.
• ESG reporting and regulatory compliance – from orbital sustainability to cyber security.

Contact us

Whether you’re a start-up securing Series A funding, a fund exploring aerospace deals or an engineering firm diversifying into new verticals, our team can support you with audit, tax and strategic advisory solutions tailored to this fast-moving sector.

To discuss how your business can prepare for the future of space tech, contact our technology experts.