Scotland’s space sector is skyrocketing. As Europe’s largest satellite producer, it plans to host the first ever successful commercial launch on the continent in 2026. 

The industry is on a steep trajectory to take a £4 billion share of the global space market, which is projected to reach $1.3 trillion USD by 2040. This target was set out in the Scottish Space Strategy, launched by Space Scotland, and endorsed by the Scottish Government and the Scottish Space Academic Forum. 

Scotland was the first country to publish a space sustainability strategy developed by AstroAgency and Optimat for Space Scotland's Environmental Task Force, and commissioned by Scottish Enterprise.

Scotland has a stratospheric vison across many aspects of space, including talent, research and development (R&D), launch services and data analysis. The nation’s space capabilities compete with global players; they have attracted significant international trade and investment over the past decade. 

Dr Natasha Nicholson, Space Scotland, CEO, says: “Scotland’s space community is still growing rapidly and has a vital role in the UK’s broader space economy. I’m working with stakeholders to ensure we remain focused, inclusive and impactful. This will deliver tangible results that clearly benefit the sector with economic growth, environmental responsibility, and opening new markets across disciplines.”

Dr Nicholson brings a strong track record of delivery and stakeholder engagement, together with scientific expertise and a deep understanding of Scotland’s space ecosystem.

Her appointment comes at a pivotal moment, again knowing that Europe’s first ever commercial launch into orbit is expected to take place from Shetland next year. This key development will grow international engagement and a surge in commercial activity across research, manufacturing and satellite data analysis. 

An industry with a £298 million income 

The sector includes around 246 companies that generate more than £298 million income and support over 7000 jobs, according to the UK Space Industry report. In Scotland, the industry will provide economic benefits across many areas, from jobs in data and manufacturing in its cities, to skilled positions at spaceports in remote locations. 

Scotland is at the forefront of UK space capabilities, developing three launch locations here: Spaceport Sutherland, (development paused Orbex), Spaceport-1 (Outer Hebrides) and SaxaVord, (Shetland). 

The Scottish Space Sustainability Roadmap will help to minimise the environmental impact of these activities, reaching Scotland’s net zero carbon emissions targets by 2045. This will be achieved using reusable greener fuels and lightweight materials to minimise waste.

Many countries have studied Scotland’s approach to space, and are now using the model to develop their own domestic space sectors.

The European leader in satellite manufacture 

The country leads Europe in the manufacture of small satellites. More and more visionary firms are investing  and expanding here including Orbex, Spire and Alba Orbital.

A leading light in promoting Scotland’s space capability is Daniel Smith, a serial space company entrepreneur. He is also Scottish Government’s Trade & Investment Envoy for Space. Daniel has been leading Memorandum of Understandings (MoUs) to create new bridges for Space Scotland's community; Malaysia at Space-Comm last year, and in Bremen in 2025. Another will follow in January.

The MoUs show strong collaboration between Scottish Government, Space Scotland, Scottish Enterprise, and Scottish Development International.

Reduced costs and increasing demand

Scotland’s success is helped by the fact that its space sector is easier and more affordable to access than ever before. In recent years, many private companies have entered the industry by using CubeSats and other small satellites. These weigh less than 500 kilograms and are more affordable to produce than traditional larger satellites.  

As launch costs drop, the satellite market is becoming busier globally. Projections from Morgan Stanley suggest that satellite broadband will account for major growth of the global space economy by 2040.

Glasgow has established itself as Europe’s leading hub for small-satellite manufacture, producing more CubeSats and PocketQubes than any other city on the continent. This is according to a Glasgow City Council commissioned report.

Scotland also benefits from its ability to launch units from domestic spaceports. The nation's empty landscapes and proximity to the open ocean make it a highly suitable location for spaceports. 

Another advantage for Scotland is that its rockets are now manufactured domestically, further reducing costs. The UK Government has invested £20 million in spaceflight company, Orbex, which contribute to the company launching its first satellite from the SaxaVord Spaceport in 2026.