How has the Space Sector grown in 2025?
The UK space tech sector makes up around 7 percent of the global market. That means that in practice almost all launches involve some element of technology that has either been designed or manufactured by a UK company.
As we enter Spring 2025, there have been a series of good news stories from the UK space industry, which bodes well for further growth, including:
- Texas based Axiom Space will partner with Greater Manchester Combined Authority and Liverpool City Region Combined Authority to collaborate on space-based research, development, and manufacturing.
- German space company, OHB, which develops tech for satellites and spacecraft is opening its first UK office in Bristol, creating 50 specialist jobs;
- the British space sector has seen a surge in European Space Agency business, which is expected to deliver £1 billion in wider UK Economic benefits; and
- the UK Space Agency has awarded a contract worth £1.8 million to SatixFy to develop a software suite for digital satellite payloads.
What kinds of legal issues arise in Space Tech projects?
1. Intellectual property – space tech projects often involve proprietary innovations making intellectual property protection a key concern. Given the international nature of space activities, IP disputes can arise across multiple jurisdictions, requiring careful legal structuring to protect investments. Whilst the UK Intellectual Property Office (IPO) provides patent protection for space-related inventions, enforcing IP rights in the space domain remains a challenge.
2. Regulatory, compliance and licensing – activities within space are governed by a combination of international treaties, national legislation, and regulatory frameworks. The UK Space Industry Act 2018 provides a foundation for commercial spaceflight regulation, including launch licensing and liability provisions, and an underlying regime for obtaining permissions from the UK Civil Aviation Authority (CAA). Additionally, export control laws, such as the UK's Strategic Export Control List, impose restrictions on the transfer of space-related technology. This is particularly relevant for companies dealing with dual-use technology, where military and civilian applications overlap. Private investors in these businesses must conduct thorough due diligence to ensure compliance with these and other national security regulations.
3. Liability and Risk Management - the inherent risks associated with space ventures necessitates comprehensive and robust measures to manage liability. Under the UK Space Industry Act 2018, operators must hold third-party liability insurance, covering potential damage caused by spaceflight activities. The UK government also retains a cap on operator liability, typically set at €60 million per launch. However, this cap can be adjusted depending on risk assessments, making it crucial for investors to assess potential liabilities before funding space ventures. Disputes over satellite collisions, space debris management, and contractual liabilities in multi-party agreements further complicate the legal landscape. The growing issue of space debris, highlighted by incidents such as Russia’s anti-satellite missile test in 2021, has prompted calls for stricter regulations. Companies operating in this sector must factor in compliance with debris mitigation guidelines, such as those issued by the UK Space Agency and the European Space Agency.
4. Subsidy Control – many space tech projects benefit from successive awards of public funding as ideas develop into products. As the market becomes more competitive, strong advice to ensure that Subsidy Control law is properly managed is needed.
Conclusion
There are reasons to be optimistic as the UK's space tech sector grows in 2025. However, as participants compete for market position and investors seek returns, there will be greater scrutiny and the risk of challenge to legal arrangements. Legal issues such as those outlined above - regulatory compliance, IP protection, and Subsidy Control - need to be considered early on in project development and, where necessary, specialist advice sought from experts.
DWF Law LLP is the first choice legal adviser for many businesses engaged in innovative projects. Please do get in touch if you need advice on your Space Tech project.
We'd like to thank Gabriella Yuin-Li Rasiah for her contribution to this article.
