US Export Plan - Sector Report - Space

Exporting to the US

The US is the largest global player in space data applications, driven by commercial innovation and government investment, with a market valued at $3.2 billion in 2023, projected to reach $11.8 billion by 2032.^[13]

Many of the world’s leading space businesses are located in the US. This includes multisector well established businesses like Boeing, Lockheed Martin, and Northrop Grumman, and also more purely space focused businesses like Starlink, Blue Origin and Virgin Galactic, as well as companies set up with very specific ambitions in the sector like Astro Forge.

The Scottish Space Strategy identifies the US as a priority market for satellite data services and analytics, particularly in Earth observation and Position, Navigation & Timing (PNT) applications. The International Inward Investment in Scotland for the Downstream Space Data Market report highlights that Scottish companies are actively targeting US customers in sectors such as agriculture, energy, insurance, and climate monitoring, where satellite-derived data is critical.^[14]

60% of the world market in upstream space is positioned in the US. It is therefore largely self-sufficient in launch and major system integration, but imports selected components, data services, and specialised expertise from other countries, particularly around analytics and geospatial services and select spacecraft equipment. In this context, Scottish firms can be competitive in downstream data, small-satellite subsystems, and geospatial analytics, while continental Europe and Japan remain more competitive in physical components and payloads.^[15] Scotland and the UK as a whole face strong competition from other countries, especially as many goods are following aerospace supply chains. For example, in 2024, the US imported USD $7.1 billion in aerospace exports from Canada, USD $4.5 billion from Germany, USD $4.4 billion from France, with the UK exporting only USD $110 million in comparison, albeit some UK exports go indirectly to the US.^[16] This disparity evidences the UK’s, and therefore Scotland’s, relatively limited market penetration and that without targeted strategies, it risks falling further behind in capturing US space sector market share.

Despite this, Scotland is actively collaborating with the US across a range of space-related initiatives. For example, AstroAgency, which is part of the Space Scotland ecosystem, has established partnerships with Voyager Technologies, a Colorado-based defence prime supplier.^[17] In parallel, Space Scotland is working closely with Voyager to explore opportunities for Scottish firms to engage in transatlantic partnerships and benefit from the growing US commercial space market.

There is also the International Bilateral Fund which is a UK Space Agency programme that funds collaborative space projects with countries that are not members of the European Space Agency. Its main objectives are to build international partnerships, increase UK investment and exports in the space sector, and develop UK capabilities through international collaboration. The US had been one of the partner countries on this programme, supporting some notable collaboration between UK and US organisations in the space sector, including Scotland-based companies like know.space.^[18]

A key challenge for Scottish firms is that American programmes are often large in scale and the size can be a challenge for smaller businesses, so effective partnering can be vital. Furthermore, there is a requirement to demonstrate that new technologies are space-ready, with technology readiness levels (TRLs) serving as a critical benchmark. Controlled environments through the ISS are necessary to validate products, but access is currently limited to European or American brokers. For companies operating with minimal investment and reliant on grant funding, this creates a barrier, as resources must be spent domestically in the UK. Furthermore, Scottish space companies often attend space-specific trade shows but given the intersection with other industries, there are buyers in non-space sectors, so it may be more beneficial to attend these, for example agriculture trade shows to sell Earth observation tools to farmers.

Overall, given the increasing levels of innovation that drive the development of complex missions, Scotland has demonstrated an ability to thrive in this environment, offering creative solutions and technical expertise. This enables Scottish enterprises to address gaps in the US market and provide alternatives, competing not on cost, but on capability and the delivery of specialised, high-value services.