US Export Plan - Sector Report - Space
This is one of 8 sector reports that outlines the background research and analysis prepared in support of the US Export Plan and looks to identify the key opportunities in the USA for Scottish companies in this sector.
Table: Top Priority States for Scotland in the Sector
The table below provides a summary of the top five priority states identified in the Matrix model, which have been cross-referenced with research, analysis and stakeholder engagement.
State: California
Strengths:
- Strong history of aerospace and defence, and major commercial space hubs.
- No. spaceports: 1
- VC deals in Space: 101
- NASA Science expenditure: 2,689,326,931
- Space employment: 17,157
Notable sub-sector opportunities:
Rocket manufacturing and launch operations; design, building, and deployment of satellites; space-based data, communications, and intelligence.
State level risks/considerations for Scottish exporters:
- Highly competitive ecosystem dominated by major primes and commercial players
- Very high operating and specialist‑talent costs
- Strict federal export controls (ITAR/EAR) creating compliance barriers
- Large programme scale favouring well‑capitalised firms
- Limited access to space‑ready testing infrastructure for non‑US firms
State: Texas
Strengths:
- Large space clusters and supported international space exploration for many decades.
- No. spaceports: 2
- VC deals in Space: 22
- NASA Science expenditure: 663,368,399
- Space employment: 3,328
Notable sub-sector opportunities:
Launch capabilities; commercial rocket manufacturing and testing; commercial spaceports and infrastructure.
State level risks/considerations for Scottish exporters:
- Strong competition from major launch providers and aerospace primes operating in the state
- High barriers to entry due to large‑scale NASA‑linked programmes centred around the Johnson Space Center
- Preference for partners with proven US launch, testing or mission‑support experience
- Costs associated with meeting federal export controls and aerospace compliance requirements remain significant
State: Florida
Strengths:
- Long history of operating as a leader within the space industry, thriving aerospace cluster.
- No. spaceports: 2
- VC deals in Space: 15
- NASA Science expenditure: 343,995,489
- Space employment: 2,132
Notable sub-sector opportunities:
Launch capabilities and launchpad operations; satellite technology services; advanced space manufacturing.
State level risks/considerations for Scottish exporters:
- Highly competitive launch ecosystem dominated by major players like SpaceX, Blue Origin and large primes at the Space Coast
- Entry into launch‑adjacent supply chains can be difficult without established US partnerships
- High infrastructure and operational costs in a region focused heavily on high‑frequency, high‑scale launch activity
- Strong legacy players and local networks may disadvantage smaller international firms seeking visibility
State: Colorado
Strengths:
- Combines military, commercial and research elements of the industry; strong in innovation.
- No. spaceports: 1
- VC deals in Space: 34
- NASA Science expenditure: 193,712,104
- Space employment: 6,314
Notable sub-sector opportunities:
National security space and defence; satellite manufacturing and smallsats; space launch vehicles.
State level risks/considerations for Scottish exporters:
- Intense competition from a dense concentration of defence‑led and national‑security space operations
- Large procurement programmes favour established US contractors with long‑standing government links
- High expectations for specialist talent and advanced capabilities due to strong aerospace and Space Force presence
- Entry for smaller exporters may be challenging without deep technical credentials or prior US defence‑sector experience
State: Washington
Strengths:
- Strong in ‘new space’, being a hub for both industry titans and fast-growing startups.
- No. spaceports: 0
- VC deals in Space: 25
- NASA Science expenditure: 37,656,244
- Space employment: 85
Notable sub-sector opportunities:
Small satellite manufacturing and constellations; launch vehicles; satellite communications and ground systems; geospatial data and Earth observation.
State level risks/considerations for Scottish exporters:
- Competitive new‑space environment dominated by Blue Origin, Amazon Kuiper and advanced satellite‑communications firms
- High technical entry standards for satellite design, ground‑station integration and constellation‑related services
- Ecosystem strongly favours companies with AI, data, and advanced space‑systems capability, creating capability‑fit challenges for smaller exporters
- Limited opportunity for lower‑tier suppliers due to strong vertical integration by dominant players
Contact
Email: William.Gray@gov.scot