case study

Catapult Supports Growth in the North East Space Sector

In 2014 the North East highlighted major regional challenges — from poor connectivity and transport issues to limited awareness of how space data could support local industries. Despite strong research and manufacturing capability, the region lacked a clear strategy to connect these strengths to the emerging UK space economy. The challenge was to:

• Build a joined-up regional space community that could compete nationally and internationally
• Attract investment and new companies to create skilled jobs and supply-chain growth
• Show how space technology could directly support regional priorities such as clean energy, smart ports, and logistics

The Satellite Applications Catapult therefore established the North East Satellite Applications Centre of Excellence (NESACoE) working closely with local partners such as Business Durham, Invest North East England, and five local universities to coordinate and accelerate growth in the region’s space sector. Key NESCoE activities included:

• Launching the North East Space Leadership Group to guide strategy, focusing on regional profile, skills, and market growth
• Hosting annual conferences and innovation challenges to foster investment and collaboration
• Developing a Knowledge Exchange (KE) programme linking universities with businesses to turn research into commercial opportunity
• Partnering with other Catapults — such as the Offshore Renewable Energy Catapult — to create an advanced 5G-enabled “living lab” supporting offshore autonomy projects
• Working with the Connected Places Catapult and Port of Tyne to explore satellite-enabled smart logistics

Over time, NESACoE evolved into Space North East England (SNEE) — a locally-led cluster supported by the Satellite Applications Catapult and the UK Space Agency a major player in the UK space economy. Together, they connected the region’s science base to large industries and SMEs, helping them apply space technology to practical challenges.

Key outcomes for the cluster include:

• Strong business growth: Companies such as Filtronic, Tharsus, and Raytheon UK have expanded rapidly, creating hundreds of new skilled jobs and attracting multi million pound international investments including from SpaceX
• Prime industry partnerships: The collaboration between Lockheed Martin UK and RTC North, facilitated by the Catapult, brought the first major global space prime to the region
• Research and innovation leadership: The Responsible Space Innovation Centre at Durham University and the North East Space Skills and Technology Centre (NESST) at Northumbria University — both supported by the Satellite Applications Catapult — are nurturing the next generation of engineers and researchers
• Regional economic strength: According to the UK Government’s Size and Health of the UK Space Industry report (2023), the North East’s space sector grew 47% since 2018/19, now generating £129 million in annual revenue and supporting over 1,300 high-skilled jobs across nearly 120 space-related companies
• Smart Port innovation: The Smart Port North East Testbed, launched with local partners, uses satellite and Earth-based sensor data to enhance port operations and logistics — a prime example of the region’s innovation in action

What began as a regional pilot in 2014 has grown into one of the UK’s most vibrant space clusters. Through long-term commitment, collaboration, and innovation, the Satellite Applications Catapult has helped the North East region turn its industrial and research strengths into a globally competitive space economy — creating jobs, attracting investment, and showing how space can power regional growth across the UK.