1、Unlocking commercial growth in the space sector Strategic considerations for the next chapter20263PwC2PwCThe UK space sector is at an inflection point.Space demand is rising,primarily driven by the defence sector,a renewed focus on national security and the need for sovereign capabilities.However,th
2、ere is a risk that this pulls focus from commercial(non-defence)growth opportunities,1 particularly in the near term.Commercial space revenues remain far from the total market or enabled2 revenue figures commonly quoted,3 widening the credibility gap with investors.At the same time,AI disruption is
3、expected to shake up the space value chain and potentially generate more demand.This may include plain English prompts delivering powerful geospatial analytics in familiar tools.The need for change was highlighted in the recent House of Lords Engagement with the Space Committee which recognised that
4、 the space sector has to act now or lose out.4Against this backdrop,we present suggestions for accelerating the growth of the UK commercial space sector.We consider four critical questions for the sector.Executive summaryUnlocking commercial growth in the UK space sector|Executive summaryUnlocking c
5、ommercial growth in the UK space sector|Executive summaryThe following sections discuss these questions in detail and are based on our analysis of key market signals.We conclude that,to unlock growth in the commercial space sector,it is critical to change the narrative.Commercial space revenue shoul
6、d be clearly defined to give a realistic starting point rather than relying on trillion-dollar market potential headlines.Our calculations show that commercial revenue is only around 6%of UK space sector revenue(refer to question 1,below).Tracking commercial sector health using universally understoo