The UK government has announced a £30 million investment to accelerate the development of next-generation satellite communications technologies, marking the second major funding round under the UK Space Agency’s Connectivity in Low Earth Orbit (C-LEO) programme.
Space Minister Liz Lloyd unveiled the initiative as part of a broader push to strengthen the nation’s position within a global market valued at £40 billion and growing at more than 10% annually.
This investment aims to help British firms advance their satellite innovations from early testing into operational readiness, placing them in a prime position to secure future contracts with large constellation operators reshaping global connectivity.
Accelerating technologies for a rapidly expanding market
Satellite constellations in low Earth orbit are transforming how the world communicates. Orbiting a few hundred miles above the planet, these networks deliver high-speed internet, navigation, weather insights, and real-time tracking for the aviation and maritime industries.
With demand for broadband access, navigation services and secure data transmission rising globally, the UK sees a strategic opportunity. The government’s backing will focus on technologies essential to tomorrow’s connectivity landscape, components and systems capable of enabling faster data processing, lower latency and greater control over where UK data is stored and routed.
These technologies also support critical defence and national security needs, ensuring that the UK’s data infrastructure remains resilient as global reliance on space-based networks increases.
Supporting the next generation of British Space innovation
The new £30 million package follows the programme’s first C-LEO funding call, which awarded £18 million to three projects involving eight UK companies. These earlier initiatives have already created 26 highly skilled jobs and are progressing technologies, including user terminals, active antennas and regenerative onboard processors.
The second round aims to take UK innovation a step further by helping companies bridge the gap between prototype and real mission application. Moving technologies to this “flight-ready” stage is essential for firms competing for commercial slots on future satellite constellations, opportunities that can shape the next decade of global space infrastructure.
By strengthening the domestic supply chain, the programme positions UK businesses at the centre of a major shift in space-based communications capabilities. It also supports the government’s commitment to ensuring UK data is processed with higher security and lower latency.
A new vision for a competitive UK space power
The announcement comes as more than 5,000 attendees gather at Space-Comm Expo at ExCeL London, one of Europe’s largest industry events. There, the government is presenting a refreshed vision for the UK as a competitive and agile space power, with satellite communications identified as one of four essential pillars of the nation’s future space strategy.
Space Minister Liz Lloyd will use the event to outline how the UK Space Agency will direct its budget to deliver this long-term vision. The approach places strong emphasis on innovation in satellite communications, seen as fundamental to both UK industry and operational capability in space.
With the latest C-LEO funding round, the UK is signalling a clear ambition to secure a meaningful share of a fast-growing global market, bolster national resilience and put British companies at the forefront of the next wave of low Earth orbit connectivity.
Space Minister Liz Lloyd said: “Space is now the cornerstone of our modern economy. Satellite constellations have revolutionised how we operate, digitalising industries, optimising logistics and connecting all corners of the globe. This new funding will support the development of smarter satellites with better hardware, the use of AI to speed up data delivery, and improved connections between spacecraft. This is part of the government’s commitment to keeping UK companies at the forefront of satellite communications, delivering economic growth and strengthening our defence and national security.”
Bethan Evans, Chief Operating Officer at Excelerate Technology, one of the companies that received funding from the first C-LEO call, said: “Support from the C-LEO programme has played a pivotal role in accelerating the MAMUT programme toward full market readiness. The funding has enabled us to enhance the scalability, resilience and commercial viability of our solution, ensuring it will meet the evolving needs of customers. Just as importantly, the programme’s collaborative framework has strengthened partnerships across the ecosystem, enabling shared expertise, integration opportunities, and greater alignment with end-user requirements.
“As a result, we have accelerated product development, strengthened our market position and advanced our pathway to revenue growth and wider operational deployment.”
Paul Morris, Vice President of RF & Comms Business Unit at EnSilica, said: “The C-LEO funding has been transformative for our development of chipsets for LEO user terminals, spanning analogue, digital and hybrid beamforming alongside a software-defined modem optimised for 5G NTN. This support has helped us win contracts with key customers who have validated our specifications, while also allowing us to grow our team and deepen our technical expertise. It’s a strong example of how targeted public funding can accelerate innovation and strengthen a commercial business case, and we’re grateful for the close collaboration with the UK Space Agency throughout.”
UK Space Agency CEO Dr Paul Bate said: “UK companies are developing world-class satellite communications technologies, from advanced antennas to optical links that can transmit data between satellites at the speed of light. Our first C-LEO funding round is delivering real results, and this second call will help even more businesses take their innovations from prototype to product, ready to be integrated into the constellations of tomorrow.”
