Ascending trends in Space Technology
Special Report 2025
Space activity is undergoing rapid growth and diversification. Since 2010, the number of objects launched into space globally has risen from around 250 per year to nearly 3000 in 2024. The United States is leading the pack, but there is significant growth from others too – China, Russia, UK, Japan, France, India and Germany. The objects launched are dominated by satellites, many of them commercial rather than governmental or military. Many are forming constellations to provide earth-bound services – communications and navigation for example. Others provide Earth observation facilities. The data from these satellites has broad applicability and promise for commercialisation in sectors not historically associated with space, for example the insurance industry.
Commercially, the opportunities to use space-derived data are wide and deep, and the sector is expected to continue to expand. Currently 36% of UK GDP depends on satellite services. Analysts put the potential value of the space economy as $1.8 trillion by 2035. The commercialisation of space technology is already happening and shows no signs of slowing down. Applications of space technology will continue to branch out from purely government applications led by defence primes towards lower cost and more flexible commercial projects. That commercial exploitation, often with a need for dual use for defence / national security application, and a well-defined commercial use case and customer base, means that start-ups and SMEs in the space sector are well placed for success. They will and are leading the way in space technology in many respects.
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With exceptionally strong growth potential, it’s an enticing area for investors too. That said, space is a difficult environment to get to and to stay in. Financial backing for high-risk ventures can be difficult to achieve. Revenue generation may be distant, capital expenditure high, and technical risk substantial. The commercial benefits of a successful venture are an imperative. Those seeking investment need a strong technology offering and business proposition making the case for future revenue. The strength of the proposition is even more important in global economic turbulence, as national priorities and spending patterns evolve. The potential for short to medium term growth for start-ups and SMEs in the space sector are significant but must be supported with a focused business case. Many have it, leading to a healthy specialist VC and generalist VC investment landscape for space tech. Much is concentrated in the US, but increasingly so across Europe too. Directors considering IPO or eventual acquisition naturally think carefully about their propositions. They understand their revenue potential, their competition, their investors and their exit strategy, and their partners.
Technology and innovation are only part of the story in space tech. It’s often the exciting part that makes the news. That’s natural – space has the cool factor. It’s why many talented engineers and scientists get involved. The tech doesn’t necessarily reflect the why, though: why would someone pay for this innovative product or service? Why can’t I get the same benefit or achieve the same result elsewhere? How can this advantage be maintained and not quickly eroded by competitors? Protecting these monetisation routes significantly bolsters a business case. Bringing Intellectual Property (IP) into the investment case for a start up/SME can demonstrate a new avenue of future revenue and support those already identified.
Patents come at a cost. For an entity to file a patent, proper commercial consideration is essential: is this patent worth filing? And, if so, why? How would we commercialise this tech for a return on the cost and effort spent on the patent? Across technology fields, patentable inventions are common. Not all tech, however innovative, is worth a patent; commercially viable and patentable inventions are less common. For those wishing to exploit patents in the space tech sector, it is imperative to understand how patents will support their business proposition so that hard-fought resources can be deployed to maximum effect.
Inevitably, patent activity reflects technology development and, for those giving their patent strategy the attention it deserves, an insight into commercial value. Indeed there is significant patent activity in space tech.
As part of our spotlight on space, we analysed the developments in the space sector (specifically, cosmonautics i.e. space travel) through the prism of patent filing statistics.
Cosmonautics, as defined by the European Patent Office (EPO) includes the key areas below:
Satellites
Covers all technologies relating to artificial satellites and satellite systems.
Propulsion systems
Covers propulsion technologies which produces thrust for operations such as launch, orbit control, and position control.
Tools adapted for space; Robotics
Covers tools specifically adapted for use in space, including e.g., robotic arms.
Space shuttles; Re-entry and landing
Covers reusable space shuttles and systems for re-entry into the earth's atmosphere and landing.
Power systems
Covers power supply systems for cosmonautic vehicles, including systems for the production, conversion and storage of power.
Simulating space
Covers technologies for simulating cosmonautic conditions e.g., for conditioning crews.
Extraterrestrial cars
Covers (e.g., land or air) vehicles specially adapted for use on other celestial bodies, e.g., Mars and moon rovers.
Habitation, Safety and Human Activities
Covers crew/passenger accommodation and other technologies required for humans in space, such as spacesuits.
Guidance and Positioning
Covers technologies directed to detection and control of orbit, position and/or altitude.
Docking
Covers systems for coupling or separating cosmonautic vehicles e.g., systems for coupling spacecrafts and spacecraft sections together, systems for releasing satellites from launch vehicles.
The technology, the support for start ups and SMEs, and the funding opportunities, are all available to use and pursue. Within the space ecosystem, a considered and lean IP strategy is an opportunity to support growth, unfortunately one that’s sometimes overlooked.
© 2025 Mewburn Ellis
