The UK Space Agency has announced a £30 million funding package, set out by Space Minister Liz Lloyd on 4 March 2026, to support British companies developing satellite communications technologies.
Delivered through the Connectivity in Low Earth Orbit (C-LEO) programme, the investment aims to help firms move from testing to mission-ready capability as satellite constellations expand worldwide. The announcement links the funding to market growth and to defence and national security priorities.
Government funding to strengthen UK satellite communications sector
Space Minister Liz Lloyd announced £30 million in government funding for British companies developing satellite communications technology. The UK Space Agency said the investment is intended to help UK firms build components and technologies used in satellite constellations that deliver connectivity and data services.
The announcement links the funding to expanding demand for services including broadband internet, navigation and positioning, weather forecasting, and maritime and aviation tracking. It also notes that these technologies support defence and national security requirements.
- Funding announced
- Focus on UK satellite communications technologies
- Positioning firms for future contracts
Connectivity in Low Earth Orbit programme expansion
The UK Space Agency said the investment represents the second round of funding through its Connectivity in Low Earth Orbit (C-LEO) programme. The programme is designed to support UK firms developing technologies that can be integrated into satellite constellations.
The agency said the new funding will help companies move technologies from the testing phase toward readiness for use in real missions. It also states that the funding call opens on Wednesday 4 March, with applications via the UK Space Agency website.
C-LEO programme snapshot
| Programme | Connectivity in Low Earth Orbit (C-LEO) delivered by the UK Space Agency |
| New funding round | £30 million announced by Space Minister Liz Lloyd on 4 March 2026 |
| First funding call | £18 million supporting three projects involving eight UK companies |
| Reported early outcomes | 26 specialist jobs created so far, with projects continuing for another two years |
Strategic importance of satellite constellations
The UK Space Agency described satellite constellations as networks of satellites that work together to provide high-speed connectivity and data services across the globe. The announcement highlights use cases ranging from remote rural communities to ships at sea and aircraft in flight.
It also sets out the types of technology development supported by the programme, including better hardware, improved connections between spacecraft, and the use of AI to speed data delivery. The statement adds that these capabilities can support assurance over where UK data lands and is held.
- High-speed connectivity coverage
- Lower latency and faster processing
- Strengthened UK supply chain capability
Economic opportunity in the global satellite communications market
The announcement states that the global satellite communications market is currently worth around £40 billion and is growing at over 10% annually. It links growth to rising demand for communications and data services, including applications used by governments and customers worldwide.
The UK Space Agency said the investment is intended to help UK companies capture a greater share of this market by moving prototype technologies toward products that can be adopted in missions. It also positions the funding as a step toward winning future contracts with major satellite network operators.
Market context and application areas
| Global market value | Around £40 billion, as stated in the announcement |
| Stated growth rate | Over 10% annually, driven by demand for satellite-enabled services |
| Examples of services | Navigation and positioning, broadband internet, weather forecasting |
| Tracking applications | Maritime and aviation tracking referenced in the announcement |
Industry event and UK space strategy direction
The announcement coincides with Space-Comm Expo at ExCeL London, where more than 5,000 people are expected to attend over two days. The government said it will use the event to set out a vision for the UK as a competitive, agile space power.
Space Minister Liz Lloyd is scheduled to speak at the event and to outline where elements of the UK Space Agency budget will be directed. The announcement identifies satellite communications as one of four areas described as fundamental to the UK’s ability to operate in and benefit from space.
Stakeholder Comments
Ministerial Comments
Liz Lloyd, Space Minister 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 make data delivery faster 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.”
Dr Paul Bate, CEO of the UK Space Agency 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.”
Bethan Evans, Chief Operating Officer at Excelerate Technology 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.”
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.”
Parting Shot
The UK Space Agency said the £30 million investment will help UK firms take satellite communications technologies from testing to mission-ready use.
The announcement links the programme to building advanced capabilities for satellite constellations and to improving connectivity services for governments and customers worldwide. It also sets the funding within the government’s wider ambition to position the UK supply chain within evolving space-based communications capability.
Sources: UK Space Agency.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organisation delivering timely insights from global official sources. Combines AI-analysed research with human-edited accuracy and context.
