Scotland’s space sector continues to ‘take off’

Prime Minister, Keir Starmer, recently acknowledged that there is ‘huge economic potential’ for the space sector in Scotland.

It comes as SaxaVord, a spaceport in Unst, Shetland and the first fully licensed vertical launch spaceport in the United Kingdom, prepares for its first vertical orbital launch later this year by German company ‘Rocket Factory Augsburg’ (RFA).

RFA’s aim is to develop high-performance, low-cost rockets, making space more accessible for everyone. According to RFA, it is thought that the launch will be ‘a turning point for European space innovation’, by enabling cost-effective and flexible launches from the European mainland.

Separately, Scottish rocket manufacturer ‘Orbex’, which is preparing for its first rocket launch in 2026, has this month reported a 120% increase in applications for its annual internship programme, open to students with experience in areas such as electronics engineering and aerospace. This shows a growing enthusiasm in the sector from a university level, which is a positive step given the current skills shortages within the sector.

In light of the growth of the sector, the Scottish Affairs Committee (a House of Commons Select Committee) launched an inquiry in March 2025, which is examining the potential for Scotland to become a European and global competitor in the sector, and assess what support the UK Government can provide to Scotland’s space sector to sustain long term launch activity.

Similarly, Professor Julian Jones stated at the ‘The future of Scotland’s space sector’ Royal Society of Edinburgh seminar on 26 March 2025 that it is ‘…time for the Scottish Government to examine potential legislative developments.’ It is inevitable that as part of the sector’s growth, regulation and legislation will increase and continue to evolve to keep up with the developments made in this innovative sector, which businesses will require to take into consideration as part of their operations.

These recent updates demonstrate that innovation and collaboration (at an international level, and across academia, the private sector and with public bodies) are at the core of the sector’s growth.

Taking into consideration these exciting updates, BTO can assist with:

• drafting and negotiating commercial agreements, including: services agreements, data sharing agreements; joint venture agreements;
• advising business startups and SMEs, including on matters of corporate structure and governance;
• mergers and acquisitions;
• advising on regulatory compliance;
• assisting with intellectual property protection; and
• advising on disputes.

Please contact a member of BTO’s Corporate Team for more information.