Table of Contents
Donald Trump’s return to the White House is “great news” for Britain’s burgeoning space companies, according to a senior industry figure.
The president-elect, close to space entrepreneur and Tesla boss Elon Musk, could increase spending in the sector in a move that would have repercussions on the industry around the world.
Musk, who has been dubbed Trump’s “first friend”, founded Space X in 2002 and is now a leading designer, manufacturer and launcher of advanced rockets worth £275bn.
Mark Boggett, chief executive of global space investment firm Seraphim Space, told the Mail that Musk’s position in Trump’s inner circle “will offset NASA’s budget well.”
“He hopes this aligns with the tycoon’s ambition to “accelerate the path to removing man from planet Earth.”
And the benefits of this “won’t just be limited to American players,” Boggett added.
Momentum: President-elect Donald Trump, right, is close to space entrepreneur and Tesla boss Elon Musk, left
Some of the world’s richest billionaires, including Musk, Amazon founder Jeff Bezos and British businessman Richard Branson, are racing to send tourists to space with Musk, 53, even aiming to build a colony in Mars.
But the space race also involves improving communications through satellite links, strengthening defenses and increasing research in areas such as climate change.
Musk and Space
Seraphim Space is a London-listed investment trust worth £127m. Invests in space technology companies such as D-Orbit, HawkEye 360, LeoLabs and PlanetWatchers.
Boggett said the industry appears to benefit from increased defense spending as well as Trump’s partnership with Musk.
Trump has demanded greater military spending among European NATO members. Boggett said, “They don’t want to bear the costs of being the world’s police.”
He said growing defense budgets will inevitably drive greater attention to space, whether through traditional government agencies or innovative private companies like Space X.
Due to the “dual-use nature” of the UK space sector in space and defence, Boggett sees it benefiting as the US and Europe increase spending.
“The UK has a great relationship with companies that are building and developing space and defense-related capabilities so they can sell them into the US market,” he said.
“There is a long-term relationship of trust for UK companies selling to the US Department of Defence.”
The war in Ukraine has already caused defense budgets to increase, and Boggett believes the additional spending is now coming to the space market.
“This massive reorientation towards defense has already generated a lot of positivity in the space market,” he said.
Boggett added that with investors now backing companies poised to benefit from increased spending, the sector is seeing renewed interest.
He noted a “healthy interest in space technology over the last five quarters” and said growing confidence among investors “should bring more capital to entrepreneurs”, including those running British space companies.
Boggett said the 18 companies in Seraphim’s investment trust are growing revenue by 17 percent annually on average, with most of that coming from new contracts in the defense market.
With Trump back in power, he hopes the “already accelerating” industry will take “another step up.”
The president-elect has made it clear that his space agenda will be “America First,” and Boggett admits that his relationship with Musk “really leverages an advantage that they already have.”
But as Trump and Musk push to maintain “American supremacy” in space, Boggett predicts the UK will benefit.

Liftoff: A Space X Falcon 9 rocket taking off. The company is now a leading designer, manufacturer and launcher of advanced rockets worth £275 billion.
He said Britain “for decades has been punching above its weight” in terms of space investment, ranking third behind the United States and China.
While the United States wants “access to best-of-breed,” it does not have the rights to all the best technology.
“This is where the UK is proving its worth by supporting and funding those companies that have the unique capabilities the US needs to acquire,” Boggett said.
He asked the Government to take advantage of the moment and said that “it has to make clear how it is going to take advantage of this opportunity that has been presented to it.”
These opportunities will also extend across Europe, Boggett suggests, as the continent “seems to hold its own when it comes to both space and defense.”
Boggett said this would involve “significant investment”, which bodes well for Britain. Global growth in the space sector is already generating greater competition.
Data collected by Seraphim Space shows that Chinese investment in space technology surpassed that of the United States in the first half of the year.
While this reversed in the third quarter when US investment so far this year reached £2.1 billion versus China’s £1.7 billion, Boggett emphasized that “this really sheds light on how competitive the Chinese government is in the important space market”.
Because of the UK’s relationship with the United States, Boggett believes the nation will have a “critical role to play in space” as Trump seeks to stay on top.
However, he also warned that despite the short-term optimism for UK businesses, there remains “a question mark” over the long-term impact.
He predicts a “significant opportunity” for UK space companies selling into the US market, but is concerned about the rise of mergers and acquisitions in which the US “is effectively the main acquirer”.
DIY INVESTMENT PLATFORMS

AJ Bell

AJ Bell
Easy investing and ready-to-use portfolios

Hargreaves Lansdown

Hargreaves Lansdown
Free Fund Trading and Investment Ideas

interactive inverter

interactive inverter
Fixed fee investing from £4.99 per month

sax

sax
Get £200 back in trading fees

Trade 212

Trade 212
Free trading and no account commission
Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.