Aerospace innovation boosted by first SME Programme projects

As the first projects to receive funding through the SME Programme get underway, Romina Davoudi, Head of Programme Delivery lifts the lid on the SMEs driving innovation across the UK aerospace sector.

From Manchester to Nottingham and Belfast to Southampton, the first SMEs to receive funding through the SME Programme are accelerating aerospace technology innovation on the journey to Destination Zero across the UK.

Often regarded as the backbone of the aerospace sector, SME presence across the regions and nations forms a network of expertise. The ATI has long supported SMEs including with open access research, tools, events and of course both direct and indirect funding through the Strategic Programme.

In 2023, in partnership with the Department for Business and Trade and Innovate UK, we launched the SME Programme, a new funding programme tailored to their needs with a streamlined application process. Just over 18 months on we are very excited to have awarded over £15m in grant funding to the first successful SME Programme projects. 19 projects are now underway across modelling, cryogenics, systems, composites to name a few. This diverse and innovative portfolio of funded projects is driving transformation across the ecosystem and forms a successful start to the programme.

The first SME Programme projects include:

  • SoraAero and BatWing by Sora Aviation, focusing on modelling tools and a battery-integrated wing concept respectively
  • DRAGONFLY by Actuation Lab, developing cryogenic valves
  • PACE-AM and AMRAM by Alloyed, targeting printable aluminium alloys and additive manufacturing
  • FEEAD by Scintam Engineering, advancing non-destructive testing for composite components.
  • HiRACOS by Carbon ThreeSixty on high-rate composite structures for Advanced Air Mobility (AAM)
  • REIT by AerospaceHV for electrical systems
  • MACH2INE by Darvick, covering materials certification for hydrogen applications
  • AAIFC by Luffy AI and DAA by Hover utilizing artificial intelligence
  • GENACOM by iCOMAT focuses on composites manufacturing
  • LOCAP by CKPD explores automated processes for manufacturing low-density aircraft fuel tank seals
  • MAMBA by Nema develops active magnetic bearing technology
  • SPARR (Zero Emission Aerospace) SPCLH2 (Enoflex) and MEFSVS (Ultima Forma) are tackling hydrogen-focused propulsion and storage innovations
  • MB HeX FC (QDOT Technology) addresses fuel cell radiator systems
  • STAR (Advanced Manufacturing Sheffield Ltd) is delivering progress in additive manufacturing

These projects are not just incremental improvements; they represent ambitious, strategic developments that contribute directly to the UK’s long-term competitiveness in aerospace.

SME Programme applicants by size. Micro-enterprises account for 45% of all partners, SMEs 16%, large organisations 9%, research and technology organisations (RTOs) 7%, and academic institutions 22%Since its inception, the consortium of projects applying to the programme has included a broad range of organisation types from micro-enterprises to research and technology organisations (RTOs) and academic institutions. This inclusive composition is particularly encouraging, as it indicates that barriers to collaboration are being lowered, enabling smaller innovators to engage more actively in the innovation ecosystem.

We know SMEs are central to the UK’s aerospace innovation landscape. Their agility and ability to move quickly, adapt to change and commercialise new ideas, gives them a unique edge. They are often at the forefront of technological advancement in the manufacturing, design, validation and cross-cutting technologies that align closely with the ATI technology strategy, Destination Zero. Their innovations benefit the aerospace sector directly and generate spillover benefits across adjacent industries.

SMEs also face challenges including limited capital, access to private finance, barriers to scaling, unpredictable demand and economic pressures. While the SME Programme can’t address all of these, it can act as a powerful mechanism to support SMEs in accelerating technology development and delivering innovative solutions to the sector’s most pressing challenges. By translating early-stage concepts into viable products and services, SMEs are enhancing both their own competitiveness and UK capability while supporting broader industrial strategy, sustainable growth and securing high-value jobs.

The SME Programme is a competitive funding opportunity open to all UK-registered businesses with technology development ideas that align with ATI technology strategy. Whether you are a micro business with a bold idea, an established SME, or a larger organisation looking to collaborate with dynamic partners, it’s designed to bring great ideas to life through collaboration, technical development and expert support. The ATI team is here to help, offering guidance, technical feedback and access to tools and resources including through the ATI Hub.

Further information can be found on our Funding Pages.