Indian space market can reach USD 100 billion dollars by 2040 | India News

MUMBAI: Know why India’s space market can reach USD 100 billion dollars by 2040, and its own space economy could grow at a CAGR of around 9% by 2030 against present 4%. India’s capability to catapult multiple satellites in lower and higher orbits needs to be attributed for this and is the game changer in attracting the global space market. In fact the country is already ahead of the global CAGR of 2% with its own spendings crossing that of the US, Germany, Japan and France.

According to Aurther D Little, a global management consulting firm, other than this, four main factors can create rapid growth in the industry: India’s rising space budget to fund ISRO’s ambitious plans, India’s advantage as the preferred destination for launch services, government’s push to the start-up ecosystem with the potential for more private players, and adoption of commercial satellite internet operations, as and when they begin.
“Deployment of a constellation of satellites in middle-earth and low-earth orbits may emerge as a game-changer for the Indian Space Business. India is likely to emerge as one of the leaders in the Business of Space Travel, Satellites and Mining, grabbing a 10% share of the global $1 trillion market by 2040, if it plays its cards right,” said the report. India has successfully placed 381 international satellites in space for 34 countries. More than 400 private companies including 100 pluts start-ups are involved in space activities in the country today.

In a report titled “India in Space: A US$100bn Industry by 2040” the firm has said that India has to move fast and quick and make certain changes to harness this opportunity. “India needs to take these following steps: –Encourage mass adoption of satellite internet services which has wide applications and could provide stiff competition to terrestrial communication, leverage existing strength in satellite/launch vehicles manufacturing and launch services to become a world leader with end-to-end competence (including components manufacturing), build capabilities in areas with high commercial potential such as space mining, in-space manufacturing, and in-orbit servicing, explore emerging space activities such as space tourism and space entertainment to provide cost-effective services in the future, and lastly innovate in ‘green space’ including sustainable fuel, reusable spacecraft, and use of eco-friendly technologies,” the report stated.
“India’s space market is around USD 8 billion today and has been growing at an annual growth rate of 4% in recent years against global 2%. The Indian government aspires for the country’s space sector to account for 9% of the global industry by 2030. With its current trajectory, India’s space economy could reach USD 40 billion by 2040. However, India has the potential to claim a much larger share of the global space economy, amounting to a staggering USD 100 billion addressable opportunity by 2040,” the report stated.
The report further points out a new emerging trend for the need to deploy a constellation of small satellites in low-earth or middle-earth orbit. “This deployment of a constellation of small satellites is becoming necessary as the demand is growing for uninterrupted satellite-based Internet service on one hand, and strong improvements in terrestrial services on the other. India’s low- cost manufacturing and ability to launch many satellites at once is ideally suited to this kind of an emerging trend,” it added. Analysts estimate that the global space industry will reach USD 1 trillion by 2040, driven by increased government, private sector involvement and new satellite technologies, marking the dawn of Space 4.0.
The report also highlighted the key challenges that lay ahead. These include the lack of local manufacturing capabilities for certain components, funding inadequacies, the need for a clear and comprehensive regulatory framework, and increasing competition from foreign players. To enable India’s space sector to unlock its full potential, ten key imperatives have been identified. These include establishing clear and comprehensive regulations, attracting foreign investments, strengthening manufacturing capabilities, implementing formal support programs for start-ups, capitalizing on near-term opportunities, establishing accelerator and incubation centres, leveraging foreign expertise through collaborations, pursuing joint missions with other space agencies, establishing dedicated research and development centres for emerging space themes, and accelerating skill development.
India’s journey in space began with the establishment of the Indian Space Research Organisation (ISRO) in 1969. Over the past two decades, India has made significant strides in the Space 4.0 era, launching a total of 381 international satellites for 34 different countries. The Indian government’s commitment to encouraging private participation has yielded remarkable results, with new-age space start-ups in India securing an impressive USD 112 million in funding in 2022 alone. Commenting on the report, Barnik Chitran Maitra, Managing Partner, Arthur D. Little, India South Asia said “The Indian space industry is on the cusp of a major transformation with increasing government expenditure on space, rapidly growing investment in the country’s private space sector, and government’s policies encouraging commercial space ventures. India presents a very lucrative market with many opportunities for private players, and the Indian Space Research Organisation is a great ambassador for India in Space.”