India’s space sector poised for significant growth, with satellite services expected to play a pivotal role: Report

By R Anil Kumar

• Satellite Services to Drive India’s Space Sector Growth with Almost Half of Contribution by 2030

• India’s space industry poised for significant expansion, as projections indicating a growth from its current value of approximately USD 13 billion to USD 77 billion by 2030: A DAM Capital report

Bengaluru. India’s space sector is poised for significant growth, with satellite services expected to play a pivotal role in driving this expansion. By 2030, satellite services are projected to contribute nearly half of the sector’s growth, leveraging the advancements in technology and government support.

The Indian Space Research Organisation (ISRO) has demonstrated remarkable capabilities, including launching satellites for communication, navigation, and Earth observation, as well as interplanetary missions like the Mars Orbiter Mission.

India’s space industry is poised for significant expansion, with projections indicating a growth from its current value of approximately USD 13 billion to USD 77 billion by 2030, according to a report by DAM Capital.

This rapid growth is expected to be driven by a compound annual growth rate (CAGR) of 26%. Satellite services are anticipated to play a pivotal role, contributing over USD 36 billion by the end of the decade.

The Indian space sector is primarily divided into three segments: satellite manufacturing, launch services, and satellite services.

Currently, India accounts for about 2.1% of the global space economy, but its projected annual growth rate of 26% is expected to significantly increase its share. This expansion is fuelled by the increasing use of satellite-based data across various industries, including banking, finance, retail, and logistics.

Historically, India’s space industry was dominated by government agencies like the Indian Space Research Organisation (ISRO). However, in recent years, private players have entered the market, driving innovation and investment.

The cost of satellite production has decreased by nearly 90% over the past decade, and launch frequencies have doubled in the past three years. These developments, combined with government support and favourable policies, are creating new opportunities for start-ups and established companies alike.

The report suggests that solution-driven companies will be crucial in the next phase of expansion. Additionally, large business conglomerates are expected to invest in satellite-based analytics and may even launch their own satellite constellations for various commercial applications. With strong support from both the government and private enterprises, India’s space industry is set to become a major player in the global space economy.

The sector aims to capture a significant share of the global market, with India’s share in the global space economy expected to rise from 2% in 2021 to 8% by 2030 and further to 15% by 2047.

The government’s push for private participation has fuelled a surge in start-ups and investments, propelling the market towards substantial growth.

The Indian Space Policy, unveiled in April 2023, marks a paradigm shift by encouraging private sector involvement in satellite launches and communication services.

This policy, combined with the establishment of IN-SPACe as a single-window facilitator, streamlines approvals and licensing, fostering innovation and collaboration.

Private companies such as Dhruva Space, Pixxel, and Agnikul Cosmos are already making strides in the space tech scene, with significant investments and innovative projects.

The focus on small satellites and downstream data applications is expected to unlock vast economic opportunities, including improved crop yields, enhanced navigation systems, and bolstered telecommunications.

The government’s role as an “anchor customer” for private industry is crucial for scaling these solutions globally. Overall, India’s strategic positioning in the global space sector, underpinned by forward-thinking policies and regulatory reforms, positions it as a formidable player in the years to come.