India has the potential to claim a much larger share of the global space economy, amounting to $100 billion addressable opportunity by 2040, according to the estimates put out by consulting firm Arthur D. Little.
Currently, India’s space market is around $8 billion and has been growing at an annual growth rate of 4 percent in recent years. The Indian government aspires for the country’s space sector to account for 9 percent of the global industry by 2030. With its current trajectory, India’s space economy could reach $40 billion by 2040.
In its recent industry report titled “India in Space: A USD 100 Billion Industry by 2040” the firm identifies opportunities that could help the sector reach its maximum potential.
The findings also suggests that the potential for growth in the global space industry is immense, with the addressable market projected to reach a staggering USD 1 trillion by 2040 as per various analysts.
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 new-age space startups in India have secured $112 million in funding in 2022 alone. The report says that the space start-ups are now transitioning from investment-backed development to business-supported operations, facing many technical, economic, and regulatory hurdles.
The report 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.
The findings suggest that 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.
Barnik Chitran Maitra, managing partner, Arthur D. Little, India & South Asia says, “India needs to encourage widespread adoption of satellite internet services and capitalise on its existing strengths in satellite and launch vehicle manufacturing. India should develop capabilities in high-potential sectors such as space mining and in-space manufacturing, venture into new space activities like space tourism and space entertainment and innovate in the realm of ‘green space’.