In its ‘India in Space: A $ 100 Billion Industry by 2040’ report, international strategy and management consulting firm Arthur D. Little stated that India's space market is around $8 billion today and has been growing at an annual growth rate of 4 per cent in recent years.
The report provides an in-depth analysis of the Indian space industry and identifies opportunities that could help the sector reach its maximum potential.
It noted that the potential for growth in the global space industry is immense, with the addressable market projected to reach $1 trillion by 2040, as per various analysts. The Indian government aspires for the country's space sector to account for 9 per cent of the global industry by 2030.
With its current trajectory, India's space economy could reach $40 billion by 2040. However, India has the potential to claim a much larger share of the global space economy, amounting to a staggering $100 billion addressable opportunity by 2040.
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 startups in India securing an impressive $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 ISRO is a great ambassador for India in Space.”
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.
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, capitalising 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.
By embracing these imperatives, India can position itself as a global powerhouse in the space industry, driving innovation, economic growth, and international collaborations.
Four major trends mentioned in the report emerged as strategic turning points within the industry comprising the mass adoption of commercial satellite services, the development of commercial space stations, the in-space extraction and exploitation of resources, and the weaponisation of space. The journey to reach the stars is challenging, but with determination, strategic planning, and concerted efforts, India can carve its path towards an extraordinary space future.
Maitra added that India needs to encourage the widespread adoption of satellite internet services and capitalize 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'. We are confident that this report will encourage relevant stakeholders to tap into opportunities in the Indian space market and present them with meaningful avenues of growth and collaboration while helping India realize its vision of becoming a global space powerhouse," he stated.
