India’s space market is expected to touch $40 billion by 2040 and, with the right strategies, could tap into a $100 billion market opportunity, consulting firm Arthur D. Little said in report titled “India in Space: A $100 Billion Industry by 2040”.
“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,” observed Barnik Chitran Maitra, Managing Partner, Arthur D. Little, India & South Asia.
“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,” he added.
The firm believes India should encourage adoption of satellite Internet services, leverage its strengths in satellite and launch vehicle manufacturing, and develop capabilities in high-potential sectors while exploring space tourism and ‘green space.’
“Earlier India was dependant on other countries to launch satellites,” said Brajesh Singh, President, Arthur D. Little India Pvt. Ltd.. “Today it is showing its dominance in the space sector. So the report is very contextual and the bigger objective of this report is that there should be discussions among various stakeholders as to how to collectively take this mission forward,” he added.
“The potential for growth in the global space industry is immense, with the addressable market projected to reach a staggering $1 trillion by 2040 as per various analysts. India’s space market is around $8 billion today and has been growing at an annual growth rate of 4% in recent years,” the firm said.
“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 $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,” it added.
The report also outlines challenges including nascent local manufacturing capabilities for key components, inadequate funding, unclear regulatory framework, and foreign competition.
The Indian government’s commitment to encouraging private participation has yielded remarkable results, with new-age space start-ups in India securing an impressive $112 million in funding in 2022 alone, it said.
The firm has identified 10 key imperatives to enable India’s space sector to unlock its full potential.
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,” the firm said.
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