India's space economy is likely to be worth nearly $13 billion by 2025, with the satellite launch services segment set to witness the fastest growth spurred by increasing private participation, according to a report released on Monday.
The growing demand for smaller satellites is set to boost satellite manufacturing in the country and will attract global start-ups in the sector to help incubate space tech companies in India, says a report released by the Indian Space Association (ISpA) and Ernst and Young.
India's space economy was pegged at USD 9.6 billion in 2020 and is expected to touch USD 12.8 billion by 2025, according to the report titled 'Developing the Space Ecosystem in India: Focusing on Inclusive Growth'.
In dollar terms, the satellite services and applications segment would be the largest with a turnover of $4.6 billion by 2025, followed by ground segment at $4 billion, satellite manufacturing at $3.2 billion and launch services at $1 billion.
The report disclosed that the Indian space launch is expected to get a boost due to the government's positive step towards the inclusion of private players in the Indian space ecosystem.
The launch services segment was pegged at $600 million in 2020 and is projected to grow at a compound annual growth rate of 13 percent to reach $1 billion by 2025, the report said.
The availability of low-cost satellite launch vehicles coupled with mass production will lead to demand from customers around the world. Indian private companies are looking to exploit the space industry by using innovative technologies.
Setting up space parks across the country is likely to give a fillip to companies operating across the space value chain, especially manufacturing, the report stated. It will be key to attracting global start-ups working in the space sector and help to incubate space tech companies in India.
Several companies are utilising cutting-edge technologies to develop innovative launch solutions in India and have built considerable expertise around the launch of Low Earth Orbit (LEO), Medium Earth Orbit (MEO) and Geosynchronous Equatorial Orbit (GEO) Satellites and orbit management solutions.
The launch segment is fast becoming a key focus area for start-ups and small and medium businesses (SMEs) in India to drive the innovation agenda and make use of new revenue opportunities added the report.
It noted that currently, India boasts of over 100 space tech start-ups with investments in the segment touching $68 million in 2021.
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