Satellite mfg, services to power Indian space tech market to $13 billion by 2025

The space technology business in India is set to grow to $13 billion by 2025 at a compounded annual growth rate (CAGR) of 6% from $9.6 billion in 2020, says a research report.

Satellite launch services will be the fastest growing segment, at a 13% CAGR from $ 0.6 billion in 2020 to $1 billion by 2025. The largest segment of satellite services and applications worth $3.8 billion will grow at 4% CAGR to $4.6 billion. Satellite manufacturing will witness a CAGR of 9% during the period from $2.1 billion to $3.2 billion. The ground segment of the Indian space industry currently valued at $3.1 billion is set to grow 5% to $4 billion by 2025, says the ISpA-EY report - 'Developing the space ecosystem in India: focusing on inclusive growth.'

It said consumer services will account for 79% of the satellite services market in India by 2025. From an end-user industry perspective, media and entertainment will account for 26% of the total services market by 2025, followed by retail and enterprise at 21% and Defense at 20%. The remote sensing segment is expected to register one of the highest CAGR at 5.2% through 2025, driven by an increase in the resolution of commercially available imagery and the adoption of new-age technologies.

Currently, India boasts over 100 spacetech startups. The year 2021 was a watershed year for spacetech startups, with investments reaching $68 million, a year-on-year (Y-o-Y) increase of 196%. There were a total of 47 new space tech startups established in India in 2021.

The report said the satellite services and application market in India will be driven by greater demand for high bandwidth and lower latency data requirements, connecting the unconnected with voice and data communication services, and an increase in IoT and autonomous systems. In addition, an increase in demand for military and defence satellite communication solutions is likely to spur the market forward.

For satellite manufacturing, the “Make in India” initiative is expected to spur growth owing to increased demand for small satellites. By 2025, the satellite manufacturing segment will be the second fastest-growing in the Indian space economy. Setting-up space parks across the country are likely to give a fillip to companies operating across the space value chain, especially manufacturing. It will be key to attracting global startups working in the space sector and help to incubate spacetech companies in India, said the report.