Start-ups driving Indian space industry to tap $100 bn global business by 2040

/2 min read

ADVERTISEMENT

Over the past two decades, India has made significant strides in the Space 4.0 era, launching 381 international satellites for 34 different countries
Start-ups driving Indian space industry to tap $100 bn global business by 2040
The global space economy is expected to touch $1 trillion by 2040. 

India’s space economy can reach $40 billion by 2040 if it continues the current growth trajectory of 9% compound annual growth rate (CAGR), says international strategy and management consulting firm Arthur D. Little.

In a just-released report, the consulting firm points out India also has the potential to aim for a $100 billion addressable global space market opportunity by the same period. The global space economy is expected to touch $1 trillion by 2040.

The report "India in Space: A USD 100 Billion Industry by 2040" states 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.

Fortune India Latest Edition is Out Now!
India's Top 100 Billionaires

August 2025

As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.

Read Now

“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”, the report points out.

“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 Indian Space Research Organisation (ISRO) is a great ambassador for India in Space”, Barnik Chitran Maitra, Managing Partner, Arthur D. Little, India & South Asia says.

According to the report, four main factors can create such rapid growth in the industry, the first being India’s rising space budget to fund ISRO’s ambitious plans for a space station, human lunar mission, and other space exploration activities, and increasing use of space for defence. India’s advantage as the preferred destination for launch services and satellite operations around the world due to the affordability the country offers was another factor.

The government’s push to the start-up ecosystem with the potential for more private players to enter across different segments including satellite applications, debris mitigation, ground equipment and launch vehicles, and the adoption of commercial satellite internet operations, as and when they begin, by several industries, potentially offering fierce competition to terrestrial communication were cited as the other two potential growth triggers.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.