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.
“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.
