India's Space Sector On Trajectory To Soar: From $13 Billion To $77 Billion By 2030

India's space industry is poised for significant growth, with projections indicating an expansion from its current valuation of approximately USD 13 billion to USD 77 billion by 2030 according to a report by DAM Capital. This remarkable transformation is driven by a compounded annual growth rate (CAGR) of 26% and is largely fuelled by satellite services, which are expected to contribute over USD 36 billion by the end of the decade.
1. Satellite Services: These services are expected to play a pivotal role in the sector's growth, driven by increasing demand for satellite-based data across industries such as banking, finance, retail, and logistics.
2. Private Sector Participation: The entry of private players has invigorated the market, driving innovation and investment. This shift from a government-dominated industry to one with significant private participation is crucial for future growth.
3. Technological Advancements: The cost of satellite production has decreased by nearly 90% over the past decade, and launch frequencies have doubled in the last three years. These advancements, combined with government support and favourable policies, are opening new opportunities for both start-ups and established companies.
4. Government Initiatives: The establishment of the Indian National Space Promotion and Authorization Centre (IN-SPACe) in 2020 has been instrumental in promoting private sector involvement in space activities. Additionally, initiatives like the Indian Space Policy 2023 and a 100% FDI allowance have further boosted the sector.
Solution-Driven Companies: These companies are expected to play a central role in the sector's expansion, focusing on satellite-based analytics and potentially establishing their own satellite constellations for commercial applications.
Global Market Share: India currently accounts for about 2% of the global space economy but aims to increase this share significantly by 2030. The government targets a five-fold increase to 10% by 2030.
India's space industry is on the cusp of a transformative journey, driven by technological innovation, private investment, and supportive government policies.
Agencies