Satellite services to lead India to $13bn space economy by 2025

Unveiled at the 2022 Indian Space Conclave in the national capital, the report projected satellite and space launch services from both Indian Space Research Organization (ISRO) and private space startups to grow the fastest – at a compound annual growth rate (CAGR) of 13% in the next three years.

Launch services, which is the most in-demand commercial service for the global space industry, is expected to see a rise in India with the advent of private companies such as Skyroot Aerospace, Agnikul Cosmos and Bellatrix Aerospace. These services, which will seek to emulate the successes seen by private global entities such as USA’s SpaceX and Rocket Labs, France-based Arianespace and even India’s ISRO, hope to capture a significant share of an increasing demand for launching satellites into orbit.

According to S Somanath, chairman of ISRO, launch services in India could grow on the back of a public-private partnership model in space that has been successfully deployed by the US over the past two decades.

“The US has established an ideal model of public-private partnership in space, with the government’s National Aeronautics and Space Administration (NASA) decommissioning its own Space Shuttle and tapping private companies in the country to build products. They have done it over two decades to lead the world today, and India has all the ingredients to create a successful model for it, too,” Somanath said.

The EY-ISpA report also highlighted that satellite applications and services, which are also growing in tandem with launch services in India’s fledgling private space sector, will continue to remain the largest contributor to the Indian space economy in 2025, buoyed by increasing demand for consumer oriented satellite services, such as its application in the telecom sector.

Prashant Singhal, leader for emerging markets in technology, media and telecom (TMT), added that the growth of satellite services will come on the back of aiding connectivity in areas with limited terrestrial networks, which in India accounts for a major opportunity. “India’s overall tele-density stands at 85.1% at the end of July 2022, with rural tele-density just crossing the 58% mark. Satellite connectivity, in conjunction with a terrestrial communication network, can help to improve this tele-density significantly,” he said.