Spacetechs shoot for stars but funding continues to be elusive

The Indian space technology sector is currently valued at $8.4 billion, but accounts for a mere 2 per cent of the global space economy.

- PEERZADA ABRAR & ARYAMAN GUPTA

However, the sector is projected to hit $44 billion by 2033, capturing a larger slice of the global market, according to a Whitepaper from consulting company KPMG at the TiE Global Summit held earlier this week in Bengaluru.

The growth is expected to be driven by technological advancement, government support, and rising demand for space solutions. Expanding satellite communications, increased space data applications, and policies such as the Indian National Space Promotion and Authorization Center (IN-SPACe), which promotes private sector participation, are likely to contribute to the expansion of the sector, laying the ground for both innovation and investment.

Key trends include the development of small satellites, cost-effective launch solutions and the use of AI and machine learning for complex missions. Startups are leveraging these trends to introduce affordable and efficient space technologies, even as funding remains a vulnerable area.

The Indian Space Research Organisation (Isro) is also assisting private companies in expanding their launch capabilities. This is coupled with the rise in startups developing advanced analytics in the sensing sector, which are key factors in evoking stakeholder interest in the ecosystem, according to the KPMG report.

TECH TAKEOFF

■Isro is assisting private companies in expanding their launch capabilities

■Startups leveraging key trends such as development of small satellites, cost-effective launch solutions, use of Al, to introduce affordable space technologies

■Expanding satcom, increasing space data applications may contribute to expansion of space technology sector