Cost Deduction In Space Tech Increases 20% Launch Attempt India is now home to approximately 140 registered space-tech startups. Its talent pool, young population, and government policies push innovations beyond the Earth
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Technological landscapes significantly changed after 2022. Amid the growing exploration of technological advancements, one sector that stands out as pivotal for the future is space technology. This sector has driven innovation and investment, reshaping global employment and the economy.
During the Cold War era, Americans and Russians were reaching for the stars, while the rest of the world watched them on television or read about them in newspapers. In 1963, India launched its first rocket. However, the world laughed when they saw a man carrying a launchpad on a bicycle, mocking it as the biggest failure of a dream. India is now home to approximately 140 registered space-tech startups. India's talent pool, young population, technological advancements, and government policies—such as long-term loans at low or nil interest rates from a INR one trillion government fund to support companies in space, crafting high-end chips, and developing defense technologies—are pushing these promising sectors beyond the Earth.
According to the McKinsey Technology Trends Outlook report (2024), in 2023, launch attempts reached 223, up from 186 in 2022 globally, marking a 20 per cent surge. While US-based companies, notably SpaceX, lead the race, significant contributions are also emerging from India and France. The sector's revenue is expected to exceed USD 750 billion worldwide, driven by space hardware and service providers.
Surge in Space Technology and The Latest Developments
Over the past decade, the cost of space technology has rapidly decreased, thanks to reductions in the size, weight, and power needs of satellites and launch vehicles. This has led to a proliferation of satellite launches and expanded applications for space technologies.
Low Earth Orbit Satellite Communications
According to the report, Low Earth Orbit (LEO) satellite communications are continuing to grow. Several companies across the world are planning and launching LEO satellite networks for both commercial and government use. One of these companies, Starlink, has seen rapid growth since it started operating in 2023.
Several Indian space startups are actively working on LEO satellite technology. For example, Astrome, a Bengaluru-based startup, is developing a constellation of 198 satellites to provide low-cost, high-speed internet to underserved regions, among other startups. Skyroot Aerospace is involved in developing launch vehicles that can deploy satellites into LEO, among other startups.
Direct-to-Device Connection
Direct-to-device connection continues to grow. After Apple introduced D2D emergency connections on its iPhones, many companies began focusing more on this technology to improve coverage in remote areas. SpaceX, working with T-Mobile, has successfully tested D2D connections. Meanwhile, Viasat and Skylo have announced the world's first global D2D network, targeting industries like agriculture, mining, and logistics, according to the report.
Pixxel, also headquartered in Bengaluru, is building a constellation of earth imaging satellites for applications like climate monitoring, crop yield prediction, and disaster response.
End-to-End Solutions
According to the report, non-space tech companies such as mining, agriculture, and sustainability are showing more interest in space technology. The growing demand led space tech companies to offer complete end-to-end (E2E) solutions to various industries. These companies seek both hardware and software solutions. For example, Planet Labs has contracts with Swiss Re and other insurers to use their satellites and software for observing and analyzing data to support agricultural insurance.
Lunar Activities
Lunar activities are growing in both private and public sectors. In January 2024, Japan achieved a significant milestone by completing the country's first and the world's most precise moon landing. This event highlights the growing global interest in lunar exploration. India has been quick to capitalize on these new developments.
In August 2023, India successfully landed its Chandrayaan-3 lunar lander on the moon, making India the fourth nation to successfully land a spacecraft on the moon and the first to land on the unexplored south side of it, the report says.
TeamIndus is also a Bengaluru-based startup known for its participation in the Google Lunar XPRIZE. The company aims to land a rover on the moon and has been working on various lunar missions. Other startups like Pixxel, Agnikul Cosmos, and Skyroot Aerospace are actively working on Lunar exploration projects.
