Exploring the Indian Downstream SpaceTech

India's space program is taking a giant leap towards economic benefit with its flourishing downstream SpaceTech sector. This sector transforms space data into practical applications, with earth observation leading the charge in areas like precision agriculture and disaster management. Satellite communication promises connectivity solutions, while positioning and navigation services offer accurate location data. NASSCOM's report predicts significant market growth in the coming years, fuelled by over 25 strategic use cases across these segments. This potential is attracting investors due to the focus on innovation and affordability. However, creating public awareness and ensuring widespread adoption remains a challenge.

What is downstream SpaceTech?

The Indian space program has garnered much acclaim for its launch vehicles and satellite technology achievements. However, the true economic potential of space exploration lies in downstream SpaceTech. This segment focuses on harnessing the data and capabilities of space assets to deliver practical solutions for terrestrial applications. By leveraging this technology, India can unlock many benefits across diverse sectors.

Key areas of downstream SpaceTech

Source-NASSCOM

By leveraging these areas in space technology, India can transform various industries, promoting innovation, economic development, and societal well-being.

Space economy in India

India's prime geographical position and efficient space program drive the nation toward the forefront of the space industry. With its location near the equator, India's space launch sites benefit from the Earth's assistance in reducing the fuel needed for satellite launches. This reduces costs for clients looking for dependable and cost-effective launch services. Additionally, India's talented pool of scientists and engineers and its established space infrastructure allows it to take on space endeavours at a low cost. This competitive edge has established India as a player in the space launch sector, attracting partnerships and investments from foreign space agencies and private enterprises. With the global space sector thriving, India is well-positioned to leverage its strengths and emerge as a leading force in the upcoming years.

Potential boom

India's space program has gone beyond its rocket launches and satellite placements. The true economic benefits lie in the space technology sector, which holds promise for the future. A recent report from NASSCOM predicts that India's market for space technology applications is set to reach Rs. 1.2 lakh crore (US$ 16.4 billion) by 2025, with a CAGR of 12%. This anticipated growth is supported by the following factors that have caught the attention of investors:

The confluence of these factors – affordability, innovation, and government support – is creating a perfect storm for a downstream SpaceTech revolution in India. This sector holds the potential to unlock immense economic benefits and empower various sectors to solve some of the nation's most pressing challenges.

Source-NASSCOM

Bridging the gap: SpaceTech as a service

India's exciting downstream SpaceTech industry shows promise. A vital step between game-changing innovation and real impact is getting people to use it. Here's where things get interesting. According to a survey conducted by the Indian Space Research Organisation (ISRO) in 2022, while 72% of city dwellers were aware of space applications, that number dropped significantly to 38% in rural areas – a concerning knowledge gap that could slow down the adoption of technologies with the potential to transform fields like agriculture, disaster response, and infrastructure development. The key lies in an approach that raises awareness and ensures that SpaceTech solutions are easily accessible. Picture this: a small farmer in a village can tap into space data without needing gear or specialized expertise. That is where "space tech as a service" comes in– a solution for closing the accessibility divide. This concept involves providing applications as user-friendly services, much like how cloud computing operates. Imagine easy-to-use mobile apps delivering real-time updates on crop health straight to farmers' phones or intuitive online platforms offering disaster response teams satellite imagery at their fingertips.

Future scope of space industry in India

According to research conducted by the World Bank, a 10% increase in productivity through space-based solutions can significantly reduce poverty in rural areas. By raising awareness through campaigns, implementing programs tailored to rural communities, and actively promoting the "space tech, as a service" approach, India can narrow the digital gap and empower a broader audience to utilize space technology. This not only encourages acceptance but also unleashes the full capabilities of Downstream SpaceTech, propelling India towards a future marked by economic growth, enhanced resource management, and improved societal well-being.

Public-private collaboration can unlock immense value by promoting "SpaceTech-as-a-service," making these technologies readily available. By fostering innovation and collaboration, India's downstream SpaceTech is poised to become a global leader, bringing the benefits of space exploration to its citizens and the entire world.

• Earth Observation (EO):  EO makes use of satellites equipped with imaging tools to gather data about the Earth's surface and atmosphere. This information provides insights that can be utilized in the following ways:
  • Precision agriculture: EO data helps analyse soil quality, crop health, and irrigation requirements, leading to improved farming techniques and higher crop yields.
  • Disaster management: By monitoring floodplains, forest fires, and other natural disasters in time, proactive measures can be taken to mitigate risks and respond swiftly.
  • Urban planning: EO data is valuable for mapping land usage patterns, tracking infrastructure development, and supporting city planning projects.
  • Satellite Communication (SatCom) uses satellites as communication relays to offer connectivity solutions in areas with challenges or limited terrestrial infrastructure. Some applications of SatCom technology include:
    • Bridging the Digital Divide: SatCom enables internet access for villages and underserved communities, promoting inclusion and socio-economic growth.
    • Disaster relief: Reliable communication is crucial during emergencies. SatCom ensures communication channels for disaster response teams aiding rescue operations and coordination.
    • Maritime operations: SatCom communicates with ships at sea, ensuring crew safety and smooth logistics management.
  • Positioning, Navigation & Timing (PNT) services make use of satellite constellations such as GPS to deliver positioning and timing information. This data plays a role in applications.
    • Precision agriculture: Accurate positioning data enables the operation of automated farm equipment, leading to optimized resource usage and increased agricultural productivity.
    • Location-based services: PNT information supports the functioning of navigation apps, ride-hailing services, and other location-based applications.
    • Financial transactions: The precise timestamps provided by PNT services are crucial for maintaining the security and reliability of transactions.
  • Cost efficiency: Indian space organizations like ISRO (Indian Space Research Organisation) are known for their cost-effective engineering practices and ability to produce high-quality space technologies at a fraction of the expense compared to Western counterparts. This cost-effectiveness makes downstream space technology solutions more accessible to developing nations.
  • Focus on innovation:  India's space sector is not just about impressive launches anymore. The real economic boom lies in downstream applications, and a key driver is the intense focus on innovation. A vibrant network of over 190 SpaceTech startups is pushing the boundaries. These innovators go beyond companies like Agnikul Cosmos with their 3D-printed rockets, venturing into diverse areas. Launch vehicle companies like Skyroot make space more accessible, while Bellatrix Aerospace tackles propulsion with electric systems. Data is not ignored – Terraspan uses Earth observation data to improve agriculture and disaster management. Communication is getting a facelift, too, with Syrma and Tessolve offering next-generation solutions for remote areas. Innovation extends beyond core technologies – Dhruva Space provides complete mission solutions. In-Space tackles the challenge of materials designed for the harsh space environment. This is a glimpse into the future of Indian SpaceTech, where startups are disrupting traditional approaches and creating new possibilities for space exploration and its positive impact on Earth.
  • Government support:   Recognizing the immense potential of downstream SpaceTech, the Indian government has taken proactive steps to foster its growth. Initiatives like the liberalization of the space sector and the establishment of sandbox environments for testing new technologies provide a supportive ecosystem for startups and businesses to thrive.