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Investing in space tech
The ambition to explore and dominate the vastness of space that was previously completely impenetrable to human invasions has captivated the human psyche since the dawn of humanity. But that is no longer the case. Slow but steady space advances have let humanity utilize space for its benefit throughout the years. We make extensive use of the advantages of space exploration technologies in our daily lives. Today, our lives are well-connected; we are well-informed, well-protected, and much healthier, and we owe this to the information we have accumulated via rigorous study and space travel thus far.
The Ascension of Space Tech
The international space economy was estimated at $446.9 billion in 2020, according to Statista, and encompasses a range of activities such as space exploration, development, and utilization. The commercial space products and services segment of the global space market accounted for over half of the industry's total revenue. According to IBEF projections, India's space business would be worth $10.4 billion in 2020, accounting for a modest percentage of the global space market of 2-3 percent. In comparison to the worldwide market, this is only the tip of the iceberg for India's performance.
The space tech business in India is booming right now. India currently has 368 private space tech enterprises, up from 35 in February 2020, according to a worldwide survey released in June 2021. India ranks fifth behind the United States, the United Kingdom, Canada, and Germany, outnumbering nations such as China, France, and Spain. According to the former Chairman of ISRO, private enterprise bids in the space industry have increased by 30% in sectors like launch vehicle development, constructing and operating satellites, and developing ground segments and research collaborations.
In contrast to ground-based systems, commercial space tech entrepreneurs are creating space technologies for human landings on the moon and manufacturing airplane-borne rocket launchers for benefits such as reduced cost and better reactivity. The Indian space industry's private companies seem to have caught up with the global trend by aligning themselves with comparable technological advancements.
The government policy of June 26, 2020, which permitted private engagement throughout all sections of the space value chain, is the major catalyst for this accelerated expansion in the space tech industry. Prior to this policy change, India's space domain was limited to the Indian Space Research Organization, the country's primary space agency. ISRO collaborated with a network of over 500 suppliers of different components for the industry, therefore commercial space tech enterprises' engagement was confined to the role of supplier.
Additional initiatives have been incorporated, including the modification of FDI policy to encourage better investment opportunities, the introduction of ISpA to foster global linkages to bring crucial new tech and investment opportunities into the Indian space industry, the Public Sector to concentrate purely on R&D activities while enabling technology transfer to the private sector for commercial viability, and the effort to exchange ISRO's capital-intensive infrastructure with private players.
Getting the Attention of Investors
Following these changes, the space tech industry had one of the most dramatic investment frenzys it has ever seen. The potential concealed in space data is being swiftly discovered by private players for generating solutions, either as individual players or as a consortium effort, as the Indian space industry is vigorously pushed for privatization. In the year 2021, a consortium called I-STAC.DB brought together a group of startups at IIT Madras to develop technologies such as satellite assembly and design, rapid launch capabilities, future generation communication, sensors, satellite security, data processing, ground station security and so on.
Advantages of Investing in Space Tech
Billionaires no longer have exclusive access to space. Reusable rockets and miniaturized satellites have made low-cost access to space a reality, and the cost of producing and launching a satellite has dropped by a factor of more than a hundred. In the age of autonomous vehicles, robots, smart cities, and the Internet of Things, demand for space-related technology will skyrocket. In effect, space will become a digital platform in the sky.
The development of space tech innovations will very certainly have a cascading impact on industries including communications, transportation, agriculture, and disaster management. Satellite broadband and mapping ecosystems that rely on reliable real-time information broadcast from satellites are just a few of the technologies that are destined to further transform human life. With the pace of investment activities picking up, Indian space tech attitude is optimistic about the future, with a 48 percent CAGR expected to reach 50 billion dollars by 2024.
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