How Indian startups are charting new course in downstream space sector

Downstream sector uses space data for practical applications; is projected to be worth $610 bn by 2031

A fuel station in space seems like science fiction but if startup OrbitAID’s plans work out, India may find a solution to extend the lifespan of satellites. The company will by April 2025 hold a trial run for its target of launching its first fuel tanker satellite by 2026, marking a milestone in India's space sector. The tanker will extend the operational life of satellites by refuelling them multiple times.

 

OrbitAID, which is based in Indian Institute of Science, Bengaluru, and supported by the Tamil Nadu government, is among a clutch of private companies that are changing the country’s downstream space sector. Of the world’s $470 billion space economy, downstream comprises 80–90 per cent. Its segments include Earth observation, satellite communication (satcom), positioning, navigation and timing, and strategic defence applications. Downstream comprises applications, services and devices that rely on satellites to create business value. The upstream segment refers to activities, products and infrastructure for the development, testing, launching, and monitoring of space assets.

 

"The upstream sector contributes to around 10 percent of the total space economy, while the downstream contributes to the rest,” said A K Bhatt, director general of Indian Space Association (ISPA), which represents space and satellite companies. 

 

Diverse use

 

“By transforming satellite data into actionable solutions for agriculture, disaster management, urban planning, and logistics, downstream applications provide tangible value to industries and governance. There are nearly 200 diverse use cases identified within the downstream segment, and the actual money for Indian private sector companies is expected to come from this segment.”

 

The global market for downstream space technology will be worth $610 billion by 2031, according to a report by ISPA, Nasscom and Deloitte. Upstream will be around $100 billion.

 

The government opened up the space sector for private participation in 2020 and last year it announced the Indian Space Policy – steps that have helped startups. According to data from ISPA, of the around 250 space startups that came up in India in the last four years, more than 70 are focused on downstream. “The larger market opportunity and unique ideas are what make the Indian downstream startups more important,” said Bhatt.

 

Indian startups got global recognition when Bengaluru-based Pixxel, which specialises in a technology that creates high resolution images of Earth's surface, in September won the largest supplier deal by an Indian company from the National Aeronautics and Space Administration (Nasa) of the United States. Pixxel will strengthen Nasa’s Earth science research and application activities. The company’s datasets can unravel granular insights on climate change, agriculture, biodiversity and resource management.

 

Another company, Suhora Technologies, came to the limelight during the glacial burst in Sikkim in early October 2023. It provided disaster management authorities accurate data on the damage caused by water. Through its platform called Spade, the company aggregates data from satellite companies and makes it available for fee-based use. “We are focused on a data-as-a-service model. Our major customers are the government, defence, and disaster management authorities. We supported insurance companies for infrastructure insurance mechanisms by giving scientific data. We are dependent on third-party satellites,” said Krishanu Acharya, co-founder and chief executive officer of Suhora Technologies.

 

India’s space economy is estimated to be worth $8.4 billion, of which downstream services comprises 80 per cent and traditionally has been led by state-owned Indian Space Research Organisation.

 

New opportunities

 

A driver for the Indian downstream sector is expected to be satcom, where telecom giants Bharti Airtel, Reliance Jio, American billionaire Elon Musk’s Starlink and Amazon Kuiper are awaiting regulatory approval for spectrum allocation to launch satellite internet services in the country. Agriculture, weather prediction and navigation are other areas where downstream will play a key role.

 

Bhatt spoke about SatSure, a startup which uses satellite imagery to build downstream applications for banking, agriculture, insurance and infrastructure. These sectors face limitations in use-case mapping and accessing data promptly. 

 

“What happened previously was that insurance assessment in agriculture was done by people going on the ground looking at how much of the crop was destroyed. Now, this is being done by satellites. It is more precise, fruitful, and takes less time. SatSure, through another company called KaleidEO, is looking to launch its own satellites to get this done,” he said. SatSure refused to comment for this story. As of December 2023, there are 1,167 Earth observation satellites. Startups like SatSure will ensure that data collected from these satellites is used for the common good.

 

Another startup getting attention is Hyspace Technologies (SkyServe), which uses artificial intelligence and advanced computing to process data on a satellite itself and provide real-time data to the ground. “It helps in assessing the position of a particular object and its major changes on a real-time basis. This will be useful in India’s plan to remove all its toll gates,” said Bhatt. Elena Geo Systems is getting attention for its high-precision processor that enables accurate navigation and positioning of satellites.

 

As these companies succeed, India will become a leader in the downstream space technology.