Space Race Heats Up: Sky is the limit
Earlier, space explorations were backed by Government agencies but today private companies are entering the space
Remember the epic moon landing of 1969? The space race ignited a fire in the hearts of millions. Cut to 2023: private companies are leading the charge, players are SpaceX from the US and India’s new startups are turning the tables in space sector.
Founded in 2002 by Elon Musk, SpaceX has become synonymous with innovation and ambition. They have achieved reusability with their Falcon rockets, slashed launch costs, and even sent humans to the International Space Station (ISS)! Their upcoming Starship mission aims for Mars, making them a frontrunner in deep space exploration.
Their pioneer launch vehicle is Starship which can carry a payload around 150 tonnes.
The prime advantage of SpaceX is their reusable launch vehicle the Falcon 9. This reduces cost and promotes a sustainable growth in the space industry. Starlink is another service provided by the company in this they provide businesses and consumer with wireless broadband services anywhere on earth, with their high connectivity network of satellite.
Closer home, the Indian Space Research organization (ISRO) with PSLV and GSLV launch vehicles took India to new heights but private companies are now fuelling innovation by developing smaller, cheaper rockets and focusing on suborbital flights and satellite launches. There are a few renowned names in this sector including Skyroot Aerospace, Pixxel and Agnikul Cosmos.
Among them Skyroot Aerospace has been performing well in the past few years, having tested their first launch vehicle Vikram S on 18 November 2022.They are planning to launch their suborbital launch vehicle Vikram 1 in the first quarter of 2024.
SpaceX is miles ahead, with over 20 years in the game compared to India’s young startups. SpaceX is backed by billions, while Indian startups are bootstrapping or seeking investments. Where SpaceX market share is $180 billion compared to India’s $8billion major stake is with ISRO. Technology wise, SpaceX boasts reusable rockets and human spaceflight, while Indian companies are focusing on smaller, cost-effective technologies.
The market cap is increasing, leading new startups to emerge from scratch. The Global market capitalization of the space sector was estimated around $519 billion in the year 2023 and is estimated to grow around $1,110 billion by the year 2030, With CAGR of 8.9% it is excellent opportunity for emerging business.
SpaceX targets Mars, while Indian startups seek to capture the suborbital and small satellite launch markets. The future looks bright and could be a win-win for both. SpaceX can share its technology with India’s startups and benefit from the India’s cost efficiency and access talent. The sky is the limit!
