Following the Indian government's opening of the space industry to private-sector participation, Japanese companies are exploring business opportunities in satellite data utilization and component supply. Cooperation between Japanese and Indian companies, as well as partnerships with local firms, is under consideration.
The Indian government began opening the space industry to private-sector participation in 2020, expanding entry opportunities for private companies, including foreign firms. Cooperation between Japanese and Indian companies is expected to advance in space situational awareness (SSA), which involves tracking the positions and orbits of objects in space.
The two main areas attracting attention from Japanese companies are the use of satellite data and the supply of components and materials for satellites. The downstream data utilization market is expected to grow in fields such as agriculture and construction, and is said to offer numerous short-term entry opportunities for Japanese companies.
In data utilization, defense and military applications currently lead the market, although restrictions on foreign participation remain. Agriculture and construction are easier to enter and have considerable room for market expansion. In component and materials supply, solar cells, mechanical components and thermal-control materials are viewed as promising, with supply opportunities expected in three areas: power systems, communications and data processing, and thermal control.
NRI India is exploring ways to advance SSA demonstrations and commercialization through collaboration between local and Japanese companies. Japanese companies say it is important to understand the technical capabilities and cost competitiveness of local firms and to establish a profitable framework while balancing order volumes with the volume of orders received.