New Era of Connectivity: Satcom industry poised for unprecedented growth

The satellite communication (satcom) sector in India has witnessed significant evolution in the past decade, playing a crucial role in transforming the country’s connectivity landscape. The sector witnessed an unprecedented transformation in 2024, driven by a confluence of progressive policy reforms, technological advancements and an expanding role for the private sector. India is positioning itself as a key player in the global space industry.

As the country continues its digital transformation, satcom is poised to play an increasingly vital role in bridging connectivity gaps and ensuring digital inclusion across the vast and diverse landscape of India. Satellite technology is no longer just about infrastructure; it is about changing lives, driving economic growth and enabling digital platforms that are integral to government services, education and healthcare.

As we enter 2025, it is evident that this sector holds significant promise, not just for India’s technological future but also for its socio-economic progress. Here’s a deeper look into the current landscape of the country’s satcom services industry and the outlook for the next decade.

Global technological innovations: Driving the industry forward

The future of satcom is deeply intertwined with rapid technological innovations. While traditional geostationary (GEO) satellites have long been the backbone of satcom in India, advancements in both GEO and low earth orbit (LEO) satellite technologies are now transforming the landscape.

Satcom technology is rapidly evolving, with next-generation systems offering higher data rates, improved security measures and increased bandwidth at much lower price points. As the need for broadband services in India’s rural and remote regions continues, new-age GEO and LEO satellites can prove to be a game changer. These advancements are critical for serving bandwidth-heavy applications and real-time communications.

Very high throughput services (VHTS) in GEO, LEO and medium earth orbit satellites have rapidly evolved from concept to reality. VHTS systems can significantly improve data throughput, leveraging spot beam technology to deliver broadband services to end-users. The evolution of software-defined GEO satellites allows satellites to dynamically adjust their transmission parameters in real time, ensuring optimal connectivity and efficient use of resources. LEO constellations are set to significantly reduce latency, improve data speeds and lower costs.

The advancement in satcom technology is enabling features such as advanced data compression techniques, onboard beamforming and reconfigurable transponders, and real-time decision-making capabilities, which are revolutionising the industry. This not only improves network efficiency but also ensures rapid and reliable responses to sudden high-capacity requirements.

Very low earth orbit (VLEO) satellite technology is another trend that is expected to see increased investment and deployment in the coming decade. VLEO satellites operate at lower altitudes than traditional LEO satellites, which allows for even lower latency, higher resolution imaging and faster data refresh rates.

The emergence of direct-to-device technologies in satcom will enable users to connect directly to satellites. This will enable internet of things (IoT) and handheld devices to communicate directly with satellites, leading to newer satcom use cases.

The implementation of non-terrestrial networks as a part of 5G systems will allow satellites to function as base stations in the sky, facilitating mobile communications anywhere on Earth. This integration is expected to create a resilient communication infrastructure.

Hyperspectral imaging is transforming satellite-based analytics, enabling the precise monitoring of crop health, deforestation and mineral exploration. Imaging satellites and communication satellites together can potentially bring vital services to sectors such as agriculture, mining and environmental monitoring.

Start-ups and scale-ups are deploying small VHTS satellites in LEO and GEO for greater internet connectivity and speed. Satellite launch costs are also decreasing with improvements in reusable rockets and reconfigurable payloads, which is expected to make satcom even more affordable.

All these advanced systems are poised to revolutionise both commercial applications and government initiatives by providing robust, high speed connectivity at even the most remote locations.

Regulatory and policy support: A paradigm shift

The Indian government has shown an increasing commitment to enhancing the satcom sector through strategic policy reforms. The Telecommunications Act, 2023 has streamlined licensing processes and reduced regulatory bottlenecks for satcom operators. Additionally, the Indian Space Policy, 2023 has provided clear guidelines for investment and collaboration, allowing private enterprises to work alongside  Indian Space Research Organisation and NewSpace India Limited.

Further, the establishment of the Indian National Space Promotion and Authorisation Centre has provided a platform for private sector participation, enabling entrepreneurs and companies to contribute to satellite services in India. The government’s foreign direct investment policy has further attracted global investors for spacetech start-ups in 2024. This influx is expected to fuel innovation and competition, driving the industry forward.

India is positioning itself as a potential global hub for satcom, with growing interest from international players looking to partner with local firms in satellite service delivery. To unlock its growth potential, the sector needs a clear regulatory road map as well as easier processes for operationalising it.

Sectors benefiting from satcom: The gamechanger for Digital India

The impact of satcom is most evident in its ability to bridge the digital divide. Satcom technology is driving growth, efficiency and inclusion across several sectors. It plays a key role in expanding rural connectivity, enabling the private sector to offer financial services, e-commerce and digital banking services in rural areas, supporting billions of transactions annually and reducing economic disparities. In healthcare, telemedicine services supported by satcom can enable remote diagnosis, consultations and emergency medical aid to the underserved population.

Satcom can also play a pivotal role in agriculture. Farmers can receive real-time updates on soil health, weather patterns and pest control, allowing them to make informed decisions that increase crop yield and optimise resources. In disaster management, satcom helps in tracking natural disasters such as cyclones, floods and earthquakes, ensuring timely evacuations and response efforts. Additionally, with technology advancements, satcom will be able to support IoT applications in logistics, environmental monitoring, smart cities and industrial automation, fuelling India’s digital transformation in the remotest areas.

Satcom is enabling seamless communication not only on the ground but also at sea and in the air, with in flight Wi-Fi services being made available on aircraft in Indian skies. Vessels, cruises and other maritime operations can now stay connected through reliable satellite links, ensuring uninterrupted communication while in deep seas.

Satcom has also become a backbone for national security, with India enhancing its capabilities to support secure communication for defence and intelligence. India’s military is increasingly looking towards advanced satcom systems to safeguard its borders and enhance its defence capabilities.

Technological advancements have been instrumental in expanding satcom’s reach, particularly in remote and underserved regions where terrestrial networks are limited. Satcom services will not only connect the unserved and underserved but also help businesses expand their reach and empower local economies. The increasing demand for satcom services, particularly in underserved rural areas, also necessitates collaboration between the public and private sectors. With evolving technologies, business models in different parts of the satcom value chain are expected to undergo an innovative transformation. New business models will evolve within the satcom industry in the years to come.

Conclusion: A bright future for satcom in India

India’s satcom services sector is on the brink of a major transformation, with numerous technological advancements and regulatory reforms set to reshape its future. From the adoption of new-age satellites to the expansion of satellite services, the industry is poised for unprecedented growth.

The outlook for the sector is undeniably bright, as satcom continues to play an indispensable role in not only transforming business operations but also in empowering communities, ensuring national security and enhancing India’s global stature. The journey ahead is one of great promise, and those who are able to adapt to the rapidly changing landscape and invest in innovative technologies will be well positioned to lead the way in the satcom revolution.

The Indian satcom sector is a catalyst for inclusive growth, connecting millions and paving the way for a digital future where everyone can access the opportunities of tomorrow.