More and more domestic space-tech businesses are establishing offices and subsidiaries in the US in order to expand their operations and have access to the lucrative space-technology sector. Since businesses favor domestic suppliers, this gives them access to the market. Some businesses even go one step further in their US growth by establishing local manufacturing facilities.
Yashas Karanam, co-founder and chief operation officer of Bellatrix Aerospace said, “Having a US presence supports our market expansion goals. Accessing the US government sector often necessitates having a local office or subsidiary for foreign companies. Additionally, many US entities prefer working with US-based partners. These factors collectively make a US presence crucial for growth and market access,” he said.
While companies like GalaxEye want to open offices, startups like Bellatrix, a manufacturer of satellite propulsion, and Digantara, a space surveillance and intelligence company, have also recently launched US operations, including subsidiaries and manufacturing facilities.
Better funding prospects and a larger market opportunity—the US accounts for more than half of the global space industry—are two of the main reasons why entrepreneurs choose to locate in the US.
Establishing local firms would aid in navigating regulatory constraints, according to Lt Gen AK Bhatt (retd), director general of the Indian Space Association (ISpA). He also stated that the next three years provide a significant window of opportunity for Indian enterprises looking to access international markets. “To be relevant global players and have an early mover advantage, startups should have their products tested in space sooner. More companies need to validate their technology and some need to prove with orbital launches,” he said.
Although expanding, the domestic market is still small and mostly driven by defense applications and growing private sector interest. Bhatt stated that much more work has to be done, while acknowledging the efforts made to increase domestic demand. According to market research data, the US space technology industry is now valued at $231 billion and is expected to grow to $348 billion by 2030.
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