Space Industry in Argentina,Brazil,and India: How Are Emerging Countries Joining New Space?

Abstract

The recent transformations of the global space sector, characterized by the decreased cost of production and launches of space vehicles and cargo and greater access to satellite data and its applications, have been called new space. In this work, it is questioned how these changes carry implications for the market insertion of emerging countries. The term new space is associated with the rise of private space companies and the greater participation of nontraditional actors, such as startups and developing countries. The space technology growth among these actors could reduce the costs and risks of investments for the States, which are traditionally very high and inaccessible due to limited public budgets. In this sense, this article is intended to identify the space production structures of Argentina, Brazil, and India, the public and private institutions involved with space production, the main companies of these countries, their products, and their recent performance in the foreign market. Research data were collected through specific reports on the space sector, in databases, and on the official websites of Brazilian Space Agency (AEB), the National Commission of Space Activities (CONAE), and the Indian Space Research Organization (ISRO). The results show three different stages related to spatial production in these three countries and indicate that there is no dichotomy between public and private investments since the insertion of new space is made possible by the State.

INTRODUCTION

In the past decade, the global space sector has gone through a transformation process characterized by an increase in commercial activities, a reduction in the cost and launch of vehicles and space payloads, satellite miniaturization, greater access to satellite data and its applications, in addition to the growing number of countries that develop space activities.¹

These changes, which have become known as new space, are associated with the rise of private space companies, modifications in space financing, and greater participation of nontraditional actors such as universities, startups, and developing countries.² Space technology growth among these actors could reduce costs and risks of investments for States, which are traditionally very high and inaccessible for limited public budgets.

Under this scenario, it is questioned how emerging countries, the ones that have political and economic relevance in their regions and seek greater insertion and global protagonism, have been inserted into the current context of changes in the space sector. Based on this question, the research aims to analyze the insertion of countries that present different space strategies, experiences, and results, although they have structural characteristics in common. Argentina, Brazil, and India are developing countries that not only seek to raise the level of their technological standards and international protagonism but also must deal with major social challenges and internal disparities^*.

By extending knowledge on these different experiences, it is possible to identify convergent and divergent aspects, opportunities for cooperation in complementary areas, and common interests for future partnerships and mutual learning.

The research data were focused on the development of space activities and programs in Argentina, Brazil, and India, as well as the current stage of the space industry in these countries, especially the companies whose target was on new space. The data were collected through specialized literature, in databases and in specific reports on the space sector, such as publications by Euroconsult, Bryce Corporation, and Organisation for Economic Co-operation and Development (OECD), in addition to the official websites of the Brazilian Space Agency (AEB), the National Commission of Space Activities (CONAE), and the Indian Space Research Organization (ISRO). The space agencies mentioned above are from Brazil, Argentina, and India, respectively.

This article is divided into four sections, in addition to the introduction. Conceptual aspects of the space industry and new space, as well as possible consequences of this scenario for developing countries, are addressed in the first section. In the second section, a brief analysis of the general context of space activities in Argentina, Brazil, and India in relation to budgetary and organizational aspects, and the scope of their space programs are outlined. In the third section, divided into three subsections, the space industry of the three mentioned countries is analyzed to also identify their strategies for insertion in new space. Finally, the final considerations of the research are presented.

Space Industry and New Space

The space sector includes a vast network of institutions and economic activities that involve products and services with applications in different fields, such as agriculture, data transmission, weather forecasts, air traffic control, national defense, and many others. In general, the space industry has been analyzed from the following four segments: rocket manufacturing, launchers, satellites, and their components; the launch activities of these artifacts; ground operations and satellite data reception; and the wide range of services derived from satellites.³

Launching satellites into space is an arduous task that requires large investments in research and development (R&D) and the mastery of complex scientific skills in several areas. However, the space industry is characterized by not only high technical complexity but also generating and using dual technologies with potential for military use. This duality has led, since its origins during the Cold War, to restrictions on access to technological knowledge and the use of strategic inputs and components.^3,4

For that reason, there are a few countries that have the capacity, technical, operational, and financial means to dominate the entire cycle of the space industry (manufacturing, launch, operation, and satellite applications). Owing to these difficulties, many nations cooperate with other countries that already have a space technology to catch up and develop in the sector. However, the transfer process of sensitive and controlled technologies, such as those related to space, is quite complex and often unproductive.

Advances in the sector, therefore, have traditionally been linked to the role of the States, whether as a technology demander or as a financier of R&D, human resource training, and private sector incentives. Owing to the very high costs and complexity, space activity involves large investments and risks, so the innovation process is influenced by national states’ space policies and public investment.^5,6 States are also known to facilitate access to financing through the creation of public risk capital funds.⁷

However, according to the OECD, the space sector has been through a transformation that has become known as new space, a phenomenon that emerged after the 2008 financial crisis but has gained momentum in the past 10 years.^7,8 New space is related to several factors, such as the emergence of new technologies, greater access to satellite data and its applications, investments by private companies in space projects, and political decisions aimed at developing a new “ecosystem” of commercial space actors.^7–9

A large extent of what is currently characterized as new space involves the increase of economic motivations and the growing interest of the private sector in space activity. At a global level, a trend is unfolding that could alter the technological trajectory of the sector, as well as its production dynamics and the configuration of the strategies of its main actors. These transformations could expand both the size and the impacts of the space industry on the remaining economy and society.⁹

In this scenario, possibilities for space applications arise, such as the development of medicines in zero gravity, space tourism, distribution of internet signals in remote areas, and space mining, among others. Billion-dollar corporations, like SpaceX, Blue Origin, and Virgin Galactic, and smaller players, introduced innovative products and new industrial and financing strategies for the space sector.

These changes made it possible to diversify access and the nature of space financing. In fact, investments via venture capital increased considerably between 2012 and 2021, providing opportunities for startups in the sector, although this capital tends to benefit more established companies, notably SpaceX, with the concentration of investments in the United States.^8,10

New space is also characterized by an increase in the number of governments that support the development of national space capabilities. Emerging and developing countries now have a greater presence in the space sector.⁷ After 2012, there was a significant leap in the number of countries operating satellites, and, 10 years later, almost 90 countries in 4 continents have registered at least 1 satellite in orbit or successfully launched a rocket, as shown in Figure 1.

Fig. 1.

Number of countries that have registered satellites or launched rockets. Source: OECD (2022).⁷

Just like what occurred in other sectors, there would be a process of geographic fragmentation of the value chain in the space sector, partly due to the increase in the number of space missions between different countries and space agencies. According to López et al.,⁹ the participation of global value chains occurred in the following three dimensions: “geographic (more and more countries are getting involved in the production and supply of goods and services linked to space), sectoral (more products and services are manufactured in globally or regionally articulated processes), and functional (which encompass R&D and innovation processes)” (p. 117).

In contrast, launch vehicle manufacture is concentrated in a few countries, mainly because it is a technology in which dual use is more evident and the complexity of development is greater. In addition, a country must be developed in this segment to dominate the complete cycle of space production and ensure autonomous launches.

Within the small group of countries with sufficient technological capacity to launch satellites into orbit using their own launch vehicles, there is an even more restricted group of private companies that dominate the launch activity and that have already developed rockets with orbital capacity, such as SpaceX, Rocket Lab, and the Chinese Space Pioneer.

Therefore, an important part of the innovations, strategic potential, and revenues generated by the sector continue to be concentrated in a small number of countries and public and private actors, although there has been an increase in commercial activity and in the number of countries that develop space activities, especially in the past decade. In this regard, it is essential to explain how different spatial strategies have been adopted by emerging countries that want to join the new space.

General Context of the Space Activities in Argentina, Brazil, and India

Initially, it is possible to observe that the three countries began their space activities in the 1960s, in the post–World War II scenario, and that, at least in Argentina and India, there was great convergence with the development applied to the nuclear sector.^6–11 Over the decades, the three countries have encountered difficulties and achievements, but, clearly, the results are quite different, showing three different stages of space production.

Regarding the space policy of Argentina, Brazil, and India, it is worth mentioning that although the three countries express in official documents^12–14 that their space programs are part of the national development strategy, as a State policy, in budgetary terms, this is not the reality experienced by Brazil. While Argentina and India present stability and a growing trend in public investment in the sector, Brazil has not presented clear priorities for its space program.¹⁵ This fact can be observed, including the volatility and insufficiency of the public budget to meet the demands of the different projects and actors, as shown in Figure 2.

Fig. 2.

Public budget for the space program (in US$ million). Source: Own preparation based on data from Euroconsult.¹⁷

Argentina has developed efficient space projects at a reasonable cost and with continuity since it was given priority to the space program by successive governments. According to Lino,¹⁶ although in Argentina the space program is treated as State policy, even with all its political and economic difficulties, in Brazil, the situation is the opposite since political leaders are unaware of the strategic importance of space activities.

India, in turn, has a much higher public space budget than the other two countries (although significantly lower than the other powers).¹⁷ It shall be considered that the Indian Space Program has a relatively low budget when compared to the USA and China, but it has reached achievements that bring the country closer to the milestones established by global space powers. Indian investments in the sector are associated with geopolitical aspects, considering the history of tensions with China and Pakistan,¹⁸ and economic factors, derived from gross domestic product (GDP) growth in the past decade, but which are also related to the prioritization of policy space in India.

In relation to the organizational structure, significant differences can be identified among the countries. The space agencies of Argentina, Brazil, and India were created to place greater emphasis on civil space activities. However, while CONAE and ISRO concentrated trained human resources and a large part of the countries’ public space infrastructure, AEB maintained a bureaucratic structure whose purpose was to manage the resources of the space program. The institutes traditionally linked to the Brazilian space sector, such as the National Institute for Space Research (INPE) and the Institute of Aeronautics and Space (IAE), concentrated qualified human resources, space infrastructure, and definition of projects.¹⁹ Because of that, there was decentralization, which caused governance difficulties and definitions of the priorities of Brazilian space policy.

Another aspect in relation to the organizational structure is that, in India, ISRO is linked to the Department of Space (DOS) which, in turn, is directly linked to the Prime Minister. That shows a high level of importance in relation to the sector for the Indian State. In Argentina and Brazil, the agencies are linked to the Ministries of Science and Technology, and, specifically in Brazil, the space sector is also linked to the Ministry of Defense, which manages the launch centers.

It also must be considered that there are large integrative companies, public and private, that operate both in meeting governmental demands and in the foreign market in India and Argentina. In Brazil, the process of platform integration and complete space systems is still carried out mainly by public institutes, although there is technical training in the national companies.^3,5,20

Regarding local rocket, launcher, and satellite projects, a possible methodology for evaluating and comparing different countries was proposed by Wood and Weigel,²¹ called Space Technology Ladder (STL). STL measures technological progress through spatial achievements, ordered according to technical complexity and the degree of technological autonomy achievement. López et al.²² applied the STL in Argentina and understood that the country has experienced significant progress in the technological development of space activities, like the satellite production of Earth observation (LEO) and geostationary (GEO) telecommunications satellites, which were developed and manufactured locally.

Dallamuta et al.²³ in turn, adapted the STL model to be applied in Brazil, considering that it does not measure criteria such as participation of local content and performance gains for satellites of the same class. The authors proposed a derived model, considering the following levels: space agency, small mission integrator, satellite operator, satellite builder, and launch capacity. Each of these levels has sublevels related to internalized capabilities. Thus, by applying this proposal to the spatial achievements in Argentina, Brazil, and India, three different stages were found for national capabilities, as shown in Table 1.

Table 1.

Space Capabilities of Argentina, Brazil, and India

Capacities	Steps	Argentina	Brazil	India
Launch capacity	Launch of GEO	—	—	X
Launch capacity	Launch of LEO	—	—	X
Satellite manufacturing	GEO satellite (manufactured locally)	X	—	X
	GEO satellite (manufactured through mutual international cooperation)	X	—	X
	GEO satellite (manufactured locally with external assistance)	X	—	X
	LEO satellite (manufactured locally)	X	X	X
	LEO satellite (manufactured through mutual international cooperation)	X	X	X
	LEO satellite (manufactured locally with external assistance)	X	X	X
	LEO satellite (manufactured with the support of partners)	X	X	X
Satellite operator	GEO satellite (acquired including training services)	X	X	X
Satellite operator	LEO satellite (acquired including training services)	X	X	X
Small mission integrator	Nanosatellite integrator	X	X	X
Space agency	National space agency	X	X	X
Space agency	Government agency for space activities	X	X	X

Source: Adapted from Dallamuta et al.²³

It can be observed that Argentina has already advanced toward the local construction of geostationary telecommunications satellites with the ARSAT series (the first ones developed in Latin America) and is moving toward the development of launch vehicles through the Tronador project. In the 2000s, Argentina achieved relevant technological milestones by designing and building its own satellites. Four satellites were manufactured in cooperation with NASA: two carried the largest radar antenna placed on a satellite for civil purposes and two geostationary.⁶

Brazil, in turn, had to overcome several obstacles in its launcher projects and is currently focusing on the project of a small launch vehicle, the VLM-1, which has not been completed yet. The main Brazilian achievements are related to the production and integration capacity of the Earth observation satellites such as Amazonia-1 (launched in 2022 from an Indian space center) and sounding rocket production.²⁴

In relation to the development of launchers and satellites, India has a mature space program and has overcome the main stages of space activity with its own launch capabilities and large projects, such as the series of polar (PSLV) and geosynchronous (GSLV) launch vehicles, in addition to interplanetary and commercial missions.²⁵ The Indian Space Program has gained global recognition for launching lunar probes, building geostationary satellites, launching national and foreign satellites from its territory, and successfully landing on Mars and the Moon. ISRO is one of the six space agencies in the world that have full launch capacity and was the first to find water on the Moon. Its program has reached a notable level of technological maturity for an emerging country, placing India in the limited group of space powers.

Therefore, the space capabilities of Argentina and India show promising possibilities of cooperation with Brazil. In relation to Argentina, the Brazilian Ministry of Foreign Affairs (MRE), in its mapping of innovation environments,²⁶ highlights Argentine companies of international reference in the aerospace sector and public policy efforts that serve as a reference for promoting Science, Technology and Innovation (ST&I), in addition to possibilities for partnerships with relatively low costs.²⁷ Argentina has more deep tech companies than Brazil. One of the reasons was the creation of the 2017 Entrepreneurship Law, in addition to the large number of venture capital funds that have invested in emerging Argentine companies.²⁶ MRE also approved, in 2023, the Action Plan for the Relaunch of the Strategic Alliance between Brazil and Argentina,²⁸ and one of the themes of the alliance is space cooperation, through the construction and launch of the SABIA-Mar B satellite. Besides, it is planned to reactivate the Joint Working Group on Space Cooperation and instruments to promote joint projects in the aerospace sector.²⁸

Regarding space cooperation with India, MRE points out that the country has a long tradition of promoting innovation in ST&I. As the fifth largest economy in nominal GDP and the third largest GDP in purchasing power parity, the country is focused on promoting advances in the aerospace sector, having launched several domestic and foreign satellites, with good cost returns and efficiency.²⁷ The launch of the Brazilian satellite Amazonia-1 by an Indian launcher could bring Indian and Brazilian space companies and startups closer. One of the main reasons for this approach would be the low budget and launch cost of the Indian Space Program.

SPACE INDUSTRY IN ARGENTINA, BRAZIL, AND INDIA

Argentina

The main company in the space sector in Argentina is INVAP, which has not started its activities in space but in the nuclear sector. The nuclear area was developed by a company that gave rise to several skills necessary for space operations. The accumulation of capabilities allowed the company to diversify its portfolio into the areas of satellites (INVAP develops complete satellite projects, except the launch) and radars.^6,9,29,30

The technological activity is generally scarce and has low endogenous innovative content in peripheral countries: the most sophisticated steps are imported and the local content is restricted to adaptations to local production and consumption conditions.³⁰ In that regard, Hernan³⁰ states that having a company like INVAP, which presents its own innovative results and is competitive in the international market of capital-intensive goods, is something quite peculiar in the context of peripheral and semiperipheral countries. According to the author, INVAP has generated capabilities in different knowledge-intensive technoproductive sectors: design, development, and construction of nuclear reactors for scientific research; production of space technology, such as satellites and observation systems; and industrial equipment and automation.³⁰ In May 2013, INVAP was contracted by the Brazilian Government to build the Brazilian Multipurpose Reactor (BMR).

Other companies in the space sector were created, operating according to the initial space bases at INVAP, such as VENG, which develops means of access to space and launch services (as in the Tronador launcher project), and FRONTEC, which operates in space services focused on agriculture and environment. INVAP also created GSATCOM,³¹ a company aimed to continue telecommunication satellite projects.

Argentine Satellite Solutions Company (ARSAT) is another important space actor in Argentina. It was created as a state-owned company in 2006 and aimed to design, develop, launch, and commercially exploit geostationary telecommunication satellites. Currently, the company is linked to the Secretariat of Public Innovation and the Ministry of Economy and operates in satellites, according to the value chain of the Argentine space sector.³²

According to CONAE, the main projects in the space sector in Argentina are developed through an association between the State and private companies, with ∼50 small- and medium-sized companies (SMEs)³³ in this market. In relation to the manufacturing of subsystems and components, a characteristic of the Argentine space industry is that SMEs maintain close relations with public institutions, playing an important role in the practical experimentation phase.³⁴

Argentine space sector SMEs are geographically concentrated, technology-intensive, and recently founded: 45% are ≥10 years, and 65% were created after 2000.⁹ Several of these private ventures originated from public space projects, through training personnel and demand creation. ARSULTRA, for example, is a company that participated in SAC-D/Aquarius Mission; MECANICA 14 and STI are companies whose founders came from INVAP.⁹

Satellogic, in turn, is an important player that operates in the new space model. Since its foundation in 2010, the company has been extending its efforts in the space sector. In order to illustrate these efforts, 10 satellites were launched during just 1 month, of November 2020. Currently, Satellogic has the Aleph-1 constellations project, and it is present in several countries (R&D is carried out in Argentina, systems integration in Uruguay, software development in Israel, and business development in the United States, where there are also sales teams, as well as in Colombia, Canada, and Israel).⁹

Satellogic has a partnership with the Chinese company Great Wall Industry Corporation (CGWIC) to launch microsatellites on Chinese rockets. The satellite constellation will be capable of mapping the Earth’s surface each week, in a detailed resolution, with clarity up to 1 m away. This is an innovation not only for Argentina but for the global scope.³⁵ The company has received investments from private funds, including from Brazil.

Satellogic is the only company in the sector to vertically integrate all stages of geoanalysis, and its business model has been considered a good example in new space: large corporations such as Airbus build heavy and large satellites; Satellogic production model is more focused on smaller and low-cost satellite constellations.³⁵

In contrast, startup Tlon Space is noteworthy in the launcher sector and currently is in the final testing phase to implement a nanosatellite launcher. The company is developing the rocket Aventura I, which is scheduled to be launched in 2023. This rocket is considered, by the startup, like a less expensive option for companies and organizations that want to access space. Tlon Space’s strategy to reduce these costs involves system miniaturization, structure wall thinning, weight reduction, and engine performance increase. Therefore, Tlon Space will be able to enter the restricted group of private companies, which are capable of carrying out space launches. The vehicle is 20 times smaller than the launchers that can access space today, at a much lower cost, although these costs vary depending on what is intended to launch, and the payload involved.³⁶

The startup LIA Aerospace is known as the first company in the world to launch a reusable rocket powered by biofuel. In addition, the startup produces its own propulsion systems for satellites and launchers. One of the engines with heat dissipation configuration,³⁷ manufactured by the company, was also tested. This could be a major differential for the company, considering that the environmental aspects have been a challenge for launching rockets. The innovative development caused LIA Aerospace, which has an office in the UK, to get a place on the European Space Agency Incubation Program.

Epic Aerospace is another Argentine startup that has stood out. The company placed the vehicle Chimera Leo 1 into orbit in January 2023, which was capable of launching CubeSats into precise orbits using an innovative propulsion system. The vehicle was launched during the flight of a SpaceX rocket and its separation was successful.

Several other companies can also be mentioned, such as Valthe, which takes the place of Tronador rocket tests, and the startup Newspace, from Buenos Aires, which has the capacity to carry out static propulsion tests, covering the entire development cycle of its space vehicles.

However, the space sector in Argentina, as in other countries, is closely linked to contracts with public institutions and companies, even though several private companies and startups are developing and increasing their capabilities. Under this aspect, Lopez et al.⁹ point out that the Argentine Government has a fundamental role as a space product and service contractor, through the demand for information from applications that process images and satellite data, applied to border control, environmental and agricultural monitoring, among others. The state demand has mainly been providing possibilities of developing private enterprises with high technological content,⁹ even though private demand is growing.

The authors also mention the possibilities of public procurement innovation to create markets and share risks with private companies, in order to contribute to the diffusion of these innovations in the economy.

Brazil

A catalog of Brazilian space companies was produced by AEB, in which 55 companies that participated in the space program were listed. In total, 77 companies, which operate in the space sector, were listed in the third edition of the catalog; some of them are national capital and others are foreign subsidiary companies. They have different segments, such as ground infrastructure, satellite components, rockets, hardware, services and applications, etc. Through the catalog, it can be observed that 79% of companies are locally concentrated in the state of São Paulo and 63% of them are micro and small companies.³⁸

These data on Brazilian space companies are in accordance with Schmidt’s⁵ research, who analyzed a sample of 177 Brazilian space sector companies and found that the majority of them are made up of small companies. Matos,³ in turn, identified 115 companies with activities in the space sector and also verified the majority of micro and small companies, but with an increasing trend in the number of medium-sized companies. A relevant aspect, found through the research, is that these firms have differentiated human capital, professionals whose level of study is higher in relation to the general average of the country and have high average salaries and a large number of engineers and scientific personnel, revealing technical and innovative potential in the sector.^3,5

However, both researches showed that in Brazil, the development of projects, assembly, systems integration, and testing of satellites and launch vehicles are carried out by public institutions, while private companies supply parts, components, and subsystems required by these organizations. Therefore, the main investments in the space sector are still made by science and technology institutes (ICTs) such as INPE and IAE, which are the prime contractors, subcontracting the industry for the development of projects. Most companies also do not operate exclusively in the space sector, which makes it difficult to collect specific information on production, employment, export, and import of space products and components.^3,5,39

According to Vellasco and Nascimento,¹⁹ this type of interaction established between ICTs and companies has continued in Brazil, without a real and planned transition. This limits the performance of the private sector, as firms do not participate in the project definition phases, nor do they play the role of integrators of public space missions.

In contrast, Oliveira²⁰ states that the first projects carried out by INPE, in the 1980s, were used to train the institute personnel on satellite technologies. In the following projects, the technological content was gradually passed to the national industry, at the same time that new technological challenges were being incorporated, taking the contracting processes closer to public technology acquisitions.²⁰

Dewes⁴⁰ points out that low-price contracts were used by ICTs, which were harmful to the State’s role as an inductor of innovation. The author suggests the adoption of more technical criteria for the space sector hiring, considering the high risk for companies. In this regard, bidding models through Technological Orders (ETEC) could contribute toward changing the relation between public institutes and companies in the sector since AEB has already carried out initiatives in this direction.⁴¹

Another aspect between ICTs related to the space sector and Brazilian companies is that, despite high training, the companies experience financial difficulties resulting from long intervals between public projects, which leads the companies to concentrate their production in other sectors, in order to maintain economic sustainability. These problems are aggravated because the companies are small, with no financial capacity to support the increased costs and deadlines in the projects.²⁰

Currently, there are two business models in the Brazilian space sector: traditional companies, linked to contracts with ICTs and public agencies, and startups, which seek government subsidies and private partnerships to finance projects.

Visiona, a traditional company, a joint venture between Embraer and the state-owned Telebras, was created to be an integrative firm in the Brazilian space sector, focusing on the management of geostationary satellite projects. Embraer, which originated from demands of the Brazilian Air Force, is consolidated in the aeronautical segment, but it has expanded its activities to complementary areas, including the space sector through Visiona. Visiona is expected to be a key company for the satellite system supply, develop critical technologies in the sector, and support the production chain of the Brazilian space industry.⁴² In 2023, the first nanosatellite developed by the company was successfully launched from the USA.⁴²

In the satellite segment, traditional companies like Fibraforte, Orbital, Equatorial, and Opto Space³⁸ also have a close relation with public ICTs. In the rocket and launcher segment, Avibras is one of the oldest companies in Brazil. The company has been operating for 60 years and develops critical technologies in the areas of aeronautics, electronics, armored vehicles, and defense. Specifically, in the space sector, the company has a license to produce and sell the VSB-30 rocket, developed by IAE. It also manufactures suborbital rockets for basic and intermediate training in launch centers. These vehicles have the capacity to carry payloads of 5 kg to 30 km and 25 kg to 60 km, respectively, and have more than 40 successful flights. S50 Propulsor was also developed by Avibras in partnership with IAE.^38,43

Several other companies in the sector can also be mentioned, such as SIATT, which specializes in intelligent weapons, such as missiles and guided bombs, subsystems and equipment for satellites and satellite launch vehicles, among others.³⁸

Despite the various restrictions in the Brazilian space sector, national startups, focused on developing innovations and new space applications, have been emerging recently. The Brazilian Space Startups Alliance (ASB) was created in 2020 and has 13 members, such as Acrux Aerospace Technologies, Airvantis, Zenit Aerospace, and others.⁴⁴

Many of these new space companies operate initially in areas such as rockets and satellites, while others operate in less traditional sectors. Acrux, for example, seeks partnerships to build low-cost national rockets and launchers; Epic of Sun, originated at São Paulo University (USP), develops Earth monitoring nanosatellites; Quasar Space, a startup founded by two students from Aeronautics Institute of Technology (ITA), uses satellite images and AI to increase food productivity in agriculture, aquaculture, and agroforestry; All2Space aims to use space technology to improve precision agriculture; and startup Acosta Aerospace uses satellites to monitor crops and the environment in remote locations. Other areas highlighted as potential for Brazilian startups are related to the conservation and sustainable development of the Amazon and to the education area, such as the startup Ideia Space.⁴⁵

India

Space industry in India is actively involved in the development of systems and subsystems, producing components for satellites, launchers, and ground equipment since the early 1970s. Much of the public space budget was allocated to companies that took place in the program.²⁰

This relation between the industry and ISRO gave rise to a large ecosystem of suppliers, with around 400 private companies. There are large public and private integrative companies in the country, such as New Space India Limited (NSIL), Antrix, and Centum Group. NSIL, created in 2019, is an Indian state-owned company under DOS administrative control and is a commercial branch of ISRO, whose responsibility is to enable Indian companies to access space technologies, in addition to promoting the commercial exploitation of products and services. The launch of the Brazilian satellite Amazônia-1 was the first commercial mission of NSIL. The main area of commercial activity of the company is the production and launch of PSLV rockets and the small satellite launch vehicle (SSLV), in close cooperation with ISRO.²⁷

Another state-owned company is Antrix Corporation Limited (ACL), which began as a private company and was incorporated into the State in 1992. Currently, it is a public company controlled by DOS, focused on the promotion and commercial exploitation of space products, technical consultancy services, and transfer of technologies developed by ISRO.^20,46

Centum, a private company founded in 1994, has become a diversified electronics company operating in North America, Europe, the Middle East, Africa, and Asia. The company acts in different segments of the defense and space industry and is considered a leader for the Defense Research and Development Organization (DRDO) and ISRO laboratories, supplying electronic products for the main applications of missiles, radars, electronic warfare, and satellites.²⁷

Currently, India has been trying to increase its participation in the commercial market, making private companies more active in space programs. It also aims to send private payloads into the orbit at relatively low costs than its competitors. Therefore, ISRO is promoting more commercialization, both in space projects and for technology transfer and transshipment to other applications, in addition to reaching technology-intensive sectors.^7,20,25

However, trade liberation to private space companies in India is recent, carried out from 2020, through a regulatory review and the creation of a new agency to boost private sector launches. Prior to that, private companies could only act as ISRO contractors. Since then, the growth of Indian space technology startups has been quite high, leaping from 5 in 2020 to 140 in 2022. In addition, this is one of the main sectors in India for venture capital investments.⁴⁷

The country created an agency, which is independent of DOS, that authorizes space activities and the use of their facilities by private industry and nongovernmental entities, in addition to deciding the launch priority. This agency is called IN-SPACe and also promotes technology maintenance and sharing and expertise to encourage private sector participation in space activities.²⁷

In 2021, the Indian Space Association (ISpA) was also created in order to promote cooperation between space companies and government agencies to advance the space program. The association coordinates the relation between its members to provide services and products, focusing on capability and autonomy development, in addition to regulating the sector and acting as space startup’s incubator.²⁷

According to the Brazilian Ministry of Foreign Affairs, India is entering a new phase of space exploration, through the cooperation between Indian and foreign companies for satellite launching services, for example, the cooperation between ISRO and the English company OneWeb.²⁷ Furthermore, the Indian space sector has seen new opportunities in space manufacturing and production, space education and research, satellite launch services, satellite data–based monitoring, and international collaborations, among others.⁴⁸

In 2022, Indian space startups raised $120 million in new private investment, and the Indian space economy is forecast to grow to $12.8 billion by 2025.²⁵ Satellite manufacturing, launch services, ground segment, and satellite services are the key sectors for the Indian space economy. It is also considered that the private space industry, including micro-, small-, and medium-sized companies, has the capacity to meet international demand through low-cost and reliable space technology.⁴⁸

In relation to companies that operate in the new space model, Skyroot and Pixxel can be mentioned, among others. Skyroot was created in 2018 by former ISRO employees who aimed to develop rockets at one-fifth the costs of traditional industry. Skyroot was the first private company to successfully develop and launch a rocket, having the support of ISRO and INSPACe. Vikram-S rocket was built with carbon composite structures and 3D-printed components for launching small satellites. Compared to SpaceX, the company focuses on launching smaller payloads, while the American company carries out larger and lower cost launches.⁴⁸

Pixxel startup specializes in satellite data collection and has developed an image capture system to detect patterns on the Earth’s surface that are beyond the reach of common color vision. The company also produces satellites and aims to create a constellation of 30 satellites. Pixxel raised, via venture capital market, US$5 million in 2021 to launch satellites into space using the Russian Soyuz rocket. The company headquarters is in Bangalore and has an office in Los Angeles, as well as a contract with the Pentagon⁴⁸ agency.

Dhruva Space, Bharti Airtel, Mapmyindia, Walchandnagar Industries, Ananth Technology Limited, Godrej, Hughes India, Azista-BST Aerospace Private Limited, BEL, and Maxar India⁴⁸ are also noteworthy.

FINAL CONSIDERATIONS

In this article, the insertion of emerging countries in the space industry scenario, conventionally called new space, was analyzed through experiences in Argentina, Brazil, and India. The three countries have different space strategies and results, although they have common structural characteristics, such as social and economic challenges.

Three different stages of space production can clearly be identified, which range from budgetary and organizational factors to geopolitical issues. Brazil and Argentina have a regional environment with relative stability and absence of interstate conflicts, while India deals with historical rivalries. However, this research aimed to identify the space achievements of the countries, focusing on the technological and industrial aspects.

It can be observed that the Brazilian Space Program is less advanced than Argentina and India’s, although Brazil is already capable of building the Earth’s observation satellites locally. Argentina, in turn, has made significant progress in the geostationary satellite segment and is moving to develop national launchers. India has a mature space program and is currently considered a space power and one of the few countries with the autonomy to build and launch satellites, using its launchers, from its own territory.

In relation to the stage of the space industry in the three countries, it is clear that in Brazil the majority of private space companies are suppliers to national public institutes and that, although there is reduced institutional support, there is already a niche of space startups in consolidation. In these companies, there is technical and innovative potential, with emphasis on environmental and agricultural monitoring services.

In Argentina, there are large state-owned integrator companies, private SMEs, and promising startups, with a relevant international market and potential in both the satellite and launcher sectors. Argentina has many “deep tech” startups, which is surprising when compared to the economic potential between Brazil and Argentina.

India, in turn, has an advanced space industry, with national and international operations, large state-owned companies such as Antrix and New Space India Limited, and a vast ecosystem of private companies. Furthermore, in 2020, regulatory changes expanded the possibilities for companies specialized in commercial applications, inserting the country into new space and enabling, in <3 years, the number of Indian space startups to leap from 5 to 140. This has become an attractive sector for receiving risk capital investments.

A brief analysis of the space structure of these countries reveals that there is no dichotomy between public and private investment; on the contrary, public investment has been a catalyst for the private space activities, especially in India.

The most successful space programs are those linked to explicit government S&T policies and space projects connected to national development via stable public investments. In India and Argentina, state-owned space companies did not prevent the emergence of startups; on the contrary, there may have been a convergence between public and private objectives since the State is the promoter of new space.

An efficient governance structure and budgetary stability for space projects, as well as a clear definition of the sector priorities, are necessary to advance space programs in Brazil. The establishment of partnerships between companies in the Brazilian space sector and Argentine and Indian companies can also be considered strategic, especially for sharing projects and acquiring technologies hitherto not mastered by Brazil. That could allow cost reduction, human resources qualification, and disparities reduction that still prevail in the space field.

Footnotes

AUTHOR DISCLOSURE STATEMENT

No competing financial interests exist.

FUNDING INFORMATION

No funding was received for this article.

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