HomeAnalysisIsrael, Space Tech Industry Witnesses Substantial Growth

Israel, Space Tech Industry Witnesses Substantial Growth

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The space tech industry in Israel is witnessing substantial growth, with $314m in investments in 2023, as reported in the recent startup mapping conducted by Earth & Beyond Ventures, an early stage VC fund focused on investing in Israeli Deep Tech Innovations from concept to creation, and Deloitte Israel.

The global space industry is undergoing a significant transformation, transitioning from ‘Traditional Space’ to ‘New Space.’ This evolution is driven by various trends that are lowering the entry barriers and making the space industry more accessible for a broad range of players, from tech giants to new startups.  This is opening new business opportunities for startups and tech companies. Israel, with its innovative startup ecosystem, is positioned to capitalize on these changes and make significant contributions to the New Space era.

The mapping by Earth & Beyond Ventures (EBV) and Deloitte Israel provides an in-depth analysis of 105 Israeli startups, showcasing their contributions across various Space and conventional Earth tech sectors. These startups are bridging the gap between space tech and practical applications on Earth and also uncover the untapped potential of numerous Israeli startups that could revolutionize the industry.

In the mapping, the startups are categorized into eight key space sectors, each addressing an aspect of space application. These sectors include Space Infrastructure (physical and technological systems or components necessary to support space exploration, research, and commercial activities), Communications & Navigation (technologies in satellites and spacecraft for data transmission, signals, location determination, and movement guidance), and Earth Observation (using remote sensors to collect and analyze Earth’s data for scientific, environmental, and commercial purposes).

In addition to categorizing startups into various space sectors, the map also highlights each startup’s main Earth (meaning conventional) industry. This mapping reveals that these startups operate across 12 diverse industries, including Climate Tech, Agri Tech, and Smart Mobility. This dual application on both Space and Earth industries reflects the versatility and wide-ranging impact of the Israeli space-tech sector, illustrating how these innovative startups are bridging the gap between space technology and practical applications on earth. The “Dual Application” concept in Israeli startups, involves developing technologies that cater to Earth-based industries often using space-related technology and data.

Idan Adler, Head of R&D and Innovation Center, Deloitte Israel: “The entrance of private companies into the Space industry, coupled with sustained public sector investments, paves the way for unprecedented opportunities that were formerly unattainable. In our opinion, space has the potential to become a new business dimension for existing ventures from different sectors, and it may give Israeli companies a significant competitive advantage.

Noga Yaari, VP Ecosystem Development of Earth & Beyond Ventures: “Much like how the Israel market has not a car manufacturer, yet still excels as a leading global innovation hub for automotive components, we envision Israeli startups forming strategic partnerships with space companies or the space divisions of tech giants. These technologies could also become the very components that attract investment or acquisition from foreign space-related enterprises. It’s about seizing the strategic opportunity to not only excel in a specific technology but also to harness Israel’s strength in developing a wide array of foundational technology components.

L to R: Idan Adler and Noga Yaari
L to R: Idan Adler and Noga Yaari

VCWire

15/02/2024