The Rise of Deep Tech
“Deep tech is driving transformative innovation, solving global challenges, and unlocking new opportunities across industries.”
Deep technology, or deep tech, is transforming the global tech landscape with groundbreaking innovations that go beyond incremental advancaes. These technologies, grounded in advanced scientific research, have the potential to address some of the world’s most critical challenges. By leveraging new technologies and data, deep tech is not only improving lives and businesses but also creating new economic opportunities and providing high-quality, affordable services to people across all socio-economic levels, including those at the ‘bottom of the pyramid.
From Research Labs to Real-World Applications
Some Key Metrics Include: –
• 3,600 + deep tech startups in India in 2024 with a CAGR of 40% and market valuation of $694.6 million
• Projected CAGR of the global deep tech market (2024 to 2034) is 18.7%
Deep tech companies run in various sectors, including quantum computing, AI, healthcare, defence, climate tech, green energy, aerospace, biotechnology, and mobility.
The Indian government is actively supporting the deep tech sector by allocating $11.76 billion for research and development and $117.65 million for a venture capital fund dedicated to the space economy in the union budget 2024.
Additionally, the National Deep Tech Startup Policy (NDTSP) aims to foster innovation, enhance R&D, streamline intellectual property processes, and increase funding accessibility. This policy is designed to strengthen India’s deep tech ecosystem, stimulate economic growth, and bolster global competitiveness.
Even the G7 CR launched a provision of 6-month deep tech training in the Atmanirbhar Bharat Initiative where comprehensive training will be conducted on cloud technologies for six months.
India’s deep tech sector boasts impressive startups with leaders such as Cogknit Semantics, Cognitifai, Streamoid Technologies, VisionBot, and Agara driving significant advancements. These startups are pioneering solutions that leverage AI, machine learning, and robotics to tackle complex industry challenges. For instance, Skyroot Aerospace and ideaForge are making strides with innovative technologies that improve efficiency in agriculture and healthcare. This surge in cutting-edge applications reflects a vibrant investment climate and highlights the potential for deep tech to make substantial impacts across multiple sectors.
Initiatives like the Clean Energy Research Initiative and the Atal Innovation Mission , along with corporate investments, are playing a crucial role in supporting and growing this sector. The National Research Foundation is further enhancing these efforts by providing critical funding and fostering collaboration across academia, industry, and government, accelerating research, and translating breakthroughs into practical applications.
Deep tech is having a transformative impact across several industries. For example: AI applications in financial services are expected to generate up to $1 trillion annually in value, driving significant advancements in the sector. Innovations in robotics and drones are improving logistics, transportation, and delivery systems.
Three key factors are driving Deep Tech’s growth. First, the expansion of AI applications, such as AI semiconductors and enterprise solutions in defence and finance, is attracting significant VC interest. Second, with fewer IPOs , large tech companies are increasingly acquiring startups to enhance their product offerings rather than developing innovative solutions in-house. Third, AI is transforming healthcare by improving diagnostics and personalized treatments, leading to better patient outcomes and cost savings.
India is collaborating with global stakeholders to promote deep tech innovation through alliances such as the U.S-India Artificial Intelligence Initiative, the UK-India Tech Alliance, and the India-Russia Joint Technology Assessment & Accelerated Commercialization Programme . These partnerships are crucial for advancing technologies like AI, quantum computing, and clean energy, and they offer significant opportunities for startups in both regions.
India’s strategic position as a growing tech hub in the Indo-Pacific region, combined with its strong governmental support and international collaborations, positions it well to capitalize on these trends and drive future innovations.
Deep tech fields are rapidly maturing, moving from research stages to practical market applications. These emerging technologies will bring about a new kind of industrial revolution, substantially changing how we live and work the way coal-fired steam engines or personal computers did over the centuries. Deep tech is headed toward a future of groundbreaking advancements that will reshape industries, solve complex global challenges and offer new possibilities for the benefit of humanity.
Looking ahead, major trends in Deep tech include progress in AI, quantum computing, space exploration, computational biology, and robotics. AI will advance with new architectures and algorithms focused on explainability and privacy. Computing will expand with developments in quantum computing, wearables, ambient computing, IoT, and cloud technology. Space tech will work on lowering satellite development costs for applications such as space manufacturing and asteroid mining. Computational biology will use new technologies to improve drug discovery and research efficiency.
Opportunities surely await in sectors such as space, AI and robotics, mobility and infrastructure, finance, drug discovery, information technology, and defence.
Therefore, deep tech is a frontier of innovation with the potential to transform industries and address global challenges. India, with its growing startup ecosystem, government initiatives, and international collaborations, is well-positioned to play a leading role in this dynamic field. As we move forward, the continued evolution of deep tech will offer new possibilities and opportunities for advancement, benefiting both the Indian economy and the global community.
