Indian Aerospace and Defence Market Size Likely to Grow at a CAGR of 6.99% By 2033

Indian Aerospace and Defence Market size was valued at USD 27.1 Billion in 2024 and is expected to reach USD 54.4 Billion by 2033, at a CAGR of 6.99% during the forecast period 2024 – 2033.

Indian Aerospace and Defence Market: Overview

The Indian aerospace and defense market presents an attractive and significant opportunity for Indian and foreign companies across the supply chain. India’s defense industry, which has grown substantially in the last ten years, is expected to grow exponentially over the next decade.

Growth in domestic demand should continue to be robust, the government has a clear vision for the indigenous defense industry, the country’s attractiveness to global defense companies is rising due to shrinking global defense budgets, and there is tremendous export potential in engineering services and component sourcing.

Various factors increase in the defense budget of India coupled with increasing governmental support for indigenous defense manufacturing is expected to drive the market growth during the forecast period.

Various factors such as the high cost of newer technologies, shrinking budgets, rising operational costs, infrastructure management, lack of high end technologies, and lengthy and time-consuming process are creating challenges for India Aerospace and Defense Market.

Supportive government policies such as Make in India Initiative, Production Linked Incentive Scheme, Defense Testing Infrastructure Scheme are boosting the production and sell of aerospace and defense equipment’s in India.

India Aerospace and Defense market is segmented by security, service, application and region. By Security, India aerospace and defense market is segmented into cybersecurity, homeland security, border security and others. Among all of these, border security segment held highest market share in 2023 and is expected to keep its dominance during the forecast period owing to growing border disputes and geopolitical conflicts.

By service, India aerospace and defense market is segmented into Maintenance, Repair & Operations (MRO), Modelling, Training & Simulation (MTS) and Logistics. Among all of these services, Modelling, Training & Simulation (MTS) service held highest market share in 2023 and is expected to keep its dominance during the forecast period.

By Application, India aerospace and defense market is segmented into land, air, sea. Among all of these segments, Air application segment held highest market share in 2023 and is expected to keep its dominance during the forecast period.

By Region, North India is expected to hold significant market share in India Aerospace and Defense market during the forecast period. States like Uttar Pradesh, Delhi, Punjab, Haryana, Uttrakhand, J&K are playing crucial role in the market growth of this region.

Report Scope

Custom Market Insights has comprehensively analyzed India Aerospace and Defense market. The driving forces, restraints, challenges, opportunities, key trends have been explained in depth to depict in depth scenario of market. Segment wise market size and market share during the forecast period is duly addressed to portray the probable picture of this India Aerospace and Defense industry.

The competitive landscape includes of key innovators, after market service providers, market giants as well as niche players are studied and analyzed extensively with respect to their strengths, weaknesses as well as value addition prospects. In addition, this report covers key players profiling, market shares, mergers and acquisitions, consequent market fragmentation, new trends and dynamics in partnerships.

List of the prominent players in the Indian Aerospace and Defence Market:

• Bharat Forge companies in Ordinance Factory Board
• Bharat Electronics Limited
• Bharat Dynamics Limited
• Hindustan Aeronautics Ltd
• Mahindra
• Reliance Defense
• Adani Aerospace and Defense
• Tata Power Strategic Engineering Division
• Tata Advanced Systems Limited
• Northrop Grumman Corporation
• Thales Group
• Lockheed Martin Corporation
• Honeywell international, Inc.
• BAE Systems
• The Boeing Company
• United Aircraft Corp
• Dassualt Aviation SA
• Others

These key players are adopting various organic and inorganic growth strategies such as merger & acquisitions, joint ventures, collaborations, expansion, strategic alliances, new product launches, etc. to enhance their product portfolio and business operations.

The Indian Aerospace and Defence Market is segmented as follows:

By Security

• Cybersecurity
• Homeland Security
• Border Security
• Others

By Service

• Maintenance
• Repair & Operations (MRO)
• Modelling
• Training & Simulation (MTS)
• Logistics

By Application

• Land
  • Small Arms
  • Tanks
  • Armored Fighting Vehicles
  • Artillery
  • Mine Warfare
  • Communication Equipment
• Air
  • Aircraft
  • Helicopters
  • Missiles
  • Amphibious Warfare
  • Communication Equipment
• Sea
  • Submarines
  • Destroyers
  • Frigates
  • Corvettes
  • Communication Equipment
  • Mine Warfare