India Aviation Defense & Space Market Size
| Study Period: | 2018 - 2028 |
| CAGR: | > 6 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Aviation Defense & Space Market Analysis
The Indian aviation, defense, and space market is anticipated to record a CAGR of over 6% during the forecast period 2022-2027.
India’s stand-off with China during the COVID-19 pandemic-resultant lockdown forced the government to take quick measures to modernize its military equipment while also reducing its dependence on imports, thus, supporting the regional defense manufacturing industry.
The increasing GDP and the consequent growth in the region’s defense spending are expected to increase investments for the development and procurement of defense munitions during the forecast period. The rise in individuals' per capita income and expenditure capabilities will positively impact the civil aviation market share.
The procurement of over 118 combat jets and close to 100 helicopters by the Indian Air Force during the study period is expected to be a major reason for the Air Force accounting for the highest market share.
The increasing national security concerns and border threats may drive demand in the defense sector during the forecast period. The current government mandate of reinvesting 70% of the military project cost in India has forced a lot of players to form local JVs and develop local industrial and manufacturing capabilities to prepare for larger future combat vehicle procurement contracts, which are expected to be awarded over the coming years.
India Aviation Defense & Space Industry Segmentation
The Indian aviation, defense, and space market is segmented by Air Force (combat and non-combat aircraft (fixed-wing and helicopter) UAVs, weapons and munitions, and MRO), Army (armored vehicles, helicopters, and UAVs, weapons and munitions, and MRO), Navy (naval vessels, combat and non-combat aircraft, and UAVs, weapons and munitions, and MRO), space (satellite launch vehicles), and civil aviation (commercial aircraft and business jet-MRO). The report also provides an in-depth analysis of the space and aviation sector in India, along with the details of ongoing projects. The market size and forecast are provided by value (USD billion).
| Air Force | |
| Combat and Non-combat Aircraft (Fixed Wing and Helicopter) and UAVs | |
| Weapons and Munitions | |
| MRO |
| Army | |
| Armored Vehicles, Helicopters, and UAVs | |
| Weapons and Munitions | |
| MRO |
| Navy | |
| Naval Vessels, Combat and Non-combat Aircraft, and UAVs | |
| Weapons and Munitions | |
| MRO |
India Aviation Defense & Space Market Trends
This section covers the major market trends shaping the India Aviation Defense & Space Market according to our research experts:
Combat and Non-combat Aircraft Segment to Register Highest Growth over Next Five Years
The increased focus on the modernization of aircraft capabilities with expected deliveries of Dassault Rafale B/C, Ilyushin Il-76 (A50E) (AEW), HAL Tejas LCA Mk 1, Dornier 228, HAL Dhruv ALH/Rudra, and HAL Light Combat Helicopter within the forecast period is expected to have a notable impact on business dynamics. The increasing efforts of India toward achieving self-reliance in terms of manufacturing and operations will create significant opportunities for regional vendors. The phasing out of Mig 29 in early 2000, followed by Mirage and another 110 Jaguar fighters between 2024 and 2030, has built pressure for the acquisition of new fighter jets. The request for information (RFI) generated by the Indian Air Force (IAF) in 2019 was taken to the next phase in October 2021, with a contract value of USD 18 billion and top contenders being Lockheed Martin's F-21, Boeing's F/A-18, Dassault Aviation's Rafale, Eurofighter Typhoon, Mig 35, and Saab's Gripen. The contract will be carried out under the government’s Make in India initiative. The country is also working on an Advanced Medium Combat Aircraft (AMCA) aircraft project with a budget of USD 5 billion. Under this project, India plans to develop fifth-generation medium-weight deep penetration fighter jets and technologies that can be integrated into existing platforms. Such developments, along with several other plans to improve the country's armed forces, may help the segment’s growth in the years to come.
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Introduction of Green Channel Status Policy (GCS) to Promote and Encourage Investments from the Private Sector in Defense
The Green Channel Status Policy (GCS) was introduced in 2017 to streamline long-term defense manufacturing contracts. The policy requires companies to meet certain criteria such as the company’s annual revenue, manufacturing capabilities, and operating profit. If the company meets the standards set by the government, it is offered a green channel status through which it directly becomes eligible for several contracts by the Ministry of Defense (MoD). The organizations will receive a deemed registration status and a waiver of pre-dispatch inspection and acceptance of stores under supplier's guarantee/warranty against the contract concluded by various procurement agencies under the Ministry of Defense. There are four categories under which organizations can avail the green channel status. At the Aero India 2021 event organized by the Indian MoD, a total of 201 memorandum of understandings (MoUs), product launches, and technology transfers were concluded. By the end of 2020, the green channel status was granted to 14 firms. Such initiatives have smoothened the process of the MoD offering contracts to private players, thus, allowing more players to enter the defense market.
India Aviation Defense & Space Industry Overview
The concentration of players in the Indian aviation, defense, and space market is medium. The prominent players in the market are Hindustan Aeronautics Limited (HAL), Defense Research and Development Organization (DRDO), Ordnance Factory Board (OFB), Bharat Electronics Limited (BEL), Goa Shipyard Limited (GSL), Hinduja Group, Kalyani Group, Tata Sons Private Limited, Larsen & Toubro, Mahindra & Mahindra Ltd, Rafael Advanced Defense Systems Ltd, Israel Aerospace Industries, Rostec, The Boeing Company, Air Works India (Engineering) Pvt. Ltd, and Air India Engineering Services Limited. Government investments in state-owned companies for the procurement and development of advanced defense armaments are helping regional players increase their presence in the market. Partnerships between players in various fields, like propulsion systems, warhead designs, and body designs, are likely to help companies develop advanced missile systems as they share technologies with each other.
India Aviation Defense & Space Market Leaders
Hindustan Aeronautics Limited (HAL)
Defense Research & Development Organisation
Bharat Electronics Limited (BEL)
Goa Shipyard Limited
Ashok Leyland (Hinduja Group)
*Disclaimer: Major Players sorted in no particular order
India Aviation Defense & Space Market News
· In May 2021, Hindustan Aeronautics Limited (HAL) and Rolls-Royce signed an MoU to establish packaging, installation, marketing, and services support for Rolls-Royce MT30 marine engines in India.
· In April 2021, Ashok Leyland announced that it supplied the first batch of light, bulletproof vehicles to the IAF. These vehicles are an adopted version of Lockheed Martin’s Common Vehicle Next Gen (CVNG), and they were developed under the ‘Transfer of Technology’ agreement.
· In March 2021, Goa Shipyard Limited (GSL) announced that it had delivered a 105 meter offshore patrol vessel, ICGS Sajag, to the Indian Coast Guard. The vessel is fitted with modern and advanced machinery and computerized control systems and is one of the most advanced patrol vessels in service with the Indian Coast Guard.
· In February 2021, HAL delivered three advanced light helicopters (ALH Mk III) to the Indian Navy and two ALHs to the Indian Coast Guard as part of its 16 ALHs contract, at the Aero India 2021.
India Aviation Defense & Space Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size and Forecast by Value - USD billion, 2018 - 2031)
5.1 Air Force
5.1.1 Combat and Non-combat Aircraft (Fixed Wing and Helicopter) and UAVs
5.1.2 Weapons and Munitions
5.1.3 MRO
5.2 Army
5.2.1 Armored Vehicles, Helicopters, and UAVs
5.2.2 Weapons and Munitions
5.2.3 MRO
5.3 Navy
5.3.1 Naval Vessels, Combat and Non-combat Aircraft, and UAVs
5.3.2 Weapons and Munitions
5.3.3 MRO
5.4 Space (Satellite Launch Vehicles)
5.5 Civil Aviation (Commercial Aircraft and Business Jet-MRO).
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Hindustan Aeronautics Limited (HAL)
6.1.2 Defense Research and Development Organization (DRDO)
6.1.3 Ordnance Factory Board (OFB)
6.1.4 Bharat Electronics Limited (BEL)
6.1.5 Goa Shipyard Limited (GSL)
6.1.6 Hinduja Group
6.1.7 Kalyani Group
6.1.8 Tata Sons Private Limited
6.1.9 Larsen & Toubro
6.1.10 Mahindra & Mahindra Ltd
6.1.11 Rafael Advanced Defense Systems Ltd
6.1.12 Israel Aerospace Industries
6.1.13 Rostec
6.1.14 The Boeing Company
6.1.15 Air Works India (Engineering) Pvt. Ltd
6.1.16 Air India Engineering Services Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Aviation Defense & Space Market Research FAQs
What is the study period of this market?
The India Aviation, Defense, and Space Market is studied from 2018 - 2028.
What is the growth rate of India Aviation, Defense, and Space Market?
The India Aviation, Defense, and Space Market is growing at a CAGR of >6% over the next 5 years.
Who are the key players in India Aviation, Defense, and Space Market?
Hindustan Aeronautics Limited (HAL), Defense Research & Development Organisation , Bharat Electronics Limited (BEL), Goa Shipyard Limited, Ashok Leyland (Hinduja Group) are the major companies operating in India Aviation, Defense, and Space Market.
India Aviation, Defense, and Space Industry Report
Statistics for the 2023 India Aviation, Defense, and Space market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Aviation, Defense, and Space analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
