India Defense Equipment Market Segmented By Arm Forces (Army, Navy, Air Force), By Mode Type (Domestic, Import, Export), By Key Sectors (Military Fixed-Wing Aircrafts, Missiles and Missile Defense Systems, Electronic Warfare, Underwater Warfare Systems, Military Warheads (Land Vehicles, Radar, UAV, UGV), Weapons & Ammunition, Others), By Region, Competition, Forecast and Opportunities 2029
Published Date: January - 2025 | Publisher: MIR | No of Pages: 280 | Industry: Aerospace and Defense | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Defense Equipment Market Segmented By Arm Forces (Army, Navy, Air Force), By Mode Type (Domestic, Import, Export), By Key Sectors (Military Fixed-Wing Aircrafts, Missiles and Missile Defense Systems, Electronic Warfare, Underwater Warfare Systems, Military Warheads (Land Vehicles, Radar, UAV, UGV), Weapons & Ammunition, Others), By Region, Competition, Forecast and Opportunities 2029
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 18.23 Billion |
| CAGR (2023-2029) | 4.56% |
| Fastest Growing Segment | Domestic |
| Largest Market | North |
India defense equipment market is anticipated to grow at a great CAGR in the forecast period
India Defense Equipment Market
Every country's defense industry serves as a foundation for its security.
India Defense Equipment Market
India's defense equipment business is a sector that is crucial from the standpoint of strategic planning.
The ongoing territorial conflicts between India and Pakistan and China’s control over the northern state of Kashmir and the northeastern state of Arunachal Pradesh, respectively, have boosted the demand for defense equipment market in India. India has been one of the biggest importers of defense gear over the past five years to get a technological edge over rival nations such as China and Pakistan. The government has made a few steps to promote "Make in India" operations through policy support programs to modernize its armed forces and lessen reliance on external sources for defense equipment purchases. Overall, this results in increasing manufacturing and sales within India which further increases the sales of India defense equipment market in forecast period.
With increased concerns about national security, demand is anticipated to accelerate. A total of 366 companies currently active in the defense sector received 595 industrial licenses as of October 2022. Furthermore, due to cooperative efforts, India today exports defense to over 75 countries, a 334% increase over the previous five years. Overall, the number of defense equipment produced in India and the market for India defense equipment market are both expanding at considerable rate. India aims to sell equipment worth USD 15 billion by 2026. Furthermore, India had the third largest defense budget in the world as of 2023. To encourage domestic manufacture, the Indian government opened the defense industry for private sector’s participation.
India Defense Equipment Market
A major problem for defense equipment manufacturers is the availability of raw materials and lack of manufacturing technology in the defense equipment sector. Despite continued push to simplify business in India, the requirements and number of permits to set up a defense production sector are still below the global standards, causing delays in the delivery of defense equipment, which further slows the growth rate of the Indian defense equipment market. In addition, the late payments, lack of bureaucratic enthusiasm, and major part of the budget funds often go unused. All this factors poses an obstacle to the development of the defense industry. Moreover, the defense equipment market across India is expected to be restrained by the lack of technology transfer from other major players globally. However, the sector is expected to gain momentum in the coming years through acceleration of value chain processes and development of advanced technologies.
India Defense Equipment Market
India progressively faces the prospect of a two-front war and has contributed impressive time in analyzing the following engagement of fighting. The country has used the past decade to continuously close operational gaps, develop a high degree of integration and synergy among its armed forces, and carry out substantially limited conventional warfare strategies against adversaries. To further revitalize the market, Indian companies are increasingly shifting to domestic manufacturing facilities, which overall leads to the higher production and sales of defense equipment’s. Additionally, as part of the Atmanirbhar Bharat Initiative, four Positive Indigenization Lists were announced by the Ministry of Defense, containing 411 products manufactured domestically for the defense sector rather than sourced through imports. With many initiatives and support from the defense industry, it is expected to grow significantly in the coming years.
India Defense Equipment Market
Demand for the defense equipment in India is expected to increase as the defense industry develops and creates opportunities for professional service providers in the market. In addition, the Indian government has changed its position on maintaining a monopoly in defense production. The government now welcomes private sector involvement in this area and favors domestic procurement to accelerate the transition to advanced technologies and increase defense exports. Additionally, the government has established two defense industry corridors in Uttar Pradesh and Tamil Nadu for the development of the defense industry, offering both major and start-ups the opportunity to expand the Indian defense.
Recent Developments
- In
2022, Hindustan Aeronautics Limited (HAL) signed a joint development and
production contract for the long-range dual-band infrared search and track
system "IRST" for Su-30 MKI with Bharat Electronics Limited
(BEL).
- The
Hindustan Trainer Aircraft (HTT-40) will be powered by 88 TPE331-12B
engines/kits that HAL will supply and produce under a 2022 agreement which
is worth over USD 100 million with Honeywell International, Inc.
- Bharat
Electronics Limited (BEL) and Emjay Control Systems Pvt Ltd signed a Memorandum
of Understanding (MoU) in 2022 to collaborate on manufacturing and expanding
the market for electro-mechanical bollards used in various defense equipment.
- Bharat
Electronics Limited (BEL), the Ministry of Defence (MoD), and Government of
India, inked ten contracts totaling Rs. 5,498 crores in 2023 for the Indian
armed forces.
Company Insights
- In
2023, during the ongoing Aero India 2023, HAL acquired ITSO authorization from
the Directorate General of Civil Aviation (DGCA) for its domestically developed
Cockpit Voice Recorder (CVR) and Flight Data Recorder (FDR).
- In
2023, a contract between Hindustan Aeronautics Limited (HAL) and the
Argentinian Air Force (AAF) for the provision of spare parts and engine repair
for vintage two-ton class helicopters was signed.
- Bharat
Electronics Ltd (BEL) and Globals ITES Private Ltd. have signed a
Memorandum of Understanding (MoU) for cooperation in technological development,
co-creation and co-innovation, joint marketing, and sales, and cyberwarfare and
cyber defense systems at Aero India 2023.
Market Segmentation
The India defense equipment market is segmented based on arm forces, mode, key sectors, company, and region. Based on arm forces, the market is divided into army, navy, and air force. Based on mode type, it is further segmented into domestic, import, and export. Based on key sectors, the market is divided into military fixed-wing aircrafts, missiles and missile defense systems, electronic warfare, underwater warfare systems, military warheads (land vehicles, radar, UAV, UGV), weapons & ammunition, and others. Further, the market is also divided into regions, mainly into North, West, South and East.
Company Profiles
Some of the major players which are leading in India defense equipment market are Hindustan Aeronautics Limited (HAL), Defense Research and Development Organisation (DRDO), Bharat Electronics Limited (BEL), Bharat Forge, Electronics Corporation of India (ECIL), Mahindra Defence System ltd., Larsen & Toubro (L&T), Bharat Dynamics, Tata Advanced Systems, and Boeing India.
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historical
Years |
2018 – 2021 |
|
Estimated Year |
2023 |
|
Forecast Period |
2024 – 2028 |
|
Quantitative Units |
Revenue in USD Billion and CAGR for 2018-2022 and
2023-2028 |
|
Report Coverage |
Revenue forecast, company
share, competitive landscape, growth factors, and trends |
|
Segments Covered |
Arm Forces Mode Type Key sectors Region Company |
|
Key Companies
Profiled |
Hindustan
Aeronautics Limited (HAL), Defense Research and Development Organisation
(DRDO), Bharat Electronics Limited (BEL), Bharat Forge, Electronics
Corporation of India (ECIL), Mahindra Defence System ltd., Larsen &
Toubro (L&T), Bharat Dynamics, Tata Advanced Systems, Boeing India |
|
Customization Scope |
10% free report customization with purchase.
Addition or alteration to country, regional & segment scope. |
|
Pricing and
Purchase Options |
Avail customized purchase
options to meet your exact research needs. Explore purchase options |
|
Delivery Format |
PDF and Excel through Email (We can also provide
the editable version of the report in PPT/pdf format on special request) |
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