Report Overview

India Defense Market – Industry Trends & Forecast Report, 2030

The India Defense Market size was estimated at USD 23.13 billion in 2023. During the forecast period between 2024 and 2030, the India Defense Market size is projected to grow at a CAGR of 7.98% reaching a value of USD 29.27 billion by 2030. Prominent drivers of the market include the government’s increasing number of supportive initiatives emphasizing modernization and self-reliance in defense. These efforts, including the "Make in India" campaign, prioritize indigenous production, research and development, fostering collaborations with both domestic and international defense entities to bolster capabilities and reduce the country’s reliance on imports. Other key factors driving the market include the pressing need for military equipment due to ongoing border disputes with neighboring countries like China, Pakistan, and Bangladesh. Tensions along the Line of Actual Control (LAC) with China and similar conflicts with Pakistan have underscored the necessity for large-caliber munitions. India's significant defense expenditure, as highlighted by the Stockholm International Peace Research Institute (SIPRI) 2022 report, positions it as the world's fourth-largest defense spender, allocating USD 81.4 billion. Sustained growth in India's defense budget is crucial for the market expansion. The Government of India's allocation for purchasing new weapons and platforms in 2023-2024 underscores the country’s commitment. Furthermore, earmarking funds for defense-related R&D align with the vision of "Atmanirbhar Bharat," or self-reliant India, promoting indigenous defense manufacturing. These strategic investments are poised to further propel the India Defense Market forward during the period in analysis.

Defense – Overview

The defense industry is witnessing a surge in technological advancements, strategic partnerships, and a heightened focus on cybersecurity. Nations are increasingly prioritizing investments in state-of-the-art technologies, including autonomous systems and advanced weaponry, recognizing their significance. Moreover, the escalating demand for cross-domain expertise and interoperability is reshaping procurement strategies and fostering a competitive environment in the market.

India Defense Market

Growth Drivers

Rising Cancer Burden

Rising Defense Expenditure

The unveiling of India's INR 6.21-lakh crore (approximately USD 74.52 billion) annual Defense budget underscores a significant escalation in defense expenditure. With a dual emphasis on fostering self-reliance and bolstering exports, the budget signals a strategic shift in India's defense priorities. This substantial allocation reflects a commitment to modernizing the nation's defense capabilities and enhancing its strategic position on the global stage. The move not only addresses the imperative for self-sufficiency but also aims to leverage defense capabilities to bolster economic growth through export opportunities.

Focus on Self-Reliance

Self-reliance in defense stands as a foundational principle of India's defense production policy, reinforced by the recent "ATMA NIRBHAR BHARAT" initiative. This concerted effort underscores a dedicated push toward achieving self-sufficiency. Over time, transparent procurement procedures, production policies, and initiatives like 'Make in India' have significantly bolstered the demand for indigenous defense products. The Indian Defense Industry has adapted, offering a diversified product mix to meet the armed forces' requirements. Moreover, recent successes in exports indicate India's emergence as a potential defense manufacturing hub. However, challenges persist, notably in the form of multiple registration processes for defense manufacturers and suppliers. Streamlining these processes is essential to further solidify India's journey towards self-reliance in defense.

Challenges

Bureaucratic Hurdles

Bureaucratic hurdles present a significant restraint to the growth of the India Defense Market. Cumbersome administrative processes, complex regulations, and lengthy procurement procedures may impede the timely acquisition of essential defense resources. These hurdles not only slow down the pace of modernization but also inhibit the efficient utilization of defense budgets. Streamlining bureaucratic processes and fostering a more agile decision-making framework are imperative to unlock the market's full potential and meet the nation's evolving defense needs swiftly and effectively.

Impact of Escalating Geopolitical Tensions on India Defense Market

Geopolitical tensions can have a multifaceted impact on the India Defense Market by fueling increased defense spending and prioritizing indigenous defense capabilities. India may allocate more resources towards modernizing its armed forces, acquiring advanced weaponry, and enhancing domestic defense production capabilities. Additionally, heightened tensions may stimulate partnerships with international defense suppliers, fostering technology transfer and collaboration. However, economic strains due to heightened security concerns could constrain overall defense budgets, necessitating strategic prioritization and efficient resource allocation to meet evolving security challenges while balancing fiscal constraints.

India Defense Market

Segmental Coverage

 India Defense Market – By Armed Forces

By armed forces, the India Defense Market is divided into Indian Army, Indian Navy, and Indian Air Force segments. The Indian Air Force segment holds the highest share in the India Defense Market by armed forces. The emphasis on modernizing aircraft capabilities, coupled with anticipated deliveries of various aircraft, such as the Dassault Rafale, Ilyushin Il-76 (A50E) (AEW), HAL Tejas LCA Mk1, Dornier 228, HAL Dhruv ALH/Rudra, and HAL Light Combat Helicopter within the projected timeframe, is expected to propel growth in this sector. India's burgeoning pursuit of self-reliance in manufacturing and operational domains presents substantial prospects for local suppliers. Notably, India's involvement in the AMCA project exemplifies this trajectory, with the first flight expected between 2025 and 2026 and full-scale production potentially achievable by 2030.

India Defense Market – By Product Type

Based on product type, the India Defense Market is divided into Fixed Wing Aircraft (fighter jets, transport aircraft); Rotorcraft (helicopters); Ground Vehicles (tanks, armored fighting vehicles); Naval Vessels (aircraft carriers, submarines, destroyers); Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Systems; Weapons & Ammunition; Protection & Training Equipment; and Unmanned Aerial Vehicles (UAVs) segments. The naval vessels segment holds the highest share in the India Defense Market by product type. The Indian Navy, a pivotal aspect of the nation's defense, safeguards maritime interests with a diverse fleet. Its core mission is protecting maritime borders, detecting threats, and maintaining security in both peace and war. Rising defense spending, exemplified by a notable increase in 2022, spurs demand. With 181 surface vessels and 18 submarines, the Navy pursues innovations and incorporating unmanned vessels and underwater systems. The recent commissioning of INS Sandhayak underscores this commitment, enhancing hydrographic survey capabilities. About 67 ships are under construction as part of the Make in India initiative, signaling sustained growth in the naval vessel segment.

India Defense Market – By Supplier

On the basis of supplier, the India Defense Market is split into Domestic Companies and Foreign Companies segments.

India Defense Market – By Region

Geographically, the India Defense Market is divided into North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Defense Market include The Boeing Company, Kalyani Group, Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Rafael Advanced Defense Systems Ltd, Reliance Group, IAI Group, Mahindra & Mahindra Ltd, Larsen & Toubro Limited, Ordnance Factory Board (OFB), Hinduja Group, Tata Sons Private Limited, Defense Research and Development Organisation (DRDO), Airbus SE, Goa Shipyard Limited (GSL), and Rostec. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2024 - Kopin Corporation, renowned for its optical solutions and microdisplays, expanded its reach into the Indian Defense Market with a third production order for its OLED microdisplays. These displays are integral components of thermal imaging vision systems used by the Indian Armed Forces, both mounted and handheld. The order comprises more than 1,200 units.

• In February 2024 - Mahindra Defence Systems signed a strategic Memorandum of Understanding (MoU) with Embraer Defense & Security to jointly pursue the acquisition of the C-390 Millennium multi-mission aircraft by the Indian Air Force. The collaboration aims to enhance the upcoming Medium Transport Aircraft (MTA) procurement project.

Scope of the Report

By Armed Forces

• Indian Army

• Indian Navy

• Indian Air Force

By Product Type

• Fixed-Wing Aircraft (Fighter Jets, Transport Aircraft)

• Rotorcraft (Helicopters)

• Ground Vehicles (Tanks, Armored Fighting Vehicles)

• Naval Vessels (Aircraft Carriers, Submarines, Destroyers)

• Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Systems

• Weapons & Ammunition

• Protection & Training Equipment

• Unmanned Aerial Vehicles (UAVs)

By Supplier

• Domestic Companies

• Foreign Companies

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Defense Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Defense Expenditure
         2. Focus on Self-Reliance
         3. Modernization Needs
      2. Restraints
         1. Limited Domestic Capabilities
         2. Bureaucratic Hurdles
         3. Reliance on Imports
      3. Opportunities
         1. Technological Advancements
         2. Increased Exports
         3. Private Sector Participation
      4. Challenges
         1. Cybersecurity Threats
         2. Skilled Workforce Shortage
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Defense Market: Pricing Analysis
5. India Defense Market: Marketing Strategies
6. India Defense Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Armed Forces
         1. Indian Army
         2. Indian Navy
         3. Indian Air Force
      2. By Product Type
         1. Fixed Wing Aircraft (Fighter Jets, Transport Aircraft)
         2. Rotorcraft (Helicopters)
         3. Ground Vehicles (Tanks, Armored Fighting Vehicles)
         4. Naval Vessels (Aircraft Carriers, Submarines, Destroyers)
         5. Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Systems
         6. Weapons & Ammunition
         7. Protection & Training Equipment
         8. Unmanned Aerial Vehicles (UAVs)
      3. By Supplier
         1. Domestic Companies
         2. Foreign Companies
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Defense Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Armed Forces
      2. By Product Type
      3. By Supplier
8. South India Defense Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Armed Forces
      2. By Product Type
      3. By Supplier
9. East India Defense Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Armed Forces
      2. By Product Type
      3. By Supplier
10. West India Defense Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Armed Forces
       2. By Product Type
       3. By Supplier
11. India Defense Market: Import & Export
12. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Defense Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
13. Impact of Escalating Geopolitical Tensions in India Defense Market
14. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. The Boeing Company
    2. Kalyani Group
    3. Hindustan Aeronautics Limited (HAL)
    4. Bharat Electronics Limited (BEL)
    5. Rafael Advanced Defense Systems Ltd
    6. Reliance Group
    7. IAI Group
    8. Mahindra & Mahindra Ltd
    9. Larsen & Toubro Limited
    10. Ordnance Factory Board (OFB)
    11. Hinduja Group
    12. Tata Sons Private Limited
    13. Defense Research and Development Organization (DRDO)
    14. Airbus SE
    15. Goa Shipyard Limited (GSL)
    16. Rostec
    17. Other Prominent Players

Key Strategic Recommendations

15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Defense Market Segmentation

Figure 2       India Defense Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Defense Market Size, By Value (USD Billion), 2019–2030

Figure 5       India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Figure 6       India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Figure 7       India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Figure 8       India Defense Market Share, By Region, By Value (USD Billion) 2019–2030

Figure 9       North India Defense Market Size, By Value (USD Billion), 2019–2030

Figure 10     North India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Figure 11     North India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Figure 12     North India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Figure 13     South India Defense Market Size, By Value (USD Billion), 2019–2030

Figure 14     South India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Figure 15     South India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Figure 16     South India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Figure 17     East India Defense Market Size, By Value (USD Billion), 2019–2030

Figure 18     East India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Figure 19     East India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Figure 20     East India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Figure 21     West India Defense Market Size, By Value (USD Billion), 2019–2030

Figure 22     West India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Figure 23     West India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Figure 24     West India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

List of Tables

Table 1        India Defense Market Size, By Value (USD Billion), 2019–2030

Table 2        India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Table 3        India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Table 4        India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Table 5        India Defense Market Share, By Region, By Value (USD Billion) 2019–2030

Table 6        North India Defense Market Size, By Value (USD Billion), 2019–2030

Table 7        North India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Table 8        North India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Table 9        North India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Table 10      South India Defense Market Size, By Value (USD Billion), 2019–2030

Table 11      South India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Table 12      South India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Table 13      South India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Table 14      East India Defense Market Size, By Value (USD Billion), 2019–2030

Table 15      East India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Table 16      East India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Table 17      East India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Table 18      West India Defense Market Size, By Value (USD Billion), 2019–2030

Table 19      West India Defense Market Share, By Armed Forces, By Value (USD Billion) 2019–2030

Table 20      West India Defense Market Share, By Product Type, By Value (USD Billion) 2019–2030

Table 21      West India Defense Market Share, By Supplier, By Value (USD Billion) 2019–2030

Table 22    The Boeing Company Overview

Table 23    The Boeing Company Financial Overview

Table 24    Kalyani Group Company Overview

Table 25    Kalyani Group Financial Overview

Table 26    Hindustan Aeronautics Limited (HAL) Company Overview

Table 27    Hindustan Aeronautics Limited (HAL) Financial Overview

Table 28    Bharat Electronics Limited (BEL) Company Overview

Table 29    Bharat Electronics Limited (BEL) Financial Overview

Table 30    Rafael Advanced Defense Systems Ltd Company Overview

Table 31    Rafael Advanced Defense Systems Ltd Financial Overview

Table 32    Reliance Group Company Overview

Table 33    Reliance Group Financial Overview

Table 34    IAI Group Company Overview

Table 35    IAI Group Financial Overview

Table 36    Mahindra & Mahindra Ltd Company Overview

Table 37    Mahindra & Mahindra Ltd Financial Overview

Table 38    Larsen & Toubro Limited Company Overview

Table 39    Larsen & Toubro Limited Financial Overview

Table 40    Ordnance Factory Board (OFB) Company Overview

Table 41    Ordnance Factory Board (OFB) Financial Overview

Table 42    Hinduja Group Company Overview

Table 43    Hinduja Group Financial Overview

Table 44    Tata Sons Private Limited Company Overview

Table 45    Tata Sons Private Limited Financial Overview

Table 46    Defense Research and Development Organization (DRDO) Company Overview

Table 47    Defense Research and Development Organization (DRDO) Financial Overview

Table 48    Airbus SE Company Overview

Table 49    Airbus SE Financial Overview

Table 50    Goa Shipyard Limited (GSL) Company Overview

Table 51    Goa Shipyard Limited (GSL) Financial Overview

Table 52    Rostec Company Overview

Table 53    Rostec Financial Overview