India Aviation, Defense, and Space Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 18.72 Billion |
| Market Size (2029) | USD 24.87 Billion |
| CAGR (2024 - 2029) | 5.84 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Aviation, Defense, and Space Market Analysis
The India Aviation, Defense, And Space Market size is estimated at USD 18.72 billion in 2024, and is expected to reach USD 24.87 billion by 2029, growing at a CAGR of 5.84% during the forecast period (2024-2029).
The growing acquisition of commercial aircraft to meet the needs of air passengers, increasing commercial aviation operations, and the growth in the number of commercial airport constructions are anticipated to drive the market during the forecast period. In addition, the growth in India’s defense budget, increasing acquisition of advanced armaments to improve the country's defense capabilities, growth in the number of space programs, and increasing governmental support for indigenous defense manufacturing are expected to boost the market in the coming years.
On the other hand, growth in regulations within the country is expected to hamper the market’s growth in the long run. Furthermore, the growing use of advanced technologies such as artificial intelligence for airport construction and design, military training, surveillance, and improving accuracy for space missions, amongst others, is anticipated to lead to growth in various market opportunities.
India Aviation, Defense, and Space Market Trends
Civil Aviation Segment to Showcase Remarkable Growth
- In recent years, the Indian aviation sector has experienced remarkable growth in operations, solidifying its position as the world's third-largest. An increasing population with a growing appetite for travel primarily fuels this surge. Consequently, there has been a surge in demand for modern aircraft to enhance the flying experience. In response, several commercial airlines in India are investing substantially in acquiring cutting-edge aircraft.
- For example, in September 2023, Air India secured its first A350-900 through a finance lease with HSBC. Air India placed orders for a total of six A350-900s. Five units were scheduled for delivery by March 2024. Furthermore, India has seen a notable rise in the number of new airport constructions. With a rising number of air passengers annually, existing airports in India are grappling with congestion and bottlenecks, prompting a surge in new airport developments. For instance, the Maryada Purushottam Shri Ram International Airport in Ayodhya was inaugurated in December 2023. Such infrastructural strides are poised to bolster the sector's growth in the coming years.
The Weapons and Munitions Segment Dominates the Market
- India has significantly boosted its defense spending, driven by escalating border disputes, notably with China. This has prompted the Indian defense forces to prioritize acquiring advanced weaponry and ammunition, bolstering their capabilities. Simultaneously, numerous companies have partnered with India's defense sector, increasing their research investments to meet the military's evolving demands. For instance, in September 2023, the Indian Army announced plans for next-gen guns to be exclusively developed and manufactured by domestic firms with a hefty price tag of USD 60 billion. These new towed gun systems are touted to be lighter and more adaptable, boasting cutting-edge technology.
- India is also eyeing a global role as a manufacturing hub for advanced 155 mm artillery ammunition, a caliber favored by more than 75 armies worldwide. Underscoring this ambition, in February 2023, the Ministry of Defense awarded contracts to five domestic manufacturers. These contracts entail delivering around two thousand 155 mm terminally guided munitions (TGMs) for the Army's existing 155 mm guns, spanning 39, 45, and 52 calibers. With the uptick in indigenous weapon production and robust defense spending, this sector is primed for significant growth in the foreseeable future.
India Aviation, Defense, and Space Industry Overview
The Indian aviation, defense, and space market is fragmented, with various players dominating it. Some of the major market players are Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Indian Space Research Organisation (ISRO), Larsen & Toubro Limited, and Adani Group.
Several market players are forming joint ventures with the Indian government to bolster the nation's defense capabilities in the long term. These collaborations not only enhance India's defense but also strengthen the market presence of regional players. In addition, new opportunities emerge as partnerships flourish, especially in sectors such as jet propulsion systems and the production of indigenous weapons, commercial aircraft, and space components. This trend is poised to drive substantial growth in the coming years.
India Aviation, Defense, and Space Market Leaders
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Hindustan Aeronautics Limited (HAL)
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Bharat Electronics Limited (BEL)
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Larsen & Toubro Limited
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Adani Group
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Indian Space Research Organisation (ISRO)
*Disclaimer: Major Players sorted in no particular order
India Aviation, Defense, and Space Market News
- December 2023: The Indian government approved defense acquisition projects worth USD 2.67 million. The project includes the acquisition of 97 Tejas light combat aircraft and 156 Prachand combat helicopters. Moreover, 98% of the total procurement will be sourced from domestic industries, thereby significantly boosting the Indian defense industry.
- February 2023: Air India selected market-leading Boeing aircraft, including the B737 MAX, B787 Dreamliner, and B777X. Moreover, Air India plans to acquire 190 Boeing B737 MAXs, including B737-8s and B737-10s, with options for 50 more jets to serve the domestic and international networks.
India Aviation, Defense, and Space Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 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
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Buyers/Consumers
- 4.4.2 Bargaining Power of Suppliers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By 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
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5.2 By Army
- 5.2.1 Armored Vehicles, Helicopters, and UAVs
- 5.2.2 Weapons and Munitions
- 5.2.3 MRO
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5.3 By Navy
- 5.3.1 Naval Vessels, Combat and Non-combat Aircraft, and UAVs
- 5.3.2 Weapons and Munitions
- 5.3.3 MRO
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5.4 By Space
- 5.4.1 Satellite
- 5.4.2 Launch Vehicles and Rovers
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5.5 By Civil Aviation
- 5.5.1 Commercial Aircraft
- 5.5.2 Business Jet
- 5.5.3 MRO
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Hindustan Aeronautics Limited (HAL)
- 6.2.2 Indian Ordnance Factories
- 6.2.3 Bharat Electronics Limited (BEL)
- 6.2.4 Goa Shipyard Limited
- 6.2.5 Hinduja Group
- 6.2.6 Kalyani Steels Ltd (KSL)
- 6.2.7 Tata Sons Private Limited
- 6.2.8 Larsen & Toubro Limited
- 6.2.9 Mahindra & Mahindra Limited
- 6.2.10 Mistral Solutions Pvt. Ltd
- 6.2.11 Adani Group
- 6.2.12 Indian Space Research Organisation (ISRO)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityIndia Aviation, Defense, and Space Industry Segmentation
The Indian aviation, defense, and space market comprises the entire aviation, defense, and space industry in India.
The market is segmented by air force, army, navy, space, and civil aviation. By air force, the market is segmented into combat and non-combat aircraft (fixed wing and helicopter) and UAVs, weapons and munitions, and MRO. By army, the market is segmented into armored vehicles, helicopters, UAVs, weapons and munitions, and MRO. By navy, the market is segmented into naval vessels, combat and non-combat aircraft, UAVs, weapons and ammunition, and MROs. By space, the market is divided into satellite and launch vehicles & rovers. By civil aviation, the market is segmented into commercial aircraft, business jets, and MROs. For each segment, the market size is provided in terms of value (USD).
| By Air Force | Combat and Non-combat Aircraft (Fixed Wing and Helicopter) and UAVs |
| Weapons and Munitions | |
| MRO | |
| By Army | Armored Vehicles, Helicopters, and UAVs |
| Weapons and Munitions | |
| MRO | |
| By Navy | Naval Vessels, Combat and Non-combat Aircraft, and UAVs |
| Weapons and Munitions | |
| MRO | |
| By Space | Satellite |
| Launch Vehicles and Rovers | |
| By Civil Aviation | Commercial Aircraft |
| Business Jet | |
| MRO |
India Aviation, Defense, and Space Market Research FAQs
How big is the India Aviation, Defense, And Space Market?
The India Aviation, Defense, And Space Market size is expected to reach USD 18.72 billion in 2024 and grow at a CAGR of 5.84% to reach USD 24.87 billion by 2029.
What is the current India Aviation, Defense, And Space Market size?
In 2024, the India Aviation, Defense, And Space Market size is expected to reach USD 18.72 billion.
Who are the key players in India Aviation, Defense, And Space Market?
Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Larsen & Toubro Limited, Adani Group and Indian Space Research Organisation (ISRO) are the major companies operating in the India Aviation, Defense, And Space Market.
What years does this India Aviation, Defense, And Space Market cover, and what was the market size in 2023?
In 2023, the India Aviation, Defense, And Space Market size was estimated at USD 17.63 billion. The report covers the India Aviation, Defense, And Space Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Aviation, Defense, And Space Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Aviation, Defense, and Space Industry Report
Statistics for the 2024 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 for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
