India Aerospace & Defense Market Size & Share 2017 - 2024
Market Size by Security (Cybersecurity, Homeland Security, Border Security), by Service (Maintenance, Repair & Operations (MRO), Modeling, 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]), Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, & Forecast.
Report ID: GMI2113
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Published Date: September 2017
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
India Aerospace & Defense Market Size
India Aerospace & Defense Market size was over USD 10 billion in 2016 and is predicted to grow at an estimated CAGR of over 5% from 2017 to 2024.
Initiatives undertaken by the government to make India self-reliant in terms of defense requirements is expected to drive the India aerospace & defense market over the forecast timeline. The country’s attractiveness to the global companies is increasing, owing to the increasing defense budget. For instance, according to a report by Nasscom and IESA, the total India aerospace & defense market opportunity for aerospace and defense electronics is estimated to be approximately USD 70 billion in next 10 years. Growing need to modernize the equipment is expected to further drive the industry.
The government announced the Long Term Integrated Perspective Plan, that undertakes the modernization of armed forces by 2027. Factors such as hostile neighborhood and unrest in North-East India & Kashmir are driving the modernization agenda, thus propelling the India aerospace & defense market growth. The industry has witnessed growing focus on the development of high-end technology and reduced reliance on exports.
India Aerospace & Defense Market Analysis
Air application is expected to hold a majority share in the India aerospace & defense market, owing to the growing demand for efficient and environmentally friendly aircrafts. Need to increase the size of aircraft fleet with additions of auxiliary airplanes such as rescue aircrafts, medic aircraft, repair & emergency aircrafts are expected to propel the growth. The government is introducing various methods and newer technologies for air traffic management and adhere to strict environmental & air traffic regulations. This is expected to attract several global players such as Boeing in the industry.
Land security solutions are expected to witness substantial demand in the India aerospace & defense market, owing to the increasing need from the domestic/homeland and border security. Increasing volatility in domestic peace and increasing government initiatives is encouraging the players to expand their capabilities and extend their product portfolio.
Cybersecurity is expected to witness rapid growth owing to the rising instances of cyber-attacks such as Wanna Cry, life-threatening software such as Blue Whale, and malicious data thefts. Growing demand for safeguarding cyber networks and the country’s data infrastructure is fueling the cybersecurity market demand. The number of providers is expected to rise during the forecast timeline, with increasing investments from various global players such as Thales Group.
The border security segment is expected to grow remarkably in the coming years, due to increasing threats from neighboring countries. The demand for optical and radar equipment is on the rise to better equip the soldiers on the borders.
The MTS services segment is expected to gain traction in the India aerospace & defense market, owing to increasing need to cut the costs and outsource these services to the third-party players. Growth in demand of extended battery life for products and increasing replacement cycles to enhance efficiency is anticipated to be one of the major factor for the increasing demand for MRO services.
The MRO services are expected to witness fast growth, owing to the increase in demand for repair operations for the equipment in the industry. The aero-platform MROs are expected to grow at highest rate, owing to the extended life of aircraft, their subjection to harsh environments, and need for frequent repair operations.
India Aerospace & Defense Market Share
Prominent players in the India aerospace & defense market include:
In addition to domestic players, global players participating in the market include
The increasing FDI and the offset policy introduced by the government is attracting many global players in the country. These players are forming joint ventures with Indian counterparts to gain share.
India Aerospace & Defense Industry Background
As of 2015, India was the sixth largest importer of arms, primarily from countries such as Russia, France, and the U.S. Increasing government initiatives such as Make in India or Buy from India is expected to encourage the domestic manufacturers to enter the industry to reduce exports and increase imports of these equipment. Introduction of offset policy enabled the component manufacturers to enter the India aerospace & defense market. Traditionally, the country had the presence of only Tier III and Tier II component suppliers. However, with the growth in favorable business environment, the number of Tier I suppliers and manufacturers & system integrators is expected to grow significantly over the forecast timeframe.
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →