India Defense Equipment Market [2029] by Trends, Share, Forecast

Summary

Report Description

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 Scope

Every country's defense industry serves as a foundation for its security. It serves as the nation's defense, confronting and combating any potential danger or animosity. Businesses engaged in defense trades to improve the defense equipment market with cutting-edge technology and modern weapons and to supply strength to the foundation of the land. To meet the massive demand in the industry, the Indian defense equipment market has a huge opportunity to increase its manufacturing capabilities. India's defense equipment market has the potential to grow rapidly as many numbers of companies bringing their new technologies, in radar system, heavy artillery, and military warheads. Overall, the market for defense equipment is predicted to increase significantly in the next years because of the adding use of defense equipment in armed services and endeavors to manufacture goods in India.

India Defense Equipment Market Overview

India's defense equipment business is a sector that is crucial from the standpoint of strategic planning. The threat of terrorism as well as the geopolitical tensions between India and its neighbors, have compelled the government to substantially strengthen its naval, aerial capabilities, and perimeter security. India has one of the largest armed forces in the world with a total of over 14.4 million active members. With more than 51 lakh (5.1 million) soldiers, it has the largest volunteer military in the entire world, which results in increase in demand for defense equipment. Since a substantial portion of the defense equipment market is imported from other nations, this exponentially increases the demand for defense equipment manufacturing and provides a great opportunity for established enterprises as well as developing new players. In 2023, the Government allocated 5.94 Lakh crore (Around 72.5 USD billion) for 2023-34 financial year. The total amount of budget approved for the Indian military for the fiscal year 2022 was USD 70.6 billion, an increase of 10% above the budgetary allotment from the prior year. In addition, India has the third-largest yearly defense budget after the United States and China. Additionally, it accounts for 9.2% of all worldwide defense imports and is the second-largest buyer after Saudi Arabia.

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India Defense Equipment Market Driver

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 Challenges

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 Trends

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 Opportunities

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)

Report Scope:

In this report, India defense equipment market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

India Defense Equipment Market, By Arm forces:

Army
Navy
Air Force

India Defense Equipment Market, By Mode Type:

Domestic
Import
Export

India Defense Equipment Market, 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

India Defense Equipment Market, By Region:

North
West
South
East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India defense equipment market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

India Defense Equipment Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Impact of COVID-19 on India Defense Equipment Market

5. India Defense Equipment Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Arm Forces Market Share Analysis (Army, Navy, Air Force)

5.2.2. By Mode Type Market Share Analysis (Domestic, Import, Export)

5.2.3. By Key Sectors Market Share Analysis (Military Fixed-Wing Aircrafts, Missiles and Missile Defense Systems, Electronic Warfare, Underwater Warfare Systems, Military Warheads (Land Vehicles, Radar, UAV, UGV), Weapons & Ammunition, Others)

5.2.4. By Regional Market Share Analysis

5.2.4.1. North Region Market Share Analysis

5.2.4.2. West Region Market Share Analysis

5.2.4.3. South Region Market Share Analysis

5.2.4.4. East Region Market Share Analysis

5.3. India Defense Equipment Market Mapping & Opportunity Assessment

5.3.1. By Arm Forces Market Mapping & Opportunity Assessment

5.3.2. By Mode Type Market Mapping & Opportunity Assessment

5.3.3. By Key Sectors Market Mapping & Opportunity Assessment

5.3.4. By Regional Market Mapping & Opportunity Assessment

6. India Domestic Defense Equipment Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Arm Forces Market Share Analysis

6.2.2. By Key Sectors Market Share Analysis

6.2.3. By Military Warheads Market Share Analysis

7. India Import Defense Equipment Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Arm Forces Market Share Analysis

7.2.2. By Key Sectors Market Share Analysis

7.2.3. By Military Warheads Market Share Analysis

8. India Export Defense Equipment Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Arm Forces Market Share Analysis

8.2.2. By Key Sectors Market Share Analysis

8.2.3. By Military Warheads Market Share Analysis

9. Porter’s Five Forces Model

9.1. Competitive Rivalry

9.2. Bargaining Power of Buyers

9.3. Bargaining Power of Suppliers

9.4. Threat of New Entrants

9.5. Threat of Substitutes

10. Market Dynamics

10.1. Market Drivers

10.2. Market Challenges

11. Market Trends and Developments

12. India Economic Profile

13. Competitive Landscape

13.1. Company Profiles (Up To 10 Major Companies)

13.2. Hindustan Aeronautics Limited (HAL)

13.2.1. Company Details

13.2.2. Products & Services

13.2.3. Recent Development

13.2.4. Key Management Personnel

13.3. Defense Research and Development Organisation (DRDO)

13.3.1. Company Details

13.3.2. Products & Services

13.3.3. Recent Development

13.3.4. Key Management Personnel

13.4. Bharat Electronics Limited (BEL)

13.4.1. Company Details

13.4.2. Products & Services

13.4.3. Recent Development

13.4.4. Key Management Personnel

13.5. Bharat Forge

13.5.1. Company Details

13.5.2. Products & Services

13.5.3. Recent Development

13.5.4. Key Management Personnel

13.6. Electronics Corporation of India (ECIL)

13.6.1. Company Details

13.6.2. Products & Services

13.6.3. Recent Development

13.6.4. Key Management Personnel

13.7. Mahindra Defence System Ltd.

13.7.1. Company Details

13.7.2. Products & Services

13.7.3. Recent Development

13.7.4. Key Management Personnel

13.8. Larsen & Toubro

13.8.1. Company Details

13.8.2. Products & Services

13.8.3. Recent Development

13.8.4. Key Management Personnel

13.9. Bharat Dynamics

13.9.1. Company Details

13.9.2. Products & Services

13.9.3. Recent Development

13.9.4. Key Management Personnel

13.10. Tata Advanced Systems

13.10.1. Company Details

13.10.2. Products & Services

13.10.3. Recent Development

13.10.4. Key Management Personnel

13.11. Boeing India

13.11.1. Company Details

13.11.2. Products & Services

13.11.3. Recent Development

13.11.4. Key Management Personnel

14. Strategic Recommendations

14.1. Key Focus Areas

14.1.1. Target Regions & Countries

14.1.2. Target Arm Forces

14.1.3. Target Key Sectors

15. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Which segment type based on arm forces is leading in India defense equipment market?

In India defense equipment market, arm forces segment is leading with significant share in defence equipment, and it is expected to maintain its lead in the market by 2028 due to introduction of advanced defence equipment with improve radar system and fire power accuracy.

What is the major factor driving India defense equipment market?

India defense equipment market is majorly driven by the ongoing border issues and made in India initiatives in India.

Who are the major players in India defense equipment market?

The major players in the India defense equipment market include 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.

Which region is leading in the India defense equipment market?

Currently, the west and north region is leading the India defense equipment market and they are anticipated to maintain their lead by 2028, due to constant activities at their borders.

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Srishti Verma

Business Consultant

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Press Release

India Defense Equipment Market is to be Dominated by the Arm Forces Segment through 2028

Jul, 2023

Increasing demand for advanced defense machinery due to rising conflicts among nations can drive the growth of the India defense equipment market through 2028.

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