The avionics and advanced electronics systems market is on track to nearly double in size, climbing from $34.9 billion in 2020 to an estimated $63.34 billion by 2030, according to Anand Rathi, a financial advisory firm.
The maintenance, repair, and overhaul (MRO) industry is crucial for aircraft safety and reliability, with projections placing its global value at $110 billion by 2028.
Samir Bahl, CEO of Investment Banking at Anand Rathi Advisors Limited, highlighted India’s potential to become a major force in the global aerospace sector. He attributed this growth to the rapid expansion of aircraft fleets, advanced manufacturing capabilities, and the rise of MRO services.
“With precision engineering, automation, and digital transformation shaping the industry, India’s aerospace landscape is set for significant growth. The influx of global manufacturers, private capital, and market investments is driving this transformation,” Bahl noted. “The future of aviation isn’t just in the skies—it’s being built in India.”
Aerostructures remain the most significant segment in the aerospace market, accounting for nearly 40% of an aircraft’s total cost. This sector is projected to lead the industry through 2028, driven by advancements in materials, dual sourcing strategies, aftermarket services, and additive manufacturing.
The aircraft engine market is valued at over $100 billion, with engines comprising around 20% of an aircraft’s cost. Increasing air passenger traffic, continuous R&D efforts, and emerging hybrid and electric propulsion technologies are key drivers of this market’s expansion.
India is positioned to become the third-largest commercial aircraft buyer, leading to a surge in demand for MRO services. At present, 90% of MRO activities are outsourced, creating an opportunity for domestic companies to establish themselves in the sector.
The global aerospace industry is witnessing rapid growth, with air travel demand surging and airline fleets expected to double by 2042. Single-aisle aircraft are anticipated to lead this expansion, supported by increasing disposable incomes, government initiatives, and a robust industrial ecosystem.
Sachin Mehta, Director – Investment Banking at Anand Rathi Advisors Limited, emphasized that the aerospace sector offers a trillion-dollar opportunity, with long-term growth driven by supply chain developments and increased production capacity. He highlighted India’s growing role in the global supply chain and the country’s focus on manufacturing complex aero parts and strengthening its domestic MRO industry.
“India’s commitment to regional connectivity and large-scale aircraft procurement will further accelerate the nation’s rise as a significant player in the aerospace market,” Mehta concluded.
