India’s counter-drone market is anticipated to expand at an annual rate of 28 percent over the next five years, according to a report by financial services firm Motilal Oswal.
This growth is driven by the increasing need for systems to counter aerial attacks. The report estimates that the market for counter-drone systems will reach approximately $1.46 billion over the next five years, based on the need for approximately 1,200 systems, each costing between $975,000 and $1.83 million. This substantial demand is expected to generate an annual market opportunity of nearly $292 million over this period.
In the broader drone market, systems with ranges exceeding 5 kilometers are growing faster than those with shorter ranges. Technological advancements are continually extending these ranges, and each counter-drone system, with a lifespan of around 10 years, requires regular software updates.
The report also highlights that the cumulative defense electronics market was valued at approximately $8.1 billion from 2016 to 2020, growing at an annual rate of 4.5 percent. In 2021, this market stood at $1.9 billion and is projected to reach $7 billion by 2030, with an annual growth rate of 15.7 percent from 2020 to 2030.
In India, significant efforts are expected to be made to locally produce defense electronic components over the next decade, leading to improved manufacturing and quality standards. Currently, over 60 percent of these components are supplied by foreign manufacturers. As local production ramps up, a larger portion of future defense electronics will be sourced domestically. Major military programs, including new combat aircraft acquisitions, submarine building, and replacing T-72 tanks, will drive the market value of this segment.
Additionally, the simulators market in India is projected to reach between $1.71 billion and $1.83 billion over the next five years. Military training simulators can replicate a variety of scenarios, such as air-to-air combat, ground combat, and naval warfare, providing realistic training environments for the armed forces. These simulators are essential for training the military effectively.
The recently announced Agniveer Yojna offers opportunities for young people to serve in the Armed Forces as Agniveers for four years. Given the short tenure of the Agniveers, there is a critical need to train them quickly to an acceptable level, increasing the demand for simulators.
With the evolving nature of warfare, which now involves drones for spying, surveillance, and reconnaissance, there is a growing need for anti-drone systems and other protective equipment in India and worldwide to safeguard critical sites like military bases, airports, refineries, and financial institutions.
