Growing Governmental Initiatives to Dominate the India Aerospace & Defense Power Technologies Market during 2021–2028

According to a new market research study on “India Aerospace & Defense Power Technologies Market Forecast to 2028 – COVID-19 Impact and Analysis – by Component and Application” the market is expected to reach US$ 1,284.19 million by 2028 from US$ 635.80 million in 2021; it is estimated to grow at a CAGR of 10.6% from 2021 to 2028.

The manufacturing and procurement volume of components / power technologies being used in the aerospace & defense industry is growing in India, supported by favorable governmental initiatives. The Indian government has been accelerating its investments toward the procurement of various platforms to strengthen the defense forces (land, air, and naval). Over the past few years, India has become one of the most attractive destinations for FDIs (foreign direct investment) in the manufacturing sector. According to IBEF (India Brand Equity Foundation), the Indian government managed to raise the FDIs in defense manufacturing under the automatic route from 49% to 74% in 2020. This strategy has been adopted to boost the production capacities of various platforms with an aim to drive the defense sector in the country. As per data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the FDI inflow in the defense sector in India stood at US$ 10.15 million (INR 61.52 crore) during 2000–2021. An urge for military modernization and reinforcement is compelling the Indian government to undertake initiatives such as Make in India and Atma Nirbhar Bharat / Self-Reliant India. The government has also rolled out its vision of achieving the revenue of US$ 25 billion, including the  aerospace and defense products and services export revenues worth US$ 5 billion, by 2025. The finance ministry has increased the defense budget of FY 2021–2022 by 18.75%.

Further, Indian government is encouraging from the private sector to venture into the aerospace & defense industry. As a result, Tata Group, Mahindra Group, and Reliance Group, among others, are venturing into defense manufacturing in the country. Tata Group has been the backbone of Indian defense industry for decades, and it is now emerging as the largest player in India's defense industry. Boeing and Tata have strengthened their partnerships to manufacture drones in India. Similarly, in 2018, Mahindra Aerospace (Mahindra Defense Systems) entered into a partnership with Boeing and Hindustan Aeronautics Ltd (HAL) to manufacture Boeing F/A-18 Hornet in India. Therefore, the emphasis of government on the reinforcement of defense capabilities through the encouragement of FDIs, and extension of initiatives and monetary support is contributing to the aerospace & defense power technologies market in India.

Based on component, the India aerospace & defense power technologies market is segmented into connectors, devices, relays, wires & cables, and rugged fiber optics (RFO). The devices segment held the largest market share in 2020. On the basis of application, the India aerospace & defense power technologies market is segmented into aircraft, military ground vehicles, body-worn equipment (soldiers), naval ships, C4ISR, missiles, UAV, space, and robotics. The military ground vehicles segment held the largest market share in 2020.

Impact of COVID-19 Pandemic on India Aerospace & Defense Power Technologies Market

India is one of the highly populated countries in the world, which led to the massive spread of SARS-CoV-2 across the country. In response to this spread, strict lockdown was imposed across the country in the first half of March 2020, which severely impacted on the aerospace & defense manufacturing and commercial aviation sectors. However, Indian government has taken several initiatives to protect these sectors from the adversities; for example, the government and the Reserve Bank of India (RBI) have announced financial support to ease the financial load across the industry to ensure the availability of working capital. Further, the production and MRO projects undertaken by the Indian aerospace & defense industry are expected to boost the demand for components such as connectors, devices, relays, and wiring and cables in this industry in the coming years, which would propel the growth of the aerospace & defense power technologies market in the coming years.

TE Connectivity, Thales Group, Eaton Group, Amphenol Interconnect India Pvt Ltd., C&K, AXON' MECHATRONICS S.A.S., Hitech India Private Limited, Positronic, VMX Connectors Private Limited, Sanghvi Aerospace Pvt. Ltd., Miracle Electronics Devices Pvt Ltd., PREMIER AUTO CABLES, FIRST SWITCHTECH, ITT Inc., Teledyne Defense Electronics, Jayant Group, ALPHA DESIGN TECHNOLOGIES PVT LTD, Mistral Solutions Pvt. Ltd., Phantom Technologies LTD, and Radiall are among the leading companies operating in the India aerospace & defense power technologies market. These players are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the market.

India Aerospace & Defense Power Technologies Market Breakdown, by Component, 2020 and 2028

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