India's Defense Industry, Forecast to 2025 - Most Lucrative Sectors by Value are Airborne C4ISR, Multirole Aircraft and Land-based C4ISR

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Apr 10, 2020, 05:00 ET

DUBLIN, April 10, 2020 /PRNewswire/ -- The "The Indian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025" report has been added to ResearchAndMarkets.com's offering.

This report offers detailed analysis of the Indian defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following:

The Indian defense industry market size and drivers: detailed analysis of the India's defense industry during 2021-2025, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
Market opportunities:list of the top ten defense investment opportunities over the next 5 years
Competitive landscape and strategic insights: analysis of the competitive landscape of the Indian defense industry.

The growth in the Indian defense market, is mainly fuelled by its ongoing rivalry with Pakistan and the need to counter China. The need to secure strategic interests, against the backdrop of ever increasing Chinese presence in the Indian Ocean region, continues to fuel the growth of India's defense expenditure. India, which in the past was involved in an armed conflict with both China and Pakistan, continues to share an uneasy relationship with China and an outright hostile relationship with Pakistan.

India shares a 3,323km land border with Pakistan, and an even longer 3,488km border with the People's Republic of China (PRC), and has territorial disputes with both countries over the ownership of the Northern State of Kashmir and the North Eastern State of Arunachal Pradesh, respectively. These factors have played a crucial role in spurring growth in Indian base defense expenditure (excluding pensions) over the historic period, which increased from US$39.3 billion in 2016 to US$47.3 billion in 2020, reflecting a CAGR of 4.80% over the historic period.

The growth in defense capital expenditure is expected to be fueled by the need to stem the erosion in the country's capabilities to counter Pakistan and China. Over the last few years, India has consistently ranked among the leading defense importers worldwide. Between 2014-2018, India was ranked as the second largest importer of defense equipment, behind only Saudi Arabia. The acquisition of defense equipment is mainly driven by the need to gain a significant technological advantage over Pakistan, while retaining a level of strategic parity with respect to China.

India is expected to procure and invest in segments such as multirole aircraft, frigates, destroyers, corvettes, submarines, tanks, artillery guns, multi-barrel rocket launchers (MBRL), helicopters, surface-to-air missiles and unmanned aerial vehicles (UAV) among others, over the forecast period.

Key Highlights

The Indian defense market is expected to grow at a CAGR of 10.46% over the forecast period.
The Indian defense market has three major sectors: Airborne C4ISR, Multirole aircraft and Land Based C4ISR.
The Indian Army Modernization with an explicit emphasis on development and induction of new wheeled armored vehicles and the Futuristic Infantry Fighting Vehicle (FICV) program will drive the Indian Army defense modernization spending. On the other hand, the thrust to induct LCA Tejas aircraft in greater volumes to replace the now obeselete MiG-21 aircraft will spur growth in the Indian Air Force defense expenditure, while the Indian Navy which accounts for the smallest portion of defense capital spending is anticipated to focus on modernization of its submarine arm and induction of new minesweepers.

Top Defense Market Sectors by Value During 2020-2025

Airborne C4ISR
Multirole Aircraft
Land-based C4ISR

Reasons to Buy

Determine prospective investment areas based on a detailed trend analysis of the Indian defense market over the next five years
Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Indian market and identify the opportunities offered.
Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
Identify the major threats that are driving the Indian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
Channelize resources by focusing on the ongoing programs that are being undertaken by the Indian government
Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

Companies Mentioned

BAE Systems PLC
BEML
Bharat Dynamics Ltd.
Bharat Electronics Ltd.
Boeing
Goa Shipyard Ltd.
Hindustan Aeronautics Ltd.
Lockheed Martin Corporation
Mahindra Defence Systems
Mazagon Docks Shipbuilders Ltd.
Ordnance Factory Board
Tata Advanced Systems Ltd.
Thales

For more information about this report visit https://www.researchandmarkets.com/r/w46jfj

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