India’s counter-drone market is expected to grow at an annual rate of 28% over the next five years, according to a report by financial services company Motilal Oswal. This growth is driven by an increased need for systems to counter aerial attacks.
The report estimates the addressable market for counter-drone systems at Rs 120 billion (approximately $1.6 billion) over the next five years. This projection is based on a requirement for nearly 1,200 counter-drone systems, each costing between Rs 80 to 150 million. This demand is expected to create an annual market opportunity of nearly Rs 24 billion.
Long-range systems (over 5 kilometers) are seeing faster growth compared to shorter-range alternatives. The technology in this space is continuously evolving, with each system having a lifespan of about 10 years and requiring regular software upgrades.
The broader defense electronics market in India is also poised for significant growth. From a value of $1.9 billion in 2021, it’s expected to reach $7 billion by 2030, growing at an annual rate of 15.7%.
The report highlights a push towards local production in India’s defense electronics segment over the next decade. Currently, over 60% of electronic components are supplied by foreign manufacturers, but this is expected to shift towards domestic sourcing.
Additionally, the military training simulators market in India is projected to reach between Rs 140 and 150 billion over the next five years.
The recently announced Agniveer Yojna provides opportunities for the youth of the country to serve in the Armed Forces as Agniveers for four years. Since the tenure of the Agniveers is very short, there is a fundamental need to train them to an acceptable level in a much faster time compared to the duration spent by the former recruits. This is where the requirements for simulators will start increasing.
The changing nature of warfare, including the increased use of drones for various purposes, is driving demand for anti-drone systems and related equipment both in India and globally. These systems are crucial for protecting critical sites such as military bases, airports, refineries, and financial institutions.
(Inputs from ANI)