India's Counter-Drone Market to Surge by 28% Annually, Finds Report

A report by Motilal Oswal predicts India's counter-drone market to grow at 28% annually over five years, driven by the demand for counter-aerial attack systems. The market value is expected to reach Rs 120 billion with significant local production efforts in defense electronics.

India's counter-drone market is projected to grow at an impressive annual rate of 28 per cent over the next five years, according to a report by Motilal Oswal, a financial services firm. This surge is spurred by an increasing need for systems to counter aerial threats. The report estimates the addressable market for these systems at Rs 120 billion, driven by a requirement for nearly 1,200 counter-drone systems, each priced between Rs 80 to 150 million. This demand is expected to generate an annual market opportunity of about Rs 24 billion.

In the drone sector, systems with a range exceeding 5 kilometers are expanding faster than those with shorter ranges. The technology in this field is rapidly advancing to improve range, with each counter-drone system boasting a lifespan of approximately 10 years and requiring regular software upgrades. The report also highlights that the cumulative defense electronics market was valued at USD 8.1 billion from 2016 to 2020, growing at an annual rate of 4.5 per cent. In 2021, the market stood at USD 1.9 billion and is projected to rise to USD 7 billion by 2030, with an annual growth rate of 15.7 per cent from 2020 to 2030.

In India, the defense electronics segment is anticipated to witness significant local production efforts over the next decade, improving manufacturing and quality standards. Currently, over 60 per cent of electronic components are imported. With increased local production, a larger portion of future defense electronics will be sourced domestically. Major programs across the army, navy, and air force, including new combat aircraft acquisitions, submarine construction, and replacing T-72 tanks, are expected to bolster the market value of this segment.

Additionally, India's simulators market is projected to grow to between Rs 140 and 150 billion over the next five years. Military training simulators, capable of replicating various scenarios such as air-to-air combat, ground combat, and naval warfare, are crucial for realistic training of armed forces. The recently announced Agniveer Yojna offers youth a four-year tenure in the Armed Forces, underscoring the need for accelerated training programs. This will significantly increase the demand for simulators.

With warfare's evolving nature, including the use of drones for spying, surveillance, and reconnaissance, there is a rising demand for anti-drone systems and related equipment in India and globally to safeguard critical sites like military bases, airports, refineries, and financial institutions. (ANI)

(With inputs from agencies.)