India’s counter-drone market is set to expand at an annual rate of 28% over the next five years, according to a report by financial services firm Motilal Oswal.

The surge in the drone market is driven by the increasing need for systems to counter aerial threats. The report estimates the addressable market for counter-drone systems at Rs 120 billion over the next five years, based on the requirement for nearly 1,200 counter-drone systems, each costing between Rs 80 to 150 million. This translates to an annual market opportunity of nearly Rs 24 billion over the next five years.

Demand is particularly strong for systems with a range of more than 5 kilometers, which are growing faster than those with a shorter range. The technology in this sector is continually advancing to improve range, with each counter-drone system having a lifespan of about 10 years and necessitating regular software upgrades.

The report also noted that the cumulative defence electronics market was valued at approximately $8.1 billion from 2016 to 2020, growing at an annual rate of 4.5% during that period. In 2021, the market was valued at $1.9 billion and is projected to reach USD 7 billion by 2030, with an annual growth rate of 15.7% from 2020 to 2030.

India’s defence electronics sector is expected to see significant efforts to localise production over the next decade, improving manufacturing and quality standards. Currently, over 60% of electronic components are supplied by foreign manufacturers. As local production increases, a larger portion of future defence electronics will be sourced domestically. Major defence programs, such as new combat aircraft acquisitions, submarine building, and T-72 tank replacements, will drive market growth in this segment.

Additionally, India's simulators market is projected to reach between Rs 140 and 150 billion over the next five years. Military training simulators, which can replicate a variety of scenarios including air-to-air combat, ground combat, and naval warfare, are crucial for training armed forces in a realistic environment. The Agniveer Yojna, which allows youth to serve in the Armed Forces for four years, underscores the need for rapid and effective training, further boosting the demand for simulators.

With the evolving nature of warfare, which now includes drones for spying, surveillance, and reconnaissance, the demand for anti-drone systems and other protective equipment is growing in India and globally. This is essential for safeguarding critical sites such as military bases, airports, refineries, and financial institutions.

(Source: ANI)