India Defense Electronics Market Size, Share, and Industry Analysis, By Vertical (Navigation, Communication, and Display, Electronic Warfare, Optronics, Radars, and C4ISR), By Navigation, Communication, and Display (Avionics, Vetronics, and Integrated Bridge Systems) By Electronic Warfare (Jammers, Self-protection EW Suites, Directed Energy Weapons, Directional Infrared Countermeasures, Antennas, IR Missile Warning Systems, & Others), By Optronics, By Radars, By C4ISR, By Platform, By Land, By Marine, By Airborne, By Space, and Country Forecast, 2025-2032

The India Defense Electronics market size was worth USD 6.85 billion in 2024. It is projected to be worth USD 7.46 billion in 2025 and reach USD 11.35 billion in 2032, exhibiting a CAGR of 6.18% during the forecast period.

India’s defense electronics sector is rapidly strengthening under the government’s "Make in India" and self-reliance (Atmanirbhar Bharat) policies, supported by strategic investments in infrastructure, R&D, and public–private partnerships. The government has launched initiatives such as the Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, backed by capital infusion to modernize Public Sector Undertakings (PSUs) and foster indigenous manufacturing in aerospace and electronics. This is further supported by collaboration platforms such as INDUS-X, which facilitate joint R&D between Indian and U.S. startups in advanced domains, including AI and space electronics. 

India Defense Electronics Market Trends

Adoption of Modular Open Architecture is a Latest Market Trend

A growing trend in India's defense electronics sector is the use of modular open system architectures (MOSA), which facilitate quicker upgrades, improve interoperability, and foster innovation at the component level. The Defense Research and Development Organization (DRDO) and Bharat Electronics Limited (BEL) are progressively creating open-standard platforms for mission computers, electronic warfare control systems, and software-defined radios, thereby enabling plug-and-play integration across various services. This approach minimizes reliance on comprehensive system overhauls and permits local suppliers to independently supply modular subsystems and electronic components.

Key takeaways

• By vertical segmentation, electronic warfare accounted for around 22.60% of the market in 2024.
• By C4ISR segmentation, sensor system is projected to grow at a CAGR of 7.38% over the forecast period.
• By marine segmentation, submarines accounted for around 25.12% of the market in 2024.

India Defense Electronics Market Growth Factors

Government Programs to Boost Domestic Manufacturing in Defense Sector are Projected to Boost Market Growth

India's defense electronics industry is experiencing a significant boost from the Make in India and Atmanirbhar Bharat initiatives, leading to substantial investments in domestic production capabilities, research and development, and manufacturing infrastructure. At the same time, the Indian government is enhancing procurement processes by introducing policies such as Buy (Indian), Buy & Make (Indian), and IDDM (Indigenously Designed, Developed & Manufactured), which aim to direct contracts to local suppliers. 

• In May 2025, according to an article by the Ministry of Information & Broadcasting, roughly 65% of defense equipment is manufactured domestically.

Moreover, initiatives such as Project Akashteer (automated air defense systems developed by BEL) exemplify this push for self-sufficiency, with more than 200 units delivered by the end of 2024.

Domestic vs Imported Defense Electronics in India

India Defense Electronics Market Restraints

Limited Private Sector Integration Constraint Limits Market Growth

A persistent restraint in the India defense electronics market growth is the limited involvement of the private sector in strategic and high-value defense initiatives. Public sector units (PSUs) such as Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL) continue to dominate major contracts, frequently overlooking agile startups and SMEs that could foster innovation. Additionally, private enterprises encounter difficulties in gaining access to defense testing facilities, meeting defense-grade standards, and navigating lengthy procurement processes. These barriers slow down time-to-market and restrict the extent of private innovation, particularly in areas such as AI, sensor fusion, and advanced computing systems.

India Defense Electronics Market Segmentation Analysis

By Vertical Analysis

Based on vertical, the market is divided into navigation, communication, and display, electronic warfare, optronics, radars, and C4ISR.

In 2024, the India market was led by the navigation, communication, and display sector. The Government of India has made significant investments in domestic manufacturing, especially focusing on communication, electronic warfare (EW), and airborne electronics systems. The Union Budget 2024-25 boosted capital funding for the modernization of defense and infrastructure, indicating a solid commitment to the advancement of the sector.

By Navigation, Communication, and Display Analysis

Based on navigation, communication, and display, the market is divided into avionics, vetronics, and integrated bridge systems.

The avionics segment dominated the market. This dominance is fueled by the essential function these systems serve in contemporary military activities, providing accurate targeting, secure communication, and strategic intelligence.

By Electronic Warfare Analysis

Based on electronic warfare, the market is segmented into jammers, self-protection EW suites, directed energy weapons, directional infrared countermeasures, antennas, IR missile warning systems, identification friend or foe systems, laser warning systems, radar warning receivers, and others.

Self-protection EW suites dominated the market in 2024. This segment is centered on safeguarding platforms and personnel from dangers, is driven by the necessity for improved situational awareness and the growing intricacy of contemporary warfare.  

By Optronics Analysis

Based on optronics, the market is bifurcated into handheld systems, EO/IR payloads.

The EO/IR payloads segment dominated the market in 2024. These systems find applications across multiple platforms such as land, air, and sea, serving functions such as surveillance, reconnaissance, and missile guidance. Organizations such as BEL (Bharat Electronics Limited) and DRDO (Defence Research and Development Organisation) play a pivotal role in the development and production of cutting-edge EO/IR systems, aiding in the expansion of the market.

By Radar Analysis

Based on radar, the market is segmented into surveillance and airborne early warning radars, tracking and fire control radars, ground penetrating radars, weather radars, counter-drone radars, air traffic control radars, and other.

The surveillance and airborne early warning radars segment dominated the market in 2024. This is due to the essential function radars serve in improving situational awareness, identifying threats, and aiding military operations, especially amid increasing geopolitical tensions and concerns regarding border security.

By C4ISR Analysis

Based on C4ISR, the market is segmented into sensor system, communication & network technologies, display & peripherals, and others.

The communication & network technologies segment dominated the market in 2024. The segmental growth is driven by the incorporation of AI-driven analytics and secure communication systems, which improve battlefield effectiveness and troop preparedness, along with advanced communication network technologies.

By Platform Analysis

Based on platform, the market is segmented into land, marine, airborne, and space.

The airborne segment dominated the market in 2024. Increased emphasis on precise engagement, swift force deployment, and enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities has fueled investment in the airborne sector, making it the foremost growth opportunity within the Indian defense sector.

By Land Analysis

Based on land, the market is segmented into dismounted soldier systems, military fighting vehicles, and command centers.

The military fighting vehicles segment dominated the market in 2024. This growth is owing to the continuous requirement to protect India's vast land borders, address domestic security issues, and uphold armed strength. This category includes vehicles such as main battle tanks, infantry fighting vehicles, and armored personnel carriers, all of which are seeing substantial demand.

By Marine Analysis

Based on marine, the market is segmented into aircraft carriers, amphibious ships, destroyers, frigates, submarines, and unmanned maritime vessels.

The submarines segment accounted for the highest India defense electronics market share in 2024. This is fueled by progress in submarine technology, featuring stealth capabilities, nuclear propulsion, and combat systems. Moreover, rising geopolitical tensions and the demand for improved surveillance and defense capabilities drive the segmental growth.

By Airborne Analysis

Based on airborne, the market is segmented into military aircraft, military helicopters, and unmanned aerial vehicles (UAVs).

The military aircraft segment dominated the market in 2024. India's emphasis on upgrading its air force and strengthening its defense capabilities has driven the need for advanced avionics, radar systems, and various electronic warfare technologies for its military aircraft.

By Space Analysis

Based on space, the market is segmented into LEO Satellites, MEO Satellites, and GEO Satellites. 

LEO satellites dominated the market in 2024. The LEO satellite segment in India is witnessing significant expansion, fueled by the demand for reliable, high-speed internet and enhanced surveillance features for defense purposes.

List of Key Companies in India Defense Electronics Market

Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Centum Electronics, Tata Advanced Systems Limited (TASL), and L&T Defence (Larsen & Toubro) are a few prominent players in the India Defense Electronics Market. Major public sector entities such as BEL, HAL, and BDL are concentrating on upgrading their current platforms by incorporating advanced avionics, AI-driven surveillance, and electronic warfare technologies, frequently partnering with DRDO. Private defense contractors such as Data Patterns, Centum, and Paras Defence are leading in innovation for high-performance embedded systems, radar subsystems, and electro-optics, typically supported by their own design and manufacturing capabilities.

LIST OF KEY COMPANIES PROFILED:

• Bharat Electronics Limited (BEL) (India)
• Hindustan Aeronautics Limited (HAL) (India)
• Paras Defence & Space Technologies (India)
• Tata Advanced Systems Limited (TASL) (India)
• Mahindra Defence Systems (India)
• Centum Electronics (India)
• L&T Defence (Larsen & Toubro) (India)

KEY INDUSTRY DEVELOPMENTS:

• May 2025: India received the first of six Surya Very High Frequency (VHF) radars, which have been developed locally by a company in Bengaluru, as part of a contract valued at around USD 24 million. These radars are designed for the detection of stealth aircraft and improve India’s capabilities for low-altitude aerial surveillance.
• April 2025: The Ministry of Defence (MoD) entered into a contract worth USD 285 million with Bharat Electronics Limited (BEL) for the provision of electronic warfare (EW) systems, aircraft modification kits, and related equipment for the Mi-17 V5 helicopters of the Indian Air Force. 

REPORT COVERAGE

The India defense electronics market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for defense electronics.

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