India Set to Become Global Aerospace Powerhouse Amid Market Boom

New Delhi, Feb 20 (KNN) The global avionics and advanced electronics systems market is poised to nearly double, reaching USD 63.34 billion by 2030 from USD 34.9 billion in 2020, according to a report by Anand Rathi Advisors Limited.

The robust growth underscores the dynamic expansion of the aerospace sector, with India emerging as a key player on the global stage.

The Maintenance, Repair, and Overhaul (MRO) sector, crucial for aircraft safety and airworthiness, is also on a growth trajectory, expected to hit USD 110 billion globally by 2028.

India, eyeing a larger share in this sector, currently outsources 90 per cent of its MRO services—signaling immense potential for domestic growth.

“With the rapid expansion of the global fleet, advanced manufacturing, and a flourishing MRO sector, India is on track to becoming a global aerospace powerhouse,” said Samir Bahl, CEO of Investment Banking at Anand Rathi Advisors Limited.

He highlighted India’s commitment to precision engineering, digital transformation, and automation, positioning the nation at the forefront of aerospace innovation.

Aerostructures, accounting for 40 per cent of an aircraft's total cost, remain the largest market segment, fuelled by advancements in materials science, dual sourcing, and additive manufacturing.

The global aircraft engine market, valued at over USD 100 billion, continues to grow, driven by rising passenger numbers, R&D investments, and innovations in fuel efficiency and hybrid propulsion technologies.

India’s aviation boom is further bolstered by its ascent as the third-largest buyer of commercial passenger planes. The country’s growing demand for MRO services, coupled with regional connectivity initiatives and significant aircraft orders, is reshaping its aerospace landscape.

Sachin Mehta, Director – Investment Banking at Anand Rathi, emphasized, “The aerospace industry represents a trillion-dollar opportunity. While demand is strong, capacity and supply chain constraints remain challenges. Indian firms are stepping up, enhancing their capabilities and becoming key players in the global supply chain.”

With rising disposable incomes, supportive government initiatives, and an expanding industrial base, India is well-positioned to capitalize on this growth, cementing its role as a major force in the global aerospace industry.

(KNN Bureau)