The Market Reports

Call: +1-631-407-1315 / +91-750-729-1479
Email: sales@themarketreports.com

The Future of the Indian Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2023

The Future of the Indian Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2023

Publishing Date : May, 2018

License Type :
 

Report Code : 1170720

No of Pages : 165

Synopsis
The Future of the Indian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

The Future of Indian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

This report offers detailed analysis of Indian defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -
- Indian defense industry market size and drivers: detailed analysis of Indian defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget. It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of Indian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities over the next 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of Indiann defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Scope

- India has a coastline, land frontier, island territories, airspace, and crucial offshore installations to defend against the various potential security threats. As a result, it is highly necessary for the Indian Armed Forces to be prepared to repel any external threat. The Indian Government is therefore continuously focusing on improving the country’s existing defense infrastructure. Only 40% of the defense needs are currently fulfilled by the domestic defense industry and the rest is imported from various countries of the world.
- The Indian Government has identified the need to build a strong and self-sustaining defense sector as a top priority. This has prompted the Indian MoD to consistently allocate an increasing share of its budget toward the defense sector, a trend that is expected to continue over the forecast period. Historic data shows that India invested US$197.7 billion in the defense sector during 2014-2018, and this is expected to increase to US$287.5 billion over 2019-2023.
- Historic data shows the average capital expenditure allocation of the total Indian defense budget was averaging 33.2%, and the allocation is expected to decline marginally during the forecast period to an average of 30.6%.
- The Indian MoD is expected to invest in submarines, multi-role aircrafts, corvettes, tanks, artillery guns, Multi Barrel Rocket Launchers (MBRL), helicopters, submarines, surface-to-air missiles, Unmanned Aerial Vehicles (UAV) and frigates among others.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Indian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of Indian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts

Companies Mentioned
Lockheed Martin Corporation
BAE Systems Plc.
Thales
Boeing
Mazagon Docks Limited
Hindustan Aeronautics Limited (HAL)
Bharat Electronics Limited (BEL)
Bharat Dynamics Limited (BDL)
Ordnance Factory Board
Bharat Earth Movers Limited (BEML)
Goa Shipyard Limited (GSL)
Tata Advanced Systems Limited (TASL)
Mahindra Defense Systems (MDS)

Geographical Area
India
Index
Table of Contents
1. Introduction 10
1.1. What is this Report About? 10
1.2. Definitions 10
1.3. Summary Methodology 12
1.4. About Strategic Defence Intelligence 13
2. Executive Summary 14
3. Market Attractiveness and Emerging Opportunities 17
3.1. Current Market Scenario 19
3.1.1. Primary Threat Perception 19
3.1.2. Military Doctrine and Strategy 21
3.1.3. Military Fleet Size 25
3.1.4. Procurement Programs 33
Ongoing Procurement Programs 33
Future Procurement Programs 37
Top Procurement Programs by Value (US$ Million) 2018-2023 40
3.1.5. Social, Political and Economic Environment and Support for Defense Projects 41
3.1.6. Political and Strategic Alliances 42
3.2. Defense Market Size Historical and Forecast 44
3.2.1. Indian defense expenditure, inclusive of pensions, expected to be US$401.7 billion cumulatively over 2019-2023 44
3.2.2. Indian defense expenditure, excluding pensions, expected to be US$287.5 billion cumulatively over 2019-2023 46
3.2.3. Modernization initiatives, hostile neighbors, territorial disputes, and the implementation of OROP and the 7th Pay Commission will be the key growth drivers 48
3.2.4. Defense budget as a percentage of GDP will remain at an average of 1.5% over the forecast period 50
3.3. Analysis of Defense Budget Allocation 51
3.3.1. Revenue expenditure expected to increase over the forecast period 51
3.3.2. Procurement of equipment is expected to pick up over the forecast period 53
3.3.3. Army continues to see the largest share of the defense budget 55
3.3.4. Defense expenditure allocation for the army expected to increase over the forecast period 56
3.3.5. Per capita defense expenditure is expected to increase over the forecast period 60
3.4. Homeland Security Market Size and Forecast 61
3.4.1. India is projected to spend US$88.6 billion cumulatively on homeland security over the forecast period 61
3.4.2. Homeland security is expected to be driven by cross-border terrorism and domestic conflicts 64
3.4.3. India falls under the “highly affected” terrorism category 66
3.4.4. India faces a high level of threat from foreign terrorist organizations 67
3.4.5. India has a terrorism index score of 7.5 69
3.5. Benchmarking with Key Global Markets 70
3.5.1. India’s defense budget expected to grow at a CAGR of 8.09% 70
3.5.2. The US and China dominate the global defense industry 72
3.5.3. India allocates a lower share of its GDP to defense than other Asian countries 73
3.6. Market Opportunities: Key Trends and Growth Stimulators 74
3.6.1. Top Defense Market Sectors by Value (US$ Million) - Projections over 2018-2023 74
3.6.2. Land-Based C4ISR 75
3.6.3. Critical Infrastructure Protection (CIP) - Physical Security 76
3.6.4. Multirole Aircraft 77
4. Defense Procurement Market Dynamics 79
4.1. Import Market Dynamics 81
4.1.1. Indian defense imports slowly declining 81
4.1.2. Russia dominates Indian arms imports 82
4.1.3. Aircraft accounted for the majority of defense imports during 2013-2017 83
4.2. Export Market Dynamics 84
4.2.1. India’s low profile in defense exports is set to change over the forecast period 84
4.2.2. Underdeveloped nations across Asia and Africa are the main importers of Indian defense goods 85
4.2.3. Naval vessels accounted for the majority of defense imports during 2013-2017 86
5. Industry Dynamics 87
5.1. Five Forces Analysis 87
5.1.1. Bargaining Power of Supplier: Low to Medium 88
5.1.2. Bargaining Power of Buyer: High 89
5.1.3. Barrier to Entry: Low to Medium 89
5.1.4. Intensity of Rivalry: High 89
5.1.5. Threat of Substitution: Medium to High 89
6. Market Entry Strategy 90
6.1. Market Regulation 90
6.1.1. Defense Procurement Procedure (DPP) - 2016: 90
6.1.2. Offset policy to drive defense industrial modernization 90
6.1.3. Main features of revised Defense Procurement Procedure (DPP) - 2016 92
6.1.4. Private sectors permitted to produce arms and ammunition under the new Draft Arms and Ammunitions Manufacturing Policy (DAAM) 93
6.1.5. Foreign direct investment (FDI) increased to 49% in the Indian defense sector 93
6.2. Market Entry Route 95
6.2.1. Budgeting Process 95
6.2.2. Procurement Policy and Process 96
6.2.3. Foreign OEMs are forming joint ventures in order to enter the market 97
6.2.4. India emerges as a key outsourcing hub for global defense companies 99
6.3. Key Challenges 100
6.3.1. Offset policy is biased towards the domestic public and private sectors 100
6.3.2. Insufficient information and transparency regarding future plans 100
6.3.3. Bureaucracy, corruption, and long project delays 101
6.3.4. Developing advanced, low-cost solutions is essential to gain market share 101
7. Competitive Landscape and Strategic Insights 102
7.1. Competitive Landscape Overview 102
7.1.1. Domestic public companies have a strong presence in the Indian defense industry 103
7.2. Key Foreign Companies 106
7.2.1. Lockheed Martin Corporation: Overview 106
7.2.2. Lockheed Martin Corporation: Products 106
7.2.3. Lockheed Martin Corporation: Recent Announcements and Strategic Initiatives 107
7.2.4. Lockheed Martin Corporation: Alliances 108
7.2.5. Lockheed Martin Corporation: Recent Contract Wins 109
7.2.6. BAE Systems Plc.: Overview 110
7.2.7. BAE Systems Plc.: Products 110
7.2.8. BAE Systems Plc.: Recent Announcements and Strategic Initiatives 110
7.2.9. BAE Systems Plc.: Alliances 111
7.2.10. BAE Systems Plc.: Recent Contract Wins 112
7.2.11. Thales: Overview 113
7.2.12. Thales: Products 113
7.2.13. Thales: Recent Announcements and Strategic Initiatives 113
7.2.14. Thales: Alliances 114
7.2.15. Thales: Recent Contract Wins 115
7.2.16. Boeing: Overview 116
7.2.17. Boeing: Products 116
7.2.18. Boeing: Recent Announcements and Strategic Initiatives 116
7.2.19. Boeing: Alliances 117
7.2.20. Boeing: Recent Contract Wins 117
7.3. Key Public Sector Companies 118
7.3.1. Mazagon Docks Limited: Overview 118
7.3.2. Mazagon Docks Limited: Products 118
7.3.3. Mazagon Docks Limited: Recent Announcements and Strategic Initiatives 118
7.3.4. Mazagon Docks Limited: Alliances 120
7.3.5. Mazagon Docks Limited: Recent Contract Wins 120
7.3.6. Hindustan Aeronautics Limited: Overview 121
7.3.7. Hindustan Aeronautics Limited: Products and Services 121
7.3.8. Hindustan Aeronautics Limited: Recent Announcements and Strategic Initiatives 122
7.3.9. Hindustan Aeronautics Limited: Alliances 123
7.3.10. Hindustan Aeronautics Limited: Recent Contract Wins 124
7.3.11. Bharat Electronics Limited: Overview 126
7.3.12. Bharat Electronics Limited: Products and Services 126
7.3.13. Bharat Electronics Limited: Recent Announcements and Strategic Initiatives 127
7.3.14. Bharat Electronics Limited: Alliances 128
7.3.15. Bharat Electronics Limited: Recent Contract Wins 129
7.3.16. Bharat Electronics Limited - Financial Analysis 130
7.3.17. Bharat Dynamics Limited: Overview 132
7.3.18. Bharat Dynamics Limited: Products 132
7.3.19. Bharat Dynamics Limited: Recent Announcements and Strategic Initiatives 132
7.3.20. Bharat Dynamics Limited: Alliances 133
7.3.21. Bharat Dynamics Limited: Recent Contract Wins 133
7.3.22. Ordnance Factory Board: Overview 134
7.3.23. Ordinance Factory Board: Products 134
7.3.24. Ordinance Factory Board: Recent Announcements and Strategic Initiatives 134
7.3.25. Ordinance Factory Board: Alliances 135
7.3.26. Ordinance Factory Board: Recent Contract Wins 135
7.3.27. BEML: Overview 136
7.3.28. BEML: Products 136
7.3.29. BEML: Recent Announcements and Strategic Initiatives 137
7.3.30. BEML: Alliances 138
7.3.31. Goa Shipyard Limited: Overview 140
7.3.32. Goa Shipyard Limited: Products and Services 140
7.3.33. Goa Shipyard Limited: Recent Announcements and Strategic Initiatives 141
7.3.34. Goa Shipyard Limited: Alliances 141
7.3.35. Goa Shipyard Limited: Recent Contract Wins 142
7.4. Key Private Sector Companies 143
7.4.1. Tata Advanced Systems Limited: Overview 143
7.4.2. Tata Advanced Systems Limited: Products 143
7.4.3. Tata Advanced Systems Limited: Recent Announcements and Strategic Initiatives 143
7.4.4. Tata Advanced Systems Limited: Alliances 144
7.4.5. Tata Advanced Systems Limited: Recent Contract Wins 145
7.4.6. Mahindra Defence Systems: Overview 146
7.4.7. Mahindra Defence Systems: Products 146
7.4.8. Mahindra Defence Systems: Recent Announcements and Strategic Initiatives 146
7.4.9. Mahindra Defence Systems: Alliances 147
8. Business Environment and Country Risk 149
8.1. Economic Performance 149
8.1.1. GDP Per Capita, US$ 149
8.1.2. GDP (Current US$ Billion) 150
8.1.3. Exports of Goods and Services (Current LCU Billion) 151
8.1.4. Imports of Goods and Services (Current LCU Billion) 152
8.1.5. Gross National Disposable Income (US$ Billion) 153
8.1.6. LCU per US$ (Period Average) 154
8.1.7. Market Capitalization of Listed Companies (US$ Billion) 155
8.1.8. Market Capitalization of Listed Companies (% of GDP) 156
8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP (LCU) 157
8.1.10. Goods Exports as a Percentage of GDP 158
8.1.11. Goods Imports as a Percentage of GDP 159
8.1.12. Services Imports as a Percentage of GDP 160
8.1.13. Services Exports as a Percentage of GDP 161
8.1.14. Foreign Direct Investment, net (BoP, Current US$ Billion) 162
8.1.15. Net Foreign Direct Investment as a Percentage of GDP 163
8.1.16. Mining, Manufacturing, and Utilities Output (LCU Billion) 164
9. Appendix 165
9.1. About SDI 165
9.2. Disclaimer 165
List of Tables
List of Tables
Table 1: The Indian Army Strength 25
Table 2: Indian Navy Strength 29
Table 3: Indian Air Force Strength 31
Table 4: India - Ongoing Procurement Programs 33
Table 5: India - Future Procurement Programs 37
Table 6: Top Indian Defense Procurement Programs by Value (US$ Million) 2018-2023 40
Table 7: Indian Defense Expenditure Including Pensions (INR Billion & US$ Billion), 2014-2023 44
Table 8: Indian Defense Expenditure Excluding Pensions (INR Billion & US$ Billion), 2014-2023 46
Table 9: Indian GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023 50
Table 10: Indian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 51
Table 11: Indian Capital Expenditure (INR Billion & US$ Billion), 2014-2023 53
Table 12: Indian Defense Budget Split (%), 2014-2023 55
Table 13: Indian Defense Budget in INR Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023 56
Table 14: Indian Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023 58
Table 15: Indian Per Capita Defense Expenditure (US$), 2014-2023 60
Table 16: Indian Homeland Security Budget (INR Billion & US$ Billion), 2014-2023 62
Table 17: Terrorism Index, 2018 67
Table 18: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 70
Table 19: Top Indian Defense Market Sectors by Value (US$ Million) - 2018-2023 74
Table 20: Offset Policy in India 91
Table 21: Indian Budget Formation Timetable: 95
Table 22: Market Entry Strategies and Key Objectives of Foreign Companies in the Indian Defense Sector 97
Table 23: Key Players and their Operations in the Indian Defense Industry 99
Table 24: Top Defense Suppliers in The Indian Defense Industry - By Value (US$ Million) 2018-2023 102
Table 25: Scale of Operations of Domestic Public &Private Sector Companies in the Indian Defense Industry 103
Table 26: Lockheed Martin Corporation - Products 106
Table 27: Lockheed Martin Corporation - Alliances 108
Table 28: Lockheed Martin Corporation - Recent Contract Wins 109
Table 29: BAE Systems Plc. - Products 110
Table 30: BAE Systems Plc. - Alliances 111
Table 31: BAE Systems Plc. - Recent Contract Wins 112
Table 32: Thales - Products 113
Table 33: Thales - Alliances 114
Table 34: Thales - Recent Contract Wins 115
Table 35: Boeing - Products 116
Table 36: Boeing - Alliances 117
Table 37: Boeing - Recent Contract Wins 117
Table 38: Mazagon Docks Limited - Products 118
Table 39: Mazagon Docks Limited - Alliances 120
Table 40: Mazagon Docks Limited - Recent Contract Wins 120
Table 41: Hindustan Aeronautics Limited - Products and Services 121
Table 42: Hindustan Aeronautics Limited - Alliances 123
Table 43: Hindustan Aeronautics Limited - Recent Contract Wins 124
Table 44: Bharat Electronics Limited - Products and Services 126
Table 45: Bharat Electronics Limited - Alliances 128
Table 46: Bharat Electronics Limited - Recent Contract Wins 129
Table 47: Bharat Dynamics Limited - Products 132
Table 48: Bharat Dynamics Limited - Alliances 133
Table 49: Bharat Dynamics Limited - Recent Contract Wins 133
Table 50: Ordinance Factory Board - Products 134
Table 51: Ordinance Factory Board - Alliances 135
Table 52: Ordinance Factory Board - Recent Contract Wins 135
Table 53: BEML - Products 136
Table 54: BEML - Alliances 138
Table 55: Goa Shipyard Limited - Products and Services 140
Table 56: Goa Shipyard Limited - Alliances 141
Table 57: Goa Shipyard Limited - Recent Contract Wins 142
Table 58: Tata Advanced Systems Limited - Products 143
Table 59: Tata Advanced Systems Limited - Alliances 144
Table 60: Tata Advanced Systems Limited - Recent Contract Wins 145
Table 61: Mahindra Defence Systems - Products 146
Table 62: Mahindra Defence Systems - Alliances 147

List of Figures
List of Figures
Figure 1: Indian Defense Expenditure Including Pensions (INR Billion), 2014-2022 45
Figure 2: Indian Defense Expenditure Including Pensions (US$ Billion), 2014-2022 45
Figure 3: Indian Defense Expenditure Excluding Pensions (INR Billion), 2014-2023 47
Figure 4: Indian Defense Expenditure Excluding Pensions (US$ Billion), 2014-2023 47
Figure 5: Indian GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023 50
Figure 6: Indian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 52
Figure 7: Indian Capital Expenditure (INR Billion), 2014-2023 54
Figure 8: Indian Capital Expenditure (US$ Billion), 2014-2023 54
Figure 9: Indian Defense Budget Split (%), 2014-2023 55
Figure 10: Indian Defense Expenditure Allocation By Military Services - Split by Army, Navy, Air Force and Others (INR Billion), 2014-2023 57
Figure 11: Indian Defense Expenditure Allocation By Military Services - Split by Army, Navy, Air Force and Others (US$ Billion), 2014-2023 59
Figure 12: Indian Per Capita Defense Expenditure (US$), 2014-2023 60
Figure 13: Indian Homeland Security Budget (INR Billion), 2014-2023 63
Figure 14: Indian Homeland Security Budget (US$ Billion), 2014-2023 63
Figure 15: Terrorism Heat Map, 2018 66
Figure 16: Terrorism Index 69
Figure 17: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 71
Figure 18: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023 72
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 73
Figure 20: Land Based C4ISR Market Size (US$ Million), 2018-2023 75
Figure 21: Critical Infrastructure Protection (CIP) - Physical Security Market Size (US$ Million), 2018-2023 76
Figure 22: Multirole Aircraft Market Size (US$ Million), 2018-2023 78
Figure 23: Top Indian Defense Procurements in Terms of Their Supplier Relationships 80
Figure 24: Indian Defense Import Trend (US$ Million), 2013-2017 (TIV Values*) 81
Figure 25: Country-wise Break-up of Indian Defense Imports (%), 2013-2017 (TIV Values) 82
Figure 26: Weapon Category Break-up of Indian Defense Imports (%), 2013-2017 (TIV Values) 83
Figure 27: Indian Defense Export Trend (US$ Million), 2013-2017 (TIV Values) 84
Figure 28: Country-wise Break-up of Indian Defense Exports (%), 2013-2017 (TIV Values) 85
Figure 29: Weapon Category Break-up of Indian Defense Exports (%), 2013-2017 (TIV Values) 86
Figure 30: Industry Dynamics - Porter’s Five Forces Analysis 87
Figure 31: Bharat Electronics Limited - Revenue Trend Analysis (INR Billion), 2013-2017 130
Figure 32: Bharat Electronics Limited - Operating Profit Trend Analysis (INR Billion), 2013-2017 131
Figure 33: Bharat Electronics Limited - Net Profit Trend Analysis (INR Billion), 2013-2017 131
Figure 34: GDP Per Capita in US$, 2015-2025 149
Figure 35: GDP (Current US$ Billion), 2015-2025 150
Figure 36: Exports of Goods and Services (Current LCU Billion), 2005-2014 151
Figure 37: Imports of Goods and Services (Current LCU Billion), 2005-2014 152
Figure 38: Gross National Disposable Income (US$ Billion), 2005-2012 153
Figure 39: LCU per US$ (Period Average), 2015-2024 154
Figure 40: Market Capitalization of Listed Companies (US$ Billion), 2005-2012 155
Figure 41: Market Capitalization of Listed Companies (% of GDP), 2005-2012 156
Figure 42: Total Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2005-2012 157
Figure 43: Goods Exports as a Percentage of GDP, 2005-2014 158
Figure 44: Goods Imports as a Percentage of GDP, 2005-2014 159
Figure 45: Service Imports as a Percentage of GDP, 2005-2014 160
Figure 46: Services Exports as a Percentage of GDP, 2005-2014 161
Figure 47: Foreign Direct Investment, net (BoP, Current US$ Billion), 2005-2014 162
Figure 48: Net Foreign Direct Investment as a Percentage of GDP, 2005-2014 163
Figure 49: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 16