Mumbai (Maharashtra) [India]: The global avionics and advanced electronics systems market is projected to nearly double, reaching USD 63.34 billion by 2030, up from USD 34.9 billion in 2020, according to a report by Anand Rathi Advisors Limited.
The maintenance, repair, and overhaul (MRO) sector—which plays a crucial role in aircraft safety and airworthiness—is also expected to grow significantly, reaching USD 110 billion globally by 2028.
India’s Role in Global Aerospace Growth
Samir Bahl, CEO of Investment Banking at Anand Rathi Advisors Limited, emphasized India’s growing importance in the aerospace sector.
“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.”
He added, “As the industry embraces precision engineering, digital transformation, and automation, India’s aerospace ecosystem is primed for innovation and growth. With global OEMs, private investors, and capital markets fueling investment, the nation is set to redefine the skies. The future isn’t just above us—it’s being built right here!”
Key Market Trends Driving Aerospace Growth
- Aerostructures: The largest segment of the aerospace market, making up 40% of an aircraft’s total cost. This dominance is expected to continue through 2028, driven by advancements in materials science, dual sourcing, aftermarket services, and additive manufacturing techniques.
- Aircraft Engines: The global aircraft engine market is valued at over USD 100 billion, with engines accounting for 20% of an aircraft’s cost. Market growth is fueled by rising passenger demand, increased R&D investments, fuel efficiency improvements, and emerging electric and hybrid propulsion technologies.
- Expanding Aircraft Fleets: The global commercial fleet is expected to double by 2042, with single-aisle aircraft leading the demand surge. India, poised to become the third-largest buyer of commercial passenger planes, is experiencing rising demand for MRO services.
- MRO Sector Opportunities: Currently, 90% of India’s MRO services are outsourced, presenting a major growth opportunity for domestic aerospace firms.
India’s Moment in Aerospace
Sachin Mehta, Director – Investment Banking at Anand Rathi Advisors Limited, highlighted India’s strategic position in the evolving aerospace landscape.
“The aerospace industry represents a trillion-dollar opportunity with long-term order book visibility. The challenge is not demand but capacity and supply chain constraints. Indian companies specializing in aerospace engineering are rising to the challenge by enhancing both capability and capacity.”
He further stated, “They are now becoming an integral part of the global supply chain ecosystem. India’s regional connectivity initiatives and large-scale aircraft orders will further accelerate the growth of complex aero parts manufacturing, including assemblies and sub-assemblies, while also strengthening the domestic MRO sector. This is India’s moment to establish itself as a significant player in the aerospace industry.”
With increasing disposable incomes, government-backed initiatives, and a robust industrial base, India is well-positioned to capitalize on global aerospace growth opportunities.