Aerospace Offset Market Opportunity in India

In order to benefit and develop the productive capacity and capabilities of the Indian defense industry, an offset policy was introduced in 2005. This Lucintel brief explores both direct and indirect offset policies with the Indian aerospace and defense offset opportunity having crossed US$ 500M in 2010 with 78% CAGR from 2005-2010 with a further 11% CAGR expected in the years to come.

Key Learning:

·         Commercial aerospace is emerging sector for offset in India where defense currently represents ~60% of the total Indian offset market

·         Significant portion of current offset opportunity in India is in MRO, Technology and IT sector and ESO. Additional opportunities can be found in part manufacturing and control & navigation systems

·         Various Indian public and private players are increasingly participating across the global aerospace and defense supply chain

 

Growth Opportunities in the Global UAV Market

UAS (Unmanned Aircraft Systems) are an emerging sector of the aerospace industry with strong past and future growth trends. Unmanned Aerial Vehicles (UAVs) are the most predominant segment of the UAS market and reached US$3Bn in 2010 with growth rate of 12%. Innovation is helping drive increased mission capabilities and applications of UAVs.

Key Learning:

·         North America continues to be the leading global UAV market with ~65% of the total market followed by Asia Pacific and Europe with 20% and 16% respectively

·         Defense spending is expected to  increase significantly for  unmanned aircraft rather than manned aircraft in coming years

·         Additional non defense applications such as border control are helping to expand the market for UAV’s