Mumbai (Maharashtra) [India], February 20 : The global avionics and advanced electronics systems market is expected to reach USD 63.34 billion by 2030, nearly doubling from USD 34.9 billion in 2020, according to a report by financial advisory firm Anand Rathi.
The maintenance, repair and overhaul (MRO) sector plays a critical role in ensuring aircraft safety and airworthiness and is projected to reach USD 110 billion globally by 2028.
Samir Bahl, CEO of Investment Banking at Anand Rathi Advisors Limited, stated, "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 fuelling investment, the nation is set to redefine the skies. The future isn't just above usit's being built right here!"
Aerostructures represent the largest segment of the aerospace market, accounting for approximately 40 per cent of the total aircraft cost.
This segment is expected to maintain its dominance through 2028, driven by advancements in materials science, dual sourcing, aftermarket services, and additive manufacturing techniques.
The global aircraft engine market exceeds USD 100 billion in value, with engines constituting nearly 20 per cent of an aircraft's total cost.
Factors such as rising passenger numbers, continuous R&D investments, fuel efficiency improvements, and the emergence of electric and hybrid propulsion technologies are driving market growth.
India, poised to become the third-largest buyer of commercial passenger planes, has an increasing demand for MRO services. Currently, 90 per cent of MRO services are outsourced, highlighting a significant growth opportunity for domestic players.
The growth potential of the aerospace industry worldwide is fuelled by rising air travel demand, expanding aircraft fleets, and rapid technological advancements. Global fleet to double by 2042, with single-aisle aircraft leading the demand surge.
With increasing disposable incomes, government-backed initiatives, and a strengthening industrial base, India is well-positioned to capitalize on this evolving landscape.
Sachin Mehta, Director - Investment Banking at Anand Rathi Advisors Limited, added, "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 added, "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."
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