According to the latest market research study published by P&S Intelligence, the Indian military drone market is poised for robust growth, with its size projected to surge from USD 1,550.2 million in 2024 to USD 5,574.6 million by 2032, advancing at a CAGR of 17.5% during 2025–2032. This dynamic growth reflects the country’s increasing reliance on unmanned aerial vehicles (UAVs) for surveillance, border control, combat, and strategic missions amid evolving security challenges.
Several key factors are fueling this expansion, including a significant boost in the national defense budget, which reached USD 75 billion (INR 6.22 lakh crore) for FY 2024–25. These funds are being directed towards procuring and upgrading military technologies, including advanced drones for diverse operational scenarios. Recent missions such as Operation Sindoor highlight the growing adoption of cutting-edge UAVs capable of functioning without GPS connectivity.
To strengthen indigenous capabilities and reduce import dependence, the Indian government is promoting domestic drone production through programs such as Digital Sky and the Production Linked Incentive (PLI) scheme. Collaborations with global defense leaders are also underway to co-develop AI-integrated UAVs tailored to military needs.
Key Insights
- The rotary-wing drone category led the market in 2024 with a 55% share, due to its superior performance in confined and rugged terrains. Meanwhile, hybrid drones are expected to register the fastest growth owing to their combined VTOL and long-range capabilities.
- Remotely operated drones commanded 70% of the market in 2024, valued for their adaptability and real-time decision-making utility in tactical missions. Fully autonomous drones are set to grow the fastest, propelled by AI and machine learning integration that enables operations without human intervention.
- The ISRT (intelligence, surveillance, reconnaissance, and targeting) segment dominated in 2024 with a 50% share, driven by the need for real-time intelligence and situational awareness. Combat operations will see the highest CAGR, amid rising use of drones for precision strikes during cross-border skirmishes and counter-terrorism efforts.
- Cameras remained the largest platform segment in 2024 with a 40% share, supporting live visuals for mission planning. However, the sensors segment will grow at the fastest pace, driven by innovations in radar and infrared technologies for threat detection and autonomous navigation.
- Small drones held a 60% market share in 2024 due to their flexibility in field operations and intelligence gathering. Tactical drones are anticipated to grow the fastest, driven by their role in reconnaissance and targeted strike missions in conflict zones.
- The market is highly fragmented, with contributions from both global defense giants and local innovators. Government initiatives such as iDEX and the SPARK framework, with funding of INR 498.78 crore, support startups and MSMEs in developing advanced UAVs for military use.
- Notable players include Garuda Aerospace, Asteria Aerospace, IdeaForge Technologies, TATA Advanced Systems, Adani Defence & Aerospace, and Paras Defence & Space Technologies, among others. Their varied expertise ensures a wide range of UAV capabilities across the armed forces.
- In May 2025, Paras Defence & Space Technologies partnered with Heven Drones to unveil India’s first hydrogen-powered drone, signaling the next step in UAV sustainability and performance. Additionally, the formation of the Autonomous Systems Industry Alliance with the U.S. in February 2025 aims to foster innovation in autonomous aerial systems.
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