India Combat Vehicle Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India Combat Vehicle Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The India Combat Vehicle Systems Market size is estimated at USD 545.35 million in 2024, and is expected to reach USD 788.49 million by 2029, at a CAGR of 7.65% during the forecast period (2024-2029).

Armored vehicles play a pivotal role in land combat, enabling a spectrum of offensive and defensive maneuvers. These vehicles transport military personnel and cargo and engage directly in combat. Armed with weapons and fortified with armor, they shield against bullets, shell fragments, and other projectiles. In India, these vehicles are not just warfare tools; they are integral to bolstering the nation's military prowess, seeing extensive use by defense forces.

Several driving forces are energizing this market. A primary catalyst is the uptick in defense budgets, leading to regular upgrades of armored vehicles to meet the demands of modern battlefields. Furthermore, there's a notable momentum in developing electric and hybrid military vehicles. Heightened threats from terrorism and other hostile entities further amplify the clamor for advanced technologies in land vehicles.

With India's defense expenditure consistently rising, there's a pronounced push to acquire combat vehicles aimed at enhancing military capabilities. These vehicles are meticulously designed to host a variety of subsystems and equipment, each dependent on specific power solutions. This dependency drives a parallel demand for these power solutions and acts as a catalyst for market expansion. As military platforms evolve, integrating advanced equipment and diverse functionalities, the demand for onboard power solutions intensifies.

However, this growing demand brings forth challenges, particularly in the realms of size, weight, and power (SWaP) design. These challenges span integrated power solutions, command systems, and sensing and display systems. If not addressed, such hurdles could stymie the growth trajectory of India's combat vehicle systems market.

India Combat Vehicle Systems Market Trends

Main Battle Tank Segment to Dominate the Market During the Forecasted Period

Modern armies utilize main battle tanks (MBTs) for armored direct fire and maneuvering. MBTs are undergoing a significant transformation in India, driven by the country's intensified focus on modernizing its defense capabilities. India operates a fleet of around 3,740 MBTs, comprising 122 Arjun, 2,418 T-72M1, and 1,200 T-90S models. These tanks have advanced sensing and display systems, power distribution systems, and electrical wiring interconnection and control systems. Such components are crucial for enhancing MBTs' operational efficiency, survivability, and combat capabilities, thereby driving demand in this segment.

India is not only modernizing its military but also prioritizing the development of its domestic defense capabilities. This dual approach not only strengthens national security but also boosts demand within the defense sector. For instance, in July 2024, the Indian Army took delivery of its first batch of 10 T-90 Mk-III MBTs from Armored Vehicles Nigam Limited (AVNL), a state-owned entity. These tanks, freshly rolled out from AVNL's Heavy Vehicles Factory (HVF) under a licensing agreement with Russia, are part of a broader contract. In November 2019, the Indian Army sealed a deal with HVF for 464 new T-90MS tanks, with all deliveries expected to wrap up by 2029. The T-90 Mk-III is outfitted with an advanced automatic target tracking system, a cutting-edge digital ballistic computer, and sophisticated sighting systems. Co-developed by India's Defense Research and Development Organization (DRDO) and Bharat Electronics Limited (BEL), the tank features a mid-wave infrared (MWIR) commander sight. This advanced sight, equipped with a thermal imager, can detect targets up to 8 km away, day or night, and is paired with a laser rangefinder (LRF) for precise measurements up to 5 km. These upgrades significantly enhance the tank's long-range engagement capabilities. Additionally, the army is elevating its existing T-90S tanks to the advanced T-90MS standards.

In a parallel development, the Defense Research and Development Organization (DRDO) successfully trialed its light battle tank, Zorawar, in July 2024. Anticipated to join the Indian Army by 2027, post all trials, the Zorawar tank is a collaborative effort with Larsen and Toubro (L&T). Given these advancements, the demand for such modernized tanks is set to rise during the forecast period.

Electrical Wiring Interconnection System (EWIS) Expected to be the Fastest-growing Market During the Forecast Period

EWIS consists of components, such as wires, cables, harnesses, connectors, terminals, attachments, and other electrical devices, all functioning together as a unified system. The pivotal role of EWIS connectors and cables in vehicles underscores the holistic approach taken in aircraft wiring design. This design adeptly weaves crucial elements—wiring, connectors, terminals, and others—ensuring efficient electrical power transmission, signal relaying from sensor systems, and seamless command execution across the vehicle's functions.

The M13486 wiring standard caters to low-tension military applications, predominantly in military trucks, tanks, and ground vehicles. Like other Mil-Spec wires, M13486 boasts versatility, moisture, and abrasion resistance and retains flexibility even in low temperatures. MIL-W-16878 wires, crafted from insulation materials such as PVC, PTFE, Polyalkene-PVC, and ETFE, are engineered to endure extreme temperatures and voltage ratings. Tailored for distinct applications, M16878/4 is optimal for harnessing and appliance wiring, whereas M16878/5 caters to high-temperature electronics. Numerous companies are leading the charge in innovative EWIS solutions, all striving to elevate performance and safety standards.

Some of these firms offer comprehensive solutions that integrate seamlessly across diverse platforms. Their focus is on systems that not only simplify installation and maintenance but also bolster safety by reducing the risks of electrical failures and short circuits. Additionally, many EWIS systems now feature sophisticated diagnostic tools that monitor the wiring system's health, enhancing reliability and longevity. Designs are centered on reducing weight, conserving space, and minimizing complexity, all aimed at boosting performance and operational efficiency in complex systems.

India boasts a formidable fleet of over 150,000 armored vehicles, inclusive of around 4,600 tanks. In a significant move, Tata Advanced Systems, collaborating with the Defence Research and Development Organisation (DRDO), has rolled out an 8×8 wheeled armored platform, with contract finalization expected this year. Furthermore, in June 2024, India and the United States are deep in negotiations to jointly produce the next-generation Stryker armored infantry combat vehicles (ICVs). The strategy unfolds in three phases: an initial purchase of Strykers via the US Foreign Military Sales (FMS) program, followed by joint production in India, and culminating in the co-development of future models.

The Indian Ministry of Defence is meticulously assessing the approach to ensure the Stryker aligns with the operational demands of the Army's mechanized infantry battalions, with a strong emphasis on substantial technology transfer to an Indian partner. Additionally, several active orders for tanks and infantry combat vehicles are poised to further amplify segment demand.

India Combat Vehicle Systems Industry Overview

The India combat vehicle systems market is semi-consolidated, with many international and regional players. Some prominent players are TATA Advanced Systems Limited, Bharat Electronics Limited, Amphenol Interconnect India Pvt. Ltd., Samtel Avionics, and THALES.

Collaborations for developing new fighting vehicles are anticipated to propel the market's growth. Due to the market's high competitiveness, players are investing in developing next-generation armored vehicle models with autonomous capabilities, advanced weapons, and electro-optic infrared sensor suites, enhancing the situational awareness and survivability of military personnel on the battlefield.

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