India Drone Market Outlook to 2028

India Drone Market Overview

• The India drone market, valued at USD 600 Mn in 2023, is driven by increased adoption across various sectors such as agriculture, defense, and logistics. The market is expanding due to advancements in drone technology, growing investment in research and development, and rising demand for drones in commercial applications. The use of drones for monitoring and surveillance, particularly in agriculture and infrastructure projects, is significantly boosting market growth.
• Major players in the Indian drone market include Tata Advanced Systems Limited, IdeaForge Technology Pvt. Ltd., Asteria Aerospace, Zuppa GeoNavigation Technologies, and Quidich Innovation Labs. These companies have established a strong presence through continuous innovation, strategic partnerships, and by catering to the diverse needs of both commercial and government sectors. Tata Advanced Systems, for instance, focuses heavily on defense applications, while IdeaForge is prominent in industrial and agricultural segments.
• In February 2023, IdeaForge launched two new drones capable of carrying up to 20 kilograms, which significantly enhances its product offerings and positions it well within the competitive landscape4. The companys commitment to research and development has attracted substantial investments, enabling it to enhance drone capabilities such as range and battery life, which are crucial for operations across India's diverse terrain
• Major cities like Bengaluru, Hyderabad, and Pune dominate the Indian drone market. Bengaluru is known as the tech hub of India, hosting numerous drone startups and R&D centers. Hyderabad is home to several aerospace companies and has a favorable ecosystem for drone manufacturing and testing. Pune, with its strong industrial base, offers ample opportunities for the deployment of drones in industrial inspections and logistics, contributing to its dominance in the market.

India Drone Market Segmentation

The India Drone Market can be segmented based on several factors:

By Product Type: India drone market segmentation by product type is divided into rotary-wing, fixed-wing and hybrid drones. In 2023, rotary-wing drones dominated the Indian drone market, holding the largest value share. This leadership is driven by their versatility in applications such as agriculture, surveillance, and infrastructure inspection.

By Application: India Drone market segmentation by end user is divided into agriculture, defense, logistics and media & entertainment. In 2023, agriculture led the Indian drone market, driven by its applications in precision farming and crop management. Factors such as the push for efficient farming practices, government support, and advancements in drone technology have bolstered this sector's prominence.

By Region: India Drone market segmentation by region is divided into north, south, east and west. In 2023, The Northern region dominates the market, primarily due to the significant use of drones in agriculture and defense. States like Punjab and Haryana in the North are extensively using drones for agricultural activities, while the presence of defense establishments in states like Uttar Pradesh boosts the demand for defense drones.

India Drone Market Competitive Landscape

• Tata Advanced Systems Limited: In 2023, Tata Advanced Systems Limited signed a strategic partnership with a leading Israeli drone manufacturer to enhance its UAV technology for defense applications. This collaboration aims to integrate advanced drone systems for surveillance and combat purposes, reinforcing India's defense capabilities. The partnership is expected to boost the company's market position and expand its product offerings.
• Asteria Aerospace: Asteria Aerospace launched a new range of hybrid drones in 2023, capable of both vertical take-off and long-range flight. These drones are designed for applications in industrial inspections and large-scale surveillance. The new product line has received positive feedback from early adopters, and the company is expecting significant market penetration in the coming years.

India Drone Industry Analysis

India Drone Market Growth Drivers:

• Increased Agricultural Adoption: The use of drones in agriculture has seen significant growth in India due to their efficiency in monitoring crop health, spraying pesticides, and managing large farmlands. In 2023, the adoption of agricultural drones reached a new high, primarily in states like Punjab, Haryana, and Maharashtra. The government's subsidies for farmers adopting drone technology, amounting to INR 200 crore in 2023, have further fueled this growth. According to the Ministry of Agriculture, these initiatives have led to substantial increase in crop yield along with notable reduction in pesticide usage.
• Defense Sector Investments: The Indian defense sector's investment in drone technology has been a significant growth driver. In 2024, the Ministry of Defense allocated INR 1,500 crore specifically for the acquisition of advanced surveillance drones. This investment aims to enhance border security and improve reconnaissance capabilities. The Indian Army and Air Force have been major beneficiaries, deploying over 500 new drones in various operations. This strategic focus on strengthening national security through drone technology is set to continue, bolstering market growth.
• Commercial Delivery Services Expansion: The expansion of drone-based delivery services is a major driver for the Indian drone market. Companies like Zomato and Swiggy have initiated pilot projects for drone deliveries, leading to significant advancements in logistics efficiency. In 2024, these companies reported hundreds of successful drone deliveries in urban areas, reducing delivery times and operational costs substantially. The Directorate General of Civil Aviation (DGCA) has also streamlined the regulatory framework, making it easier for companies to operate commercial drones, which is expected to further drive market growth.

India Drone Market Challenges:

• Technological Limitations: The technological limitations of drones, such as limited battery life and payload capacity, present considerable challenges. Most commercial drones in India have a flight time of only 30-40 minutes and can carry a maximum payload of 5-10 kg. These constraints limit their applicability in industries requiring longer operational durations and heavier payloads. In 2024, several drone companies reported a 10% decrease in operational efficiency due to these limitations, highlighting the need for technological advancements to overcome these barriers.
• Privacy and Security Concerns: Privacy and security concerns associated with drone operations are a significant challenge. Incidents of unauthorized surveillance and data breaches have raised alarm among the public and government authorities. In 2023, there were 200 reported cases of drone-related privacy violations, leading to increased scrutiny and calls for stricter regulations. These concerns pose a threat to the widespread acceptance and deployment of drones, particularly in urban and sensitive areas.

India Drone Market Government Initiatives:

• Drone Shakti Scheme: The Indian government launched the Drone Shakti Scheme in 2022, aimed at promoting the use of drones in various sectors such as agriculture, healthcare, and logistics. The scheme includes financial incentives, training programs, and infrastructure support for drone startups and operators. Under this scheme, the government allocated INR 500 crore to support the development and deployment of drones, particularly in rural and remote areas.
• Kisan Drone Scheme: The Kisan Drone Scheme was launched to promote the use of drones in agriculture, providing financial assistance to farmers for purchasing drones. It offers subsidies of up to 50% for small and marginal farmers, with a maximum limit of INR 5 lakh. The scheme aims to enhance agricultural efficiency by enabling quick pesticide spraying and crop monitoring, ultimately increasing farmers' income and productivity while reducing labor costs.

India Drone Future Market Outlook

The India Drone Market is expected to show significant growth by 2028 driven by technological advancements, supportive government initiatives, and increasing adoption across various sectors. The integration of AI and 5G technologies will significantly enhance drone capabilities, making them indispensable tools in agriculture, defense, logistics, and infrastructure.

Future Market Trends

• Integration of AI and Machine Learning: The integration of AI and Machine Learning will enable drones to perform more complex and autonomous tasks, such as predictive maintenance, automated inspections, and real-time data analysis. This will significantly enhance operational efficiency and reduce human intervention, driving the adoption of drones in industrial applications.
• Expansion of Drone Delivery Services: Drone delivery services are expected to expand rapidly, particularly in urban areas. Companies will leverage drones to offer faster and more efficient delivery solutions, reducing delivery times and operational costs. The introduction of dedicated drone corridors and air traffic management systems will further facilitate this growth.