Red Fort’s August 15 security arrangement highlights India’s $4.5 billion counter-drone market opportunity

The preparedness also puts the spotlight on a defence technology segment that has expanded rapidly in recent years. Recent reports by key domestic brokerage house, Kotak Institutional Equities estimate India’s counter-drone demand around $3.5-4.5 billion over the next 10 years.

C-UAS market in focus: Delhi Police deploy anti-drone tech ahead of August 15

Known as Counter-Unmanned Aircraft Systems (C-UAS), the industry covers the sensors, software and effectors used to detect, track and neutralise hostile or unauthorised drones. The growth of the segment is being supported by rising demand for drone protection across defence, security and critical infrastructure, as well as India’s push to develop domestic defence manufacturing capabilities.

On Sunday, Delhi Police said that anti-drone systems had been deployed as part of the security plan for August 15. DCP for Delhi’s north zone , Raja Banthia said the arrangements also includes 15,000-20,000 personnel, paramilitary companies, NSG snipers and more than 1,000 CCTV cameras.

India’s counter-drone market: Motilal Oswal projects Rs 12,000 crore growth opportunity

Domestic brokerage house Motilal Oswal, in July 2024, estimated India’s addressable C-UAS market at around Rs 12,000 crore or about $1.6 billion, over five years. The estimate was based on projected demand for nearly 1,200 systems, with each system priced between Rs 8 crore and Rs 15 crore.

The material also puts the annual growth of India’s counter-drone segment at around 28%, while some market trackers have estimated that the broader Indian anti-drone market could expand at a 31.3% compound annual growth rate through 2030.

The global market is also expanding. The global C-UAS market was valued at around $6.6 billion in 2025 and is projected to reach $20.3 billion by 2030.

Indigenisation push: How procurement rules keep foreign defence giants out

India’s counter-drone procurement has increasingly been directed towards domestic manufacturers as part of the country’s broader defence indigenisation push. The indigenisation rules have effectively kept large foreign companies such as Israel’s IAI and Rafael and US-based RTX outside the core domestic supply chain.

This has created a domestic industry structure comprising a public-sector anchor and an expanding group of private-sector companies.

At the public-sector level, the Defence Research and Development Organisation (DRDO) designs the core systems, while Bharat Electronics (BEL) manufactures them at scale.

Together, DRDO and BEL form the backbone of India’s indigenous counter-drone capability, supplying systems for military as well as paramilitary and police deployments. The private sector has also been expanding its presence in the segment.

Key beneficiaries include Zen Tech, Paras Defence, Adani Defence and others

Zen Technologies has emerged as one of the prominent private-sector companies in India’s counter-drone space. Its anti-drone systems are designed to detect, track and neutralise threats, including by jamming drone communications. The company also has a legacy business in defence simulators.

Other private-sector companies expanding their counter-drone operations include Big Bang Boom, Paras Defence and Adani Defence.

Foreign players continue to operate in the global counter-drone market. Australia’s DroneShield, for instance, has secured contracts in other markets, including an $8.2 million Western military deal and a $6.2 million Asia-Pacific contract over the past year.

However, India’s procurement rules have kept such foreign companies largely outside the core domestic supply chain.

Kotak Institutional Equities expects Zen Technologies, Paras Defence and Bharat Electronics to lead India’s counter-drone systems market.

Zen Technologies offers drone detectors, radars, jammers and hard-kill systems.
BEL is developing integrated drone detection and interdiction systems.
Paras Defence has capabilities across jammers, detectors and low-cost integrated systems.
Solar Industries and Adani Defence & Aerospace are positioned across both drone and counter-drone segments.
Data Patterns is developing micro-Doppler radar technology for drone detection.

The broader ecosystem also includes ideaForge, Tata Advanced Systems and Axiscades Technologies, reflecting the growing participation of Indian companies across the drone and counter-drone manufacturing space.

Counter-drone market expands: Demand beyond military use

The counter-drone market is not limited to battlefield applications. Airports, power plants, critical infrastructure sites and urban centres are increasingly potential users of counter-drone technology.

The demand is linked to the proliferation of low-cost commercial drones, which has made airspace around sensitive locations more difficult to secure.

Military and VIP security requirements are another source of demand. The counter-drone systems deployment around the Red Fort for Independence Day is one such example. The technology can be used to detect, track and neutralise drones before they reach protected locations, making it relevant for a range of security applications.

India’s Rs 300-400 crore opportunity in counter-drone market

Kotak Institutional Equities has estimated India’s counter-drone demand at Rs 300-400 crore, or $3.5-4.5 billion, over the next decade. According to Kotak, this would represent around 20-25% of projected drone spending.

The brokerage’s assessment covers at least six major categories:

-Anti-RPA defence systems
-Hard-kill counter-UAS systems
-Anti-drone fire-control systems
-Smart adaptive jammers
-UAV-based jammers
-Tactical high-energy laser systems

UAV-based jammers are expected to account for the highest unit demand, at 1,200-1,300 systems. Kotak has estimated the corresponding market at Rs 30-40 billion, or $0.4-0.5 billion.

The brokerage has estimated demand for 1,200-1,250 anti-drone fire-control systems, representing a Rs 60-80 crore, or $0.8-1 billion, market.

Hard-kill counter-UAS systems are estimated at 200-225 units, with a market size of Rs 150-200 billion, or $2-3 billion. This makes the category the largest by estimated market value among those identified by Kotak. According to the brokerage, India could also require more than 90 anti-RPA defence systems. The estimated market size for this category is Rs 30-50 crore, or $0.4-0.6 billion.

For smart adaptive jammers, Kotak has estimated demand of 40-50 systems and a market opportunity of Rs 1.6-2 crore, or around $0.2 billion.

Tactical high-energy laser systems represent a smaller-volume but higher-value category. Kotak estimates demand at 20-30 systems, with an estimated market size of Rs 40-60 billion, or $0.6-0.8 billion. The estimated cost of each system is Rs 1.5-2 crore.

Why the sector is gaining importance

The numbers provided by Motilal Oswal and Kotak point to a sizable domestic opportunity for counter-drone systems.

Motilal Oswal’s five-year estimate of Rs 120 crore is based on demand for nearly 1,200 systems, while Kotak’s longer-term estimate puts India’s counter-drone demand at Rs 300-400 billion over the next decade.

The opportunity also spans different technology categories, ranging from detection and jamming systems to hard-kill systems and tactical high-energy lasers.

This is creating opportunities for companies operating across defence electronics, radar, electronic warfare, unmanned systems and counter-UAS technologies.

The anti-drone systems being deployed around the Red Fort for Independence Day provide a visible example of how counter-UAS technology is becoming part of India’s security architecture. Behind that deployment is a developing domestic industry involving DRDO, BEL and a growing number of private-sector defence companies.

The market estimates supplied by Motilal Oswal and Kotak Institutional Equities indicate the scale of the opportunity. Motilal Oswal has estimated an addressable C-UAS market of Rs 120 billion over five years, while Kotak has put India’s counter-drone demand at Rs 300-400 billion over the next decade.