How Has The Defense Electronics Market Size Evolved Historically?
The defense electronics market has seen considerable growth due to a variety of factors.
•Over the past few years, the defense electronics market has experienced robust growth. Its worth is expected to increase from $231.84 billion in 2024 to $245.82 billion in 2025, at a compound annual growth rate (CAGR) of 6.0%.
The increase in value during the historic period can be linked to the worldwide military threats, upgrading programs, cybersecurity issues, operations against terrorism, and the arising uneven threats.
What Will Be The Defense Electronics Market Size In The Future?
The defense electronics market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the defense electronics market is slated for robust growth. It is set to reach $305.52 billion by 2029, attributed to a compound annual growth rate (CAGR) of 5.6%.
The projected growth during this period can be credited to the adoption of emerging technologies, emphasis on cyber resilience, the rise of unmanned and autonomous systems, a unified battlefield, and a transition towards electromagnetic spectrum operations. The forecast period also anticipates the development of advanced radar systems, the utilization of gallium nitride (GaN) technology, an increase in unmanned systems electronics, the introduction of cognitive electronic warfare systems, and a focus on miniaturization and swap optimization.
What Are The Key Drivers Fueling Growth In The Defense Electronics Market?
The anticipated rise in defense spending is likely to fuel the expansion of the defense electronics market. Defense spending, also known as military expenditure or defense budget, is the allocation of financial resources by a country or government for defense and military-related activities. A subset of this budget is commonly set aside for defense electronics, such as air defense radars and communication systems. For example, the UK Ministry of Defense (MOD) departmental resources published in December 2022 reported that defense spending for 2021-2022 was $58.39 (£45.930) billion. This marked an 8.4% increase from the $53.85 (£42.365) billion spent in 2020-2021. Consequently, the surge in defense spending is promoting the growth of the defense electronics market.
What Are The Principal Market Segments In The Global Defense Electronics Industry?
The defense electronics market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Equipment Type: C4ISR Systems, Weapon Systems, Electro-Optical And Infrared (EO Or IR) Systems, Military Simulators, Radar Systems, Sonar Systems, Avionics, Electronic Warfare, Other Equipment Type
3) By Platform: Airborne, Marine, Land, Space
Subsegments:
1) By Hardware: Avionics Systems, Radar Systems, Communication Equipment, Electronic Warfare Systems, Sensors And Imaging Systems
2) By Software: Simulation Software, Command And Control Software, Cybersecurity Software, Maintenance And Support Software, Data Analysis And Processing Software
3) By Services: System Integration Services, Maintenance And Repair Services, Training And Support Services, Consulting Services, Managed Services
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Which Emerging Market Trends Are Altering The Defense Electronics Sector?
One most significant trend currently being observed in the defense electronics market is the product innovation. The main players in the defense electronics industry are introducing new technologies to maintain their competitiveness. For instance, in March 2022, UK's BAE Systems PLC, an aerospace company, unveiled its new product - Storm EW (Electronic Warfare) Modules in the defense electronics market. These modules, designed to provide advanced offensive and defensive electronic warfare (EW) systems, make use of a proven universal core design to accelerate the delivery of software-based EW abilities. This benefits the soldiers by providing them with better situational awareness, survivability, and electromagnetic capabilities required to execute demanding missions. The scalable design of Storm EW Modules provides a reliable hardware base that can be customized and incorporated into a variety of airborne systems such as stationary and rotary-wing aircraft, drones, and guided missiles.
Who Are the Key Players in the Defense Electronics Market?
Major companies operating in the defense electronics market include:
• Raytheon Technologies Corporation
• The Boeing Company
• Lockheed Martin Corporation
• General Dynamics Corporation
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• Northrop Grumman Corporation
• BAE Systems plc
• Safran S.A.
• Thales Group
• L3Harris Technologies Inc.
• Leonardo S.p.A.
• Textron Inc.
• Rheinmetall Electronics GmbH
• Elbit Systems Ltd.
• Serco Group plc
• Indra Sistemas S.A.
• Saab AB
• Airbus Defence & Space GmbH
• Rafael Advanced Defense Systems Ltd.
• Bharat Electronics Limited
• Hensoldt AG
• LIG Nex1 Co. Ltd.
• Ultra Electronics Holdings plc
• Kratos Defense & Security Solutions Inc.
• Terma A/S
• Tata Advanced Systems
• Samsung Techwin Co. Ltd.
• Data Patterns Ltd.
• Rockwell Collins Inc.
What are the Regional Insights into the Defense Electronics Market?
North America was the largest region in the defense electronics market in 2024. The regions covered in the defense electronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
