Press release
2025-2034 Defense Electronics Market Roadmap: Insights for Competitive Advantage
Defense Electronics
How Large Will the Defense Electronics Market Size By 2025?
In recent times, the market size of defense electronics has seen significant growth. It is projected to rise from $231.84 billion in 2024 to $245.82 billion in 2025, showcasing a compound annual growth rate (CAGR) of 6.0%. This substantial increase in the historic period can be credited to factors like global military threats, modernization programs, concerns around cybersecurity, operations against terrorism, and the rise of asymmetric threats.
How Big Is the Defense Electronics Market Size Expected to Grow by 2029?
In the coming years, a robust expansion is anticipated in the defense electronics market size. The market is projected to rise to a value of $305.52 billion by 2029, escalating at a compound annual growth rate (CAGR) of 5.6%. This progress during the forecast period can be associated with the integration of evolving technologies, an emphasis on cyber resilience, the implementation of autonomous and unmanned systems, networked battlefields, and the transition towards operations in the electromagnetic spectrum. The forecast period will also see major trends such as the construction of next-gen radar systems, the application of gallium nitride (GaN) technology, a surge in the electronics of unmanned systems, the placement of cognitive electronic warfare systems, and a focus on miniaturization and swap optimization.
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Which Key Market Drivers Powering Defense Electronics Market Expansion and Growth?
The growth of the defense electronics market is predicted to be driven by increasing defense spending. The defense budget, also known as military spending or defense expenditure, is the funding allocated by a nation or government for defense and military-related activities. A certain segment of this budget is usually reserved for defense electronics, including electronic gear such as air defense radars and communication systems. For example, the UK government's Ministry of Defense (MOD) departmental resources for 2022 revealed that defense spending for the 2021-2022 period amounted to $58.39 (£45.930) billion, marking an increase of 8.4% from the $53.85 (£42.365) billion recorded in 2020-2021. As a result, the expanding defense expenditures are boosting the defense electronics market's growth.
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Which Fast-Growing Trends Are Poised to Disrupt the Defense Electronics Market?
The emergence of product innovations is becoming a significant trend in the defense electronics market. To maintain their market position, leading companies in this field are inventing new technologies. For instance, BAE Systems PLC, a British aerospace firm, unveiled its Storm EW (Electronic Warfare) Modules for defense electronics in March 2022. These modules are equipped with advanced offensive and defensive electronic warfare (EW) systems. Utilizing a proven common core architecture, the Storm EW modules expedite the delivery of software-based EW capabilities, providing soldiers with the necessary situational awareness, survivability, and electromagnetic capabilities for difficult missions. The adaptable design of the Storm EW Modules allows for a dependable hardware base that can be altered and incorporated into various airborne platforms, including fixed- and rotary-wing aircraft, unmanned drones, and guided missiles.
What Are the Emerging Segments in the Defense Electronics Market?
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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Who Are the Global Leaders 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.
Which are the Top Profitable Regional Markets for the Defense Electronics Industry?
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
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