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Rising Defense Expenditure Fuels Military Vetronics Market Growth: Transformative Forces Shaping the Military Vetronics Market Landscape in 2025

07-11-2025 05:51 PM CET | Aerospace & Defense

Press release from: The Business Research Company

Military Vetronics Market

Military Vetronics Market

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What Will the Military Vetronics Industry Market Size Be by 2025?
In recent years, the market size of military vetronics has been experiencing a consistent increase. It's projected to expand from $5.36 billion in 2024 to $5.59 billion in 2025, reflecting a compound annual growth rate (CAGR) of 4.4%. The significant rise in the historic period can be linked to various factors like the modernization of military vehicles, attention towards c4isr systems, escalating dangers and security challenges, the implementation of network-centric warfare tactics, and the increasing need for superior communication systems.

What's the Long-Term Growth Forecast for the Military Vetronics Market Size Through 2029?
In the coming years, it is anticipated that the military vetronics market will steadily expand. The market is projected to reach a value of $6.65 billion by 2029, with an annual compound growth rate of 4.4%. This growth in the projected period can be attributed to the incorporation of artificial intelligence and self-directed technologies, focus on cybersecurity, increase in urban warfare and hybrid threats, improved electronic warfare abilities, and worldwide geopolitical shifts. Dominant trends during this period will include modularity and scalability, integration of unmanned ground vehicles (UGV), efficient power management, data fusion and analytics, and cross-domain integration.

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What Are the Key Growth Drivers Fueling the Military Vetronics Market Expansion?
The growth of the military vetronics market is predicted to be bolstered by a surge in defense spending. This expenditure includes all current and capital investments on military forces, inclusive of peacekeeping armies of defense ministries, as well as other government organizations involved in defense and paramilitary operations. As these defense budgets rise, military institutions can allocate larger portions of resources towards the research, development, and procurement of pioneering vetronic systems. This surge in investment allows the military to incorporate innovative technologies such as modernized sensors, communication systems, unmanned apparatus, and joint command and control systems. For example, as reported by the Stockholm International Peace Research Institute, an independent global security resource based in Sweden, total worldwide military expenditure escalated to $2,443 billion in 2023 which was a 6.8% increase in real terms compared to 2022. Thus, the military vetronics market stands to benefit from this surge in defense spending.

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What Are the Key Trends Driving Military Vetronics Market Growth?
The emergence of product innovations is a significant trend being witnessed in the military vetronics market. Major firms in this space are inventing new products to maintain their market standing. For example, in May 2022, Kontron AG, a firm based in Germany that specializes in the creation and production of embedded computer modules and systems for defense and homeland security, unveiled the DARC VX208. This is a robust, high-performance, and secure mission computer system optimized for size, weight, and power (SWaP) constraints. It has been designed to function efficiently in rigorous military and aerospace situations, such as mission computing, command and control, electronic warfare, and vetronics. The DARC VX208 merges two Optical 10 GbE ports with server-level computing and MIL-DTL38999 I/O capabilities, making it ideal for radars and other high-definition video processing applications that require high bandwidth to transmit large volumes of data.

How Is the Military Vetronics Market Segmented?
The military vetronics market covered in this report is segmented -

1) By Type: Navigation System, Communication System, Power System, Control And Data Distribution System, C4 System, Display System, Other Types
2) By Fit: Line-Fit, Retrofit
3) By Application: Unmanned Ground Vehicles, Light Protected Vehicles, Special Purpose Vehicles, Armored Amphibious Vehicles, Other Applications
4) By End-User: Defense, Homeland Security

Subsegments:
1) By Navigation System: Global Positioning System (GPS), Inertial Navigation System (INS), Terrain Navigation System
2) By Communication System: Tactical Communication Systems, Satellite Communication Systems, Intercom Systems
3) By Power System: Power Generation Systems, Power Distribution Systems, Energy Storage Systems
4) By Control And Data Distribution System: Data Bus Systems, Control Management Systems
5) By C4 System: Command And Control Systems, Computer Systems, Communication Systems For C4
6) By Display System: Multi-Functional Displays (MFD), Head-Up Displays (HUD), Helmet-Mounted Displays (HMD)
7) By Other Types: Sensor Systems, Surveillance Systems, Electronic Warfare Systems

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Which Companies Are Leading the Charge in Military Vetronics Market Innovation?
Major companies operating in the military vetronics market include General Electric Co, Raytheon Company, The Boeing Company, Lockheed Martin Corporation, Rheinmetall AG, Elbit Systems Ltd., Saab AB, General Dynamics Corporation, Northrop Grumman, Kongsberg Gruppen ASA, Cummins Inc., BAE Systems Inc., Collins Aerospace, Curtiss-Wright Corp, Cobham Limited, Safran SA, Thales SA, L3Harris Technologies Inc., TE Connectivity Ltd., Assabloy AB, Leonardo-Finmeccanica SPA, Oshkosh Defense LLC, Point Blank Enterprises Inc., KVH Industries Inc., C4 Advanced Tactical Systems LLC.

Which Regions Are Leading the Global Military Vetronics Market in Revenue?
North America was the largest region in the military vetronics market in 2024. The regions covered in the military vetronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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