Press release
United States Defense Electronics Market to Reach US$ 254.51 Billion by 2032, Growing at 4.87% CAGR | Top Companies are Northrop Grumman, Lockheed Martin, and Raytheon.
Defense Electronics Market
Defense electronics refers to electronic systems, hardware, software, and subsystems used for military and national security purposes. These include sensors, radars, communications, electronic warfare, command & control, displays, and navigation systems designed to detect, track, signal-process, communicate, or counter threats. Such systems are highly ruggedized, secure, and often operate under extreme environmental and electromagnetic conditions. Their purpose is to provide technological superiority, situational awareness, and safe ways to coordinate operations across land, sea, air, space, and cyber domains.
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Recent Developments:
➣ In Q2 2025, Elbit Systems secured a USD 1.635 billion contract from a European customer for a suite of defense solutions; its order backlog rose to USD 24 billion, up by over USD 600 million from the prior quarter.
➣ Teledyne's aerospace & defense electronics segment net sales climbed 36.2% year-over-year in Q2 2025, driven by increases in unmanned air systems and infrared imaging components; about USD 64.3 million of this growth came from recent acquisitions.
➣ Sypris Electronics reported its defense orders more than double to USD 47 million, boosting its backlog by 26% since end-2024, despite material and tariff headwinds affecting short-term revenues.
➣ Singapore Technologies Engineering (ST Engineering) secured about USD 4.7 billion in new contracts in Q2 2025; the Defence & Public Security segment contributed around USD 1.5 billion of this total.
☛ Defense Electronics Market Dynamics and Drivers
The defense electronics market is being propelled by rising geopolitical tensions and growing defense budgets worldwide. Governments are accelerating investments in radar, electronic warfare, surveillance, and communication systems that provide real-time awareness and rapid response capabilities. Multi-domain operations land, sea, air, cyber, and space are increasingly interconnected, making advanced electronics a central pillar of modern defense strategies.
Technological innovation is reshaping the industry. Artificial Intelligence, software-defined systems, autonomous platforms, and advanced sensor fusion are being embedded into next-generation defense electronics. This enables faster threat detection, improved targeting accuracy, and more resilient communications. Additionally, the proliferation of unmanned systems, secure networks, and edge computing drives further demand.
Supply chain resilience and localization are also critical market drivers. Semiconductor shortages and component dependencies have pushed governments to prioritize domestic production, technology transfer, and local sourcing. Procurement reforms, modular designs, and open architectures are increasingly emphasized to ensure long-term adaptability, lower lifecycle costs, and faster system upgrades.
☛ Defense Electronics Industry News:
In 2025, Israel Aerospace Industries (IAI) joined forces with DCX Systems Limited to form a new joint venture named ELTX, dedicated to producing advanced defense electronics in India. The initiative aims to strengthen domestic manufacturing of state-of-the-art systems such as airborne radars and ground-based technologies, specifically designed for the Indian defense sector.
Also in 2025, Bharat Electronics Limited (BEL), a Navratna Defence PSU, signed an agreement with Safran Electronics & Defense, France, to create a joint venture in India. The collaboration will focus on manufacturing, customization, sales, and maintenance of the HAMMER (Highly Agile Modular Munition Extended Range) smart precision-guided air-to-ground weapon.
☛ Defense Electronics Market Competitive Landscape:
Lockheed Martin, Northrop Grumman, Raytheon Technologies, BAE Systems, L3Harris Technologies, Thales Group, Hensoldt, Aselsan, Kratos Defense & Security Solutions, Mercury Systems.
Research Methodology
We employ a hybrid approach, integrating qualitative insights with robust quantitative analysis to deliver comprehensive and reliable market intelligence. The process starts with extensive secondary research, leveraging trusted industry publications, proprietary databases, and credible market sources. This foundation is then strengthened through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.
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☛ Segment Covered in the Defense Electronics Market:
By Platform: Airborne, Land-Based, Naval, Space.
By Product Type: Communication Systems , Radar Systems, Electronic Warfare Systems, Optronics & Infrared Systems, Command & Control Systems, Others.
By Application: Intelligence, Surveillance & Reconnaissance, Command & Control, Navigation, Target Acquisition, Others.
☛ This Report Covers:
✔ Comprehensive go-to-market strategy insights.
✔ An unbiased evaluation of market performance.
✔ In-depth analysis of development trends, competitive landscape, supply and demand dynamics, year-on-year growth, competitive benchmarking, vendor mapping, market access, and overall development status.
✔ Customized regional and country-level reports available on request, including detailed localized analysis.
✔ Identification of potential and niche segments/regions showcasing strong growth opportunities.
✔ Application of both top-down and bottom-up approaches for accurate regional market analysis.
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☛ Regional Analysis for Defense Electronics Market:
⇥ North America (U.S., Canada, Mexico)
⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)
⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)
⇥ South America (Colombia, Brazil, Argentina, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)
☛ Frequently asked questions:
➠ What is the global sales, production, consumption, import, and export value of the Defense Electronics Market?
➠ Who are the key global manufacturers, and what is their operational performance?
➠ What are the major opportunities and threats in the global Defense Electronics Market?
➠ Which product types or end-users show the most growth potential and market share?
➠ What challenges and constraints are impacting the Defense Electronics Market?
➠ What sales, marketing, and distribution channels are used globally?
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✅ Competitive Landscape
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✅ Market Volatility & Emerging Risks Analysis
✅ Quarterly Industry Report Updated
✅ Live Market & Pricing Trends
✅ Import-Export Data Monitoring
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DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.
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