Military Embedded Systems Industry to Achieve $2.57 Billion Growth by 2029

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How Will the Military Embedded Systems Market Grow by 2025 in Terms of Size and Growth?
There has been a robust growth in the market size for military embedded systems in the past few years. The market, which was valued at $1.75 billion in 2024, is projected to increase to $1.89 billion in 2025, registering a compound annual growth rate (CAGR) of 8.1%. The historical growth surge in the market can be associated with factors like improvements in microelectronics, worldwide security issues, the need for instantaneous data processing, concerns regarding cybersecurity, and the development of unmanned systems.

What Are the Estimated Growth Rates for the Military Embedded Systems Industry Through 2029?
In the forthcoming years, the military embedded systems market size is predicted to experience significant growth, with a projection to reach $2.57 billion in 2029, which equates to a compound annual growth rate (CAGR) of 8.0%. Factors contributing to this projected growth during the forecast period include increased interoperability in joint operations, improved cyber resilience, emphasis on energy efficiency, its utilization in space-based systems and hypersonic weapon systems, as well as worldwide military modernization initiatives. Prominent trends during the forecast period consist of the rapid emergence of advanced processing power, the escalating use of high-performance computing (HPC), attention on size, weight, and power (swap) optimization, the integration of artificial intelligence (ai) and machine learning (ml), the application of open architecture standards, and the capability of multi-domain operations.

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What Are the Strategic Drivers Boosting Military Embedded Systems Market Performance?
The global surge in terrorism is anticipated to drive the growth of the military embedded systems market. Terrorism entails the use of unlawful force and violent means by non-state actors to achieve political, economic, religious, or social objectives through fear, coercion, or intimidation. Security screening systems like military embedded systems have never been in higher demand as these devices are used in the military and other sectors to help trace terrorists. For instance, a report on the global terrorism index by the Institute for Economics and Peace (IEP), an Australia-based research organization, in March 2023 showed that the average deaths per terrorist attack in 2022 increased by 0.4. Terrorist attacks have increasingly become more deadly, resulting in an average of 1.7 people being killed per incident compared to 1.3 in 2021. Furthermore, in 2022, there were a total of 6,701 reported deaths as a result of terrorist activities. As such, the escalating worldwide terrorism escalates the demand in the security screening market.

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What Are the Segments in the Military Embedded Systems Market?
The military embedded systems market covered in this report is segmented -

1) By Component: Hardware, Software
2) By Installation Type: New installation, Upgradation
3) By Platform: Land, Airborne, Naval, Space
4) By Technology: Edge Computing, Fog Computing, Mist Computing
5) By Application: Intelligence, Surveillance, And Reconnaissance (ISR), Command And Control, Communication And Navigation, Electronic Warfare (EW), Weapon And Fire Control, Wearable, Other Applications

Subsegments:
1) By Hardware: Processors, Memory, Input Or Output Devices, Communication Interfaces, Sensors
2) By Software: Operating Systems, Middleware, Application Software, Development Tools

What Are the Key Adoption Trends in the Military Embedded Systems Market?
The military embedded systems market is seeing a surge in product innovations as the major trend. Key players in this market are primarily focusing on creating new products to fulfil customer needs. An example of this was seen in June 2023 when Pratt & Whitney, an American aerospace firm, introduced the Percept. This game-changing, AI-based aircraft engine inspection tool offers a unique advanced engine monitoring capability. It utilises artificial intelligence to supply maintenance staff with real-time updates on part availability. Percept serves as a multi-sensor AI system offering real-time situational awareness and decision-making support for military purposes. This cloud-based computing system allows users to capture and record images of aircraft engines on a handheld device, providing instant, in-depth information regarding part availability. Moreover, Percept provides potential for faster and more cost-effective returns of leased engines. The technology automates engine inspections, enhancing efficiency by saving up to 90% of an inspector's time usually spent on dissecting and verifying each engine component individually.

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Which Companies Lead the Competitive Landscape of the Military Embedded Systems Industry?
Major companies operating in the military embedded systems market are Xilinx Inc., Mercury Systems Inc., Curtiss-Wright Corporation, Kontron (S&T), SMART Embedded Computing, Advantech Co Ltd., Thales Group, Abaco Systems, Microsemi Corporation, General Micro Systems Inc., BAE Systems, Intel Corporation, Radisys Corporation, Telephonics Corporation, General Dynamics Corporation, Raytheon Company, Rockwell Collins, AMETEK, Saab AB, Boeing, Concurrent Technologies, Crystal Group Inc., Elma Electronic Inc., Excalibur Systems, Northrop Grumman Corporation, ECRIN Systems, Harris Corporation, Honeywell International Inc., IBM Corporation

Where Are the Key Military Embedded Systems Market Opportunities by Region?
North America was the largest region in the military embedded systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the military embedded systems market report during the forecast period. The regions covered in the military embedded systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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