Press release
Analysis of Segments and Major Growth Areas in the Defense Electronics Market
Defense Electronics Market
Projected Expansion of the Defense Electronics Market by 2030
The defense electronics market is anticipated to reach a value of $317.67 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.4%. This upward trajectory is fueled by several factors, including breakthroughs in AI-powered defense electronics that enhance autonomous and decision-support capabilities. Additionally, increased investments in space-based electronic systems are boosting demand for radiation-hardened components. A stronger emphasis on resilient and cyber-secure electronics is supporting the development of next-generation defense platforms. The growth of multi-domain operations is also encouraging the integration of interoperable electronic systems. Furthermore, rising defense budgets worldwide are facilitating the ongoing procurement of advanced electronics and related services. Key trends likely to influence the market include the expansion of radar and electro-optical systems, greater adoption of simulation and training software, increased integration of GPS and geolocation technologies, growing demand for maintenance and repair services, and advancements in system integration capabilities.
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Leading Companies Driving the Defense Electronics Landscape
Several prominent corporations are at the forefront of the defense electronics market, including 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., and Rockwell Collins Inc.
Strategic Collaborations Enhancing Capabilities in Defense Electronics
In February 2023, Lockheed Martin, a US-based defense and aerospace manufacturer, formed a partnership with Northrop Grumman to boost its next-generation electronic warfare systems. This collaboration aims to strengthen radar and sensor technology capabilities, focusing on integrated solutions to upgrade the defense systems for fighter jets. The partnership supports advancements in the U.S. military's electronic warfare and communications infrastructure. Northrop Grumman, a multinational aerospace and defense firm based in the US, is recognized as one of the largest providers of weapons and military technologies globally.
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Innovative Trends Transforming the Defense Electronics Industry
Leading companies in this market are concentrating on developing cutting-edge products such as helmet-integrated artificial intelligence (AI) command systems. These advanced helmets are equipped with AI-powered sensors, displays, and communication tools that enhance soldiers' situational awareness and support rapid decision-making on the battlefield. By prioritizing threats, reducing equipment weight, and delivering critical information in real time, these systems offer significant operational advantages.
A notable example is Anduril Industries, Inc., a U.S.-based defense technology firm that introduced EagleEye in October 2025. This suite of AI-enhanced vision products includes helmets, visors, and glasses designed to overlay vital battlefield data such as teammate locations onto the wearer's view. EagleEye is powered by Anduril's AI platform, Lattice, and incorporates augmented reality elements developed in collaboration with Meta Platforms, Qualcomm, OSI, and Gentex. This breakthrough represents a major leap in military electronics and tactical augmented reality, leveraging founder Palmer Luckey's experience in virtual and augmented reality technology, originally developed at Oculus and now adapted for defense use.
Detailed Segment Analysis of the Defense Electronics Market
This report breaks down the defense electronics market into several key segments:
By Component:
- Hardware
- Software
- Services
By Equipment Type:
- C4ISR Systems
- Weapon Systems
- Electro-Optical and Infrared (EO/IR) Systems
- Military Simulators
- Radar Systems
- Sonar Systems
- Avionics
- Electronic Warfare
- Other Equipment Types
By Platform:
- Airborne
- Marine
- Land
- Space
Further subcategories include:
Hardware components such as avionics systems, radar systems, communication equipment, electronic warfare systems, and sensors and imaging systems. Software segments cover simulation software, command and control software, cybersecurity software, maintenance and support software, and data analysis and processing software. Service offerings include system integration, maintenance and repair, training and support, consulting, and managed services.
This comprehensive segmentation provides a clear view of the diverse product types and services that support modern defense electronics, reflecting the complexity and breadth of the industry.
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