Global Defense Electronics Market 2023-2030

Global Defense Electronics Market 2023-2030

Global Defense Electronics Market Size, Share & Trends Analysis Report by Component (Hardware and Software), by Vertical (Navigation, Communication & Display, C4ISR, Radar, Optronics, and Others), and by Platform (Airborne, Marine, Land, and Space) Forecast Period (2023-2030)

The global defense electronics market is anticipated to grow at a considerable CAGR of 5.6% during the forecast period. The growth of the market is attributed to factors such as increasing defense expenditure, technological advancements, and the need for advanced defense systems. For instance, in April 2023, according to recently released figures from the Stockholm International Peace Research Institute (SIPRI), U.S. defense spending accounted for nearly 40 percent of military expenditures by countries around the world in 2022. The US spent $877 billion on national defense in 2022, which is an increase of $71 billion from 2021, in part due to a military aid sent to support Ukraine in its ongoing conflict.

Further, the rising demand for modernization and the integration of electronic systems in defense applications are also expected to fuel the demand for defense electronics. For instance, in recent years, there has been a significant focus on the development of advanced communication and surveillance systems, which are driving the growth of the defense electronics market. For instance, in May 2023, Israel Aerospace Industries (IAI) and HENSOLDT Optronics showcased the Integrated Communication & Surveillance System (ICS) at UDT 2023 in Germany. The ICS system performs optical surveillance, radar warning and detection, and monitoring of GPS, voice, and other communicating transmissions between vessels.

Segmental Outlook

The global defense electronics market is segmented based on its components, verticals, and platforms. Based on components, the market is segmented into hardware and software. Based on verticals, the market is categorized into navigation, communication & display, C4ISR, radar, optronic, and others. Further, based on platforms, the market is segmented into airborne, marine, land, and space. Among these segments, the communication & display vertical is anticipated to hold a prominent market share due to the increasing adoption of advanced communication systems in defense applications.

The Hardware Sub-Segment Is Anticipated To Register Significant Growth during the Forecast Period

Among the component segment, the hardware sub-segment is anticipated to register significant growth during the forecast period. The growth of the hardware sub-segment is attributed to factors such as the increasing demand for advanced electronic components, including sensors, processors, and integrated circuits, for defense applications. For instance, in recent years, there has been a growing emphasis on the development of miniaturized and lightweight electronic components, which are fueling the growth of the hardware segment in the defense electronics market. For instance, in December 2022, a new miniaturized light source using Photonics Integrated Circuits was developed by Nouman Zia, which could have applications in defense technology.

Regional Outlooks

The global defense electronics market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, the Europe market is anticipated to cater to a prominent growth over the forecast period. However, the Asia-Pacific region is projected to experience considerable growth in the defense electronics market due to the rising defense expenditure and the focus on modernizing military systems in countries like China and India. For instance, China made major strides in modernizing its conventional hardware and nuclear weapons systems, aided at times by cyber and other emerging technologies.

Global Defense Electronics Market Growth, by Region 2023-2030

Source: OMR Analysis

North America is Anticipated to Account for a Significant Share in the Defense Electronics Market

Among these regions, North America is anticipated to account for a significant share in the defense electronics market during the forecast period. The growth of the market in the region is primarily driven by factors such as increasing defense budgets, technological advancements, and the presence of major defense electronics manufacturers in the region. For instance, in December 2022, the US Army is utilizing 3D printing to manufactured new forms of munitions, and they anticipate seeing higher velocity, longer range, and increased penetration in munitions made with this technology. The Army also has plans to use 3D printing to create a military truck exterior in one giant piece. Also the US Department of Defense spent $7.5 billion on robotic platforms and related technologies in 2021.

Market Players Outlook

The major companies serving the global defense electronics market include Lockheed Martin Corporation, Raytheon Technologies Corporation, Thales Group, BAE Systems plc, Northrop Grumman Corporation, and others. The market players are considerably contributing to the market growth by adopting various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. These companies are focused on developing technologically advanced defense electronics solutions to meet the evolving requirements of defense organizations worldwide. For instance, in April 2023, Raytheon Technologies Corp. launched its new electro-optical intelligent-sensing capability, RAIVEN. RAIVEN is a modular, open system that builds upon the successes of Raytheon Technologies' combat-proven Multi-Spectral Targeting System family of sensors. The system uses artificial intelligence and hyperspectral imaging to enable pilots to have faster and more precise threat identification, allowing them to operate in degraded visual environments.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global defense electronics market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.