Vetronics Market Forecasts to 2028 – Global Analysis By Platform (Military, Homeland Security, Defense), Vehicle Type (Light Protection Vehicles, Main Battle Tanks, Unmanned Ground Vehicle (UGV)), System (Navigation Systems, Optronics, Power Systems, Vehicle Protection Systems), Fit (Retrofit, Line-Fit), and By Geography
According to Stratistics MRC, the Global Vetronics Market is accounted for $4.49 billion in 2021 and is expected to reach $7.11 billion by 2028 growing at a CAGR of 6.8% during the forecast period. Vetronics refers to the assortment of diverse electronic subsystems inside an automobile. It is principally used by military units to incorporate systems, such as communication, command, navigation, surveillance and vehicle health management. Vetronics systems can be considered as the digital hub of military vehicles. It comprises of diverse automotive electronic technologies, such as autonomous driving, sensors and secure communications systems. They are additionally outfitted with urbane technologies, such as advanced threat detection sensors, HD video calling, high bandwidth networking and portable power systems.
Market Dynamics:
Driver:
Military Modernization
Military modernization programs include upgrades in the weapons systems, networking capabilities, and command and control (C2) systems. The upgrades mechanically comprise those for dedicated vetronics subsystems. In addition, defense agencies are upgrading the vetronics systems of their military vehicles to refurbish their fleets. This will help extend the service life of the vehicles and reduce service costs. For instance, in June 2021, Oshkosh Defense, a subsidiary of Oshkosh Corp., was selected by the US army to modernize the Stryker Double V Hull Infantry Carrier Vehicle (ICVVA1) for USD 942.9 million. Such factors will drive the market growth during the forecast period.
Restraint:
High cost of vetronics products
The rising technical advancements and use of new technologies is leading to the rise in the price of the final product in the market. In addition, with size, weight, and power specifications, manufacturers in the market are focusing on delivering new systems and components resulting in the high cost of these products. Furthermore, limited defense budget inadequate to meet the modernization in military and defense systems in various countries is also resulting in low spending on the advanced products in vetronics. Hence, manufacturers are focusing on miniaturization of devices and producing lightweight vetronics, thereby reducing the cost of the final product.
Opportunity:
Expansion next-generation military vehicles
Expansion of advanced vetronics for next-generation military vehicles, to provide an active protection system to identify and destroy threats, is one of the key opportunities in market that is expected to impact the industry positively in the forecast period. In the future, military vehicles will require all-around protection against aerial threats, surrounding threats from ground weapons, and undercarriage threats from mines or improvised explosive devices. Such factors will lead to the development of next-generation military vehicles that will use alternative energy sources, directed-energy weapons, advanced-composite armor, and active protection systems. This will generate the demand for advanced vetronics systems in the coming years.
Threat:
Cybersecurity concerns
Cybersecurity concerns are one of the key challenges to the global vetronics market growth. The security threats that are carried through the vehicle's controller area network (CAN) bus, range from remotely shutting down an engine to causing the brakes of a vehicle to malfunction. Thus, to protect vetronics systems from electronic attacks, military forces are focusing on fortifying the network security of a vehicle, which encompasses both physical and logical security. Redundancy with respect to vetronics systems implies the incorporation of more than one similar electronic component in a vehicle's subsystems, which the master system controls.
The command, control, communication, and computers (C4) systems segment is expected to be the largest during the forecast period
The command, control, communication, and computers (C4) systems segment is estimated to have a lucrative growth, due to the rising demand for technologically higher as well as lightweight vehicle electronic systems. In addition, the demand for C4 systems is uppermost in North America and Europe, due to rise in demand for military land vehicles systems with next generation vehicle electronic systems. C4 systems give combat vehicles suppleness to enlarge and reconfigure components in the field. These systems lessen risks, costs, and time allied with vehicle disassembly.
The defense segment is expected to have the highest CAGR during the forecast period
The defense segment is anticipated to witness the fastest CAGR growth during the forecast period. The rising defense expenditure has led the demand for modernization of armed forces and vehicles, which in turn, is encouraging the demand for vetronics in defense applications to perform basic functions and deliver new capabilities. In emerging countries, such as India and China, there has been an increase in procurement of technologically advanced defense land vehicles, which is fueling the growth of vetronics in the APAC region.
Region with highest share:
North America is projected to hold the largest market share during the forecast period, due to the huge defense spending on procurement of advanced vehicles and investments in the up-gradation of existing vehicles by the US and increasing focus on implementing advanced solutions in military operations. Substantial R&D for advanced vetronics systems for expanded use such as in navigation systems and communication systems. Moreover, the presence of key players in North America, including Lockheed Martin Corporation, L3Harris Technologies, Inc., Raytheon Technologies Corporation, and General Dynamics Corporation, will further boost the market. As per the SIPRI, in 2019, the US military expenditure increased by 5.3% to $732 billion and held 38% of global military expenditure. The country is the largest military spender and as a result, they focus on advancing and upgrading their military systems, which contributes to the significant adoption of vetronics in the region.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period due to the increase in demand for technologically advanced military land vehicles in emerging economies, such as India and China, integration of novel technologies, and surge in efforts taken by countries such as India and China to increase indigenous manufacturing capabilities. Emerging markets such as China, South Korea, India, and Japan are continuously increasing their defense budgets to strengthen their national security. Countries like Korea have also been focusing on indigenously developing MBTs such as the K2 Korean New Main Battle Tank (KNMBT), the future main tank model of the Korean Armed Forces, and the K1A1 MBT, the current main tank model. For instance, in June 2020, the Indian Ministry of Defense cleared the procurement of 156 BMP 2 infantry vehicles for the Indian Army.
Key players in the market
Some of the key players profiled in the Vetronics Market include Lockheed Martin Corporation, Saab Ab, Raytheon Technologies Corporation, Leonardo S.p.A, Curtiss-Wright Corporation, L3Harris Technologies, Inc., Adecco Group AG, Rheinmetall AG, Thales Group, General Dynamics Corporation, BAE Systems plc, AMETEK Inc., Elbit Systems Ltd., Kongsberg Gruppen ASA, TE Connectivity Ltd., and Moog Inc.
Key Developments:
In January 2020, Curtiss-Wright Corporation acquired 901D Holdings, LLC, a designer and manufacturer of ruggedized shipboard enclosure solutions, mission-critical integrated electronic systems, and subsystems, as well as, supporting every major US Navy shipbuilding program. The acquisition widens the range of the company’s instrumentation and controls systems technologies and will expand the footprint of Curtis-Wright on critical US Navy shipbuilding programs.
In February 2017, General Dynamics Land Systems marked an agreement worth USD 308 million with the Government of Canada to overhaul 141 Light Armored Vehicles to work on the vehicles' exhibition and survivability while diminishing their drawn-out support costs.
In February 2017, BAE Systems marked an agreement worth USD 28.2 million with the U.S. Armed force to furnish them with 11 M88A2 Heavy Equipment Recovery Combat Utility Lift Evacuation System (HERCULES) vehicles related vetronics.
Platforms Covered:
• Military
• Homeland Security
• Defense
Vehicle Types Covered:
• Light Protection Vehicles
• Infantry Fighting Vehicles
• Main Battle Tanks
• Armored Personnel Carriers
• Amphibious Armored Vehicles
• Mine Resistant Ambush Protected (MRAP) Vehicles
• Unmanned Ground Vehicle (UGV)
Systems Covered:
• Navigation Systems
• Weapon and Control System
• Optronics
• Power Systems
• Observation and Display Systems
• Command, Control, Communication, and Computers (C4) Systems
• Vehicle Protection Systems
• Sensors (Electro-Optical/Infra-Red) (EO/IR)) System
• Vehicle Electronic Warfare System
Fits Covered:
• Retrofit
• Line-Fit
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook