Defense Electronics Market Analysis

Defense Electronics Market Overview

Defense Electronics Market Size was valued at USD 161.9 Billion in 2022. The Defense Electronics market industry is projected to grow from USD 170.8 Billion in 2023 to USD 262.13 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2023 - 2032). Increasing demand for adoption of integrated defense electronics technology and growing demand for modernization are the key market drivers enhancing the market growth.

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Defense Electronics Market Trends

Growing adoption of integrated defense electronics technologies is driving the market growth

Market CAGR for defense electronics is driven by the rising adoption of integrated defense electronics technologies. Due to new weapon system, new technological advancements, and improvements to current weapon systems, ground units can dominate the modern battlefield. In the digitalization of battlefield systems, aerial platforms, a network connects weapon systems, surveillance, and communication systems, enabling the exchange of huge volumes of data. Methods of communication are used on the battlefield to communicate information between the fighting, combat support, and combat service and support functional sections; for weapon systems to provide field commanders with more real-time data, analog audio, video, and data transmission must be replaced with digital coding.

Additionally, defense electronics systems have significantly improved as a result of technological advancements in military systems and equipment. Utilizing integrated defense electronics products has many benefits, including the ability to make decisions in real-time, operate systems remotely, and program systems for defense against new and emerging threats. Products for the defense electronics industry, such as integrated electronic warfare systems, make it possible to communicate with a variety of other military defense systems, improving the coordination of operations.. It lowers the cost of system integration and guarantees quick system deployment across numerous platforms.

Since electronic jammers can malfunction an aircraft’s radar or electrical equipment, military aircraft must be outfitted with advanced electronic warfare integrated suites, such as anti-jamming systems.

For instance, in April 2023, the United States would spend about 40% more on defense than all other nations combined, according to recently released data from the (SIPRI) Stockholm International Peace Research Institute. As a result, it is anticipated that throughout the projection period, demand for defense electronics will increase due to the rising demand for defense equipment with technological advancement. Thus driving the Defense Electronics market revenue.

Defense Electronics Market Segment Insights

Defense Electronics Vertical Insights

The Defense Electronics market segmentation, based on vertical, includes navigation, communication, display, C4ISR, electronic warefare, radars, and optronics. The navigation segment dominated the market, accounting for the maximum market revenue due to systems and technologies for precise localization, navigation, and guidance in defense operations. This area includes a range of tools and systems developed to deliver reliable navigation in challenging terrain. The ability to operate autonomously or remotely depends largely on navigation systems for unmanned devices like UAVs (Military Drones) and UGVs. The share of the navigation segment will grow as a result of the increased need for accurate and reliable navigation hardware and software for unmanned platforms.

Defense Electronics Platforms Insights

The Defense Electronics market segmentation, based on platforms, includes Airborne, Marine, Land, And Space. The airborne category generated the most income. The systems and technologies created expressly for use in airplanes and aircraft platforms fall under the purview of the airborne section. For successful on-board operations and mission completion, it has a multitude of electronics and systems. A crucial part of the airborne portion is the avionics systems, which comprise flight control systems for aircraft control, communications, navigation, and tracking. Included are navigation systems, communications, flight control, cockpit directions, and surveillance. The desire for cutting-edge avionics is a key factor in the expansion of the airborne segment.

Figure 1: Defense Electronics Market, by Platforms, 2022 & 2032 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Defense Electronics Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Defense Electronics market area will dominate this market, owing to protecting national security interests and maintaining military dominance. In addition, the growing defense spending will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: DEFENSE ELECTRONICS MARKET SHARE BY REGION 2022 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Defense Electronics market accounts for the second-largest market share due to the increasing investment in defense equipment and technology. Further, the German Defense Electronics market held the largest market share, and the UK Defense Electronics market was the fastest growing market in the European region.

The Asia-Pacific Defense Electronics Market is expected to grow at the fastest CAGR from 2023 to 2032 due to investing in the development of advanced technology and the procurement of new platforms. Moreover, China’s Defense Electronics market held the largest market share, and the Indian Defense Electronics market was the fastest growing market in the Asia-Pacific region.

Defense Electronics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Defense Electronics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Defense Electronics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Defense Electronics industry to benefit clients and increase the market sector. In recent years, the Defense Electronics industry has offered some of the most significant advantages to the defense sector. Major players in the Defense Electronics market, including Bae Systems PLC, Cobham Limited, Curtiss-Wright Corporation, Data Patterns (India) Ltd., Elbit Systems Ltd., General Dynamics Corporation, Hensoldt, Honeywell International Inc., Indra Sistemas, SA, Israel Aerospace Industries (Iai), L&T Defense, L3H arris Technologies, Inc., Leonardo Spa, Lig Nex1, Lockheed Martin Corporation, Mag Aerospace, Mercury Systems, Inc., Mistral Solutions Pvt. Ltd., Northrop Grumman Corporation, Radioelectronic Technologies Jsc, Rafel Advanced Defense Systems Ltd., Raytheon Technologies Corporation, Rheinmetall AG, Saab Ab, Safran SA, Sami Advanced Electronics, Sierra Nevada Corporation, and others, are attempting to increase market demand by investing in research and development operations.

Raytheon Technologies Corporation was formerly known as RTX Corporation. A American aerospace and defense corporation with its headquarters in Arlington, Virginia. By revenue and market value, it is one of the biggest aerospace and defense producers in the world. It is also one of the biggest suppliers of intelligence services. RTX produces drones, satellites, guided missiles, avionics, aerostructures, cybersecurity solutions, and aircraft engines. The corporation also works as a sizable military contractor. It receives a sizable amount of its income from the American government. To meet the demands of today’s mission and remain ahead of tomorrow’s threat, the company leverages the power of more than 100 years of experience and renowned engineering expertise. In April 2023, Raytheon Technologies Corp. introduced RAIVEN, a new electro-optical intelligent sensing system. The combat-tested Multi-Spectral Targeting Systems family of sensors from Raytheon Technologies is the foundation of the modular, open system known as RAIVEN. Pilots can identify threats more quickly and precisely because of the system’s use of artificial intelligence and hyperspectral imagery, which also enables them to operate in low-visibility conditions.

Mitsubishi Electric Corporation was established in New Delhi in 1958. Since then, companies have been continuously attempting to make a positive impact through their goods, technologies, and services. For the Indian market, Mitsubishi Electric India has developed into a business that offers a wide range of cutting-edge and superior products. Air conditioners, factory automation and industrial systems, semiconductors and devices, transportation systems, and visual and imaging systems are among the categories of goods and services covered. The business was established in the year 2010. Since then, the company has been continuously working to use their products to make a difference. In June 2023, Mitsubishi Electric Corporation unveiled their gallium nitride (GaN) power amplifier, which can be utilized for 4G, 5G, and beyond 5G/6G and achieves a frequency range of 3400MHz with a single amplifier. The amplifier is anticipated to allow the radio unit to be shared among several communication systems and result in a base station that uses less power.

Key Companies in the Defense Electronics market include

• Bae Systems PLC


• Cobham Limited


• Curtiss-Wright Corporation


• Data Patterns (India) Ltd.


• Elbit Systems Ltd.


• General Dynamics Corporation


• Hensoldt


• Honeywell International Inc.


• Indra Sistemas, SA


• Israel Aerospace Industries (lai)


• L&T Defense


• L3Harris Technologies, Inc.


• Leonardo Spa


• Lig Nex1


• Lockheed Martin Corporation


• Mag Aerospace


• Mercury Systems, Inc.


• Mistral Solutions Pvt. Ltd.


• Northrop Grumman Corporation


• Radioelectronic Technologies, Jsc


• Rafael Advanced Defense Systems Ltd.


• Raytheon Technologies Corporation


• Rheinmetall AG


• Saab Ab


• Safran SA


• Smai Advanced Electronics


• Sierra Nevada Corporation

Defense Electronics Industry Developments

For Instance, February 2023 The United States Marine Corps awarded the Northrop Grumman Corporation the initial production and operations agreement for the Next Generation Handheld Targeting System (NGHTS). The NGHTS is a portable targeting system that offers high-precision targeting and may be used in areas lacking GPS.

For Instance, March 2023 The Space Development Agency awarded Raytheon Technologies a contract to design, construct, and deliver a constellation of seven missile-tracking satellites for missile tracking and warning.

Defense Electronics Market Segmentation

Defense Electronics Vertical Outlook

• Navigation, Communication, and Display


• C4ISR


• Electronic Warefare


• Radars


• Optronics

Defense Electronics Platforms Outlook

• Airborne


• Marine


• Land


• Space

Defense Electronics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America