Military Embedded Systems Market

Growing government spending on the military is driving the market growth

Market CAGR for military embedded systems is being driven by the growing spending of the government on its military infrastructure. Governments all across the world place a high priority on modernizing military and defense hardware. This situation has greatly expanded the global supply of unmanned applications and the market opportunity for military embedded systems. Also, the military embedded systems market revenue is expected to increase over the next several decades due to the widespread deployment of multi-core processors, wireless technologies, and innovative warfare systems.

For instance, the United States, China, India, the United Kingdom, and Russia collectively accounted for 62% of expenditure in 2021, according to research released by Stockholm International Peace Research Institute on April 25, 2022. Global military spending will reach $2113 billion in 2021, up 0.7%.

Technology developments in embedded systems have made it possible to transmit data from several devices over a single wire using a single network. With the ability to offer significant SWaP (size, weight, and power) benefits and enhanced flexibility when adding new capabilities to a platform, this network is currently replacing numerous single-purpose connections. Curtiss-Wright Corporation created its newest embedded module with a security focus, the XMC-528, in September 2022. Leading defense manufacturers like Raytheon Technologies use the module in systems like C5ISR. Thus, driving the military-embedded systems market revenue.

The focus on cybersecurity is increasingly influencing the Global Military Embedded Systems Market Industry. As military systems become more interconnected, the risk of cyber threats escalates, necessitating robust embedded solutions that ensure data integrity and system security. Governments are investing in cybersecurity measures to protect critical military infrastructure from potential attacks. For instance, the implementation of secure communication systems in military operations is essential to safeguard sensitive information. This growing emphasis on cybersecurity is likely to drive demand for advanced embedded systems that incorporate security features, further propelling market growth.

The Global Military Embedded Systems Market Industry is projected to experience substantial growth, with estimates indicating a rise from 14.3 USD Billion in 2024 to 26.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 5.71% from 2025 to 2035. Such projections reflect the increasing reliance on embedded systems in military applications, driven by technological advancements and rising defense budgets. The market's expansion is indicative of a broader trend towards modernization and enhanced capabilities within military forces globally.

The Global Military Embedded Systems Market Industry is experiencing growth driven by increasing defense budgets across various nations. Countries are allocating more resources to modernize their military capabilities, which includes investing in advanced embedded systems. For instance, the United States has proposed a defense budget of 842 billion USD for 2024, reflecting a commitment to enhancing military technology. This trend is not limited to the US; nations like India and China are also ramping up their expenditures. As a result, the market is projected to reach 14.3 USD Billion in 2024, indicating a robust demand for innovative embedded solutions.

Technological advancements play a pivotal role in shaping the Global Military Embedded Systems Market Industry. Innovations in artificial intelligence, machine learning, and the Internet of Things are enabling the development of sophisticated embedded systems that enhance operational efficiency and decision-making capabilities. For example, the integration of AI in military drones allows for real-time data processing and autonomous operations. These advancements not only improve the effectiveness of military operations but also drive the demand for new embedded systems. As technology continues to evolve, the market is expected to grow significantly, potentially reaching 26.3 USD Billion by 2035.

Rising geopolitical tensions are contributing to the expansion of the Global Military Embedded Systems Market Industry. Nations are increasingly aware of the need to bolster their defense capabilities in response to regional conflicts and security threats. This has led to an uptick in military procurement and modernization programs. For instance, countries in Eastern Europe are enhancing their military readiness due to perceived threats from neighboring nations. Such dynamics create a favorable environment for embedded systems, which are crucial for advanced weaponry and surveillance systems. This heightened focus on defense is likely to sustain market growth over the coming years.

The demand for modernization of military equipment is a significant driver of the Global Military Embedded Systems Market Industry. Armed forces worldwide are recognizing the necessity to upgrade aging systems to maintain operational superiority. This modernization often involves integrating advanced embedded systems into existing platforms, enhancing their capabilities and extending their service life. For example, the modernization of naval vessels with state-of-the-art embedded technologies improves navigation and combat systems. As military organizations prioritize modernization efforts, the market is poised for growth, with a projected CAGR of 5.71% from 2025 to 2035.

By Region, the study provides market insights into Asia-Pacific, North America, Europe, and Rest of the World. The North American military embedded systems area will dominate this market. The US offers great investment prospects in embedded system technology as a nation with superior technology. The North American market is expected to control the global military embedded system market due to the region's improvement in next-generation communication technologies and the United States' quick advancement in military and aerospace.

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

Figure 3: GLOBAL MILITARY EMBEDDED SYSTEMS SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe military embedded systems market accounts for the second-largest market share due to changing political conditions, major regional nations boosted their military spending, which necessitated the purchase of more defense equipment, weapons, armament, and other weapon systems to protect the region's international borders. According to the Stockholm Peace Research Institute (SIPRI), the European region has one of the highest levels of military spending in the world in 2021, with a total expenditure of USD 417.8 billion.

Further, the German military embedded systems market held the largest market share, and the UK military embedded systems market was the fastest-growing market in the region.

The Asia-Pacific Military Embedded Systems Market is projected to expand at a rapid CAGR from 2023 to 2030. Over the past few years, terrorist operations have increased in nations including Afghanistan, Pakistan, India, and the Philippines. 113 of the 181 terrorist acts that occurred in India in 2021 were carried out by "jihadi terrorists," according to NCRB data. This is yet another important catalyst for the expansion of the Asia-Pacific defense sector. Moreover, China’s military embedded systems market held the largest market share, and the Indian military embedded systems market was the fastest-growing market in the region.

Leading market players are investing largely in research and development to expand their product lines, which will help the military-embedded systems market grow even more. Market participants are also undertaking different strategic activities to expand their global 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 military embedded systems industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global military embedded systems industry to benefit clients and increase the market sector. In recent years, the military embedded systems industry has offered some of the most significant medical advantages. Major players in the military embedded systems market, including SMART Embedded Computing (US), EUROTECH (Italy), KONTRON AG (Germany), Curtiss-Wright Corporation (US), and others, are attempting to increase market demand by investing in research and development operations.

Mouser Electronics is a global leader in the authorized distributor of semiconductors and electrical components from over 1,200 manufacturers, with local sales and service locations worldwide. We specialize in bringing new items and technology to design engineers and purchasers as quickly as possible. 

Recent News :

In April 2024, Tekever, a company specializing in uncrewed aerial systems (UAS), introduced its new modular ARX platform in Lisbon, Portugal. The ARX, Tekever's inaugural UAS with swarm capabilities, offers users the flexibility to select from a range of sensors, including EO/IR, LIDAR, SAR, and SIGINT/COMINT/ELINT. The ARX is equipped with advanced onboard artificial intelligence/machine learning (AI/ML) capabilities, SATCOM and mesh connection, and the capability to function in GNSS-denied conditions both at sea and on land. Tekever also provides the "ARX Digital Twin" alongside the ARX launch.

This model serves as a digital representation of the system and may be used for simulation, integration, testing, monitoring, and maintenance. The ARX is scheduled to be released in 2025. In February 2024, Vecow Co., Ltd., a group of international specialists in embedded technology, introduced their new Fanless High-Endurance System designed for workstation use. The Vecow HEC-1000 is specifically engineered to be deployed in demanding environments, offering robust computing power based on the 13th Generation Intel® Core™ i9/i7/i5/i3 processor.

It is equipped with dependable input/output interfaces, making it ideal for outdoor applications such as Advanced Driver Assistance Systems (ADAS), Autonomous Mobile Robots (AMR), Robotic Control, and rugged Edge Artificial Intelligence (AI) deployments. The Vecow HEC-1000 is equipped with a maximum of 24-core 13th generation Intel® Core™ i9/i7/i5/i3 Processor (Raptor Lake-S). The system operates on the Intel® R680E PCH with a 35W TDP CPU, providing high-level computational power specifically designed for Edge AI applications. In addition, the system incorporates three 2.5GigE LAN connections and supports TSN technology, which enables it to effectively manage demanding workloads.

The HEC-1000 is equipped with MIL-DLT-38999 connectors that offer IP66-rated protection, allowing it to function in extreme temperatures and cold environments while remaining resistant to moisture. This military-grade design ensures high reliability, making it suitable for critical applications such as outdoor AMR, defense, military, and robotic control. For instance,In February 2020 Mouser Electronics, Inc., the New Product Introduction (NPI) leader that enables innovation, announced a global distribution agreement with Kontron, a leading global provider of Internet of Things (IoT)/Embedded Computing Technology (ECT) and a Premier Member of the Intel Internet of Things Solutions Alliance.

Curtiss-Wright Corporation is a manufacturer and service provider based in Davidson, North Carolina, with plants and operations in and beyond the United States. Curtiss-Defense Wright's Electronics business offers critical aerospace, ground, and naval defense systems and support to national and international military forces. In September 2022, Curtiss-Defense Wright's Solutions division stated that it had been chosen once again by a top defense system integrator to supply its embedded Security IP module technology. Curtiss-Wright will offer its XMC-528 Mezzanine Card under the contract to add cutting-edge security protection to an existing system within a DoD end-state application.