US Military Vetronics Market Research Report: By Application (Command and Control Systems, Communication Systems, Navigation Systems, Surveillance Systems, Weapon Control Systems), By Platform (Land Vehicles, Naval Vessels, Aerial Vehicles, Unmanned Systems), By Component (Displays, Sensors, Control Management Systems, Power Supply Systems, Computing Units) and By Technology (Electronic Warfare, Software and Cybersecurity, Network Solutions, Artificial Intelligence) - Forecast to 2035

US Military Vetronics Market Overview

US Military Vetronics Market Size was estimated at 2.03 (USD Billion) in 2023. The US Military Vetronics Market Industry is expected to grow from 2.1(USD Billion) in 2024 to 2.92 (USD Billion) by 2035. The US Military Vetronics Market CAGR (growth rate) is expected to be around 3.047% during the forecast period (2025 - 2035).

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

Key US Military Vetronics Market Trends Highlighted

The US Military Vetronics Market is experiencing significant growth driven by the modernization of military vehicles and the increasing demand for advanced technologies. The integration of electronics and software systems into military platforms is enhancing operational efficiency and combat capability. The US Department of Defense is focusing on upgrading existing systems to meet contemporary battle requirements, resulting in a surge in investment in vetronics systems that facilitate better communication, navigation, and situational awareness. Additionally, there is a growing trend towards the adoption of automation and artificial intelligence in military operations, which is pushing manufacturers to innovate and provide sophisticated vetronics solutions.There are notable opportunities in the US Military Vetronics Market, particularly with the shift toward multi-domain operations. The rising emphasis on joint force integration presents a chance for companies to develop interoperable systems that can operate across various branches of the military. Moreover, as the US military seeks to enhance the survivability and lethality of its ground vehicles, the demand for vetronics that support these objectives is likely to expand. This trend is further bolstered by the need to replace aging platforms with more capable and resilient vehicles. In recent times, collaboration between defense contractors and technology companies has become prominent, allowing for the rapid development and deployment of advanced vetronics technologies.The focus on cybersecurity within these systems is also a pivotal trend, given the increase in electronic warfare and threats to military communications. As the US military continues to prioritize innovation and modernization, the vetronics market will likely remain a critical area of investment and development, shaping the future of military operations.

US Military Vetronics Market Drivers

Advancements in Military Technology

The US Military Vetronics Market Industry is significantly driven by continuous advancements in military technology. The US Department of Defense (DoD) has laid out ambitious plans to modernize the armed forces, particularly through the adoption of next-generational technologies such as artificial intelligence, advanced communication systems, and enhanced vetronics in military vehicles. A report by the DoD indicates that investments in modernization initiatives will total over USD 700 billion by 2025, with a significant portion allocated to innovative vetronics systems that enhance situational awareness, command control, and vehicle survivability.This focus on modernization is indicative of a growing demand for high-tech vetronics systems to ensure the United States military remains superior in combat capabilities, directly correlating with growth in the US Military Vetronics Market Industry.

Increased Defense Budgets

The US Military Vetronics Market Industry is also experiencing growth due to increased defense budgets. In fiscal year 2024, the US Government proposed a defense budget of more than USD 819 billion, allocating substantial funds for military enhancement, including vetronics. This increase represents a 5% rise from the previous fiscal year, reinforcing the government’s commitment to improving military capabilities. As a result, leading defense contractors such as Lockheed Martin and Northrop Grumman are ramping up production and innovation of vetronics systems to meet the heightened demands of defense projects, positively impacting the growth of the US Military Vetronics Market Industry.

Growing Emphasis on Military Readiness and Modernization

The concept of military readiness and modernization is a major driver for the US Military Vetronics Market Industry. The National Defense Strategy emphasizes the need for a technologically advanced military to maintain deterrence against peer competitors. In line with this, the Army’s modernization strategy includes integrating advanced vetronics into combat vehicles. According to the US Army, over 10,000 ground combat vehicles are due for upgrades in the next decade, which will necessitate the integration of sophisticated vetronics systems to enhance functionality.This proactive approach will likely ensure that contractors and suppliers see sustained demand in the US Military Vetronics Market Industry, as investments in readiness and modernization evolve.

Rising Threats and Geopolitical Tensions

The US Military Vetronics Market Industry is significantly influenced by rising threats and geopolitical tensions. Global security dynamics have seen an uptick in hostilities and the presence of rival powers, thus necessitating enhanced defensive capabilities for the US military. This regional instability has prompted a reevaluation of military expenditures, leading to sharper investments in vetronics systems to improve operational performance and situational awareness in conflict zones.For instance, military engagement strategies from the US Department of Defense have pointed out critical upgrades to vetronics systems to prepare for anti-access/area denial challenges posed by adversaries, driving an estimated growth in demand for these systems in coming years within the US Military Vetronics Market Industry.

US Military Vetronics Market Segment Insights

Military Vetronics Market Application Insights

The Application segment of the US Military Vetronics Market encompasses several critical areas that enhance operational efficiency and effectiveness in military missions. Command and Control Systems play a pivotal role in military operations, as they facilitate real-time decision-making by providing commanders comprehensive situational awareness. This segment significantly influences mission outcomes by integrating various data sources, thereby ensuring a streamlined communication flow among military units. Communication Systems are fundamental to maintaining connectivity among personnel and platforms, allowing for secure and reliable transmission of vital information that enhances coordination and operational effectiveness. Meanwhile, Navigation Systems are essential for successful mission planning and execution, enabling forces to accurately track movements and navigate challenging terrains. The significance of Surveillance Systems cannot be overstated; they are integral for threat detection and reconnaissance, allowing military personnel to gather intelligence about enemy positions and movements. This capability is increasingly vital in modern warfare, where information dominance is key to operational success. Lastly, Weapon Control Systems are critical in managing the deployment and operation of weaponry, ensuring precision and control during engagements. Collectively, these systems support a holistic approach to military operations, driving enhancements in strategy and execution across the US armed forces. The market growth in these areas reflects ongoing advancements in technology, emphasizing the increasing reliance on sophisticated vetronics solutions to meet modern defense challenges effectively. As the military prioritizes modernization and technological integration, the Application segment of the US Military Vetronics Market is poised to experience significant advancements and increased investment. This segment will continue to evolve as the demand for enhanced capabilities and improved operational efficiencies persists in the defense sector. The growing focus on battlefield situational awareness, real-time intelligence sharing, and autonomous systems will further accelerate the development and adoption of advanced applications designed for military use.

 

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

Military Vetronics Market Platform Insights

The Platform segment of the US Military Vetronics Market plays a critical role in modern military operations, encompassing Land Vehicles, Naval Vessels, Aerial Vehicles, and Unmanned Systems. Each category is essential for maintaining operational readiness and ensuring national security. Land Vehicles contribute significantly to ground force capabilities, embedding advanced technologies for improved survivability and situational awareness. Naval Vessels, on the other hand, are pivotal for maritime dominance, equipped with cutting-edge navigation and combat systems.Aerial Vehicles serve in versatile roles ranging from reconnaissance to combat support, leveraging advancements in avionics for enhanced operational efficiency. Unmanned Systems represent a transformative aspect of military capabilities, significantly improving operational flexibility and reducing risk to personnel. The growing emphasis on automation and advanced sensor technologies across these platforms is driven by the increasing complexity of modern warfare and the necessity for real-time data integration. Overall, the diversity within this segment supports the broader objectives of the US Military, ensuring a comprehensive approach to security challenges within various domains, as indicated by ongoing investments in modernization initiatives and Research and Development endeavors.As the landscape of military requirements evolves, so too will the technological advancements and strategic focus within each platform segment, positioning the US Military Vetronics Market for sustained growth and innovation over the coming years.

Military Vetronics Market Component Insights

The US Military Vetronics Market encompasses a variety of Component segments essential for modern military operations, where each plays a critical role in functionality and efficiency. Displays are vital for situational awareness, providing real-time visual information that assists operators in making informed decisions. Sensors, on the other hand, have gained prominence due to their ability to detect threats and environmental conditions, enhancing both tactical operations and vehicle safety. Control Management Systems are integral in orchestrating various hardware components, streamlining operations and ensuring seamless communication between systems.Power Supply Systems are crucial for sustaining energy demands of advanced technologies, thus ensuring operational readiness of military vehicles. Lastly, Computing Units stand out as the brains behind various applications, processing data swiftly and supporting complex operations in-field. The growth of these segments is fueled by advancements in technology and increasing defense budgets from government entities focused on enhancing military capabilities. Together, these components not only support the effectiveness of military vehicles but also represent significant investment opportunities within the US Military Vetronics Market, aligning with the overarching trends of modernization and innovation in defense systems.

Military Vetronics Market Technology Insights

The Technology segment of the US Military Vetronics Market consists of critical areas such as Electronic Warfare, Software and Cybersecurity, Network Solutions, and Artificial Intelligence. This segment is vital for enhancing operational capabilities, ensuring the safety and security of military assets. Electronic Warfare has become increasingly significant due to the growing reliance on advanced technologies and communication systems, enabling forces to disrupt enemy operations effectively. As cyber threats rise, the importance of Software and Cybersecurity solutions escalates, with the need for robust systems to protect sensitive data and infrastructure from potential breaches.Network Solutions facilitate real-time communication and data exchange, crucial for mission success and strategic decision-making. Furthermore, Artificial Intelligence is transforming military operations, providing enhanced analytics and autonomous systems that improve operational efficiency and effectiveness. The interplay of these Technology areas reflects a trend towards modernization and adaptability within the US military, addressing evolving threats and maintaining a tactical advantage. The emphasis on these technologies highlights their role in shaping future capabilities and ensuring national security, underscoring ongoing investment and innovation in the US Military Vetronics Market.

US Military Vetronics Market Key Players and Competitive Insights:

The US Military Vetronics Market is an essential segment of the defense industry, focusing on the integration of electronic systems into military vehicles, including command and control systems, communication technologies, and weapon control features. Competitive insights within this market are characterized by strategic technological advancements, robust research and development activities, and partnerships with government agencies. The landscape is populated by various key players who offer innovative solutions and products aimed at enhancing the operational efficiency and effectiveness of military forces. In this market, companies not only compete based on technological prowess but also on their ability to meet stringent government regulations and standards while ensuring reliable support and maintenance services.Raytheon Technologies has established a formidable presence in the US Military Vetronics Market, leveraging its expertise in advanced electronic systems and integration capabilities. The company is known for its commitment to innovation and significant investment in research and development, which positions it as a leader in providing cutting-edge technologies for ground, air, and sea military platforms. Raytheon Technologies excels in combining sophisticated sensor and communication systems that enhance situational awareness and decision-making for military personnel. The company's robust product portfolio covers a wide array of applications, making it a vital partner for the US military in ensuring operational readiness and technological superiority. With a strong reputation in supporting various military programs and initiatives, Raytheon Technologies continues to expand its influence within this competitive landscape.Lockheed Martin is another key player in the US Military Vetronics Market, renowned for its comprehensive range of products and services that cater to various military applications. The company specializes in integrated electronic systems for armored vehicles, including advanced communication systems, weapon control technologies, and mission planning solutions. Lockheed Martin's strong presence in the market is bolstered by its continuous investment in technology and partnerships with the US government, fostering innovations that meet the evolving needs of military operations. The company has made strategic moves through mergers and acquisitions, allowing it to enhance its capabilities and broaden its product offerings. With an emphasis on cybersecurity and interoperability, Lockheed Martin solidifies its position as a trusted provider of military vetronics, ensuring that US forces have access to state-of-the-art technology that enhances their operational effectiveness in diverse environments.

Key Companies in the US Military Vetronics Market Include:

• Raytheon Technologies


• Lockheed Martin


• General Dynamics


• Thales Group


• SAIC


• BAE Systems


• KBR


• Textron


• L3Harris Technologies


• Rockwell Collins


• Elbit Systems


• Oshkosh Corporation


• Northrop Grumman


• Kongsberg Gruppen


• Hewlett Packard Enterprise

US Military Vetronics Market Industry Developments

The US Military Vetronics Market is currently witnessing significant developments, particularly with defense contractors such as Raytheon Technologies, Lockheed Martin, and Northrop Grumman continuously advancing their technologies. In October 2023, Raytheon Technologies announced a new agreement to enhance the combat capabilities of the military's ground vehicle platforms, a move anticipated to boost operational efficiency. Concurrently, General Dynamics is expanding its portfolio with innovative electronic systems aimed at improving battlefield communications. In terms of market valuation, a report in September 2023 indicated that the US Military Vetronics Market is projected to grow at a substantial rate due to increased defense budgets and technological advancements. Moreover, in July 2023, BAE Systems acquired an electronic warfare technology company to strengthen its capabilities in the sector. Additionally, in March 2023, Lockheed Martin finalized a strategic partnership with Textron to develop next-generation combat systems, reflecting the ongoing trend of collaboration among key players. These developments are shaping the competitive landscape, driving innovation, and aligning with the US government's focus on modernizing military capabilities.

US Military Vetronics Market Segmentation Insights

Military Vetronics Market Application Outlook

• Command and Control Systems


• Communication Systems


• Navigation Systems


• Surveillance Systems


• Weapon Control Systems

Military Vetronics Market Platform Outlook

• Land Vehicles


• Naval Vessels


• Aerial Vehicles


• Unmanned Systems

Military Vetronics Market Component Outlook

• Displays


• Sensors


• Control Management Systems


• Power Supply Systems


• Computing Units

Military Vetronics Market Technology Outlook

• Electronic Warfare


• Software and Cybersecurity


• Network Solutions


• Artificial Intelligence

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	2.03(USD Billion)
MARKET SIZE 2024	2.1(USD Billion)
MARKET SIZE 2035	2.92(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.047% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Raytheon Technologies, Lockheed Martin, General Dynamics, Thales Group, SAIC, BAE Systems, KBR, Textron, L3Harris Technologies, Rockwell Collins, Elbit Systems, Oshkosh Corporation, Northrop Grumman, Kongsberg Gruppen, Hewlett Packard Enterprise
SEGMENTS COVERED	Application, Platform, Component, Technology
KEY MARKET OPPORTUNITIES	Advanced vehicle automation technologies, Cybersecurity solutions for vetronics, Enhanced communication systems integration, Energy-efficient power management systems, Real-time data analytics for decision-making
KEY MARKET DYNAMICS	Technological advancements, Increasing defense budgets, Enhanced vehicle protection, Growing demand for automation, Focus on interoperability
COUNTRIES COVERED	US