Military Vetronics Market Synopsis

Military Vetronics Market Size Was Valued at USD 7.73 Billion in 2023, and is Projected to Reach USD 11.59 Billion by 2032, Growing at a CAGR of 4.6% From 2024-2032.

Military electronics are as a result known as vehicle electronics; these are the integrated power systems that are used in military vehicles to boost the functionality of the military vehicle. These systems encompass a broad range of technologies such as communications systems, navigation/GPS, sensors, and control. By presenting data in real-time, and offering situation awareness and control features, the true role of electronics in warfare and advanced military operations is to increase the overall efficiency safety, and efficacy of those operations. It also facilitates smooth interaction between vehicles and central operations centers, aiding in effective targeting and surveillance; and improving the vehicle's auto and diagnostics systems. Vetronics systems have become crucial tools for contemporary warfare, on military vehicles that deliver adaptability and durability to a variety of theaters.

• During the last few years military vetronics market has grown very rapidly; this has been due to the increasing requirement for enhanced electronic systems in military vehicles. The rapid transformation of military forces around the world especially in the modernization of forces coupled with the emphasis on improving combat effectiveness has driven growth in vetronics expenditure. Some of the sub-systems include the communication system, command and control management, navigation system, and weapon directing system, which are the main elements to support the enhanced situational understanding and decision-making process. Additionally, there is an increase in the worry over asymmetric threats and the lack of time to manage such attacks has placed pressure on the need for well-developed vetronics to work in concert with the new defense systems popular among most modern armies. Large defense primes and tech companies are increasingly investing in enhancing VA systems in terms of performance, integration, and compatibility as well as adaptability profile concerning various defense platforms such as armored vehicles, UAVs, and naval ships.
• However, globally, North America and Europe carry the largest share of the military electronics market since they have higher defense spending as well as ongoing programs for refurbishment. The Asia-Pacific region also experiencing a trend of growing demand due to regional politics and the use of military force by countries such as China and India. The countries in the Latin American region and Middle Eastern region are slowly and gradually beginning to acknowledge the significance of electronics and are a part of gradually enhancing the military systems of their defense force. Notably, the market is highly competitive with clear leaders and followers who are striving to create new innovative solutions for the development of fourth-generation systems with AI, cybersecurity, and self-organizing functions. Intensified focus on these R&D activities by defense forces in various countries is likely to sustain a healthy compounded annual growth rate in the military electronics market in the forecast period.

Military Vetronics Market Trend Analysis

Emphasis on Cybersecurity

• As military vetronics systems evolve to integrate more intricate systems and computerization, the concern surrounding cybersecurity has risen significantly. Shields, 2018, emphasizes that it is important to safeguard these essential systems because an attacker might use any weakness to bring down the system, collect data, or jeopardize the achievement of a mission. The trend toward strong protective shields is the use of high-impact encryption, highly secured information transmission formats, threat detection, and counteraction processes in real-time.
• Vetronics, being a strategic component in the operation of military vehicles, is fast undergoing massive transformations with manufacturers and defense organizations committing their resources to designing protective vetronics architectures that could effectively prevent cybercrimes in military vehicle systems. This focus on cybersecurity is crucial given the need to uphold the operational readiness and security features of contemporary armed forces.

Integration of artificial intelligence (AI) and machine learning (ML) technologies

• When combined with the electronics systems, AI and ML in military vehicles, offers an enhanced degree of autonomous operations, awareness of the environment, and the ability to make informed decisions. This includes such areas as the creation of unmanned navigation, capable of working in challenging and adverse conditions, or calculation modules for predictive maintenance, allowing to do the necessary work long before the failure occurs, and the development of modern systems for threat detection based on potentially containing a huge number of sensors and performing real-time analysis of incoming data.
• Its occurrence is therefore spurred by the rising demand for greater operational efficiency and effectiveness within warfare most especially in situations where human deployment is either too risky or impossible. AI and ML can complement improvised electronics systems to give a push to the defense forces by increasing the rate of accomplishment of a mission by cutting down time wastage and other related issues that slow down any functioning system. Military organizations across the globe can integrate and/or develop AI-based vetronics and those firms that will be able to do so, will indeed target an array of opportunities in this relatively new emerging market.

Military Vetronics Market Segment Analysis:

Military Vetronics Market is segmented based on Type and Application.

By Type, Control and Data Distribution Systems segment is expected to dominate the market during the forecast period

• In terms of application, the Control and Data Distribution Systems (CDDS) market segment is expected to lead the military electronics market during the prescription. This segment comprises of crucial systems critical in conveying and managing the flow of information throughout different sub-systems of military vehicles. CDDS are also components that in some way facilitate command and data dissemination from command systems, targeting, weapon fires, navigation, sensors, and other subsystems.
• Several factors explain the domination of the CDDS segment The main features of the cable modem CDDS segment include; Firstly, as modern warfare lacks clearly defined fronts and distinct combatants, military forces have to exchange large amounts of data very quickly to maintain efficient command and control, assessment of a theatre, and coordination of actions. CDDS help in the production of information in real-time which is very much required for the formulation of strategies during warfare. Also, enhanced network-centric warfare as well as enhanced incorporation of integrated vehicle electronics systems has contributed towards enhanced demand for enhanced control and distribution of data. Aviation management not only makes a positive impact on operations performance but also provides a strong basement for sophisticated trust and security in communication during combat.

By Application, Light Protected Vehicles segment expected to hold the largest share

• Of the various segments in the military electronics market, LPVs can be expected to dominate the market. A common reason for LPVs is flexibility, maneuverability, and enhanced guard that is accessible to guards from multiple positions during different battles on the field. These vehicles are personnel carriers and other fighting vehicles used in mobile applications and are vital concerning modern warfare forces owing to their ability to be mobile across different terrains.
• The increasing demand for LPVs is due to their potential to accommodate a complex veterinary system of systems, which may include communications networks, GPS, threat ID, and weaponry control. These improvements greatly increase the effectiveness, responsiveness, and tactical and logistical-industrial survivability of military formations. In light of the universality of defense forces and the steady trend in the modernization of their vehicle fleets about changing threats and missions, the segment of LPVs will maintain its leading position in the market for electronics. At the same time, the considerable innovation throughout the 2000s in this field also contributes to maintaining the relevance of LPVs as part of the future perspectives of warfighting.

Military Vetronics Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• In terms of market, Asia Pacific will continue to maintain its leadership and dominance in the military vetronics market within the forecast period due to high spending in defense modernization and rising geopolitical tensions in the region. Some of the countries are now raising their defense spending to boost their soldiering skills as well as their technologies, Chinese and Indians for instance. These nations have been targeting minimal changes to simply update their current inventories of military vehicles with new-generation electronics systems. A similar increase in defense spending has been observed for the smaller countries of the region as well like South Korea, Japan, and Australia to name a few; thereby augmenting the overall growth of the electronics market.
• Several considerations explain this dominance. The region of Asia-Pacific is made up of countries with some of the highest economic growth rates globally, and this means that there can be consistent enhancements of spending on defense. Additionally, security interests stemming from sovereignty issues including the territories about the South China Sea and the standing border conflict between India and Pakistan demand the use of superior military hardware. , Western defense contractors are being approached and engaged in the region to obtain advanced electronics technologies and working knowledge. Thus, based on their economic standing and operational requirements, as well as multilateral partnerships across the Asia Pacific region, it can be ascertained that the Military Vetronics market is set to display steady growth over several years to come.

Active Key Players in the Military Vetronics Market

• BAE Systems (United Kingdom)
• Curtiss-Wright Corporation (United States)
• Elbit Systems (Israel)
• General Dynamics Corporation (United States)
• Kongsberg Gruppen ASA (Norway)
• Lockheed Martin Corporation (United States)
• Moog (United States)
• Oshkosh Corporation (United States)
• Rheinmetall Defence (Germany)
• Saab (Sweden)
• TE Connectivity (Switzerland)
• Thales Group (France)
• The Raytheon Company (United States)
• Ultra Electronics (United Kingdom), and Other Key Players

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. MILITARY VETRONICS MARKET BY TYPE (2017-2032)
   1. MILITARY VETRONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. CONTROL AND DATA DISTRIBUTION SYSTEMS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. DISPLAY SYSTEMS
   5. POWER SYSTEMS
   6. VEHICLE MANAGEMENT SYSTEMS
   7. OTHER VETRONICS SYSTEMS
7. MILITARY VETRONICS MARKET BY APPLICATION (2017-2032)
   1. MILITARY VETRONICS MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LIGHT PROTECTED VEHICLES
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. INFANTRY FIGHTING VEHICLES
   5. ARMORED PERSONNEL CARRIERS
   6. UNMANNED GROUND VEHICLES
   7. OTHERS
8. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. MILITARY VETRONICS Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. BAE SYSTEMS (UNITED KINGDOM)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. CURTISS-WRIGHT CORPORATION (UNITED STATES)
   4. ELBIT SYSTEMS (ISRAEL)
   5. GENERAL DYNAMICS CORPORATION (UNITED STATES)
   6. KONGSBERG GRUPPEN ASA (NORWAY)
   7. LOCKHEED MARTIN CORPORATION (UNITED STATES)
   8. MOOG (UNITED STATES)
   9. OSHKOSH CORPORATION (UNITED STATES)
   10. RHEINMETALL DEFENCE (GERMANY)
   11. SAAB (SWEDEN)
   12. TE CONNECTIVITY (SWITZERLAND)
   13. THALES GROUP (FRANCE)
   14. THE RAYTHEON COMPANY (UNITED STATES)
   15. ULTRA ELECTRONICS (UNITED KINGDOM)
9. GLOBAL MILITARY VETRONICS MARKET BY REGION
   1. OVERVIEW
   2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Type
      4. Historic And Forecasted Market Size By Application
      5. Historic And Forecasted Market Size By Country
         1. USA
         2. Canada
         3. Mexico
   3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Russia
         2. Bulgaria
         3. The Czech Republic
         4. Hungary
         5. Poland
         6. Romania
         7. Rest Of Eastern Europe
   4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Germany
         2. United Kingdom
         3. France
         4. The Netherlands
         5. Italy
         6. Spain
         7. Rest Of Western Europe
   5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Malaysia
         6. Thailand
         7. Vietnam
         8. The Philippines
         9. Australia
         10. New-Zealand
         11. Rest Of APAC
   6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Turkey
         2. Bahrain
         3. Kuwait
         4. Saudi Arabia
         5. Qatar
         6. UAE
         7. Israel
         8. South Africa
   7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Brazil
         2. Argentina
         3. Rest of South America
10. INVESTMENT ANALYSIS
11. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies