Defense Electronics Market (By Platform: Airborne, Space, Land, Marine; By Vertical: Optronics, Communication and Display, C4ISR, Electronic Warfare, Radar, Navigation) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global defense electronics market size was USD 168.20 billion in 2023, calculated at USD 176.81 billion in 2024 and is expected to reach around USD 277.13 billion by 2033, expanding at a CAGR of 5.12% from 2024 to 2033. The defense electronics market is driven by the growing need in military operations for Internet of Things (IoT) and artificial intelligence (AI) gadgets.
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Defense electronics are electronic systems and components intended for technological superiority in national defense. Cybersecurity breaches, low profit margins, and supply chain concerns are just a few of the growing issues facing the defense sector. Production and technological grounds for defense are essentially defense capabilities in and of themselves. To preserve and fortify them, comprehensive actions are required.
The defense electronics market provides products and services for vehicle communications and data systems, surveillance systems, weapon systems, fire control systems, maritime tactical systems, soldier systems, and electronic warfare systems.
Report Coverage | Details |
Market Size by 2033 | USD 277.13 Billion |
Market Size in 2023 | USD 168.20 Billion |
Market Size in 2024 | USD 176.81 Billion |
Market Growth Rate from 2024 to 2033 | CAGR of 5.12% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | Platform, Vertical, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Increasing defense expenditure
Due to increased defense resources, governments can purchase state-of-the-art radar systems, communication networks, electronic warfare systems, and surveillance equipment. The modernization of military forces and the improvement of their operational capabilities depend heavily on these technologies. As cybersecurity threats increase, defense electronics become essential for protecting military networks and information systems. The development of cyber defense systems, encryption technologies, and secure communication channels is funded by governments, which propels the expansion of the defense electronics industry. This drives the growth of the defense electronics market.
Growing cyberattacks on defense related data
Resolving cyberattacks requires large financial resources for improving cybersecurity, restoring systems, and mitigating harm. The cost of cyber insurance is rising along with cyber threats, raising the overall operating costs for defense businesses. Frequent cyberattacks have the potential to damage defense firms' reputations with government agencies, resulting in strained relations and fewer contracts. Stock values may fall, and investment may diminish because of investors losing faith in military electronics businesses. This limits the growth of the defense electronics market.
Increasing demand for defense electronics in border security
Global territorial conflicts and rising geopolitical tensions are the main causes behind the demand for stronger border security. Governments make significant investments in defense electronics to protect their borders from attackers. The security of borders has been completely transformed by advancements in surveillance technologies, including radar, satellite systems, and drones. Improved monitoring and threat identification are made possible by high-resolution cameras, thermal imaging, and night vision capabilities. This opens an opportunity for the growth of the defense electronics market.
The airborne segment dominated the defense electronics market in 2023. Airborne platforms equipped with cutting-edge electronics make mission-critical functions, including target acquisition, surveillance, reconnaissance, and precision strikes, possible. These capabilities are critical to modern defensive plans for both conventional and asymmetric combat scenarios. Airborne electronics are strategically essential for military, national security, and geopolitical stability. Deterrence and preserving military balance in diverse global locations depend heavily on the capacity to sustain air superiority and carry out efficient airborne operations.
The space segment is observed to be the fastest growing in the defense electronics market during the forecast period. The use of military and government satellites for navigation, communication, surveillance, and reconnaissance has increased significantly. Sophisticated electronics are needed for high-resolution imagery, real-time situational awareness, and secure data transfer on these satellites. Globally, governments depend more and more on assets located in space to improve their defense capacities. This covers space-based missile defense systems, satellite-based information gathering, and satellite constellations for international communication networks. Advanced electronics specifically designed for space settings are required for each application.
The optronics segment dominated the defense electronics market in 2023. Advanced sensor technologies including electro-optical (EO) and infrared (IR) systems are used in optics. These sensors offer vital functions like thermal imaging, night vision, and target acquisition for military operations involving surveillance, reconnaissance, and targeting. Optronics improve situational awareness by giving real-time visual information even in dimly lit areas or inclement weather. For military operations where visibility may be impaired, this skill is essential.
The communication and display segment is observed to be the fastest growing in the defense electronics market during the forecast period. Communication technology, such as satellite communication, secure communication systems, and cutting-edge encryption methods, have improved significantly. These developments push the need for sophisticated communication devices, which are essential to contemporary defense operations. Defense electronics are in greater need of secure communication solutions due to the increasing cybersecurity threats. The need for secure networks and encryption technologies to maintain data integrity and secrecy motivates investments in communication systems.
Asia-Pacific dominated the defense electronics market in 2023. Over half of the world's population resides in Asia. Over the past ten years, Asia has contributed 43% of startup investment, 51% of R&D spending, and 52% of the global growth in tech company revenues. Asia has made remarkable advancements in human development, literacy, and innovation during the past ten years, as well as economic progress, thanks to the expansion of its infrastructure and technological capacities. Asia has embraced the digital revolution in several sectors, including banking, manufacturing, e-commerce, transportation, retail, and finance.
Asian businesses are putting a high priority on and investigating cutting edge technologies, such as big data, robots, digital ledger technologies, artificial intelligence, machine learning, and cryptography. These technologies have the power to completely transform society and the global economy. The epidemic showed how quickly technology is developing.
North America shows a significant growth in the defense electronics market during the forecast period. Improving military capabilities is becoming increasingly important due to changing geopolitical dynamics and new threats. This involves expenditures on advanced electronic systems to guarantee better communications on the battlefield, command and control, and situational awareness. Defense contractors, IT companies, and academic institutions can form strategic alliances to further speed up innovation and create state-of-the-art defense electronics solutions. These partnerships frequently provide cutting-edge goods that are suited to certain defense requirements.
Segments Covered in the Report
By Platform
By Vertical
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Defense Electronics Market
5.1. COVID-19 Landscape: Defense Electronics Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Defense Electronics Market, By Platform
8.1. Defense Electronics Market Revenue and Volume, By Platform, 2024-2033
8.1.1 Airborne
8.1.1.1. Market Revenue and Volume Forecast (2021-2033)
8.1.2. Space
8.1.2.1. Market Revenue and Volume Forecast (2021-2033)
8.1.3. Land
8.1.3.1. Market Revenue and Volume Forecast (2021-2033)
8.1.4. Marine
8.1.4.1. Market Revenue and Volume Forecast (2021-2033)
Chapter 9. Global Defense Electronics Market, By Vertical
9.1. Defense Electronics Market Revenue and Volume, By Vertical, 2024-2033
9.1.1. Optronics
9.1.1.1. Market Revenue and Volume Forecast (2021-2033)
9.1.2. Communication and Display
9.1.2.1. Market Revenue and Volume Forecast (2021-2033)
9.1.3. C4ISR
9.1.3.1. Market Revenue and Volume Forecast (2021-2033)
9.1.4. Electronic Warfare
9.1.4.1. Market Revenue and Volume Forecast (2021-2033)
9.1.5. Radar
9.1.5.1. Market Revenue and Volume Forecast (2021-2033)
9.1.6. Navigation
9.1.6.1. Market Revenue and Volume Forecast (2021-2033)
Chapter 10. Global Defense Electronics Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.1.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.1.3. U.S.
10.1.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.1.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.1.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.2. Europe
10.2.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.2.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.2.3. UK
10.2.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.2.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.2.4. Germany
10.2.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.2.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.2.5. France
10.2.5.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.2.5.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.2.6.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.3. APAC
10.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.3.3. India
10.3.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.3.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.3.4. China
10.3.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.3.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.3.5. Japan
10.3.5.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.3.5.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.3.6.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.4. MEA
10.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.4.3. GCC
10.4.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.4.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.4.4. North Africa
10.4.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.4.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.4.5. South Africa
10.4.5.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.4.5.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.4.6.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.5. Latin America
10.5.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.5.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.5.3. Brazil
10.5.3.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.5.3.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Volume Forecast, By Platform (2021-2033)
10.5.4.2. Market Revenue and Volume Forecast, By Vertical (2021-2033)
Chapter 11. Company Profiles
11.1. Raytheon Technologies Corporation
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Curtis Wright Corporation
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Boeing
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Aselsan A.S.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. Recent Initiatives
11.5. Lockhead Martin Corporation
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Thales Group
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. L3 Harris Technologies
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Teledyne Defense Electronics
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. BAE Systems
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. North Grumman Corporation
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
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