Defense Electronics Market size valued at USD 230 Billion 2022 and is anticipated to grow at a 5% CAGR between 2023 and 2032

Defense Electronics Market Size
Defense Electronics Market size was worth USD 230 Billion 2022 and is projected to expand at a 5% CAGR from 2023 to 2032.

Growing dependency on the safeguard of information & communication technologies betrays the exposure to cyber attacks. This brings in the necessity of cybersecurity mechanisms and advanced electronic systems to guard essential systems and confidential information.

To obtain significant market trends

Defense electronics is a term used for electronic devices and special systems utilized in the country’s defense technology. Defense electronics offers strong electrical equipment, superior performance, protection from electricity, and fire extinction capacity to enhance the work executed and minimize injuries’ risk.

Defense Electronics Market Report Attributes
Report Attribute Description
Base Year 2022
Defense Electronics Market Size in 2022 USD 230 billion
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 5%
2032 Value Projection USD 350 billion
Historical Data for 2018 to 2022
No. of Pages 250
Tables, Charts & Figures 290
Segments covered Component, Vertical, and Platform
Growth Drivers
Growing defense spending
Government initiatives in military infrastructure modernization
Emerging demand for unmanned systems
Growing emphasis on electronic warfare
Growing demand for defense electronics in border protection and maritime surveillance
Pitfalls & Challenges
Regulatory and export controls
Rising cyberattacks on defense related information
What are the growth opportunities in this market?

Defense electronics are under strict export control and international trade restrictions. Export controls are put in place to impede technology development and protect national security. Export compliance can be challenging for businesses in the global electronic protection market.

Defense Electronics Market Trends
Increased use of integrated defense technologies is expected to drive market growth. Integrated defense technologies involve the unification of various systems & technologies to develop extensive defense systems. The technologies may include sensors, communications, automation, and cyber defense. Integration facilitates effective sharing of information and communication among defense systems, leading to situational awareness, improved decision-making, and enhanced defense. Integrated defense technologies may also provide cost benefits and increase efficiency through decreased costs and enhanced deployment. The application of collision avoidance technology will grow in the future as the demand for flexibility and protection of operations increases.

Defense Electronics Market Analysis
Discover more about the major segments influencing this market

The defense electronics market is similar to a toolbox, and it has two principal sectionshardware and software. The hardware component is all the physical equipment, such as the computers, sensors, and other equipment that assist the military in constructing and operating their defense systems. This component is forecast to increase by 5.5% annually until 2032. A significant component of the hardware is referred to as “Electronic Warfare” (EW). EW equipment assists the military in defending themselves against attacks from enemies by jamming their signals and sensing threats. It has tools such as jammers, receivers, and electromagnetic radiation-monitoring systems. All these are like building blocks for sophisticated defense systems. They enable the military to view what is happening, communicate with one another, detect threats, and manage their operations. These are fundamental abilities in maintaining the security of a country.

In addition, as communications and communication security systems have become more dependent, the issue of cybersecurity has emerged as a serious concern. Hardware security and robust encryption systems that can safeguard systems against cyberattacks and guarantee data integrity drive the hardware system.

Find out more about the top segments influencing this market

By industry vertical, the defense electronics market’s navigation, communication & display segment grew at a 6.5% CAGR in 2022. These are focused on systems & technologies for precise location, navigation, and guidance in defense activities. This category comprises different equipment & systems designed to offer precise & reliable navigation in hostile environments. Moreover, unmanned systems such as UAVs (Military Drone) and UGVs are completely dependent on navigation systems to perform remotely or autonomously. The requirement for reliable and precise navigation hardware & software solutions for unmanned platforms will drive the navigation segment share.

By platform, the airborne segment accounted for about 35% of the defense electronics market share in 2022. The airborne segment deals with systems & technologies that are specifically designed to be used in aircraft and aircraft platforms. It has a range of electronics and systems that are necessary for on-board operations and mission success. Furthermore, avionics systems are fundamental elements of the airborne segment consisting of aircraft control flight control systems, communications, navigation, and tracking. They comprise flight control, cockpit messages, communications, navigation systems, and surveillance. The need for advanced avionics is a significant driver accounting for airborne segment expansion.

Hello! Let’s discuss the North American defense electronics market, which is a huge deal, representing some 40% of the world’s loot and over $95 billion in revenue last year. The United States, with the largest military budget in history (a staggering $715 billion in 2022), is investing heavily in strengthening its army and ensuring it remains dominant. This is generating a massive demand for defense electronics, which the US is pleased to provide with its powerhouse firms such as Northrop Gruman, Raytheon, and Lockheed Corporation. These firms are always in search of the next big thing, constantly investing in new technology that can maintain America’s defenses at their best. And as the US keeps on spending large on its armed forces, the North American defense electronics market is going to continue expanding.

Defense Electronics Market Share

The major companies operating in the defense electronics market are

• Airbus Defence and Space
• BAE Systems plc
• Bharat Electronics Limited
• Boeing Defense
• Space & Security
• Elbit Systems Ltd.
• General Dynamics Corporation
• Harris Corporation
• Honeywell International Inc.
• Indra Sistemas
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Saab AB
• Thales Group
• Ultra Electronics Holdings plc.