Military Vetronics Market size is anticipated to grow at a CAGR of over 5% between 2023 and 2032

Military Vetronics Market Size

Military Vetronics Market size stood at USD 4.7 billion in 2022 and is expected to grow at a CAGR of more than 5% from 2023 to 2032

due to the rising modernization drive in the defense industry as well as enhanced defense budgets, enhanced security concerns, and technology advancement.

Military vetronics, which is short for “vehicle electronics,” is defined as sophisticated electronic systems and technologies embedded in military vehicles to be used for communication, navigation, weapon control, protection, and data management, thus improving their performance & survivability on the battlefield.

Military Vetronics Market Report Attributes
Report Attribute Details
Base Year 2022
Military Vetronics Market Size in 2022 USD 4.7 Billion
Forecast Period 2022 to 2032
Forecast Period 2022 to 2032 CAGR 5%
2032 Value Projection USD 8 Billion
Historical Data for 2018 to 2022
No. of Pages 250
Tables, Charts & Figures 258
Segments included
System, Platform, Fit
Growth Drivers
Increased emphasis on modernization of the defense fleet
Increased need for vetronics systems with higher situational awareness
Situational awareness and mission success
Increase in the arms procurement budget worldwide
Transition towards network-centric warfare
Pitfalls & Challenges
High cost of development
Increased threat of cyber attacks

The high cost of development is the high financial investment in the research, design, and manufacturing of sophisticated vetronics systems. The costs can put a strain on budgets, affect the affordability & uptake of new vetronics systems, and need to be allocated prudently. A balance between technological innovation and cost-effectiveness is essential for both military organizations & suppliers as they attempt to address changing defense requirements within budget constraints.

COVID-19 Impact
The COVID-19 pandemic had huge effects on the military vetronics market. The pandemic affected the global supply chains, impacting production and delivery of vetronics components & systems. This resulted in production and delivery schedule delays of military vehicles. Governments redirected resources to pandemic response activities, causing defense spending constraints. Some of the military vetronics projects experienced budget cuts or delays, restricting market growth.

Military Vetronics Market Trends
The military vetronics market, with its highly sophisticated electronic systems in defense vehicles, is experiencing significant growth. Growing defense expenditures and greater security needs around the world are fueling market growth. Some of the major market trends are incorporating Artificial Intelligence (AI) for higher vehicle autonomy, advanced comms systems, better battlefield connectivity, and ruggedized & miniaturized components to align with military requirements. Also on the rise are sustainability and energy-efficient solutions for vetronics. The future of the market is directly linked to technology because innovations keep advancing the capabilities of military vehicles and their vetronics.

The retro fit segment captured about 30% of the military vetronics market in 2022 and is likely to expand at a profitable rate. The retro fit segment is growing because of some strong reasons. Retrofitting is an economical option compared to the purchase of new vehicles. Advances in vetronics make it possible to integrate into existing platforms without any issues, making them compatible with present and future mission needs. Retrofitting of vetronics systems is in line with sustainability initiatives, minimizing the environmental footprint of military operations by maximizing the utilization of existing assets instead of producing new ones.

Discover more about the major segments influencing this market

Hello! You know those awesome tanks on the battlefield? They’re becoming even more intelligent due to something known as “vetronics.” Essentially, it’s like the tank’s brain, utilizing sophisticated technology such as AI and autonomous capabilities to make them highly adaptable. Nations are all about upgrading their tanks with this new technology in order to remain ahead of the curve. It’s sort of like when you buy a new smartphone with all the new bells and whistles. With vetronics, tanks can adjust to wacky battlefield conditions like nobody’s business. They can converse with one another and other equipment on the battlefield like it’s a party line. And they use data to make more informed decisions and keep their systems from being hacked by bad guys. Therefore, overall, vetronics is making tanks smarter and stronger, providing soldiers with a tremendous advantage on the battlefield.

The largest region in the world military vetronics market is North America with a market share of more than 30% as of 2022. There are several top defense contractors and tech firms in North America, which fuels innovation in vetronics. The region leads in developing advanced electronics for military uses. The U.S., being a key nation in the North American region, has huge defense budgets. The budgets spend heavily on the upgrading of military hardware such as incorporating advanced vetronics systems.

The U.S. and Canada possess vast global security obligations and frequently send military troops abroad. The predominance of combined military operations and partnerships with worldwide allies also propels the need for interoperable vetronics to provide situational awareness & coordination.

Military Vetronics Market Share

Some of the major players operating in the military vetronics market are

• BAE Systems PLC.
• Curtiss-Wright Corporation
• Elbit Systems
• General Dynamics Corporation
• Kongsberg
• L3Harris Technologies, Inc.
• Leonardo-Finmeccanica S.P.A
• Lockheed Martin Corporation
• Oshkosh Corporation
• Raytheon Company
• Rheinmetall AG
• Saab AB
• TE Connectivity
• Thales Group

These players focus on strategic partnerships and new product launches & commercialization for market expansion. Furthermore, they also heavily invest in research to introduce innovative services and garner maximum revenue in the market.