Military Vetronics Market

Global Military Vetronics Market Size (2024 to 2029)

The global military vetronics market size is expected to be worth USD 4.36 billion in 2024. It is expected to grow at a CAGR of 4.67% during the forecast period and reach a value of USD 5.48 billion by 2029.

Military vetronics refers to the electronics and communications systems that are used in military and homeland security vehicles. The combination of the hardware and software interface performs several operations like mobility systems, inter-vehicle communication, and others.

MARKET DRIVERS

The growing demand for the use of vetronics to perform effective military operations is propelling the growth of the military vetronics market. Performing the operations in the war zone is combined with mindfulness, where a small miscommunication will lead to a huge loss.

Hence, the military forces are accumulating highly advanced communication systems in vehicles that elevate the growth rate for the market.  Growing cyber threats and increasing concerns over geopolitical issues among many countries are ascribed to promote growth opportunities for the market in the coming years. Trends towards the adoption of highly advanced technologies in both developed and developing countries and the launch of innovative features in military vehicles to make communications between the army forces easy are anticipated to leverage the market growth rate in the coming years.

Prominence to procure advanced armored vehicles in army forces to adopt effective linking sensors to enhance the effectiveness of the networking environment is likely to fuel the market during the forecast period. For instance, the US Army has already approved the Armoured Multi-purpose Vehicle for full-rate production in 2023. The army is planning to purchase 131 AMPVs in 2024 for a budget of around $682.4 million, according to the FY23 budget release. Also, in 2023, the National Guard of Russia purchased the first ever Chinese-made military equipment, which is Tiger armored vehicles. These vehicles can accommodate ten persons and can protect up to 7.6mm of bullets. Therefore, the demand for the procurement of armored vehicles by the military is surging the military vetronics market growth rate.

Vetronics comes up with specific features like radio communication, audio & radio access, and others that are engaged to process smooth and reliable interactions among the army forces. Vetronics is quite responsible for creating an agile in the military space that is undoubtedly to level up the market growth rate. Government initiatives to adopt the new features by investing more in R&D activities are gearing the market share enormously. The rising number of terrorist attacks is another factor propelling the market size. The spending on the military is increasing at a random rate. For instance, the US spent around 875 billion USD for military operations. The budget estimated has dramatically increased with the Russia and Ukraine war. Also, the US federal budget always allocates 20% for the Department of Defence. Countries like Israel, Iran, and Turkey concentrate more on introducing heavy weapons with advanced technology that gain substantial influence from the global countries. Also, these countries concentrate on UAVs (Unmanned Aerial Vehicles) to perform a wide range of missions. Thus, the increasing need for UAVs on the battlefield is greatly promoting the growth rate of the military Vetronics market. Along with this, the rising popularity of procuring such advanced systems and growing expenditure in defense academies in emerging countries are elevating the growth rate of the market. 

MARKET RESTRAINTS

However, the lack of skilled people due to less knowledge in handling the advanced features is degrading the growth rate of the military Vetronics market. Also, budget constraints from the government authorities in developing countries are additionally restraining the market growth. Also, the economic crisis is slightly degrading the growth rate of the market in undeveloped countries.  The major challenging factor for the market is the decreasing support from government officials through the budget in some countries. A high number of future challenges to achieving initial operating capability and safety strictly hamper the demand for vetronics, that is, hinder the market growth soon. However, understanding the challenges and the target achievements, the demand for military vetronics is growing at a higher rate.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Military Vetronics Market Analysis By Vehicle Type

Based on vehicle type, the light-protected vehicles segment is gaining traction and is expected to hold a promising share of the worldwide market during the forecast period owing to the growing efforts on the development of the proprietary product range. With the rapid adoption of unmanned and hybrid vehicles in the military forces, the demand for the adoption of vetronics has been growing simultaneously in the past few years.

The armored personnel carriers segment is next in leading the dominant share of the market, whereas the main battle tank segment is holding the highest CAGR.

Global Military Vetronics Market Analysis By Application

Based on application, the homeland security segment held the major share of the worldwide market and the lead of the segment is estimated to continue throughout the forecast period owing to the rising conflicts with the countries. The trend towards the adoption of the integrating solution that provides real-time data in vehicles is escalating the homeland security segment share in the market.

On the other hand, the defense segment is expected to hit the highest CAGR. Increasing support from various organizations such as NATO, the military Vetronics Association, and the Ministry of Defense of many Nations, among others, is greatly prompting the demand for electronics in defense. The increasing prevalence of the standardization of the vetronics system is enhancing the growth rate of this segment.

Global Military Vetronics Market Analysis By Subsystem

Based on subsystem, the C3 systems segment is thriving with the largest share and is expected to hold the dominant share throughout the forecast period.

The communication & navigation segment is deemed to have prominent growth opportunities in the near future. Increasing interest in cutting-edge electronics in military applications is elevating the market size.

REGIONAL ANALYSIS

The North American military vetronics market is leading with the largest share due to rising investments in the upgradation of the existing vehicles in the US army. The US is the major country contributing the highest share of the market. The presence of the key players and penetration of advanced technologies are inclined to show a positive impact on the market growth in the US. The US Army is investing huge amounts in developing the armed forces with advanced technology. For instance, TAE Aerospace received a contract from the US Army to supply oil pump assemblies and electromechanical fuel system assemblies of AGT 1500 M1. Also, focusing on reducing the chances of cyber attacks is greatly elevating the demand for vetronics in this country. Canada is ascribed to hit the highest CAGR by the end of 2028.

Asia Pacific military vetronics market is next in ruling the largest share of the market with the threats from terrorists, especially in emerging countries like China, India, and Japan. China and India are among the countries that have the highest market share in the Asia-Pacific region. In India, the army force authorities are planning to acquire highly advanced armored vehicles to have effective results on the battlefield. In 2020, 156 BMP 2 infantry vehicles were procured by the Indian army under the Make in India program.

Europe's military vetronics market is deemed to have the highest CAGR throughout the forecast period. The war between Russia and Ukraine is the key driving factor for the market to grow eventually during this period. Russian army forces are spending irrationally on armored vehicles during the war with Ukraine.

Middle East & Africa and Latin America are likely to showcase robust growth opportunities for the market in the coming years.

KEY MARKET PLAYERS

Thales Group, Lockheed Martin Corporation, Curtiss-Wright Corporation, Leonardo S.p.A, BAE Systems plc, Saab Ab, L3Harris Technologies, Inc., General Dynamics Corporation, Raytheon Technologies Corporation and Rheinmetall AG are the leading companies in the global military vetronics market. 

RECENT HAPPENINGS IN THE MARKET

• In Feb 2023, BAE Systems received an order of $ 466.4 million from the US Army to build M109A7 self-propelled artillery systems and vetronics. The device is equipped with digital electronics and modern power systems that elevate the efficiency of fast-moving large, caliber field artillery cannons.

DETAILED SEGMENTATION OF THE GLOBAL MILITARY VETRONICS MARKET INCLUDED IN THIS REPORT

This research report on the global military vetronics market has been segmented and sub-segmented based on the vehicle type, application, sub-system and region.

By Vehicle Type

• Main Battle Tank
• Light Protected Vehicles
• Amphibious Armored Vehicles
• Mine-resistant ambush-protected
• Infantry Fighting Vehicle
• Armored Personnel Carriers
• Others

By Application

• Defense
• Homeland Security

By Subsystem

• Communication & Navigation
• Observation and Display Systems
• C3 Systems
• Weapon Control Systems
• Sensor & Control Systems
• Vehicle Protection Systems
• Power Systems

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa