Defense Electronics Market Size, Share and Industry Analysis, By Vertical (Communication, Navigation and Display (Avionics, Vetronics, Integrated Bridge Systems), C4ISR (Sensor System, Communication & Network Technologies, Display & peripherals, Software), Electronic Warfare (Jammers, Self-protection EW Suites, Directed Energy Weapons, Antennas, Laser warning systems, and others), Radars (Surveillance and Airborne Early Radars, Tracking and Fire Control Radars, Weather Radars, Air Traffic Control Radars, and Other radars), and Optronics (Handheld Systems, EO/IR Payloads), By Platform (Airborne

Defense electronics refers to electronic devices, systems, and technologies utilized in military and defense applications. These advanced systems provide high-performance electronic detection, protection, and attack capabilities that support military operations while minimizing casualties. Key features include cutting-edge electronic sophistication, application across various military domains, and provision of capabilities, including electronic warfare, communication, navigation, and countermeasures. They utilize the electromagnetic spectrum for tasks, such as jamming, spoofing, and drone interceptions while minimizing electromagnetic signatures for stealth operations.

Defense electronics and associated technologies provide enhanced military capabilities, technological advances enabling real-time decision-making, improved communication and coordination among military systems, increased security through advanced defense systems, cost-effectiveness via IT standardization, design freedom and simplification with additive manufacturing, and supply chain innovations. These advantages contribute to successful military operations, enhanced effectiveness, streamlined communication, heightened security, improved efficiency, simplified design processes, and accelerated production timelines, which are critical for the aerospace and defense industry.

Several factors influence the market's growth. The emphasis on modernization and technological superiority in defense capabilities drives the need to invest in defense electronic systems to strengthen joint forces. Also, the increasing demand for integrated defense electronics technologies offers benefits such as real-time decision-making, remote operations, and system reprogramming to counter emerging threats. Additionally, the increased adoption of unmanned systems and the necessity for advanced command and control systems will further propel market growth. The increasing global military expenditure, coupled with geopolitical tensions, prompts countries to invest in advanced defense electronics to safeguard national security interests. Furthermore, the adoption of cutting-edge technologies, such as AI and unmanned systems, especially in North America, and supportive government policies on national security have contributed significantly to the expansion of the defense electronics market.

Segmentation

Key Insights

The report covers the following key insights:

• The report analyzes a detailed overview of the industry, including qualitative and quantitative information.


• It analyzes an overview and forecast of the defense electronics market at the platform level.


• The report also analyzes comprehensive supply chain analysis at a global level. The market will be further distributed at regional and country levels.

Analysis by Vertical:

By vertical, the market is segmented into communication, navigation and display, C4ISR, electronic welfare, radars and optronics. The communication, navigation and display segment dominated the market. It generated the highest revenue in the market due to systems and technologies that enable precise positioning, navigation and guidance for defense operations. This area contains a range of tools and systems developed to ensure reliable navigation in difficult terrain. The ability to operate autonomously or remotely depends heavily on the navigation systems of unmanned devices such as UAVs (Military Drones) and UGVs. The share of the navigation segment is increasing with the increased need for accurate and reliable navigation equipment and software for unmanned platforms.

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. Among the regions, North America is a hub for technological innovation, especially in the areas of AI, big data analytics, and machine learning. These areas are crucial for developing advanced defense electronics systems. This region boasts some of the world’s largest defense spenders, such as the U.S. and Canada, which invest significantly in defense capabilities to safeguard national security interests and maintain superiority. The U.S., possessing the largest defense budget globally, serves as a pivotal catalyst for the demand for sophisticated defense electronics systems, thereby propelling market expansion.

Asia Pacific countries, such as Japan, India, and China, are investing in modern technologies and the procurement of new platforms, driving market growth in the region. The growing demand for electronic warfare systems and advanced technologies, such as AI and unmanned systems, further contributes to the growth.

Key Players Covered

The report includes the profiles of key players, such as Lockheed Martin Corporation, North Grumman Corporation, Raytheon Technologies Corporation, Thales Group, BAE Systems, Aselsan AS, Curtiss Wright Corporation, L3 Harris Technologies, Boeing, and Teledyne Defense Electronics.

Key Industry Developments

• In March 2024, Bharat Electronics Limited (BEL) announced that it had received an order valued at USD 10.92 billion from Larsen & Toubro Limited (L&T) for the supply of communication and electronic warfare. As part of the deal, BEL will supply 14 domestically manufactured "cutting edge" EW sensors and systems to L&T.


• In March 2024, Eviden, an Atos Group business leading in digital, cloud, big data, and security, announced that it received EMAR 21G approval for its development and production site in Aix-en-Provence at the end of 2023. In order to meet the requirements of its customers operating in a state or military environment, Eviden has implemented a project at its crucial systems design and production site in Aix en Provence to enhance its organization and ensure compliance with European military and state regulations in the area of Initial Airworthiness.


• In February 2024, the Indian Ministry of Defence concluded a contract worth USD 22.69 billion with Bharat Electronics Limited (BEL) for the acquisition of 11 Shakti warfare systems and their associated equipment. Electronic warfare systems will be installed on frontline Indian Navy warships. Shakti systems are capable of accurately intercepting electronic emissions and implementing countermeasures in dense electromagnetic environments. They are indigenous to design, development, and manufacture.


• In April 2023, Elbit Systems Ltd. announced that it had been awarded a contract to supply, among others, precision munitions, radio and defense electronics systems, as well as maintenance services to a European Country, with a cumulative value of approximately USD 280 million. The contract shall be executed for three years.


• In April 2023, Raytheon, an RTX business, was awarded a USD 344 million contract for the development of two missile variants, the SM-2 Block IIICU and SM-6 Block IU. Both variants will be based on a common guidance section, which will house the electronics and software that guide a missile to its target.