Defense Electronics

Global Defense Electronics Market to Reach US$268.0 Billion by 2030

The global market for Defense Electronics estimated at US$189.2 Billion in the year 2024, is expected to reach US$268.0 Billion by 2030, growing at a CAGR of 6.0% over the analysis period 2024-2030. Land Platform, one of the segments analyzed in the report, is expected to record a 6.6% CAGR and reach US$144.2 Billion by the end of the analysis period. Growth in the Airborne Platform segment is estimated at 5.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$49.7 Billion While China is Forecast to Grow at 5.7% CAGR

The Defense Electronics market in the U.S. is estimated at US$49.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$42.8 Billion by the year 2030 trailing a CAGR of 5.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.4% and 5.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.7% CAGR.

Global Defense Electronics Market – Key Trends & Drivers Summarized

How Is Technology Transforming the Defense Electronics Industry?

The defense electronics sector has undergone a dramatic transformation, driven by advancements in artificial intelligence (AI), cyber warfare technologies, and next-generation communication systems. Modern warfare is increasingly reliant on sophisticated electronic systems that enhance surveillance, targeting, and real-time battlefield intelligence. The integration of electronic warfare (EW) capabilities, such as radar jamming and electronic countermeasures, has made defense electronics a crucial component of military strategies worldwide. Additionally, the rise of unmanned aerial vehicles (UAVs) and autonomous defense systems has spurred the development of electronic control and guidance mechanisms that ensure precision in combat scenarios. Governments are prioritizing investments in advanced sensor systems, electronic counterintelligence, and cyber defense infrastructures to combat evolving threats. From secure satellite communication networks to electronic missile guidance systems, defense electronics now play a pivotal role in national security and military operations. The increasing adoption of smart electronic warfare technologies by defense organizations worldwide highlights the growing significance of this sector.

Which Military Technologies Are Driving Market Expansion?

The global defense electronics market is witnessing rapid growth due to several groundbreaking technologies that are reshaping military capabilities. One of the key innovations is advanced radar and electronic surveillance systems, which provide real-time intelligence for both offensive and defensive operations. These include Active Electronically Scanned Array (AESA) radars, which enhance target detection and tracking capabilities. Additionally, the development of cyber warfare technologies is revolutionizing digital defense strategies, allowing nations to counter cyber threats and secure their military communication networks. The increasing demand for electro-optical and infrared (EO/IR) systems is another key trend, as these technologies enhance night vision, thermal imaging, and target acquisition capabilities. Furthermore, the integration of AI and machine learning in defense electronics is enabling autonomous threat detection, predictive maintenance of military equipment, and real-time decision-making in combat scenarios. Nations are also investing heavily in electronic countermeasure (ECM) systems, which disrupt enemy radar and communication signals, ensuring tactical superiority on the battlefield.

What Challenges Are Affecting the Adoption of Advanced Defense Electronics?

Despite the impressive advancements in defense electronics, the industry faces significant challenges, primarily related to cost, security risks, and technological obsolescence. The development and deployment of cutting-edge defense electronics require substantial investments, often leading to budget constraints for governments, particularly in emerging economies. Additionally, the increasing sophistication of cyber threats poses a major risk to military electronic systems, necessitating robust cybersecurity protocols and countermeasures. Another challenge is the rapid pace of technological evolution, which can render existing defense electronics obsolete within a short time. Military organizations must continuously upgrade their electronic systems to maintain a competitive edge, creating logistical and financial challenges. Supply chain disruptions, particularly for semiconductors and specialized electronic components, further impact the industry, as nations strive to develop self-reliant defense ecosystems. Furthermore, regulatory hurdles and export restrictions on sensitive military technologies complicate international defense contracts and technological collaborations.

What Is Driving the Growth of the Defense Electronics Market?

The growth in the defense electronics market is driven by several factors, including rising global defense budgets, increasing geopolitical tensions, and the continuous evolution of electronic warfare technologies. The growing emphasis on network-centric warfare (NCW), which relies on advanced communication and information-sharing systems, is significantly propelling demand for sophisticated defense electronics. The widespread adoption of unmanned combat vehicles and autonomous military drones is further driving market expansion, as these systems require highly advanced electronic components for navigation, surveillance, and combat operations. Governments are also investing in next-generation missile defense systems, which incorporate AI-powered guidance and electronic countermeasures to neutralize threats effectively. The increasing need for real-time situational awareness and intelligence gathering is leading to the deployment of cutting-edge radar, sonar, and electronic surveillance technologies. Additionally, advancements in quantum computing and electronic cryptography are expected to enhance military cybersecurity infrastructures, further fueling market growth. The rise in joint defense collaborations and military modernization programs across various nations is another critical factor contributing to the rapid expansion of this sector.

SCOPE OF STUDY:

The report analyzes the Defense Electronics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Platform (Land Platform, Airborne Platform, Marine Platform, Space Platform); Application (Electronic Warfare Application, Navigation, Communication, and Display Application, C4ISR Application, Radars Application, Optronics Application)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 36 Featured) -

• Anduril Industries
• BAE Systems
• Boeing Defense, Space & Security
• Chemring Group
• Cobham Limited
• Elbit Systems
• General Dynamics
• Hensoldt
• Israel Aerospace Industries (IAI)
• Kongsberg Gruppen
• L3Harris Technologies
• Leonardo S.p.A.
• Lockheed Martin
• Meggitt PLC
• Northrop Grumman
• Raytheon Technologies
• Rohde & Schwarz
• Safran Electronics & Defense
• Thales Group
• Ultra Electronics

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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