Defense Electronics - Global Strategic Business Report

The global market for Defense Electronics was estimated at US$189.2 Billion in 2024 and is projected to reach US$268.0 Billion by 2030, growing at a CAGR of 6.0% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Defense Electronics market.

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.

Report Scope

The report analyzes the Defense Electronics market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

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.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Land Platform segment, which is expected to reach US$144.2 Billion by 2030 with a CAGR of a 6.6%. The Airborne Platform segment is also set to grow at 5.8% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $49.7 Billion in 2024, and China, forecasted to grow at an impressive 5.7% CAGR to reach $42.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Defense Electronics Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Defense Electronics Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Defense Electronics Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Anduril Industries, BAE Systems, Boeing Defense, Space & Security, Chemring Group, Cobham Limited and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

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 Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry