This report describes and explains the military embedded systems market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global military embedded systems market reached a value of nearly $1.74 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.59% since 2019. The market is expected to grow from $1.74 billion in 2024 to $2.58 billion in 2029 at a rate of 8.18%. The market is then expected to grow at a CAGR of 7.46% from 2029 and reach $3.7 billion in 2034.
Growth in the historic period resulted from the increased government and defense investment, rise in unmanned aerial vehicles, growth in demand for real-time data processing and rise in terrorist activities. Factors that negatively affected growth in the historic period were stringent military standards and challenges in upgrading legacy systems.
Going forward, the increasing military modernization programs, increasing AI adoption, increasing cybersecurity threats targeting military networks and favorable government initiatives will drive the growth. Factor that could hinder the growth of the military embedded systems market in the future include complex systems and technological adaptation challenges.
North America was the largest region in the military embedded systems market, accounting for 39.75% or $694.27 million of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the military embedded systems market will be Asia-Pacific and North America where growth will be at CAGRs of 8.69% and 8.59% respectively. These will be followed by South America and Africa where the markets are expected to grow at CAGRs of 7.99% and 7.72% respectively.
The global military embedded systems markets is fairly fragmented, with large players operating in the market. The top 10 competitors in the market made up 15.10% of the total market in 2023. BAE Systems was the largest competitor with a 2.69% share of the market, followed by The Boeing Company with 1.94%, General Dynamics Corporation with 1.81%, Honeywell International Inc. with 1.66%, Leonardo S.p.A with 1.57%, Saab AB with 1.41%, Curtiss-Wright Corporation with 1.33%, Mercury Systems Inc. with 0.97%, Intel Corporation with 0.91% and NVIDIA Corporation with 0.81%.
The military embedded systems market is segmented by component into hardware and software. The hardware market was the largest segment of the military embedded systems market segmented by component, accounting for 60.14% or $1.05 billion of the total in 2024. Going forward, the software segment is expected to be the fastest growing segment in the military embedded systems market segmented by component, at a CAGR of 8.49% during 2024-2029.
The military embedded systems market is segmented by installation type into new installation and upgradation. The upgradation market was the largest segment of the military embedded systems market segmented by installation type, accounting for 55.66% or $972.28 million of the total in 2024. Going forward, the new installation segment is expected to be the fastest growing segment in the military embedded systems market segmented by installation type, at a CAGR of 9.59% during 2024-2029.
The military embedded systems market is segmented by platform into land, airborne, naval and space. The land market was the largest segment of the military embedded systems market segmented by platform, accounting for 43.04% or $751.86 million of the total in 2024. Going forward, the naval segment is expected to be the fastest growing segment in the military embedded systems market segmented by platform, at a CAGR of 9.70% during 2024-2029.
The military embedded systems market is segmented by technology into edge computing, fog computing and mist computing. The edge computing market was the largest segment of the military embedded systems market segmented by technology, accounting for 53.45% or $933.64 million of the total in 2024. Going forward, the edge computing segment is expected to be the fastest growing segment in the military embedded systems market segmented by technology, at a CAGR of 8.98% during 2024-2029.
The military embedded systems market is segmented by application into intelligence, surveillance and reconnaissance (ISR), command and control, communication and navigation, electronic warfare (EW), weapon and fire control, wearable and other applications. The intelligence, surveillance and reconnaissance (ISR) market was the largest segment of the military embedded systems market segmented by application, accounting for 29.29% or $511.66 million of the total in 2024. Going forward, the electronic warfare (EW) segment is expected to be the fastest growing segment in the military embedded systems market segmented by application, at a CAGR of 9.92% during 2024-2029.
The top opportunities in the military embedded systems market segmented by component will arise in the hardware segment, which will gain $490.88 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by installation type will arise in the new installation segment, which will gain $449.57 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by platform will arise in the land segment, which will gain $310.26 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by technology will arise in the edge computing segment, which will gain $501.51 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by application will arise in the intelligence, surveillance, and reconnaissance (ISR) segment, which will gain $278.6 million of global annual sales by 2029.The military embedded systems market size will gain the most in the USA at $328.46 million.
Market-trend-based strategies for the military embedded systems market include focus on developing technological advancements such as rugged embedded AI (artificial intelligence) supercomputers, focus on developing innovative advancements such as modular embedded computing systems, focus on developing advanced products like rugged military embedded processors, focus on developing innovative tools such as rad-hard transceiver interface solutions and focus on developing strategic partnerships.
Player-adopted strategies in the military embedded systems market include focus on new product developments and enhancing its business operations through new investments.
To take advantage of the opportunities, the analyst recommends the military embedded systems to focus on advancing rugged AI capabilities for harsh military environments, focus on expanding modular embedded computing for battlefield adaptability, focus on advancing rugged embedded processors for mission-critical performance, focus on accelerating investment in military embedded software solutions, expand in emerging markets, focus on capturing growth in the naval military embedded systems segment, focus on implementing value-based pricing to align with mission-critical demands, continue to use B2B promotions, focus on strengthening brand positioning through collaboration with defense primes and focus on expanding capabilities in electronic warfare systems.
The global military embedded systems market reached a value of nearly $1.74 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.59% since 2019. The market is expected to grow from $1.74 billion in 2024 to $2.58 billion in 2029 at a rate of 8.18%. The market is then expected to grow at a CAGR of 7.46% from 2029 and reach $3.7 billion in 2034.
Growth in the historic period resulted from the increased government and defense investment, rise in unmanned aerial vehicles, growth in demand for real-time data processing and rise in terrorist activities. Factors that negatively affected growth in the historic period were stringent military standards and challenges in upgrading legacy systems.
Going forward, the increasing military modernization programs, increasing AI adoption, increasing cybersecurity threats targeting military networks and favorable government initiatives will drive the growth. Factor that could hinder the growth of the military embedded systems market in the future include complex systems and technological adaptation challenges.
North America was the largest region in the military embedded systems market, accounting for 39.75% or $694.27 million of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the military embedded systems market will be Asia-Pacific and North America where growth will be at CAGRs of 8.69% and 8.59% respectively. These will be followed by South America and Africa where the markets are expected to grow at CAGRs of 7.99% and 7.72% respectively.
The global military embedded systems markets is fairly fragmented, with large players operating in the market. The top 10 competitors in the market made up 15.10% of the total market in 2023. BAE Systems was the largest competitor with a 2.69% share of the market, followed by The Boeing Company with 1.94%, General Dynamics Corporation with 1.81%, Honeywell International Inc. with 1.66%, Leonardo S.p.A with 1.57%, Saab AB with 1.41%, Curtiss-Wright Corporation with 1.33%, Mercury Systems Inc. with 0.97%, Intel Corporation with 0.91% and NVIDIA Corporation with 0.81%.
The military embedded systems market is segmented by component into hardware and software. The hardware market was the largest segment of the military embedded systems market segmented by component, accounting for 60.14% or $1.05 billion of the total in 2024. Going forward, the software segment is expected to be the fastest growing segment in the military embedded systems market segmented by component, at a CAGR of 8.49% during 2024-2029.
The military embedded systems market is segmented by installation type into new installation and upgradation. The upgradation market was the largest segment of the military embedded systems market segmented by installation type, accounting for 55.66% or $972.28 million of the total in 2024. Going forward, the new installation segment is expected to be the fastest growing segment in the military embedded systems market segmented by installation type, at a CAGR of 9.59% during 2024-2029.
The military embedded systems market is segmented by platform into land, airborne, naval and space. The land market was the largest segment of the military embedded systems market segmented by platform, accounting for 43.04% or $751.86 million of the total in 2024. Going forward, the naval segment is expected to be the fastest growing segment in the military embedded systems market segmented by platform, at a CAGR of 9.70% during 2024-2029.
The military embedded systems market is segmented by technology into edge computing, fog computing and mist computing. The edge computing market was the largest segment of the military embedded systems market segmented by technology, accounting for 53.45% or $933.64 million of the total in 2024. Going forward, the edge computing segment is expected to be the fastest growing segment in the military embedded systems market segmented by technology, at a CAGR of 8.98% during 2024-2029.
The military embedded systems market is segmented by application into intelligence, surveillance and reconnaissance (ISR), command and control, communication and navigation, electronic warfare (EW), weapon and fire control, wearable and other applications. The intelligence, surveillance and reconnaissance (ISR) market was the largest segment of the military embedded systems market segmented by application, accounting for 29.29% or $511.66 million of the total in 2024. Going forward, the electronic warfare (EW) segment is expected to be the fastest growing segment in the military embedded systems market segmented by application, at a CAGR of 9.92% during 2024-2029.
The top opportunities in the military embedded systems market segmented by component will arise in the hardware segment, which will gain $490.88 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by installation type will arise in the new installation segment, which will gain $449.57 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by platform will arise in the land segment, which will gain $310.26 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by technology will arise in the edge computing segment, which will gain $501.51 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by application will arise in the intelligence, surveillance, and reconnaissance (ISR) segment, which will gain $278.6 million of global annual sales by 2029.The military embedded systems market size will gain the most in the USA at $328.46 million.
Market-trend-based strategies for the military embedded systems market include focus on developing technological advancements such as rugged embedded AI (artificial intelligence) supercomputers, focus on developing innovative advancements such as modular embedded computing systems, focus on developing advanced products like rugged military embedded processors, focus on developing innovative tools such as rad-hard transceiver interface solutions and focus on developing strategic partnerships.
Player-adopted strategies in the military embedded systems market include focus on new product developments and enhancing its business operations through new investments.
To take advantage of the opportunities, the analyst recommends the military embedded systems to focus on advancing rugged AI capabilities for harsh military environments, focus on expanding modular embedded computing for battlefield adaptability, focus on advancing rugged embedded processors for mission-critical performance, focus on accelerating investment in military embedded software solutions, expand in emerging markets, focus on capturing growth in the naval military embedded systems segment, focus on implementing value-based pricing to align with mission-critical demands, continue to use B2B promotions, focus on strengthening brand positioning through collaboration with defense primes and focus on expanding capabilities in electronic warfare systems.
Major Market Trends
- Rugged Embedded AI Supercomputers Enhance Military Autonomous Systems and Surveillance
- Modular Embedded Computing Enhances Battlefield Adaptability With Rapid Technology Upgrades
- Rugged Embedded Processor Enhances Mission-Critical Computing in Extreme Military Environments
- Rad-Hard Transceiver Interface Simplifies Integration for Military and Aerospace Communication
- Strategic Partnership Enhances Decision-Making and Connectivity for Military Operations
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Global Military Embedded Systems Growth Analysis and Strategic Analysis Framework
9 Global Military Embedded Systems Market Segmentation
10 Military Embedded Systems Market, Regional and Country Analysis
11 Asia-Pacific Market
12 Western Europe Market
13 Eastern Europe Market
14 North America Market
15 South America Market
16 Middle East Market
17 Africa Market
18 Competitive Landscape and Company Profiles
19 Other Major and Innovative Companies
22 Key Mergers and Acquisitions
23 Recent Developments
24 Opportunities and Strategies
25 Military Embedded Systems Market, Conclusions and Recommendations
26 Appendix
Executive Summary
Military Embedded Systems Global Market Opportunities and Strategies to 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global military embedded systems market as it emerges from the COVID-19 shut down.Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
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- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for military embedded systems? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The military embedded systems market global report answers all these questions and many more.The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s history and forecasts market growth by geography. It places the market within the context of the wider military embedded systems market; and compares it with other markets.
The report covers the following chapters:
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by installation type, by platform, by technology and by application.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Regional and Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component, by installation type, by platform, by technology and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities and Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations- This section includes recommendations for military embedded systems providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
1) by Component: Hardware; Software
2) by Installation Type: New Installation; Upgradation
3) by Platform: Land; Airborne; Naval; Space
4) by Technology: Edge Computing; Fog Computing; Mist Computing
5) by Application: Intelligence, Surveillance and Reconnaissance (ISR); Command and Control; Communication and Navigation; Electronic Warfare (EW); Weapon and Fire Control; Wearable; Other Applications
Key Companies Profiled: BAE Systems; the Boeing Company; General Dynamics Corporation; Honeywell International Inc; Leonardo S.p.A.
Countries Mentioned: Australia; China; India; Indonesia; Japan; South Korea; Brazil; Russia USA; Canada; France; Germany; UK; Italy; Spain.
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; military embedded systems indicators comparison.
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
The companies featured in this Military Embedded Systems market report include:- BAE Systems
- The Boeing Company
- General Dynamics Corporation
- Honeywell International Inc
- Leonardo S.p.A.
- Saab AB
- Curtiss-Wright Corporation
- Mercury Systems Inc.
- Intel Corporation
- NVIDIA Corporation
- Sentient Vision Systems
- Shield AI
- Nippon Kaiyo
- SRC, Inc.
- L3Harris Technologies
- ELTA Systems Group
- Korean Air Lines Co.
- Raytheon Australia
- Tata Advanced Systems Limited (TASL)
- Bharat Electronics Limited (BEL)
- Mitsubishi Heavy Industries (MHI)
- Hanwha Aerospace
- Nvidia
- China Electronics Technology Group Corporation (CETC)
- China Aerospace Science and Industry Corporation (CASIC)
- Mitsubishi Heavy Industries (MHI)
- Helsing Limited
- Saab
- Matra BAE Dynamics Alenia
- Thales Group
- Airbus Defence and Space
- Lockheed Martin
- Rheinmetall AG
- Kontron AG
- Eurotech S.p.A.
- Milrem Robotics
- Kvertus
- WB Group
- D-TA Systems Inc.
- Mercury Systems
- Crank AMETEK
- Xilinx
- Pratt & Whitney
- Northrop Grumman Corporation
- Honeywell International Inc
- Fortem Technologies
- Collins Aerospace Xilinx
- Mercury Systems
- EDGE Group
- Emirates Defense Technology
- Robotics Engineering Systems (RES)
- Proforce Limited
- Denel Dynamics
- Nexter
- Tellumat Defense
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 331 |
| Published | April 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 1.74 Billion |
| Forecasted Market Value ( USD | $ 3.7 Billion |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 56 |
