Military Vetronics Market Size By System (Command, Control & Communications (C3) System, Navigation System, Weapon Control System, Power System, Vehicle Protection System), By Platform (Light Armored Vehicle, Main Battle Tank, Mine-resistant Ambush Protection (MRAP) Vehicle, Infantry Fighting Vehicle (IFV), Unmanned Armored Ground Vehicle, Amphibious Vehicle), By Fit (Line Fit, Retro Fit) Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026

Industry Trends

Military Vetronics Market size exceeded USD 4 billion in 2019 and is estimated to grow at a CAGR of over 4% between 2020 and 2026. The market growth is driven by rapid technological advancements in defense verticals along with increasing scope of electronic weapon systems and unmanned vehicles.
 

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Major investments in the development of ultra-powerful radars and other communication systems by key industry players will pose requirement to upgrade existing communication systems, driving the military vetronics market.
 

Changing regulatory policies to inspect and upgrade existing military vehicles will encourage countries to increase their frequency of inspections, posing demand for advanced military vetronics systems. For instance, in April 2020, the U.S. Army contracted TAE Aerospace, Inc. to overhaul electromechanical fuel system assemblies and oil pump assemblies of AGT 1500 M1 tanks.
 

Integration of Navigation Systems with SATCOM to boost the military vetronics market growth

The navigation system segment will witness maximum growth of more than 5% till 2026. Integration of various military vehicles, such as amphibious vehicles, unmanned ground vehicles, infantry fighting vehicles, and mine-resistant ambush protection vehicles, in the army will support the segment growth. These vehicles require precise navigation systems, allowing the army to accurately carry out operations.
 

To improve the operational accuracy of these vehicles, industry players are integrating their navigation systems with Satellite Communications (SATCOM) systems. Various countries across the globe are trying to establish a framework, where military devices can use a range of SATCOM networks, which include commercial & military networks.
 

For instance, in May 2019, the USAF had conversations with commercial satellite operators to build a hybrid architecture. This architecture will enable armed forces to switch networks between commercial and military satellites, improving connectivity and reducing chances of cyber-attacks.
 

Rising demand for main battle tanks to serve as the first line of defense

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The main battle tank segment will capture more than 30% share in the global military vetronics market revenue by 2026. Requirement for battle tanks to serve as the first line of defense and combat during critical situations will cater to the market growth. Aging fleet of battle tanks and introduction of advanced combat vehicles have led to the requirement for new tanks.
 

Rising requirement to retrofit military vehicles with advanced systems

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The retrofit segment in the market is anticipated to observe a high CAGR of 5% during the forecast timeframe. The growth can be attributed to development of new vetronics systems, out casting existing systems. Developed countries with technological expertise in arms manufacturing are collaborating to accelerate the pace of R&D for these vehicles.
 

For instance, in February 2020, Germany and France together launched an architectural study on the European Main Ground Combat System (MGCS). The study encompasses potential future development of arms, ammunition, and vetronics in military vehicles.
 

Efforts of Asia Pacific to establish themselves as a defense manufacturing hub

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The North America military vetronics market dominated more than 30% revenue share in 2019. This market penetration can be credited to presence of major defense enterprises, such as General Dynamics, L3Harris, and Lockheed Martin, in the region. These players are extensively investing in the development of enhanced vetronics systems and undergoing government modernization programs.
 

The Asia Pacific market is predicted to register around 5% gains from 2020 to 2026 driven by combined efforts of various business conglomerates and government bodies to initiate manufacturing facilities across the region.
 

Long-term maintenance contract to promote market competitiveness

Major vendors in the military vetronics market include Thales Group, Saab Group, Lockheed Martin Corporation, General Dynamics Corporation, Raytheon Company, Curtiss-Wright Corporation, Leonardo-Finmeccanica S.P.A, Rheinmetall AG, BAE Systems PLC., and L3Harris.
 

Companies operating in the market are undergoing custom contracts as per the client requirements to improve their existing market share. For instance, in December 2019, the Danish Ministry of Defense Acquisition & Logistics Organization (DALO) entered a contract worth USD 29.5 million with Kongsberg to integrate its Protector Remote Weapon Station (RWS) with Piranha V 8x8 vehicle.
 

The military vetronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
 

Market by System, 2015 - 2026 (USD Million)

• Command, Control and Communication (C3) System
• Navigation System
• Weapon Control System
• Power System
• Others (Display system, Sensors)

Market by Platform, 2015-2026 (USD Million)

• Light Armored Vehicle
• Main Battle Tank
• Mine-resistant Ambush Protected (MRAP) Vehicle
• Infantry Fighting Vehicle (IFV)
• Unmanned Armored Ground Vehicle
• Amphibious Vehicle
• Others

Market by Fit, 2015-2026 (USD Million)

• Line Fit
• Retro Fit

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • Russia
  • France
  • Turkey
  • Poland
  • Rest of Europe
• APAC
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Israel
  • Saudi Arabia
  • Qatar
  • UAE
  • South Africa
  • Rest of MEA