Vetronics Global Market Report 2024

The global vetronics market has grown strongly in recent years. It will grow from $3.72 billion in 2023 to $3.91 billion in 2024 at a compound annual growth rate (CAGR) of 5.1%. The growth observed in the historical period can be primarily attributed to several factors, including the modernization of military vehicles, heightened security threats and challenges, the growing demand for improved situational awareness, a shift towards network-centric warfare strategies, the need for lightweight and compact electronic systems, and ongoing upgrade programs aimed at modernizing legacy vehicles. These elements collectively contributed to the advancements and development in the field of military vehicle technologies during that time.

The global vetronics market is expected to see strong growth in the next few years. It will grow to $4.81 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period is expected to be driven by various factors, including the incorporation of multifunctional displays and human-machine interfaces (HMI), the unification of communication protocols, an increased emphasis on soldier safety and survivability, the advancement of autonomous vehicle technologies, and a focus on operational efficiency and effectiveness, coupled with the rise in defense budgets. Key trends expected in this period encompass the integration of advanced electronics into military systems, the adoption of network-centric warfare strategies, the implementation of digitalization and sensor fusion technologies, the utilization of artificial intelligence (AI) and machine learning (ML) for enhanced functionalities, improved vehicle communication capabilities, and the adoption of modular and scalable designs for military systems. These trends are poised to shape and influence the development of military technologies in the upcoming forecast period.

The vetronics market is experiencing growth due to the increasing focus of military and defense services on modernizing combat vehicles. Global factors such as terrorist activities, political unrest, and geopolitical tensions have heightened the emphasis on defense and military affairs. This has led to the procurement of next-generation combat vehicles, with Rheinmetall's Military Vehicle Centre of Excellence (MILVEHCOE) in Queensland set to build Australia's 186 Boxers, as reported by a defense correspondent. Consequently, the growing attention from military and defense services is anticipated to drive the growth of the vetronics market in the coming years.

The growth of the vetronics market is further propelled by the increasing defense budget. Larger defense budgets provide the financial resources required for the modernization of military vehicles and equipment with advanced vetronics systems. These systems enhance communication, situational awareness, and coordination among military units, ultimately improving defense capabilities and responsiveness. Additionally, higher defense budgets support research and development, fostering innovation in vetronics technology and solutions. For example, a report from The Peter G. Peterson Foundation indicates a $71 billion increase in U.S. defense expenditure between 2021 and 2022. This surge in defense budget allocation is a significant driver for the growth of the vetronics market.

A key trend influencing the vetronics market is technological advancement. Major industry players are directing their efforts toward developing innovative technologies, including the emergence of wireless communications technology and the increasing modernization of military vehicles. This trend is particularly evident in the utilization of drones and unmanned vehicles for surveillance and various commercial applications. These technologies contribute to improvements in traffic flow analysis methodologies, risk assessment, accident investigation aid, and damage assessments for infrastructure elements like bridges and pavements. Additionally, advances in computer vision algorithms play a crucial role in extracting critical information. In essence, technological advancement is playing a pivotal role in boosting the growth of the vetronics market.

In the competitive landscape of the vetronics market, major companies are actively developing new high-performance computing solutions tailored for military environments, aiming to secure a competitive edge. These advanced solutions integrate cutting-edge computing technologies to enhance the processing speed and efficiency of vehicle electronics, optimizing communication, control, and sensor functionalities in military applications. Illustrating this trend, in May 2022, Kontron AG, a Germany-based electronics company, introduced the DARC VX208 - a rugged and secure mission computer system designed for deployment in challenging military and aerospace environments. This high-performance system caters to various applications, including mission computing, command/control, electronic warfare, and vetronics. Equipped with powerful graphics capabilities, the DARC VX208 offers optional NVIDIA or AMD GPU modules for networked video streaming and real-time situational awareness. The compact design and modular open architecture of the system make it an ideal choice for integrators seeking to deploy high-performance GPU-based technologies on Size, Weight, and Power (SWaP)-constrained vehicle and aircraft platforms. Importantly, the system is free from International Traffic in Arms Regulations (ITAR) restrictions and is based on the low-power Intel Core i7-1185GRE quad-core processor. Additionally, it complies with various military standards for ruggedness and durability.

In July 2021, CAE, a Canadian-based company specializing in training services for airlines, simulation technologies, defense customers, and modeling technologies, made a strategic move by acquiring L3 Harris Technologies’ military training business for $1.05 billion. This acquisition enabled CAE to expand its military business portfolio significantly. The common shares of CAE issued as part of this acquisition were automatically issued through the CDS Clearing and Depository Services Inc. facilities. L3 Harris Technologies, an American-based company engaged in information technology services and defense contracting, is a provider of C6ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) systems and products, including wireless equipment. This acquisition solidified CAE's position in the military training sector and reinforced its capabilities within the broader defense industry.

Major companies operating in the vetronics market report are Rheinmetall AG, Raytheon Technologies Corporation, L3Harris Technologies Inc., Lockheed Martin Corporation, Thales Group, Curtiss-Wright Corporation, General Dynamics Corporation, Leonardo SpA, Elbit Systems Ltd., Collins Aerospace, Harris Corporation, Northrop Grumman Corporation, Honeywell International Inc., Rockwell Collins Inc., Moog Inc., Ultra Electronics Holdings plc, Kongsberg Gruppen ASA, ASELSAN AS, Cobham plc, QinetiQ Group plc, Meggitt plc, Esterline Technologies Corporation, Safran Electronics & Defense, Rafael Advanced Defense Systems Ltd., Israel Aerospace Industries Ltd., Aselsan Elektronik Sanayi ve Ticaret AS, BAE Systems plc, Collins Aerospace Systems, General Electric Company, Hitachi Zosen Corporation, ITT Inc.

North America was the largest region in the vetronics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vetronics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vetronics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Various types of vehicles utilize vetronics technology, such as main battle tanks, light combat vehicles, armored personnel carriers, infantry fighting vehicles, and similar platforms. Main battle tank vetronics are integral to heavily armored vehicles designed for direct fire and maneuverability, representing a crucial component of ground force strategies for decades. These systems incorporate various subsystems like weapon and control systems, command and communication setups, navigation and display interfaces, sensor and optronics modules, power systems, and other essential components. Vetronics find application in homeland security and military platforms, supporting critical operations within these sectors.

This report provides vetronics market statistics, including the vetronics industry's global market size, regional shares, competitors with a vetronics market share, detailed vetronics market segments, market trends and opportunities, and any further data you may need to thrive in the vetronics industry. This vetronics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The vetronics market consists of sales of C3 systems, vehicle protection systems, and power systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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