Military Computers Market Report 2025

The military computers market size has grown strongly in recent years. It will grow from $8.47 billion in 2024 to $8.95 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to defense modernization programs, increased cybersecurity threats, network-centric warfare doctrine, enhanced communication systems, ruggedized design requirements.

The military computers market size is expected to see strong growth in the next few years. It will grow to $11.14 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to geopolitical tensions and conflicts, integration of artificial intelligence (ai), electromagnetic pulse (emp) protection, command, control, and communications (c3) systems, cybersecurity and information assurance. Major trends in the forecast period include adoption of open system architectures, increased use of cognitive computing, focus on green computing initiatives, enhanced communication and networking capabilities, development of autonomous systems and unmanned platforms.

Rising government expenditures on the military are playing a significant role in the growth of the military computer market in the future. Military expenditure, often referred to as government spending on defense, represents the financial resources allocated by a nation to develop and sustain its armed forces or other defense-related initiatives. Military computers are utilized by armed forces around the globe to perform computations in challenging environments and on battlefields for communication, military artillery, and technological operations. For example, in April 2023, the Stockholm International Peace Research Institute, an independent international research organization based in Sweden, reported that global military spending reached $2.44 trillion in 2023, marking a 6.8% increase in real terms compared to 2022. Consequently, the rise in government spending on the military is fueling the expansion of the military computer market.

The expanding defense industry is anticipated to drive the growth of the military computer market in the future. The defense sector encompasses the part of a nation's government or industry that is responsible for the planning, development, procurement, deployment, and maintenance of military capabilities. Military computers are utilized in the defense industry to support vital operations, improve communication, and ensure secure and reliable data processing. For instance, in September 2024, the Aerospace Industries Association (AIA), a trade association based in the U.S., reported that in 2023, the U.S. aerospace and defense industry achieved a remarkable milestone, generating over $955 billion in sales, representing a 7.1% increase from 2022. Therefore, the growth of the defense industry is propelling the expansion of the military computer market.

Technological advancement stands out as a key trend gaining momentum in the military computer market. Major companies in this market are actively focusing on integrating new technologies and enhancing the applications of military computers to assist armed forces in their endeavors. For example, in October 2022, General Micro Systems, Inc., a US-based company specializing in small form factor systems, servers, and displays for rugged and non-rugged environments, launched the X9 Spider Wearable. This battery-powered rugged wearable computer is designed for soldiers on the ground, providing high-performance processing, communication capabilities, video functionalities, database access, and artificial intelligence (AI) functionality while on the move. The X9 Spider Wearable supports up to four on-body displays, facilitates wireless LAN and personal area network (PAN) connectivity, stores up to 20TB of onboard data, and processes on-board AI algorithms, including image/facial recognition, target tracking, and sensor fusion.

Major companies operating in the military computer market are adopting a strategic partnership approach to deliver rugged, cutting-edge computing technologies and solutions for mission-critical applications in defense and commercial enterprises. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. For instance, in December 2023, Hewlett-Packard Enterprise Company, a US-based information technology company, formed a partnership with Systel Inc., a US-based services organization. The objective of this collaboration is to deliver leading-edge workload optimization, high core density, power efficiency, security, and intelligent automation in MIL-SPEC computerized rugged systems. These systems are designed for all-weather and all-domain deployment, providing next-gen computing solutions reliably fieldable in the harshest environments.

In May 2022, Sigma Defense, a US-based systems integrator for the US Army, completed the acquisition of Sub U Systems for an undisclosed sum. Through this acquisition, the merged business aims to provide a shared hardware platform with software applications supporting analytics, artificial intelligence, edge computing, relay for intelligence, surveillance, reconnaissance, and more. This integrated hardware and software approach to communications supports Sigma's goal of autonomously connecting people, systems, and data. Sub U Systems is a US-based computer manufacturer serving military and commercial applications.

Major companies operating in the military computers market include BAE Systems, Cobham Limited, Curtiss-Wright Corporation, Esterline Technologies Corporation, Getac Technology Corporation, L3 Technologies, Northrop Grumman Corporation, Panasonic Corporation, Rockwell Collins Inc., Saab AB, Thales Group, Zebra Technologies Corporation, GRiD Defense Systems, Kontron AG, Computer Dynamics, Raytheon Company, Safran Group, General Dynamics Corporation, Elbit Systems Ltd., Honeywell International Inc., Lockheed Martin Corporation, Mercury Systems Inc., North Atlantic Industries Inc., Radisys Corporation, Rugged Science Inc., Systel Inc., Trenton Systems Inc., VersaLogic Corporation, Winmate Inc.

North America was the largest region in the military computers market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global military computers market report during the forecast period. The regions covered in the military computers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the military computers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A military computer refers to a ruggedized computer system or piece of equipment specifically designed, developed, and utilized for military purposes, adhering to U.S. military specifications. These computers find application in various military functions such as missile control, military communication, smart weapons, military operations, and military planning.

The main types of military computers include rugged computers and embedded computers. Rugged computers are specialized systems constructed with advanced features to perform complex tasks at the edge while maintaining durability, reliability, and long-term endurance. These computers are deployed in various installations, including new installations and upgrades, and are utilized across different applications, including aircraft, ground, and naval operations.

The military computers market research report is one of a series of new reports that provides military computers market statistics, including military computers industry global market size, regional shares, competitors with a military computers market share, detailed military computers market segments, market trends and opportunities, and any further data you may need to thrive in the military computers industry. The military computers 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 military computers market consists of sales of flight control computers (FCC), utility control computers (UCC), wearable Computers, and navigational computers. 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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