Aerospace And Defense Telemetry Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Aerospace and Defense Telemetry Market Report is Segmented by Communication Technology (Radio Frequency, Satellite, and More), Component (Transmitters and Sensors, Signal Processing Units, and More), Platform (Aircraft, Spacecraft and Launch Vehicles, and More), End User (Aerospace and Defense), and Geography (North America, Europe, and More). The Market Forecasts are Provided in Terms of Value (USD).

Aerospace And Defense Telemetry Market Size and Share

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Compare market size and growth of Aerospace And Defense Telemetry Market with other markets in Aerospace & Defense Industry

Aerospace And Defense Telemetry Market Analysis by Mordor Intelligence

The aerospace and defense telemetry market size is estimated at USD 2.08 billion in 2025, and is expected to reach USD 2.93 billion by 2030, reflecting a CAGR of 7.09% during the forecast period. Demand growth reflects the transition from legacy data pipes to edge-enabled telemetry architectures that process mission data in real time and compress non-essential traffic before transmission. Hypersonic weapon programs, proliferating satellite constellations, and onboard artificial intelligence collectively reshape telemetry design rules. At the same time, NATO and Indo-Pacific modernization plans elevate bandwidth requirements across airborne ISR, naval, and missile platforms. Radio Frequency links retain scale advantages, yet laser and optical systems secure rapid adoption where spectrum congestion threatens mission continuity. Ongoing integration of space-based edge AI allows satellites to triage data on-orbit, trimming ground-station backlogs and improving decision speed. Consolidation activity—exemplified by BAE Systems’ USD 5.5 billion purchase of Ball Aerospace—shows how incumbents bolt on specialized telemetry assets to retain strategic dominance.

Key Report Takeaways

  • By communication technology, radio frequency links held 52.90% of the aerospace and defense telemetry market share in 2024, while laser/optical systems are set to compound at a 9.23% CAGR through 2030.
  • By component, transmitters and sensors account for 26.54% of the aerospace and defense telemetry market size in 2024; software and data analytics platforms are projected to expand at an 8.56% CAGR by 2030.
  • By platform, aircraft maintained a 30.34% revenue share in 2024, yet UAVs registered the fastest growth at 10.88% CAGR over the forecast horizon.
  • By end user, defense represented 63.89% of the aerospace and defense telemetry market in 2024, while the commercial aerospace segment accelerates at an 8.54% CAGR through 2030.
  • North America led with a 36.14% revenue share in 2024; Asia-Pacific is poised for the quickest advance, with a 9.01% CAGR to 2030.

Segment Analysis

By Communication Technology: Laser Communications Drive Next-Generation Capabilities

Laser/optical links recorded the strongest expansion, advancing at a 9.23% CAGR between 2025 and 2030. Adoption surged after the Space Development Agency published its Optical Communication Terminal Standard v4.0.0, giving primes a clear compliance roadmap. Compared with microwave systems, optical beams deliver 10 to 100-fold bandwidth with tighter spatial confinement that curtails interception risk. In conjunction with adaptive beam-steering mirrors, satellites now switch companions in microseconds, supporting mesh routing no longer bottlenecked by ground relays.

Radio Frequency architectures retained 52.90% revenue in 2024, underscoring the deep installed base and all-weather robustness that militaries trust for command-critical tasks. Spectrum pressure and growing anti-spoofing demands push integrators to blend the two modalities, launching hybrid terminals that can hop between Ka-band and optical carrier. This duality sustains Radio Frequency procurement while infusing new revenue into the aerospace and defense telemetry market. The Starlink rollout creates double-digit demand for optical terminal components, positioning laser equipment suppliers for sustained backlog growth.

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Note: Segment shares of all individual segments available upon report purchase

By Component: Software Platforms Transform Data Analytics

Software and data analytics platforms post the fastest 8.56% CAGR over 2025-2030 as operators shift from raw packet storage to predictive insight generation. Integrated dashboards now fuse telemetry, logistics, and environmental feeds to produce maintenance recommendations minutes after flight termination. For instance, Boeing’s Condition-Based Smart Maintenance suite blends engine vibration spectra with flight regime tags to flag parts approaching fatigue thresholds.[2]Boeing, “Smart Maintenance Solutions,” boeing.com

Transmitters and sensors remained the largest slice at 26.54% in 2024 because every node—a hypersonic vehicle, a nanosatellite, or a UAV—needs physical transducers and power-amplifier chains. Continuous miniaturization compresses these elements into chip-scale packages, freeing space for edge processors. Improved component yields and declining ASIC mask costs lower entry barriers, attracting new suppliers into the Aerospace and Defense Telemetry market and fueling price competition that accelerates volume adoption.

By Platform: UAVs Lead Innovation in Autonomous Systems

Unmanned Aerial Vehicles (UAVs) achieved the highest 10.88% CAGR, propelled by swarming concepts that demand resilient, low-latency links for coordinated maneuvers. Militaries test attributable drones that ferry expendable EW payloads, each requiring telemetry streams that confirm the electronic effect on targets before self-destructing. Commercial parcel-delivery pilots also intensify data needs for route verification and airspace deconfliction.

Manned aircraft still commanded 30.34% of total revenue in 2024, reflecting large fleets of fighters, tankers, and transports undergoing avionics refresh cycles. Missile and projectile segments remain niche yet mission-critical: telemetry modules behind warheads collect impact analytics that guide design tweaks in subsequent blocks. These varied use cases enlarge the Aerospace and Defense Telemetry market because suppliers must tailor ruggedization, encryption, and frequency agility to each domain while sustaining economies of scale.

Aerospace And Defense Telemetry Market: Market Share by Platform
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By End User: Commercial Aerospace Accelerates Growth

Defense requirements anchored 63.89% of 2024 turnover, but the commercial and civil aerospace segment accelerates at 8.54% CAGR as advanced air-mobility prototypes move from concept to certification. eVTOL platforms integrate multi-redundant telemetry buses, simultaneously conveying battery chemistry, structural load, and air-traffic data.

Satellite broadband providers likewise escalate procurement, embedding health-monitoring sensors in every bus to protect uptime guarantees for consumer subscribers. As civilian missions converge with militarized space traffic management, dual-use demand strengthens the aerospace and defense telemetry market. Shared component standards allow volume pricing that benefits both sides of the customer base.

Geography Analysis

North America retained the largest 36.14% share in 2024 as the US Department of Defense contracts for hypersonic glide vehicles and next-generation ISR platforms kept domestic lines busy. Prime contractors bundle telemetry R&D with full-system bids, keeping value onshore and sustaining robust engineering pipelines. Strong venture-capital appetite for space start-ups further cements regional leadership.

Asia-Pacific posts the most rapid 9.01% CAGR through 2030. China scales factory output of small satellite buses that ship with plug-and-play optical terminals, while India's reusable launch ambitions drive consistent telemetry component requisitions for thermal-cycle testing. Japan channels robotics expertise into miniaturized lunar and asteroid probes' transceivers, turning regional suppliers into global price setters for ultra-compact hardware.

Europe pursues autonomous and sustainable air-traffic goals under SESAR 3.0, prompting local integrators to adopt cyber-resilient software-defined radios inside crewed and uncrewed airframes. The forthcoming EU Space Act, scheduled for late-2025 implementation, will mandate compliance logs for telemetry encryption algorithms operating in EU orbital slots.[3]European Commission, “Draft EU Space Act,” europa.eu This new rulebook could marginally slow procurement, yet ultimately harmonizes standards, enlarging addressable demand for certified vendors within the aerospace and defense telemetry market.

Aerospace And Defense Telemetry Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The aerospace and defense telemetry market displays moderate consolidation, whereby top system integrators control complete value chains from sensor to analytics. BAE Systems plc’s USD 5.5 billion purchase of Ball Aerospace expanded optical communications and ground-segment capacity overnight. In early 2025, AeroVironment closed a USD 4.1 billion deal for BlueHalo, adding electronic warfare expertise that complements its unmanned systems franchise.

Teledyne Technologies sustains a 53.21% share in its high-end sensor niche thanks to iterative acquisitions and robust 13.02% net margins. Kratos Defense differentiates on software-defined flexibility, fielding quantumRadio and quantumFEP units that swap waveforms without hardware changes.[4]Kratos Defense, “Software-Defined Ground Segment Portfolio,” kratosdefense.com Edge-AI convergence pressures classical hardware vendors to pair silicon with machine-learning toolkits or risk displacement by cloud-native entrants.

White-space pockets exist in quantum-encrypted links and self-healing mesh protocols that maintain command resilience when individual nodes jam or fail. Export-control reforms published in the United States Federal Register during October 2024 eased civil-space telemetry shipments while preserving ITAR guardrails for defense payloads. Players that internalize compliance engineering early will reduce time-to-market and secure leadership as regulatory complexity rises.

Aerospace And Defense Telemetry Industry Leaders

  1. BAE Systems plc

  2. Lockheed Martin Corporation

  3. L3Harris Technologies, Inc.

  4. Safran SA

  5. RTX Corporation

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • March 2025: Naval Air Systems Command awarded Curtiss-Wright's Defense Solutions Division a USD 50 million IDIQ contract to provide high-speed data acquisition systems hardware and repair services for their Special Flight Test Instrumentation Pool.
  • February 2025: Safran Defense & Space, Inc. (Safran Group) received an order from Bell Textron Inc. to provide onboard and ground flight testing solutions for six aircraft under the US Army's Future Long Range Assault Aircraft (FLRAA) program. The order supports the development of advanced vertical lift capabilities.
  • February 2025: Safran Group received a contract to supply flight testing equipment and antennae for the US Army's Future Long Range Assault Aircraft (FLRAA) program.

Table of Contents for Aerospace And Defense Telemetry Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Expansion of hypersonic and reusable launch vehicle programs
    • 4.2.2 Proliferation of small satellite constellations requiring high-bandwidth telemetry
    • 4.2.3 Modernization of airborne ISR platforms across defense alliances
    • 4.2.4 Emergence of space-based edge AI for real-time data processing
    • 4.2.5 Increased adoption of commercial software-defined radios in defense telemetry
    • 4.2.6 Growing use of passive telemetry for condition-based maintenance
  • 4.3 Market Restraints
    • 4.3.1 Spectrum congestion and international coordination delays impacting bandwidth access
    • 4.3.2 Size, weight, and power (SWaP) limitations in small UAV platforms constrain telemetry integration
    • 4.3.3 Export controls and cyber-sovereignty clauses restricting cross-border technology transfer
    • 4.3.4 Rising satellite launch insurance costs limiting available budgets for telemetry systems
  • 4.4 Value Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitute Products
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Communication Technology
    • 5.1.1 Radio Frequency
    • 5.1.2 Satellite
    • 5.1.3 Laser/Optical
    • 5.1.4 Ethernet/Fiber-Optic
  • 5.2 By Component
    • 5.2.1 Transmitters and Sensors
    • 5.2.2 Antennas and Modulators
    • 5.2.3 Software and Data Analytics Platforms
    • 5.2.4 Signal Processing Units
    • 5.2.5 Ground Receiving Equipment
  • 5.3 By Platform
    • 5.3.1 Aircraft
    • 5.3.2 Spacecraft and Launch Vehicles
    • 5.3.3 Unmanned Aerial Vehicles (UAVs)
    • 5.3.4 Missiles and Projectiles
    • 5.3.5 Marine Vessels
    • 5.3.6 Ground Stations
  • 5.4 By End User
    • 5.4.1 Aerospace
    • 5.4.2 Defense
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 United Kingdom
    • 5.5.2.3 France
    • 5.5.2.4 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 Japan
    • 5.5.3.3 India
    • 5.5.3.4 South Korea
    • 5.5.3.5 Australia
    • 5.5.3.6 Rest of Asia-Paific
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 BAE Systems plc
    • 6.4.2 Lockheed Martin Corporation
    • 6.4.3 L3Harris Technologies, Inc.
    • 6.4.4 Safran SA
    • 6.4.5 Honeywell International Inc.
    • 6.4.6 Thales Group
    • 6.4.7 RTX Corporation
    • 6.4.8 Kongsberg Gruppen ASA
    • 6.4.9 Curtiss-Wright Corporation
    • 6.4.10 Leonardo S.p.A
    • 6.4.11 AstroNova Inc.
    • 6.4.12 Orbit Communications Systems Ltd.
    • 6.4.13 Kratos Defense & Security Solutions, Inc.
    • 6.4.14 Teledyne Technologies Incorporated
    • 6.4.15 Viasat Inc.
    • 6.4.16 General Dynamics Mission Systems (General Dynamics Corporation)
    • 6.4.17 Rohde & Schwarz GmbH & Co KG
    • 6.4.18 Sierra Nevada Company, LLC.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
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Global Aerospace And Defense Telemetry Market Report Scope

Telemetry is the measurement and wireless data transmission of data from remote sources. Sensors measure physical or electrical data converted into specific electrical voltages. Multiplexers combine these voltages with timing data into a single data stream for transmission to a remote receiver. At the reception, the data stream is separated into its original components, and the data is displayed and processed according to user specifications.

The aerospace and defense telemetry market has been segmented by type, application, and geography. By type, the market is segmented into Radio and Satellite. By application, the market is segmented into Aerospace and Defense. The report also covers the market sizes and forecasts for the aerospace and defense telemetry market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).

By Communication Technology Radio Frequency
Satellite
Laser/Optical
Ethernet/Fiber-Optic
By Component Transmitters and Sensors
Antennas and Modulators
Software and Data Analytics Platforms
Signal Processing Units
Ground Receiving Equipment
By Platform Aircraft
Spacecraft and Launch Vehicles
Unmanned Aerial Vehicles (UAVs)
Missiles and Projectiles
Marine Vessels
Ground Stations
By End User Aerospace
Defense
By Geography North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
Rest of Asia-Paific
South America Brazil
Rest of South America
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Rest of Middle East
Africa South Africa
Rest of Africa
By Communication Technology
Radio Frequency
Satellite
Laser/Optical
Ethernet/Fiber-Optic
By Component
Transmitters and Sensors
Antennas and Modulators
Software and Data Analytics Platforms
Signal Processing Units
Ground Receiving Equipment
By Platform
Aircraft
Spacecraft and Launch Vehicles
Unmanned Aerial Vehicles (UAVs)
Missiles and Projectiles
Marine Vessels
Ground Stations
By End User
Aerospace
Defense
By Geography
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Rest of Europe
Asia-Pacific China
Japan
India
South Korea
Australia
Rest of Asia-Paific
South America Brazil
Rest of South America
Middle East and Africa Middle East Saudi Arabia
United Arab Emirates
Rest of Middle East
Africa South Africa
Rest of Africa
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Key Questions Answered in the Report

What is the current size of the Aerospace and Defense Telemetry market and how fast is it growing?

The market stands at USD 2.08 billion in 2025 and is forecasted to reach USD 2.93 billion by 2030, registering a 7.09% CAGR.

Which communication technology is expanding the quickest?

Laser/optical telemetry solutions are advancing at a 9.23% CAGR because they deliver 10-100x higher bandwidth and face fewer spectrum constraints than radio links.

Why are unmanned aerial vehicles (UAVs) attracting so much telemetry investment?

UAV telemetry posts the highest 10.88% CAGR as autonomous and swarming concepts demand resilient, low-latency links for navigation, data fusion, and health monitoring.

Which region presents the strongest growth opportunity for telemetry suppliers?

Asia-Pacific is expected to expand at a 9.01% CAGR through 2030, driven by China’s satellite production, India’s launch programs, and Japan’s miniaturized electronics initiatives.

How are hypersonic programs influencing telemetry specifications?

Hypersonic vehicles require shock-hardened, high-temperature transceivers that maintain lock above Mach 5 and survive multiple reuse cycles, pushing vendors to deliver ultra-reliable, plasma-resistant links.

Page last updated on: July 2, 2025

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