Vetronics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.02 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vetronics Market Analysis
The vetronics market was valued at USD 2,384.47 million in 2022 and is projected to grow to USD 3,156.97 million by 2026, registering a CAGR of 5.02% during the forecast period.
The vetronics market remained mostly unfazed by the COVID-19 pandemic. Increasing defense expenditure and growing procurement of ground vehicles for military applications sustained market growth. According to the Stockholm International Peace Research Institute (SIPRI), the global defense expenditure reached approximately 1.98 trillion in 2020 which showed an increase of 2.6% from 2019.
The evolving battlefield environment has necessitated the replacement or upgrade of an aging fleet of terrestrial assets, such as main battle tanks (MBTs), light armored vehicles (including armored personnel carriers, and infantry fighting vehicles), and amphibious armored vehicles. Furthermore, increasing spending on the defense sector and the introduction of advanced communication systems in ground vehicles drive the growth of the market.
Modern warfare necessitates coordinated operations of air, land, and naval forces for active intelligence collection and fusion to enhance their operational capacities and agility to respond to a threat rapidly. Asymmetric warfare approaches circumvent or undermine the military strength of rivals through the exploitation of their weaknesses by employing innovative, non-traditional methods of operation, including tactics, weapons, and other associative technologies. These approaches usually result in the creation of hybrid defense technologies, which in turn, lead to an increase in the procurement of an advanced arsenal for combating emerging threats. The integration of sophisticated vetronics systems enables the defense forces to conduct joint operations in critical and challenging scenarios effectively.
Vetronics Market Trends
Light Armored Vehicles Segment is Estimated to Show Remarkable Growth During the Forecast Period
The light armored vehicles segment is anticipated to show significant growth during the forecast period. The growth is attributed to the increasing expenditure on the procurement of next-generation vehicles and the rising adoption of advanced electronic systems for enhanced communication. Key players introduced advanced technologies and electronic systems to enhance performance. The rapid expansion of defense forces and the development of next-generation light armored vehicles boost the market growth. In August 2021, the US Army selected five defense contractors to design next-generation armored combat vehicles and vetronics architecture to replace the US Army's M2 Bradley Fighting Vehicle. The new Optionally Manned Fighting Vehicle (OMFV) would consist of advanced electronics, a 30-millimeter cannon, machine autonomy for operating in an unmanned mode, and a forward-looking infrared (FLIR) sensor system for fighting at night, in bad weather, or in smoke and haze.
Furthermore, growing contracts of defense forces with OEMs and the development of advanced vetronics architecture for armored vehicles drive market growth. For instance, in September 2022, Latvia launched its new light military vehicle prototype, VR-1 FOX, to support ground operations. The VR-1 FOX can carry a large payload and military personnel. Also, in March 2021, the Indian Defense Ministry signed a four-year contract worth USD 143.91 million with Mahindra Defence Systems Ltd (MDSL) for the supply of 1,300 Light Specialist Vehicles (LSVs) to the Indian Army. Hence, increasing demand for advanced armored vehicles for ground operations propels the growth of the segment.
Asia-Pacific Will Showcase Remarkable Growth During the Forecast Period
Asia-Pacific is expected to be the fastest-growing market during the forecast period in terms of procurement initiatives and adjoining orders placed. Owing to the rising tension among neighboring countries, particularly the South China Sea dispute, neighboring countries are strengthening their military prowess through the rapid procurement of military vehicles. Emerging markets such as China, South Korea, India, and Japan are continuously increasing their defense budgets to strengthen their national security. The arms race in the region is evident through the lavish defense budget spending of regional superpowers such as China and India. According to the SIPRI, China, and India were the second and third largest defense spenders in the world with a defense budget of USD 293 billion and USD 76.6 billion respectively.
Furthermore, India is likely to get advanced military vehicles in the coming days. A team of students at IIT Jodhpur is working on the development of artificial intelligence (AI) powered military vehicles at the Indian Institute of Technology (IIT), Jodhpur. Also, countries like Korea have also been focusing on indigenously developing MBTs such as the K2 Korean New Main Battle Tank (KNMBT), the future main tank model of the Korean Armed Forces, and the K1A1 MBT, the current main tank model. Such developments are anticipated to drive the market in Asia-Pacific during the forecast period.
Vetronics Industry Overview
The vetronics market is highly fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent market players are Curtiss-Wright Corporation, THALES, Saab AB, General Dynamics Corporation, and Rheinmetall AG. The operations of the market players are focused on the designing, engineering, and manufacturing of high-performing vetronics for the terrestrial assets of the global armed forces. Therefore, the market in focus is directly affected by economic factors and other trends that influence end-user segments, more specifically by the cyclicity of the revenue stream. The revenues of market players are also dependent on the R&D initiatives of OEMs for designing a new vehicle model or augmenting the mission profile of the existing models. The stringent safety and regulatory policies in the defense segment are expected to restrict the entry of new players. Furthermore, since a contract for armored vehicles requires high technological expertise and spans over several years, careful identification and continuous monitoring of associative risks are required to be undertaken to assess their effects on the operational parameters of the manufacturing company. The assessment includes consideration for technical requirements, the listing of scheduled and associated tasks, and detailed cost analysis.
Vetronics Market Leaders
Curtiss-Wright Corporation
Saab AB
General Dynamics Corporation
Rheinmetall AG
THALES
*Disclaimer: Major Players sorted in no particular order
Vetronics Market News
- In February 2023, the US Army Contracting Command announced a USD 481.6 million contract to the General Dynamics Mission Systems segment to sustain the AN/MLQ-44 Prophet-Enhanced SIGINT vetronics systems.
- In July 2022, General Dynamics Corporation received a contract worth USD 280.1 million from the US Army Contracting Command to integrate active protection sensors to shield the US Army's fleet of M1A2 Abrams main battle tanks from rocket-propelled grenades, anti-tank guided missiles, and similar threats.
Vetronics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vehicle Type
5.1.1 Main Battle Tank
5.1.2 Light Armored Vehicle
5.1.3 Amphibious Armored Vehicle
5.1.4 Others (Armored Personnel Carrier, UGVs etc.)
5.2 Subsystem
5.2.1 C4
5.2.2 Navigation
5.2.3 Power
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 India
5.3.3.2 China
5.3.3.3 South Korea
5.3.3.4 Australia
5.3.3.5 Japan
5.3.3.6 Rest of Asia-Pacific
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Rest of Latin America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 Israel
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Curtiss-Wright Corporation
6.2.2 THALES
6.2.3 Saab AB
6.2.4 General Dynamics Corporation
6.2.5 Lockheed Martin Corporation
6.2.6 Raytheon Technologies Corporation
6.2.7 Leonardo S.p.A.
6.2.8 Rheinmetall AG
6.2.9 BAE Systems plc
6.2.10 L3Harris Technologies. Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vetronics Industry Segmentation
Vetronics or vehicle electronic systems are integrated into a terrestrial asset of the ground forces for fulfilling different mission profiles and enhancing the situational awareness of the personnel inside the vehicle. To obtain a holistic view of the market, the scope of the study encompasses the ongoing procurement and modernization programs undertaken by the global defense forces for MBTs, APCs, IFVs, and AAVs.
The vetronics market is segmented by vehicle type, subsystems, and geography. By vehicle type, the market is segmented into Main Battle Tanks, Light Armored Vehicles, Amphibious Armored Vehicles, and Others. By subsystem, the market is classified into C4, Navigation, and Power. By geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The report offers the market size and forecasts by value (USD Million) for all the above segments.
| Vehicle Type | |
| Main Battle Tank | |
| Light Armored Vehicle | |
| Amphibious Armored Vehicle | |
| Others (Armored Personnel Carrier, UGVs etc.) |
| Subsystem | |
| C4 | |
| Navigation | |
| Power |
| Geography | ||||||||
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Vetronics Market Research FAQs
What is the current Vetronics Market size?
The Vetronics Market is projected to register a CAGR of 5.02% during the forecast period (2024-2029)
Who are the key players in Vetronics Market?
Curtiss-Wright Corporation, Saab AB, General Dynamics Corporation, Rheinmetall AG and THALES are the major companies operating in the Vetronics Market.
Which is the fastest growing region in Vetronics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Vetronics Market?
In 2024, the North America accounts for the largest market share in Vetronics Market.
What years does this Vetronics Market cover?
The report covers the Vetronics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vetronics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vetronics Industry Report
Statistics for the 2024 Vetronics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vetronics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
