Market Size of Vetronics Industry
| 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.
