Vetronics Market Size (2024 - 2029)

Vetronics Market Analysis

The Vetronics Market size is estimated at USD 4.99 billion in 2024, and is expected to reach USD 6.23 billion by 2029, growing at a CAGR of 4.54% during the forecast period (2024-2029).

Rising defense expenditures and a heightened focus on ground vehicle procurement drive market growth in the military sector. Nations are bolstering their defense budgets, leading to frequent upgrades of land vehicles, including main battle tanks (MBTs), light armored vehicles (like armored personnel carriers and infantry fighting vehicles), and amphibious armored vehicles. These enhancements are crucial to keeping pace with evolving battlefield dynamics. There is also a growing demand for vetronics in military vehicles, especially given the escalating global tensions.

Despite this demand, defense manufacturers globally face the challenge of a shortage of skilled workers necessary for these vehicle upgrades. With technologies advancing rapidly, many in the workforce struggle to stay abreast, leading to a significant segment falling behind in understanding the latest market trends. This workforce gap poses a potential hurdle to the market's growth.

Success in today's modern warfare landscape pivots on the seamless coordination of air, land, and naval forces. This coordination is not only crucial for robust intelligence gathering but also for swift threat responses. Asymmetric warfare strategies, which exploit adversaries' vulnerabilities through innovative and non-traditional means, are gaining prominence. These strategies often drive the need for hybrid defense technologies, pushing for procuring more advanced arsenals. By integrating state-of-the-art vetronics systems, defense forces are further empowered for effective joint operations, especially in challenging scenarios.

Vetronics Industry Segmentation

Vetronics or vehicle electronic systems are integrated into a terrestrial asset of the ground forces to fulfill different mission profiles and enhance 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 other vehicle types. By subsystem, the market is classified into C4, navigation, and power. The report also covers the market sizes and forecasts for the vetronics market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).