Vetronics Market Size (2024 - 2029)

The Vetronics Market is experiencing growth driven by increased defense expenditures and a focus on upgrading ground vehicles in the military sector. This expansion is fueled by the need for advanced vetronics systems in military vehicles, which are essential for adapting to evolving battlefield dynamics and enhancing coordination among air, land, and naval forces. However, the market's growth is challenged by a global shortage of skilled workers capable of keeping up with rapid technological advancements. Despite these challenges, the demand for hybrid defense technologies and advanced arsenals continues to rise, reflecting the strategic importance of vetronics in modern warfare.

Market Size of Vetronics Industry

Vetronics Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 4.99 Billion
Market Size (2029) USD 6.23 Billion
CAGR (2024 - 2029) 4.54 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Vetronics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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).

By Vehicle Type
Main Battle Tank
Light Armored Vehicle
Amphibious Armored Vehicle
Other Vehicle Types (Armored Personnel Carrier, UGVs, etc.)
By Subsystem
C4
Navigation
Power
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Israel
Rest of Middle East and Africa
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Vetronics Market Size Summary

The vetronics market is experiencing a robust expansion, driven by increased defense spending and a strategic focus on modernizing military vehicles. This growth is particularly evident in the military sector, where nations are investing heavily in upgrading land vehicles such as main battle tanks, light armored vehicles, and amphibious armored vehicles to keep pace with evolving battlefield dynamics. The demand for advanced vetronics systems is rising, fueled by global tensions and the need for enhanced coordination among air, land, and naval forces. However, the industry faces challenges, including a shortage of skilled workers adept at keeping up with rapid technological advancements, which could potentially hinder market growth.

Regionally, Asia-Pacific is expected to lead in procurement and orders, driven by heightened military tensions and increased defense budgets in countries like China, India, South Korea, and Japan. These nations are actively enhancing their military capabilities through significant investments in next-generation armed vehicles and upgrades to existing fleets. The market is characterized by a fragmented landscape with key players such as Curtiss-Wright Corporation, THALES, Saab AB, General Dynamics Corporation, and Rheinmetall AG, who are focused on developing high-performance solutions for global armed forces. The sector's growth is supported by substantial contracts and collaborations, underscoring the ongoing demand for advanced vetronics in military applications.

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Vetronics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Main Battle Tank

      2. 2.1.2 Light Armored Vehicle

      3. 2.1.3 Amphibious Armored Vehicle

      4. 2.1.4 Other Vehicle Types (Armored Personnel Carrier, UGVs, etc.)

    2. 2.2 By Subsystem

      1. 2.2.1 C4

      2. 2.2.2 Navigation

      3. 2.2.3 Power

    3. 2.3 By Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 Germany

        2. 2.3.2.2 United Kingdom

        3. 2.3.2.3 France

        4. 2.3.2.4 Russia

        5. 2.3.2.5 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 India

        3. 2.3.3.3 Japan

        4. 2.3.3.4 South Korea

        5. 2.3.3.5 Australia

        6. 2.3.3.6 Rest of Asia-Pacific

      4. 2.3.4 Latin America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Rest of Latin America

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 United Arab Emirates

        2. 2.3.5.2 Saudi Arabia

        3. 2.3.5.3 Israel

        4. 2.3.5.4 Rest of Middle East and Africa

Vetronics Market Size FAQs

The Vetronics Market size is expected to reach USD 4.99 billion in 2024 and grow at a CAGR of 4.54% to reach USD 6.23 billion by 2029.

In 2024, the Vetronics Market size is expected to reach USD 4.99 billion.

Vetronics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)