The global military vetronics market size is projected to reach USD 11.48 billion by 2032, exhibiting a CAGR of 4.50% during the forecast period. Development of autonomous combat systems for military vehicles will ensure multi-dimensional growth of this market, observes Fortune Business Insights™ in its report, titled “Military Vetronics Market Size, Share and Global Trend by Product Type (Communication & Navigation Systems, Power System, Display System, C4 Systems, and Others) By Platform (Unmanned Ground Vehicles, Armored Amphibious Vehicles, Light Protected Vehicles, Special Purpose Vehicles, and Others) By Application (OEM and Aftermarket), and Regional Forecast, 2020-2027”. Battlefield environments are rapidly changing and modern warfare strategies require a heavy infusion of smart technologies to enhance alertness and augment the capabilities of the armed forces. In view of these evolving dynamics, defense agencies are conducting intense research to develop new technologies and equip combat vehicles with smart tools. For example, the Army Research Laboratory Artificial Intelligence for Maneuver and Mobility (AIMM) program under the U.S. Army Combat Capabilities Development Command aims to create AI-enabled vehicles that can serve robotic partners to ground troops, boosting their strength and combat capacities. The incorporation of next-generation technologies such as AI in defense systems will open new doors of innovation in the military vetronics domain.
The report states that the market value stood at USD 6.48 billion in 2019 and offers the following:
- Careful segmentation of the market and detailed analysis of each segment;
- Unparalleled insights into the market drivers, trends, and challenges;
- Comprehensive evaluation of the regional dynamics of the market; and
- In-depth research into the key players’ profiles and their preferred strategies.
List of Key Companies Profiled in the Military Vetronics Market Report:
- Curtis Wright Corporation (The U.S.)
- Thales Group (France)
- Rheinmetall AG (Germany)
- Lockheed Martin Corporation (The U.S.)
- L3Harris Technologies, Inc. (The U.S.)
- BAE Systems (The U.K)
- Oshkosh Corporation (The U.S.)
- Saab AB (Sweden)
- Raytheon Technologies Corporation (The U.S.)
- Leonardo S.p.A (Italy)
- General Dynamics Corporation (The U.S.)
Source: https://www.fortunebusinessinsights.com/military-vetronics-market-104062
Restraining Factor
Economic Fallout of COVID-19 to Lead to Defense Cuts in Several Countries
The global economic crisis precipitated by the COVID-19 pandemic has forced countries to reprioritize their spending. According to the World Bank, the world economy could shrink by 8% in 2020, if financial crises in major economies continue to intensify. The International Monetary Fund (IMF) projects that output from the Eurozone could decline by 10.2% in 2020, with recovery expected to begin towards the end of 2022. These projections have spelled serious for defense sectors in most of the major economies. In India, for example, the Indian Finance Ministry instructed ministries to cut their expenditures and experts believe that defense cuts could go as low as 40% in 2020. Moreover, the nationwide lockdown between March and May 2020 led to an estimated loss of USD 3 billion for Indian defense companies. In the UK, the government has suspended budget announcement for 2021 and has undertaken an Integrated Security and Defense Review to rethink spending priorities, which are likely to lead to defense budget cuts. The military vetronics market growth is likely to suffer in this scenario.
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Regional Insights
North America Market to Gain Momentum Powered by High Defense Spending by the US
In 2019, North America led the military vetronics market share with a market size of USD 2.22 billion and is expected to continue its impressive performance during the forecast period. This is primarily attributable to the massive military expenditure of the US. The country is also making heavy investments in developing and procuring advanced military technologies, which will further drive the regional market.
In Asia Pacific, China and India are shaping the market dynamics as both countries have steadily expanded their military budgets over the past few decades. Furthermore, the constant threat of terrorist activities and increasing cross-border animosity among countries is also supporting the adoption of advanced defense technologies in the region.
Competitive Landscape
Key Players to Focus on Engaging with Government Defense Agencies
Competition in this market is characterized by the deepening engagement between government defense agencies and private defense companies. The main reason behind these public-private collaborations is that private companies provide the necessary technologies, while government agencies provide the required financial support, creating an exciting dynamic in the defense sector.
Industry Developments:
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In July 2021, the U.S. Army awarded a USD 72.5 million contract to BAE Systems to equip its M109A7 armored combat vehicles with advanced digital vetronics and an upgraded modern power system. This upgrade aims to enhance the vehicle’s battlefield performance and operational efficiency.
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In June 2021, BAE Systems selected Elbit Systems to supply vetronics sensors and active protection systems for the CV90, a Swedish tracked armored combat vehicle. Originally developed in the mid-1980s, the CV90 entered operational service in Sweden in the mid-1990s and continues to evolve with modern electronic systems.
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