Defense Electronics Market to Expand at a 5.3% CAGR by 2029, Reaching US $301.53 Billion

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The Business Research Company’s Defense Electronics Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034

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How Much Is The Defense Electronics Market Worth?
The size of the defense electronics market has been significantly expanding in the past few years. The market value is projected to rise from $231.84 billion in 2024 to $244.38 billion in 2025, indicating a compound annual growth rate (CAGR) of 5.4%. This growth during the historical period can be credited to several factors, including global security threats, upgrading programs, issues with cybersecurity, operations against terrorism, and the arrival of mismatched risks.

The market size of defense electronics is set to experience robust growth in the coming years, reaching $301.53 billion in 2029 with a compound annual growth rate (CAGR) of 5.4%. This expected growth in the forecast period is due to the integration of emerging technologies, emphasis on cyber resilience, the rise of unmanned and autonomous technologies, the development of an interconnected battlefield, and a transition to operations in the electromagnetic spectrum. Key trends predicted during this period include the evolution of next-generation radar systems, the application of gallium nitride (GaN) technology, an increase in electronics for unmanned systems, the incorporation of cognitive electronic warfare systems, and a focus on making things smaller and optimizing swap.

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What Are The Factors Driving The Defense Electronics Market?
The heightened spending on defense is predicted to fuel the expansion of the defense electronics market. The term defense expenditure or defense budget refers to the funds that a nation or government sets aside for activities related to defense and military. Electronics utilized for defense, such as air defense radars and communication systems, make up a certain percentage of this defense budget. For instance, based on the Ministry of Defense (MOD) departmental resources 2022 document released by the UK government, defense spending for 2021–2022 was around $58.39 (£45.930) billion, showing an 8.4% rise from $53.85 (£42.365) billion in 2020–2021. As a result, the defense electronics market is seeing growth driven by the increase in defense expenditures.

Who Are The Major Players In The Defense Electronics Market?
Major players in the Defense Electronics Global Market Report 2025 include:

• Raytheon Technologies Corporation
• The Boeing Company
• Lockheed Martin Corporation
• General Dynamics Corporation
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• Northrop Grumman Corporation
• BAE Systems plc
• Safran S.A.
• Thales Group

What Are The Key Trends And Market Opportunities In The Defense Electronics Sector?
The emergence of product innovations is a rising trend in the defense electronics market. To maintain their market standing, key players in this market are innovating and adopting new technologies. For instance, BAE Systems PLC, an aerospace firm from the UK, unveiled its Storm EW (Electronic Warfare) Modules for defense electronics in March 2022. These modules, equipped with advanced offensive and defensive electronic warfare (EW) mission systems, are based on a common core architecture that has been tried and tested, which facilitates the rapid provisioning of software-driven EW capabilities. This enhances the warfighter's situational awareness, survivability, and electromagnetic competence necessary for complex missions. The Storm EW Modules possess a scalable design, providing a solid hardware base that can be adjusted and integrated into a range of airborne platforms, such as fixed- and rotary-wing aircraft, unmanned aerial vehicles, and guided missiles.

Which Segment Accounted For The Largest Defense Electronics Market Share?
The defense electronics market covered in this report is segmented –

1) By Component: Hardware, Software, Services
2) By Equipment Type: C4ISR Systems, Weapon Systems, Electro-Optical And Infrared (EO Or IR) Systems, Military Simulators, Radar Systems, Sonar Systems, Avionics, Electronic Warfare, Other Equipment Type
3) By Platform: Airborne, Marine, Land, Space

Subsegments:
1) By Hardware: Avionics Systems, Radar Systems, Communication Equipment, Electronic Warfare Systems, Sensors And Imaging Systems
2) By Software: Simulation Software, Command And Control Software, Cybersecurity Software, Maintenance And Support Software, Data Analysis And Processing Software
3) By Services: System Integration Services, Maintenance And Repair Services, Training And Support Services, Consulting Services, Managed Services

View the full defense electronics market report:
https://www.thebusinessresearchcompany.com/report/defense-electronics-global-market-report

What Are The Regional Trends In The Defense Electronics Market?
In 2024, North America held the dominant position in the global defense electronics market. The Defense Electronics Global Market Report 2025 includes regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa.

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