Defense Electronics Market to Witness Exponential Growth by 2032 - Aselsan A.S., Boeing, BAE Systems

The global defense electronics market is driven by factors such as growing application of optronics and surge in preference for airborne defense electronics.

WILMINGTON, DE, UNITED STATES, August 26, 2025 /EINPresswire.com/ -- Defense electronics market size was valued at $150.2 billion in 2022, and is projected to reach $254.0 billion by 2032, registering a CAGR of 5.72% from 2023 to 2032.

The global defense electronics market is driven by factors such as growing adoption of integrated defense electronics technologies, which fuels the demand for defense electronics. In addition, the market is influenced by surge in demand for airborne defense electronics. However, effect on execution of critical defense missions due to lack of proper communication technologies. Moreover, increase in need for AI and IOT devices in military operations provide lucrative opportunities for market growth.

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The defense electronics market is projected to experience significant growth due to the demand for technologically advanced defense electronics for applications such as communication, surveillance, intelligence gathering, navigation, and targeting.

Technological developments, environmental concerns, and changing consumer needs foster transformative trends in the global defense electronics industry. The constant quest for improved effectiveness and performance is one such trend. To maximize fuel efficiency and increase thrust-to-weight ratios, manufacturers are investing in materials such as lightweight composites and sophisticated aerodynamics, which is expected to lead to the creation of turbojet engines that are more potent and efficient.

Eco-friendly solutions are developed as a result of the crucial focus on environmental sustainability. Sustainable aviation fuels (SAFs) are among the alternative fuels that turbojet engines are converting to lessen their environmental impact. Concerned about lowering carbon emissions, the aviation sector is also exploring electric and hybrid-electric power systems more, particularly for smaller aircraft. The defense electronics industry. Semiconductors were given special attention under China's Made in China 2025 industrial agenda. China wants to become the world leader in semiconductor manufacturing. The consequences of utilizing a fake chip in consumer and military products can range from strange system behavior to death. An enormous quantity of fake electronics and semiconductor components are sold on the international market each year.

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The market is segmented into vertical, platform, and region. On the basis of vertical, the market is divided into communication and display, navigation, C4ISR, electronic warfare, radar and optronics. On the basis of platform, the market is classified into airborne, marine, land, and space. Region wise, the defense electronics market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).

By region, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting for nearly one-third of the global defense electronics market revenue and is likely to dominate the market during the forecast period. The booming defense industries in the Asia-Pacific region have fuelled the demand for defense electronics. Asia-Pacific is expected to witness highest growth in forecast period owing to increase in aviation demand in the emerging markets of India and China. However, the same region is expected to witness the fastest CAGR of 6.91% from 2023 to 2032.

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Key Developments/ Strategies in Defense Electronics Industry

In April 2022, Australia and the UK inked an agreement to collaborate on potent weapons and electronic warfare capabilities, building on the AUKUS defense alliance formed in September 2021.
BAE Systems introduced a new Electronic Warfare (EW) package in March 2022, offering offensive and defensive EW capabilities across various platforms. The Storm Electronic Warfare Module system is adaptable for U.S. and coalition forces, fitting into fixed-wing aircraft, helicopters, unmanned aerial vehicles, and missiles.
Northrop Grumman Corporation secured the initial production and operations contract for the Next Generation Handheld Targeting System (NGHTS) from the United States Marine Corps in February 2023. The NGHTS is a portable targeting system designed for high-precision targeting in GPS-challenged locations.

Leading Market Players In Defense Electronics Industry

Lockhead Martin Corporation
North Grumman Corporation
Raytheon Technologies Corporation
Thales Group
BAE Systems
Aselsan AS
Curtis Wright Corporation
L3 Harris Technologies
Boeing
Teledyne Defense Electronics

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