Global Military Vetronics Market to Rise at a CAGR of 5.3% between 2015 and 2023
The increase in the sales of military vetronics systems is attributable to the growing demand for real-time data in the current war zones. Researchers also predict that the need for integrated technology and development of reduced size, weight, and power consumption (SWaP) rugged systems for powerful military systems will have a significant impact on the global military vetronics market. Owing to these reasons, the global military vetronics market is expected to reach US$10.71 bn by 2023 from US$6.82 bn in 2014, rising at a CAGR of 5.3% between 2015 and 2023.
Development of Vehicles Operating in Stealth Mode to Define Leadership for Players
Key players in the global military vetronics market will have to design and develop vehicles that are advanced in terms of being harder to detect, classify, and identify to stay ahead as market leaders in the near future.
For instance, Military and Aerospace Electronics reported that Leidos, an American defense company, will design vetronics for the U.S. military. The new technology will try to make combat vehicles faster, light in weight, and less vulnerable to the enemy by adding stealth features. The U.S. Defense Advanced Research Projects Agency (DARPA) signed at US$2.2 million contract with Leidos in April 2016 for the advanced signature management portion of the DARPA Ground X-Vehicle Technologies (GXV-T) program. This program is aimed towards developing technologies that will allow the newer combat vehicles to safeguard themselves with stealth, agility, and speed.
Basis systems, the global military vetronics market can be split into control and data distribution, display, power, vehicle management, and other vetronics systems. The types of vehicles using these systems are light protected vehicles, infantry fighting vehicles, armored personnel carriers, armored amphibious vehicles, and unmanned ground vehicles. Geographically, this market is segmented into North America, Europe, Rest of the World, and Asia Pacific.
North America to Continue its Dominance in Overall Market
In terms of geography, North America has had a dominant presence in the global military vetronics market and will continue to retain this stance between 2015 and 2023. Increasing defense budgets to modernize military capabilities by adopting technologically improved systems will aid the growth of military vetronics market in this region. The U.S. will be a strong revenue contributor to this market all throughout the forecast period.
Europe will also grow at a steady pace as countries such as the U.K., France, Germany, and Russia will upgrade their military vehicles. Additionally, Asia Pacific is also expected to grow at a CAGR of 6.0% from 2015 to 2023. Japan, India, and China will lead the growth of military vetronics market in Asia Pacific as these countries will focus on procurement and upgradation of military vehicles due to the growing political volatility.