Defense Electronics Market Size To Reach USD 266.74 Billion By 2032 Rising Defense Acquisitions And Backlog Growth Propel Market Expansion SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The United States Defense Electronics Market was valued at USD 52.05 Billion in 2024 and is Expected to reach USD 65.91 Billion by 2032, growing at a CAGR of 2.98% from 2025-2032.

Austin, Sept. 05, 2025 (GLOBE NEWSWIRE) -- Defense Electronics Market Size & Growth Insights:

According to the SNS Insider,“The Defense Electronics Market size valued at USD 173.44 Billion in 2024 and is Expected to reach USD 266.74 Billion by 2032, grow at a CAGR of 5.53% during 2025-2032.”

Rising Defense Acquisitions and Backlog Growth Drive Market Expansion Globally

Strategic acquisitions and sustained order backlogs are significantly driving growth in the aerospace and defense electronics market. The integration of advanced electronic systems and brands through recent mergers has enhanced product portfolios and expanded global reach. Additionally, strong organic growth across business segments, especially in defense electronics, is fueled by increasing demand for mission-critical technologies. Defense Electronics Market growth in the U.S. is driven by the increasing demand for AI-based monitoring technology, sensor fusions, autonomous defense systems and up-gradation and modernization of security infrastructures to improve situational awareness support real-time decision-making reduce false alarms while catering to change in threats environment at defense and government installations.

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Leading Market Players with their Product Listed in this Report are:

• Aselsan AS
• BAE Systems PLC
• Bharat Electronics Limited
• Curtiss-Wright Corporation
• Elbit Systems Ltd.
• General Dynamics Corporation
• Hensoldt
• Honeywell International Inc.
• Indra Sistemas SA
• Israel Aerospace Industries (IAI)
• L3Harris Technologies Inc.
• Leonardo SpA
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• Rheinmetall AG
• Saab AB
• Safran SA
• Thales Group.
• Teledyne Technologies Incorporated

Defense Electronics Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 173.44 Billion
Market Size by 2032	USD 266.74 Billion
CAGR	CAGR of 5.53% From 2025 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Platform(Airborne, Space, Land, Marine) . By Type(Hardware, Software, Services, Embedded Systems and Ruggedized Electronics) . By Technology(Artificial Intelligence (AI), Internet of Things (IoT), Radio Frequency (RF) Technology, Gallium Nitride (GaN) and Gallium Arsenide (GaAs) Semiconductors, Quantum Sensing & Computing and 5G & Next-Gen Wireless Communication) . By Vertical(Optronics, Communication and Display, C4ISR, Electronic Warfare, Radar and Navigation)

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Key Industry Segmentation

By Platform

In 2024, the Airborne segment accounted for approximately 37% of the Defense Electronics market share. The growth is driven by the rising demand for advanced avionics, radar systems and electronic warfare capabilities over combat aircraft, drones, and surveillance through aircraft. The Space segment is expected to experience the fastest growth in Defense Electronics market over 2025-2032 with a CAGR of 7.40% owing to the rise in defense satellite launches, space-based surveillance, secure communication systems, and investment toward space warfare capabilities.

By Type

n 2024, the Hardware segment accounted for approximately 34% of the Defense Electronics market share, driven by higher orders for radars, sensors, control systems and communication modules across land, air force and naval platforms. The Embedded Systems segment is expected to experience the fastest growth in Defense Electronics market over 2025-2032 with a CAGR of 9.63% owing to the surging emphasis on real-time computing, autonomous defense systems, and AI-integrated mission platforms.

By Technology

In 2024, the Artificial Intelligence (AI) segment accounted for around 29% of the market share, due to a massive requirement among aircraft manufactures for threat detection enabling systems, autonomous systems and decision support. The Quantum Sensing & Computing segment is expected to experience the fastest growth in Defense Electronics market over 2025-2032 with a CAGR of 8.90% fueled by the rising demand for ultra-precise navigation, secure communication, and advanced threat detection.

By Vertical

The C4ISR segment accounted for around 27% of the market share in 2024 due to the rising demand of agelike command, control, communication, and intelligence systems. The Navigation segment is expected to experience the fastest growth in Defense Electronics market over 2025-2032 with a CAGR of 8.12%, due to surging demand for advanced GPS-denied navigation systems, quantum positioning, and inertial navigation technologies.

North America Dominates Owing to Ongoing Investments in AI and Space-based Systems

In 2024 North America dominated the Defense Electronics market and accounted for 44% of revenue share. Ongoing investments in AI, electronic warfare, space-based systems, and modernization of military infrastructure continue to drive market growth across the region, especially in the U.S. and Canada.

Asia Pacific is expected to witness the fastest growth in the Defense Electronics Market over 2025-2032, with a projected CAGR of 7.18%. This growth is fueled by rising defense budgets, territorial tensions, and rapid military modernization across countries, such as China, India, Japan, and South Korea.

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Recent Developments:

• In April 2025, Raytheon (RTX) secured a USD 344 million contract to develop upgraded SM-2 and SM-6 missile variants with shared electronics for faster, scalable production.The new systems will enhance U.S. and allied naval defense capabilities, with deliveries supported by Foreign Military Sales.
• In March 2025, L3Harris Technologies received a USD 33.5 million U.S. Space Force contract to upgrade its Counter Communications System for advanced SATCOM jamming. The enhancements include multiband antenna upgrades and portable offensive space control capabilities under the Meadowlands program.

Exclusive Sections of the Report (The USPs) – Check Section 5

• MATERIAL & STRUCTURAL INNOVATION INDICATORS – helps you track advancements in materials engineering by evaluating the thermal endurance (°C) of radar absorbent materials (RAMs) and the EM shielding efficiency (%) of novel coatings across GHz to THz ranges.
• FIRMWARE & SYSTEM OPTIMIZATION BENCHMARKS – helps you assess system agility and combat readiness by analyzing reduction in signal processing latency (ms) via edge-AI and interoperability time (ms) between command, control, and sensor fusion systems.
• DEPLOYMENT METRICS – helps you understand real-world integration by measuring the adoption rate (%) of AI-enabled targeting systems and the verified MTBF (Mean Time Between Failures) of electronics under extreme combat and environmental conditions.
• SWaP REDUCTION TRENDS – helps you gauge advancements in ruggedized mission systems through reduction in Size, Weight, and Power (SWaP) footprint (%) across next-gen platforms, directly impacting mobility and endurance.
• DIGITAL TWIN & AUTONOMY READINESS – helps you identify innovation hot spots by tracking deployment rate (%) of digital twins in predictive combat-readiness models and the adoption rate (%) of firmware patching in autonomous platforms.
• MODULARITY & LIFECYCLE COST INDICATORS – helps you analyze cost-efficiency and upgrade potential via average lifecycle cost of cyber-hardened embedded systems and the market share (%) of electronics in modular, open-systems military architectures.

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