$317.67 Bn Defense Electronics Markets, 2020-2025, 2025-2030F, 2035F - Growth Driven By AI Advancements, Demand For Radiation-Hardened Components, Cyber-Secure Systems, And Increased Spending

(MENAFN- GlobeNewsWire - Nasdaq) The defense electronics market is set for continued growth driven by AI advancements, demand for radiation-hardened components, cyber-secure systems, and increased spending. Integration of interoperable systems and helmet-integrated AI are key opportunities. Global tariffs are prompting local innovation and security independence.

Dublin, Jan. 12, 2026 (GLOBE NEWSWIRE) -- The "Defense Electronics Market Report 2026" has been added to ResearchAndMarkets's offering.

The defense electronics market has witnessed robust growth, reaching $244.38 billion in 2025 and projected to rise to $257.58 billion in 2026 at a 5.4% CAGR. This growth is driven by the adoption of GPS-enabled systems, infrared controls, and heightened demand for radiation-hardened electronics due to expanded space missions. System integration services and defense modernization programs further aid in the market's expansion.

Looking forward, the market size is expected to reach $317.67 billion by 2030, maintaining a CAGR of 5.4%. Key growth drivers include AI-enabled defense electronics, increased investment in space-based systems, and a focus on cyber-secure, resilient electronics. The integration of interoperable systems and growing global defense budgets will also play significant roles.

Growing defense expenditure is a catalyst for market expansion. For example, the UK's 2025 Spending Review projects defense spending to reach USD 83.3 billion in 2025/26, increasing to USD 98.2 billion by 2028/29. This funding supports the procurement of vital electronics like radars and communication systems.

Innovation remains a priority for major industry players. Companies are developing AI-integrated systems such as helmet-integrated AI command systems. Anduril Industries, for instance, launched EagleEye in 2025, which overlays battlefield information onto real-world visuals for enhanced situational awareness. This advancement in tactical augmented reality represents a significant leap forward.

Prominent companies in the market include Raytheon Technologies, Boeing, Lockheed Martin, and Northrop Grumman, among others. North America emerged as the largest market region in 2025, encompassing key geographies like Asia-Pacific and Europe. However, global trade dynamics and tariffs pose challenges, impacting component costs in regions like North America and Asia-Pacific. These factors may slow technological adoption but also promote domestic manufacturing and innovation.

The defense electronics market encompasses diverse systems, including hardware, software, and services vital for national security. Key components include C4ISR systems, electro-optical devices, and radar systems deployed across land, sea, and space platforms. The market report covers key countries such as the USA, UK, China, India, and Germany. It delivers comprehensive insights into regional shares, competitor landscape, market segments, and emerging opportunities. This in-depth analysis provides a holistic perspective on current and future industry scenarios.

Overall, while trade policies influence market dynamics, the defense electronics sector continues to grow, driven by innovation, government partnerships, and increasing defense budgets.

Key Attributes:

Report Attribute	Details
No. of Pages	250
Forecast Period	2026 - 2030
Estimated Market Value (USD) in 2026	$257.58 Billion
Forecasted Market Value (USD) by 2030	$317.67 Billion
Compound Annual Growth Rate	5.4%
Regions Covered	Global

Companies Featured

• 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
• L3Harris Technologies Inc.
• Leonardo S.p.A.
• Textron Inc.
• Rheinmetall Electronics GmbH
• Elbit Systems Ltd.
• Serco Group plc
• Indra Sistemas S.A.
• Saab AB
• Airbus Defence & Space GmbH
• Rafael Advanced Defense Systems Ltd.
• Bharat Electronics Limited
• Hensoldt AG
• LIG Nex1 Co. Ltd.
• Ultra Electronics Holdings plc
• Kratos Defense & Security Solutions Inc.
• Terma A/S
• Tata Advanced Systems
• Samsung Techwin Co. Ltd.
• Data Patterns Ltd.
• Rockwell Collins Inc.

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Attachment

• Defense Electronics Market

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