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According to Technavio's analyst, the vetronics market size is expected to be valued at USD 1.08 billion by 2026 with a progressing CAGR of 4.35%.
This vetronics market research report has covered details of key players and demographic segmentation that highlight potential growth areas and competition. Furthermore, the post COVID-19 impact analysis on the market captured in this report will help players evaluate their business approaches.
Vetronics market segmentation: Application (military and homeland security) and geography (North America, Europe, APAC, South America, and Middle East and Africa)
Vetronics market vendors: Adecco Group AG, AMETEK Inc., BAE Systems Plc, Curtiss Wright Corp., Elbit Systems Ltd., General Dynamics Corp., Kongsberg Gruppen ASA, Krauss Maffei Wegmann GmbH and Co. KG, L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Moog Inc., Oshkosh Corp., Raytheon Technologies Corp., Rheinmetall AG, Saab AB, TE Connectivity Ltd., Thales Group, and Ultra Electronics Holdings Plc among others
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The modernization of existing military vehicles is notably driving the vetronics market growth, although factors such as cybersecurity concerns may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the vetronics industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Vetronics Market Driver
One of the key factors driving the global vetronics market growth is the modernization of existing military vehicles to provide military forces with better survivability, easy navigation, and higher firepower. Military modernization programs include upgrades in the weapons systems, networking capabilities, and command and control (C2) systems. The upgrades automatically include those for dedicated vetronics subsystems. In addition, defense agencies are upgrading the vetronics systems of their military vehicles to refurbish their fleets. This will help extend the service life of the vehicles and reduce service costs. For instance, in June 2021, Oshkosh Defense, a subsidiary of Oshkosh Corp., was selected by the US army to modernize the Stryker Double V Hull Infantry Carrier Vehicle (ICVVA1) for USD 942.9 million. Such factors will drive the market growth during the forecast period.
Key Vetronics Market Trend
Development of advanced vetronics for next-generation military vehicles, to provide an active protection system to identify and destroy threats, is one of the key vetronics market trends that is expected to impact the industry positively in the forecast period. Laser technology for weapons is emerging as a new alternative, and military vehicles are being designed to accommodate next-generation laser weapon systems. In the future, military vehicles will require all-around protection against aerial threats, surrounding threats from ground weapons, and undercarriage threats from mines or improvised explosive devices. Such factors will lead to the development of next-generation military vehicles that will use alternative energy sources, directed-energy weapons, advanced-composite armor, and active protection systems. This will generate the demand for advanced vetronics systems in the coming years.
Key Vetronics Market Challenge
One of the key challenges to the global vetronics market growth is cybersecurity concerns. The security threats that are carried through the vehicle's controller area network (CAN) bus, range from remotely shutting down an engine to causing the brakes of a vehicle to malfunction. Thus, to protect vetronics systems from electronic attacks, military forces are focusing on fortifying the network security of a vehicle, which encompasses both physical and logical security. Redundancy with respect to vetronics systems implies the incorporation of more than one similar electronic component in a vehicle's subsystems, which the master system controls. In addition, logical security relates to the protection of the ISR data that is collected and processed by the vetronics systems against theft, tampering, and deletion. Such concerns may limit the market growth during the forecast period.
This vetronics market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global vetronics market as a part of the global aerospace and defense market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the vetronics market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the vetronics market encompasses successful business strategies deployed by the key vendors. The vetronics market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The vetronics market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the vetronics market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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44% of the market's growth will originate from North America during the forecast period. The US is the key market for vetronics in North America. However, market growth in this region will be slower than the growth of the market in other regions.
The robust military force in countries such as the US and the presence of major integrators of vetronics, such as Curtiss-Wright Corp., and General Dynamics Corp will facilitate the vetronics market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The vetronics market in North America witnessed slow growth during 2020-2021 due to the COVID-19 pandemic. As governments of countries such as the US and Canada reduced investments in new military vehicles, market vendors had to deal with challenges such as reduced demand for vetronics. However, in 2022, the improved financial position in the US and Canada may help accelerate the pace of recovery from the COVID-19 crisis. Thus, the vetronics market in the region is expected to witness moderate growth during the forecast period.
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The vetronics market share growth by the military segment will be significant during the forecast period. The research and development (R&D) of advanced vetronics systems will be boosting the growth of the military segment of the concerned market in the coming years. For instance, the development of modern vetronics systems that can integrate advanced hardware and software, including faster system processors, higher bandwidth networking hardware, and HD display screens.
This report provides an accurate prediction of the contribution of all the segments to the growth of the vetronics market size and actionable market insights on post COVID-19 impact on each segment.
Vetronics Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.35% |
Market growth 2022-2026 |
$ 1.08 billion |
Market structure |
Fragmented |
YoY growth (%) |
3.82 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key consumer countries |
US, China, India, Russia, and France |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Adecco Group AG, AMETEK Inc., BAE Systems Plc, Curtiss Wright Corp., Elbit Systems Ltd., General Dynamics Corp., Kongsberg Gruppen ASA, Krauss Maffei Wegmann GmbH and Co. KG, L3Harris Technologies Inc., Leonardo Spa, Lockheed Martin Corp., Moog Inc., Oshkosh Corp., Raytheon Technologies Corp., Rheinmetall AG, Saab AB, TE Connectivity Ltd., Thales Group, and Ultra Electronics Holdings Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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