Military Embedded Systems Market Forecasts to 2030 - Global Analysis By Component (Hardware and Software), Platform (Land, Airborne and Space), Architecture, Technology, Application and By Geography

According to Stratistics MRC, the Global Military Embedded Systems Market is accounted for $1.76 billion in 2023 and is expected to reach $3.48 billion by 2030 growing at a CAGR of 10.2% during the forecast period. Military embedded systems refer to specialized computing systems designed to operate within military equipment, vehicles, and weaponry. These systems are rugged, compact, and engineered to withstand harsh environments, including extreme temperatures, vibrations, and electromagnetic interference. They play a crucial role in enhancing the capabilities of military hardware, enabling communication, data processing, and control functions. Military embedded systems often incorporate advanced technologies such as sensors, processors, and communication modules to support various defense applications, including reconnaissance, surveillance, target tracking, and weapon guidance.

According to the Stockholm International Peace Research Institute, a Sweden-based institute and independent resource on global security, world military expenditure increased by 3.7% in real terms in 2022 to reach a record high of $2,240 billion. Military expenditure in Europe rose by 13% during the year. US military spending was also increased by 8.8% in nominal terms between 2021 and 2022.

Market Dynamics:

Driver:

Modernization programs

Modernization programs are key drivers of the military embedded systems market, as they aim to upgrade and enhance the capabilities of defense systems. These programs necessitate the integration of advanced technologies into existing infrastructure, leading to increased demand for sophisticated embedded systems. Military organizations worldwide invest heavily in modernization to maintain competitiveness and address evolving threats, fueling the growth of the market. Embedded systems play a vital role in modernizing communication, surveillance, and weapon systems, enabling improved performance, efficiency, and interoperability.

Restraint:

Long development cycles

Long development cycles in the military embedded systems market present a significant restraint due to several reasons. The technology landscape evolves rapidly, rendering lengthy development times obsolete by the time products are ready for deployment. Prolonged cycles can lead to cost overruns and budgetary constraints, impacting the affordability and accessibility of these systems. Delays in deployment could compromise the effectiveness and superiority of military capabilities. Finally, in an era where agility and responsiveness are paramount, lengthy development cycles may impede innovation and limit the military's competitive edge in the global landscape.

Opportunity:

Unmanned systems

The unmanned systems segment presents a significant opportunity within the military embedded systems market. With advancements in technology, unmanned platforms offer enhanced capabilities in reconnaissance, surveillance, and combat operations. These systems reduce risks to human personnel while providing greater flexibility and efficiency on the battlefield. The integration of sophisticated sensors, AI algorithms, and communication systems further enhances their effectiveness. As military strategies increasingly rely on unmanned solutions, the demand for embedded systems tailored to support these platforms is poised for substantial growth. This creates avenues for innovation and development in areas such as autonomous navigation, real-time data processing, and cyber resilience, driving the expansion of the military embedded systems market.

Threat:

Cybersecurity risks

The military embedded systems market faces significant cybersecurity risks due to its reliance on interconnected digital technologies. These systems, integral to military operations, are vulnerable to various threats such as hacking, data breaches, and malware attacks. The interconnected nature of these systems amplifies the risk, as a breach in one component can compromise the entire network. Additionally, the high stakes involved in military operations make these systems lucrative targets for state-sponsored cyber espionage and sabotage. Ensuring robust cybersecurity measures, including encryption, authentication protocols, and regular security audits, is imperative to mitigate these risks.

Covid-19 Impact:

Initially, disruptions in supply chains and manufacturing processes led to delays in production and delivery of embedded systems. Additionally, shifts in defense budgets and priorities as governments redirected resources towards healthcare and pandemic response efforts altered procurement patterns. However, the crisis also accelerated the adoption of remote monitoring and autonomous technologies, driving demand for advanced embedded systems to support virtual operations and enhance situational awareness. While the pandemic posed challenges, it also catalyzed innovation and reshaped the landscape of military embedded systems.

The sensor open systems architecture (SOSA) segment is expected to be the largest during the forecast period

Sensor Open Systems Architecture (SOSA) has seen significant growth in the military embedded systems market due to its emphasis on interoperability, modularity, and scalability. By providing standardized interfaces and protocols, SOSA enables seamless integration of sensors, platforms, and systems from multiple vendors, reducing development time and costs. The adoption of SOSA-compliant solutions enhances mission flexibility and agility, allowing military organizations to rapidly deploy and upgrade their capabilities in response to evolving threats. Moreover, SOSA's open architecture fosters innovation and competition among suppliers, driving technological advancements and lowering barriers to entry for new entrants.

The communication & navigation segment is expected to have the highest CAGR during the forecast period

In the military embedded systems market, the communication and navigation segment is experiencing robust growth due to advancements in technology that have led to the development of more sophisticated communication systems, enabling seamless connectivity and information exchange among military personnel. Additionally, the increasing complexity of modern warfare scenarios demands highly accurate and reliable navigation capabilities, driving the demand for advanced navigation solutions embedded within military systems. Moreover, with the emergence of unmanned systems and autonomous platforms, there is a growing need for enhanced communication and navigation functionalities to ensure effective operation and coordination.

Region with largest share:

The growth of the Military Embedded Systems market in North America is primarily driven by increasing defense spending, technological advancements, and the need for sophisticated defense systems. The region's robust aerospace and defense industry, coupled with significant investments in research and development, fuels innovation and the adoption of advanced embedded technologies. North America's well-established defense infrastructure and strong partnerships between government entities and private defense contractors contribute to a conducive environment for the expansion of military embedded systems. The region's focus on enhancing national security and maintaining military superiority amplifies the demand for cutting-edge embedded solutions, fostering market growth in the region.

Region with highest CAGR:

The Asia-Pacific region has experienced substantial growth due to increasing defense budgets across countries like China, India, and South Korea. Additionally, the rising threats of cyber warfare and the need for secure communication systems have driven the demand for embedded systems in defense applications. Moreover, the region's focus on modernizing military infrastructure and enhancing interoperability has spurred the adoption of embedded systems for surveillance, reconnaissance, and command and control purposes. This growth is further propelled by advancements in sensor technologies and the integration of artificial intelligence, enabling more efficient and responsive defense capabilities in the Asia-Pacific region.

Key players in the market

Some of the key players in Military Embedded Systems market include Airbus Defence and Space, BAE Systems plc, Cobham plc, Curtiss-Wright Corporation, Elbit Systems Ltd., General Dynamics Corporation, Harris Corporation, Israel Aerospace Industries, L3Harris Technologies, Inc., Leonardo S.p.A. , Lockheed Martin Corporation, Northrop Grumman Corporation, QinetiQ Group plc, Raytheon Technologies Corporation, Rheinmetall AG, Rockwell Collins, Inc. , RUAG Group , Saab AB and Thales Group.

Key Developments:

In April 2024, Thales announces that it has completed the acquisition of Cobham Aerospace Communications, a leading supplier of advanced, ultra-reliable innovative safety cockpit communication and connectivity systems. The integration of Cobham Aerospace Communications will strengthen Thales's avionics portfolio, addressing the major trend towards connected cockpits.

In April 2024, Raytheon Technologies Corporation, a major aerospace and defense company, has announced the successful completion of a significant test for its Visible Infrared Imaging Radiometer Suite (VIIRS) sensor. The VIIRS sensor is a key component of the NASA-NOAA Joint Polar Satellite System (JPSS), which captures environmental data across the globe.

Components Covered:

• Hardware
• Software

Platforms Covered:

• Land
• Airborne
• Naval
• Space

Architectures Covered:

• Sensor Open Systems Architecture (SOSA)
• Hardware Open Systems Technologies (HOST)

Technologies Covered:

• Edge Computing
• Fog Computing
• Mist Computing
• Other Technologies

Applications Covered:

• Avionics
• Command & Control
• Communication & Navigation
• Cyber and Networking
• Electronic Warfare (EW)
• Intelligence, Surveillance & Reconnaissance (ISR)
• Radar
• Sensors, Camera, and Displays
• Vetronics
• Weapon and Fire Control
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances