Vetronics Market Trends

Vetronics Market Drivers 

Increasing Integration of Advanced Electronic Systems

• Advanced electronic systems provide greater situational awareness, improvements in communications, better navigation, and effective vehicle mobility which enhances operational efficiency and safety. One factor driving the market is the increased focus on network-centric warfare that requires the integration of the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. Every day, there is greater adoption of vetronics solutions because the modern battlefield is being digitized, and armed forces are upgrading and replacing the legacy systems. Also, the influx of money into defense budgets along with continuing geopolitical uncertainty is further driving investments of advanced technologies in combat and support vehicles and promoting growth of the vetronics market worldwide.

Rising Need for Situational Awareness

• The need for enhanced situational awareness in a combat environment is contributing to the demand for vetronics systems. The modern battle-space requires real-time sharing of data, threat detection and advanced surveillance capabilities. Vetronics solutions are systems including vehicle-mounted sensors, command-and-control systems and augmented reality displays that will allow for enhanced decision-making and mission effectiveness. As threats become increasingly complex Canada's defense sector will continue to look to these technologies to maintain tactical advantage and keep military personnel safe.

Vetronics Market Restraints

High Development and Integration Costs

• Vetronics systems involve complicated hardware and software solutions, including sensors, communication units, and computing platforms. Developing and efficiently integrating these systems into existing military vehicles is expensive. As organizations within the defense sector have budgets for modernization and systems integration, high costs represent a barrier to widespread use in countries with lower to moderate defense budgets. procurement timeframes increase as do risks of entry for smaller defence contractors to enter a space with expensive systems to be designed. Cybersecurity and System Vulnerability Risks.

Cybersecurity and System Vulnerability Risks

• As vetronics systems are developed, systems are increasingly linked and consolidated electronically which increases uncertainty through potential for connectivity to down range networks. There are many different possible types of attacks on vetronics systems and ensuring a strong cybersecurity solution is multi-layered and requires significant financial and human resourcing. Recognized cybersecurity weaknesses in any vetronics system creates uncertainty for the organizations and the operators of these systems. Attack vectors on vetronics systems could disable mission capacity and threaten vehicle safety. Unresolved cybersecurity risks may stop some defense organizations from pursuing fully integrated vetronics platforms for their organizations. Unmapped or limited use of vetronics systems leads to risk averse organizations delaying the market for vetronics systems.