Vetronics Market Updates

Global Vetronics Market size was valued at USD 4.96 Billion in 2023 and is poised to grow from USD 5.08 Billion in 2024 to USD 8.61 Billion by 2032, growing at a CAGR of 7.4% during the forecast period (2025-2032).

​ The vetronics market is a very competitive space where major defense contractors compete through different strategies to increase their share of the market. For example, Rheinmetall AG's acquisition of Loc Performance in 2024 for $950 million will increase the company's manufacturing depth in the United States aimed at securing contracts associated to future vehicle programs from the U.S. Army. This vehicle stuff can be significant, with an estimation of vehicle program contracts exceeding $60 billion. Moreover, BAE Systems has several existing contracts associated with upgrades of M2 Bradley fighting vehicles where vetronics upgrades will ultimately provide advanced smart power management as well as situational awareness systems. Lockheed Martin's use of advances in AI and sensors into vetronics systems will also potentially provide operational capabilities and situational awareness. 'BAE Systems (United Kingdom)', 'Curtiss-Wright Corporation (United States)', 'General Dynamics Corporation (United States)', 'Harris Corporation (United States)', 'Leonardo S.p.A (Italy)', 'Lockheed Martin Corporation (United States)', 'Raytheon Company (United States)', 'Rheinmetall AG (Germany)', 'Saab AB (Sweden)', 'Thales Group (France)', 'L3Harris Technologies Inc. (United States)', 'Elbit Systems Ltd. (Israel)', 'Kongsberg Gruppen ASA (Norway)', 'Oshkosh Corporation (United States)', 'Ultra (United Kingdom)', 'Northrop Grumman Corporation (United States)', 'Honeywell International Inc. (United States)', 'Moog Inc. (United States)', 'QinetiQ Group (United Kingdom)', 'Meggitt (United Kingdom)'

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.

What Makes Asia-Pacific a Leader in Vetronics?