A recent study by Transparency Market Research (TMR) has detected that the global military vetronics market is consolidated among a few players, including General Electric Company, Rheinmetall A.G., TE Connectivity Ltd., Curtiss-Wright Corporation, and BAE Systems PLC. Since long, these companies have been focusing on some of the key segments of the market, such as armored personnel carriers and power systems, and hold major shares of the market with their specialized products and services.
As per the estimations of the TMR report, the demand in the global military vetronics market will increment at a CAGR of 5.3% during the forecast period of 2015 to 2023, reaching a valuation of US$10.71 by the end of 2023. In the near future, the leading companies are expected to depend on innovation to gain ground over their competitors, as well as expand their geographical reach, primarily in emerging economies in Asia Pacific who have extended their defense budget in the recent years. Increased emphasis is also given on retrofitting older vehicles with modern vetronics.
Power Systems Serve Maximum Demand
On the basis of system, the report segments the global military vetronics market into power system, control and data distribution system, display systems, and vehicles management systems, and rates power system as most in-demand segment. As per the estimations, the power system segment will be worth US$3.4 bn by the end of the forecast period, contributing to 32.2% of the overall demand. Power systems are necessary for increasingly preferred fully autonomous military operations and remote controlled operations, as these can be integrated with the communication systems. Based on vehicle type, the market has been categorized into light protected, infantry fighting, armored personnel carriers, armored amphibious vehicles, and unmanned ground vehicles. Among these, armored personal carriers currently generate the maximum demand.
Geographically, the report picks out North America as most profitable region in terms of revenue, however the market is reaching its maturity level and the competition among leading players is very stiff. On the other hand, a number of emerging economies in the region of Asia Pacific are incrementing their defense budget, owing to glaring issue of terrorism.
Asia Pacific Offers Vast Opportunities
A large number of defense agencies across the world possess considerable number of older vehicles, which needs to be integrated with new systems, which is one of the primary driver in the global market for military vetronics. With increased defense budget, the demand for new vehicles is escalating. In addition to that, several leading players are focused on embedded technology via advanced SWaP specs on the newer vehicles, which is expected to further fuel the demand in the military vetronics market. As per the findings of the report, financial strains and budget cuts, the pressue of cost pertaining to military spending has increased in the recent part. Now, priority is given to the cost-efficient operations of military systems, which in turn has augmented the need for innovation in military vetronics. Cost-per-mile one of the way to judge the overall cost of ownership of a land vehicle, including vetronics. Fuel costs, operating costs, training costs, and overall maintenance costs are also taken into consideration by the prospect customers. With High-end vetronics, which offer enhanced functionality via reduced SWaP, makes them ideal for integration in military land vehicles.
On the other hand, demilitarization in a few countries in the region of Europe and North America and engineering challenges with SBC computing capabilities are two factors hindering the military vetronics market from achieving its full potential. Nevertheless, the growing trend of COTS components will keep the market prosperous during the forecast period.
The information presented in this review is based on a Transparency Market Research report, titled, “Military Vetronics Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”
Key Segments of the Global Military Vetronics Market
Global Military Vetronics Market, by System,
- Control and Data Distribution System
- Display Systems
- Power Systems
- Vehicle Management System
- Other Vetronics Systems
Global Military Vetronics Market, by Vehicle Type,
- Light Protected Vehicles
- Infantry fighting Vehicles
- Armored Personnel Carriers
- Unmanned Ground Vehicles
- Armored Amphibious Vehicles
Global Military Vetronics Market Analysis and Forecast, by Geography,
- North America
- Asia Pacific
- Rest of the World
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