By Akhil Nair
Vetronics is the assortment of technology, vehicles, and electronics, primarily designed for the defense sector. It is an extensively used technological designation in the military sector. There is an increasing need for rapid upgradation of combat vehicles with improved surveillance efficiency, enhanced crew survival, simple navigation, stronger firepower, and better intra-vehicle and inter-vehicle communications. As a result, the global military forces are modernizing their vehicle fleets. According to Inkwood Research, this is one of the central growth drivers of the global vetronics market, expected to record a CAGR of 4.28% by 2030.
Further, the considerable demand for vetronics globally is attributed to its ability to provide real-time information, video & voice communication, and data at high speed anywhere. Also, it supplements the military ground forces by improving the intelligence, surveillance, and reconnaissance (ISR) capabilities, thereby offering raised situational awareness and survivability.
For instance, sensors. They collect mission-critical information to leverage mission safety, effectiveness, and ISR. In addition, they form a crucial part of the technologies as they offer solutions to the whole defense ecosystem, including execution, monitoring, measurements, and complex controls.
In this regard, here are a few defining trends that direct the vetronics market growth:
01. Military Modernization Programs
The military modernization programs include the upgradation of fire suppression systems, networking technologies, military systems, command & control systems, communication systems, hazard detection systems, etc. This further enhances the interoperability of the systems, discards the danger and expense of multi-system integration, and improves the performance of vehicle operators by minimizing their response time.
According to our findings, defense is the largest end-user of vetronics, with a market share of 82.24% in 2021.
Defense forces globally are increasingly investing in integrating technologically advanced electronic systems in military vehicles to increase their operational efficiency. As a result, there is a rising demand for established, cost-effective solutions with high Technology Readiness Levels (TRLs).
As per our research, Electronic Warfare and C4 System is the fastest-growing system in the market, projected to record a CAGR of 4.57% by 2030.
Furthermore, the US Army leads in military modernization initiatives. For instance, as of 24th January 2022, America Rheinmetall Systems received a multi-million-dollar investment to provide cutting-edge combat vehicle mission systems technologies to supplement the modernization of the US Army combat vehicles. Besides, countries like Australia, India, France, and the United States have made major progress in military modernization that is estimated to ensure the continual demand for military vetronics.
02. Growing Military Vehicle Inventory
The ongoing military modernization programs in respective armies globally have facilitated the growth in the number of land-based vehicles. There has been a rise in the number of advanced electronic systems at the ground level in the last two decades, with defense departments striving to build fast, light, and ready-to-deploy vehicles.
Furthermore, advancements in wireless communication technology have opened up new avenues for market players. Some of the eminent market players operating in the global vetronics market are BAE Systems, L3Hariss Technologies, Leonardo SpA, Lockheed Martin, General Dynamics Corporation, Curtiss-Wright, etc.
Moreover, the vetronics architecture enables network-enabled operations. It facilitates the integration of platform electronics and computing resources, accelerating logistics and support in operating conditions. Besides, the shift to an open architecture, SWAP reduction, and increased bandwidth propel the adoption of electronics technology for military ground combat vehicles.
Furthermore, vetronics is increasingly gaining importance in military vehicles since it allows reconnaissance, surveillance, and intelligence tasks. Additionally, there is a growing demand for unmanned ground vehicles due to their defense applications like transportation, ISR, combat support, mapping, and security. This has further led to Artificial Intelligence (AI) becoming a central part of modern warfare.
As per our evaluations, armored vehicles are the largest revenue-generating vehicle type in the market, set to register a revenue share of 75.60% by 2030. While tanks are the fastest-growing vehicle type with a CAGR of 4.48% by 2030.
Military Vetronics: Is Digitization the way forward?
Modern military and warfare need scalable, reliable, and proven technologies. The digitization of surveillance and communication plays an important role in the integrated operations of the modern battlefield. Likewise, digitalization has considerably impacted land vehicles.
Also, most advanced nations are actively engaged in researching innovative capabilities to equip their forces, thereby gaining a tactical edge. For instance, the US Army is testing the Electronic Warfare Tactical Vehicle (EWTV), which encompasses an unrevealed specification of radio jamming gear developed by SRC called Duke.
Another digitized development is the onboard, totally digitalized cockpit with multiple widescreen displays to facilitate a 360-degree knowledge of the situation. Currently, Germany and the United States are undertaking projects for the same. Furthermore, the introduction of data-intensive applications and technologies needed for high-performance components of the next generation results in a bright future for vetronics. Moreover, the military equipment designers are tasked with developing computer devices for vehicles that can withstand the harshest environments and survive combat demands. Such trends shape the global vetronics market growth.
Which are the prominent countries in the global vetronics market?
Germany and the United States are the prominent countries in the global vetronics market.
Which is the leading region in the global vetronics market?
North America leads the global vetronics market in terms of revenue share and CAGR.