The Electronic Warfare Market Will Grow At Highest Pace Owing To Increased Defense Budgets

 

Electronic Warfare Market

The electronic warfare market comprises systems like radar warning receivers, electronic support measures, and communication intelligence to gather information on enemy signals and threats. Electronic warfare systems are crucial in modern warfare for tasks like electronic surveillance, target acquisition, and protection from radar, radio, and missile systems. The growing defense budgets globally have enabled defense forces to prioritize advanced communication, networking, and electronic warfare technologies. The demand is high in the US, China, India, and Middle Eastern countries to gain air superiority, conduct intelligence operations, and monitor enemy communications.

The Global Electronic Warfare Market is estimated to be valued at US$ 18.45 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the electronic warfare are BAE Systems plc, Elbit Systems Ltd., General Dynamics Corporation, Israel Aerospace Industries Ltd., L3Harris Technologies Inc., Leonardo SpA, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, SAAB AB, Thales Group, Mistral Solutions Pvt. Ltd., Chelton Limited, Rafael Advanced Defense Systems Ltd, Rohde & Schwarz India Pvt Ltd, QUEST GLOBAL, Mercury Systems, Inc., IAI, DRDO, TEKTRONIX, INC.

Tata Advanced Systems Limited. The increasing defense budgets across countries have enabled forces to invest in advanced Electronic Warfare Market Size  equipment. The demand is particularly high for radar warning receivers, jammers, communication systems, and electronic support measures from air forces and naval forces. There is also growing demand for electronic warfare avionics to enhance the survivability of combat aircraft. Technological advancements like software-defined radios, cognition-enabled systems, and integrated electronic warfare suites have improved capabilities manifolds.

Market trends

Countries are increasingly developing offensive as well as defensive cyber capabilities. For instance, the US has prioritized offensive cyber capabilities under Digital SOF while Russia and China are believed to possess potent cyber warfare divisions. The ability to disrupt enemy networks and communication using cyber and electronic means will be crucial in future battles. Another trend is the integration of electronic warfare across different domains and platforms. For example, integrating EW systems on fighter jets, naval ships, land vehicles as well as integrating capabilities like cyber, space assets with traditional EW. This will deliver multidimensional electronic warfare.

Market Opportunities

One of the key opportunities is modernizing the electronic warfare capabilities of aging aircraft, ships, and land vehicles. As many systems are decades old, they provide opportunities for EW suite upgradation programs. There are also opportunities in specialized areas like electronic attack, electronic protection, electronic intelligence, cyber EW, space-based EW, AI/ML/big data enabled EW. Lastly, the development of offensive cyber capabilities by more countries indicates opportunities for cyber EW defense equipment and network protection systems.

Impact of COVID-19 on Electronic Warfare Market Growth

The outbreak of COVID-19 pandemic has adversely impacted the growth of electronic warfare market globally. With imposition of lockdowns across various countries, manufacturing facilities and supply chains were disrupted. This led to delays in development and production of electronic warfare systems. The demand from military forces also declined as training and exercises were postponed to curb the spread of virus.

However, defense budgets of various nations remained unaffected and some countries even increased their defense expenditure to strengthen their military capabilities. The demand is expected to regain momentum in the post COVID-19 period with resumption of military activities and exercises. Key players in electronic warfare market will focus on expanding their production capacities and explore new opportunities arising due to evolving geo-political landscape. Cooperation among allies will also help in developing advanced and inter-operable systems. The demand for electronic support systems will increase to gain situational awareness in complex battlefields. Overall, the long term outlook for electronic warfare market remains positive driven by ongoing modernization programs of armed forces.

Geographical Regions with Highest Concentration in Electronic Warfare Market

North America dominates the electronic warfare market and accounted for over 35% of global market share in terms of value in 2024. This can be attributed to heavy investments by US Department of Defense in developing full spectrum capabilities. Presence of major electronic warfare companies such as Lockheed Martin, Northrop Grumman, Raytheon further aids growth in the region.

Europe ranks second in terms of value contribution. Countries like United Kingdom, Germany, France and Sweden spends considerable amounts on defense and are involved in procurement and development of electronic warfare systems indigenously as well as through collaborations. They possess sophisticated technologies that play crucial role in NATO missions and regional security. Their emphasis is on network centric capabilities.

Fastest Growing Region in Electronic Warfare Market

Asia Pacific region is identified as the fastest growing market for electronic warfare globally. It is expected to witness a CAGR of around 7.5% during forecast period of 2024 to 2031. Growing defense budgets of China and India as well as requirements of other Southeast Asian nations to bolster capabilities will fuel demand from the region. Indigenous programs in countries like South Korea are also gaining momentum over the years. Deployments in border areas and modernization of armed forces are key factors driving growth of electronic warfare market in Asia Pacific.

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