by Electronic warfare systems help detect radar frequencies and communications to locate enemy units or avoid detection. Key capabilities of electronic warfare systems include radar warning receivers and signal intercept systems to locate targets and gather intelligence. Due to rising defense budgets and growing need for intelligence surveillance and reconnaissance systems across developed and developing countries, the demand for advanced electronic warfare systems is rising.
The global electronic warfare market is estimated to be valued at US$ 18.45 billion 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 market 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., and Tata Advanced Systems Limited.
The growing demand for Electronic Warfare Market Size systems is being driven by increasing political conflicts and security threats across borders. Many countries are expanding and modernizing their electronic warfare capabilities to gain tactical advantages. With the rising emphasis on network-centric warfare and internet of things technologies proliferating the battlefield, the need for more advanced electronic protection and cyber security systems is surging.
The global electronic warfare market is witnessing rapid expansion with emerging requirements from both established as well as emerging economies. Leading players are focusing on new product development, partnerships, mergers and acquisitions to strengthen their presence across international markets. Northrop Grumman recently acquired Aerial & Maritime for $340 million to enhance its electronic warfare portfolio.
Market key trends
One of the key trends in the electronic warfare market is the development of new active protection systems that can jam different radars and communications. Companies are investing in advanced technologies like artificial intelligence, cognitive EW, big data analytics to develop next-gen autonomous electronic attack payloads. There is also a growing focus on integrating electronic warfare capabilities on new generation aircraft, ships and ground vehicles to provide full-spectrum protection. The increasing development of unmanned systems is another factor driving innovation in compact electronic support payloads.
Porter’s Analysis
Threat of new entrants: The Electronic Warfare market requires high R&D investments and economies of scale which makes it difficult for new entrants.
Bargaining power of buyers: Individual buyers have low bargaining power due to the specialized nature of electronic warfare systems whereas larger defense organizations have higher bargaining power.
Bargaining power of suppliers: The suppliers have moderate bargaining power as they supply proprietary components and technologies required for niche electronic warfare applications.
Threat of new substitutes: There are limited substitutes for electronic warfare systems considering their critical role in defense.
Competitive rivalry: The market sees intense competition among major global players owing to their extensive R&D capabilities and global footprint.
Geographical Regions
North America accounts for the largest share of the global electronic warfare market in terms of value owing to increased defense spending and presence of major players in the US and Canada.
Asia Pacific is projected to grow at the fastest pace during the forecast period due to rising defense budgets of emerging economies like China and India along with growing indigenous defense production capabilities in the region.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
