| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 5.22 Billion |
| Market Size (2030) | USD 6.51 Billion |
| CAGR (2025 - 2030) | 4.54 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vetronics Market Analysis
The Vetronics Market size is estimated at USD 5.22 billion in 2025, and is expected to reach USD 6.51 billion by 2030, at a CAGR of 4.54% during the forecast period (2025-2030).
Rising defense expenditures and a heightened focus on ground vehicle procurement drive market growth in the military sector. Nations are bolstering their defense budgets, leading to frequent upgrades of land vehicles, including main battle tanks (MBTs), light armored vehicles (like armored personnel carriers and infantry fighting vehicles), and amphibious armored vehicles. These enhancements are crucial to keeping pace with evolving battlefield dynamics. There is also a growing demand for vetronics in military vehicles, especially given the escalating global tensions.
Despite this demand, defense manufacturers globally face the challenge of a shortage of skilled workers necessary for these vehicle upgrades. With technologies advancing rapidly, many in the workforce struggle to stay abreast, leading to a significant segment falling behind in understanding the latest market trends. This workforce gap poses a potential hurdle to the market's growth.
Success in today's modern warfare landscape pivots on the seamless coordination of air, land, and naval forces. This coordination is not only crucial for robust intelligence gathering but also for swift threat responses. Asymmetric warfare strategies, which exploit adversaries' vulnerabilities through innovative and non-traditional means, are gaining prominence. These strategies often drive the need for hybrid defense technologies, pushing for procuring more advanced arsenals. By integrating state-of-the-art vetronics systems, defense forces are further empowered for effective joint operations, especially in challenging scenarios.
Vetronics Market Trends
Infantry Fighting Vehicles Segment is Expected to Exhibit Significant Growth
- An infantry fighting vehicle (IFV) is an armored vehicle designed to transport infantry into battle and provide direct-fire support. IFVs can be equipped with modular add-on armor and composite or spaced laminated armor to shield against various munitions. The market's growth is fueled by heightened spending on next-gen vehicles and the increasing adoption of advanced electronic systems, which bolster communication. For instance, in 2024, global defense spending surged to USD 2,440 billion, marking a 6.8% increase from 2022.
- Amid increasing defense budgets, armed forces worldwide are channeling investments into next-gen armed vehicle programs and enhancing existing ones for improved efficiency, lethality, and surveillance. This surge in activity is a key driver of market growth. For instance, the M2 Bradley is an infantry fighting vehicle designed for reconnaissance and troop transport. In August 2023, BAE Systems secured a USD 113.1 million contract from the US Army to revamp the M2 Bradley fighting vehicles. The upgrades encompass advanced vetronics, electrical systems, smart power management software, and other cutting-edge technologies.
- Similarly, in December 2023, BAE Systems inked another deal with the US Army, this time worth USD 78.4 million, to transform aging M2 Bradleys into state-of-the-art M2A4 and M7A4 combat vehicles. These overhauls include bolstered vetronics, electrical systems, advanced track systems, and enhanced suspensions, effectively redefining the vehicles as the new Bradley M2A4 and M7A4 combat models. Consequently, the market is set to witness significant growth, fueled by the increasing focus on modernizing existing IFV fleets and the surge in OEM upgrade contracts during the forecast period.
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Asia-Pacific Expected to Exhibit Highest Growth During the Forecast Period
- During the forecast period, Asia-Pacific is poised to lead in both procurement initiatives and the subsequent orders placed. Heightened tensions, notably the South China Sea dispute, are prompting neighboring nations to bolster their military capabilities, with a notable focus on military vehicle acquisitions. Countries like China, India, South Korea, and Japan consistently upped their defense budgets to fortify national security. This has led to an observable arms race, highlighted by the escalating defense expenditures of regional giants China and India. In 2023 alone, these nations allocated significant budgets: China at USD 296 billion, India at USD 83.6 billion, Japan at USD 50.2 billion, and South Korea at USD 47.9 billion.
- With increased defense spending, countries in the region are ramping up the procurement and upgrades of military vehicles, fueling the market’s growth. For instance, in May 2024, India contracted Armoured Vehicles Nigam Limited (AVNL) for 693 Armament Upgrades, transitioning Infantry Combat Vehicle BMP2 to BMP2M. Under India's 'Make in India' initiative, this comprehensive upgrade includes Night Enablement, a Gunner Main Sight, a Commander Panoramic Sight, and a Fire Control System (FCS) with an Automatic Target Tracker.
- Similarly, in April 2024, Japan's JDSF engaged Milrem Robotics for three THeMIS unmanned ground vehicles (UGVs) equipped with the Milrem Intelligent Functions Kit (MIFIK) for enhanced navigation and mission adaptability. In addition, in December 2023, Hanwha Defence Australia (HDA), a subsidiary of Hanwha Aerospace, secured a USD 2.4 billion contract with the Australian government for 129 Redback Infantry Fighting Vehicles (IFVs). These vehicles, boasting advanced vetronics, are set to propel the market’s growth positively during the forecast period.
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Vetronics Industry Overview
The vetronics market is fragmented, with several players accounting for significant amounts of shares in the market. Some of the prominent market players are Curtiss-Wright Corporation, THALES, Saab AB, General Dynamics Corporation, and Rheinmetall AG.
Market players primarily focus on designing, engineering, and manufacturing high-performance solutions for the terrestrial assets of global armed forces. This sector is notably sensitive to economic fluctuations and trends, especially those affecting its end-user segments, given the cyclicality of its revenue streams. Player revenues are heavily reliant on the R&D efforts of OEMs, whether for new vehicle designs or enhancing the mission profiles of existing models. Due to the defense sector's stringent safety and regulatory standards, the entry of new players is expected to be restricted. Furthermore, contracts for armored vehicles, characterized by their technological complexity and multi-year durations, demand thorough risk identification and continuous monitoring to uphold a manufacturer's operational metrics. This risk assessment covers technical prerequisites, task schedules, and detailed cost evaluations.
Vetronics Market Leaders
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Curtiss-Wright Corporation
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Saab AB
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General Dynamics Corporation
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Rheinmetall AG
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THALES
- *Disclaimer: Major Players sorted in no particular order
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Vetronics Market News
- February 2024: The US Marine Corps awarded BAE Systems an extra USD 25 million as a firm-fixed-price modification on top of their original USD 181 million contract. This additional funding is specifically designated for producing more amphibious combat vehicles (ACVs) and falls under the Marine Corps' fourth order for full-rate production (FRP).
- February 2023: The General Dynamics Mission Systems segment secured a substantial USD 481.6 million contract from the US Army Contracting Command. The contract aims to sustain the AN/MLQ-44 Prophet-Enhanced SIGINT vetronics systems.
Vetronics Industry Segmentation
Vetronics or vehicle electronic systems are integrated into a terrestrial asset of the ground forces to fulfill different mission profiles and enhance the situational awareness of the personnel inside the vehicle. To obtain a holistic view of the market, the scope of the study encompasses the ongoing procurement and modernization programs undertaken by the global defense forces for MBTs, APCs, IFVs, and AAVs.
The vetronics market is segmented by vehicle type, subsystems, and geography. By vehicle type, the market is segmented into main battle tanks, light armored vehicles, amphibious armored vehicles, and other vehicle types. By subsystem, the market is classified into C4, navigation, and power. The report also covers the market sizes and forecasts for the vetronics market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).
| By Vehicle Type | Main Battle Tank | ||
| Light Armored Vehicle | |||
| Amphibious Armored Vehicle | |||
| Other Vehicle Types (Armored Personnel Carrier, UGVs, etc.) | |||
| By Subsystem | C4 | ||
| Navigation | |||
| Power | |||
| By Geography | North America | United States | |
| Canada | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Rest of Latin America | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Israel | |||
| Rest of Middle East and Africa | |||
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Vetronics Market Research FAQs
How big is the Vetronics Market?
The Vetronics Market size is expected to reach USD 5.22 billion in 2025 and grow at a CAGR of 4.54% to reach USD 6.51 billion by 2030.
What is the current Vetronics Market size?
In 2025, the Vetronics Market size is expected to reach USD 5.22 billion.
Who are the key players in Vetronics Market?
Curtiss-Wright Corporation, Saab AB, General Dynamics Corporation, Rheinmetall AG and THALES are the major companies operating in the Vetronics Market.
Which is the fastest growing region in Vetronics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Vetronics Market?
In 2025, the North America accounts for the largest market share in Vetronics Market.
What years does this Vetronics Market cover, and what was the market size in 2024?
In 2024, the Vetronics Market size was estimated at USD 4.98 billion. The report covers the Vetronics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Vetronics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Vetronics Industry Report
Statistics for the 2025 Vetronics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vetronics analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
