Abstract
Summary
The global defense electronics obsolescence market size is projected to grow from USD 2.5 billion in 2023 to USD 3.7 billion by 2028, at a CAGR of 8.2% from 2023 to 2028. Raytheon Technologies Corporation (US), BAE Systems (UK), L3Harris Technologies, Inc. (US), Thales (US) and Elbit Systems Ltd. (Israel) are some of the leading players operating in the Defense electronics obsolescence market.
The defense sector is uniquely positioned at the intersection of innovation and necessity, where the rapid pace of technological advancements serves as both a catalyst for growth and a challenge for lifecycle management. In an era defined by breakthroughs in artificial intelligence, quantum computing, and cyber capabilities, defense electronics systems are under constant pressure to evolve. This relentless progression not only pushes the boundaries of what's possible in warfare and defense strategies but also mandates a rigorous update and replacement cycle for existing systems to prevent obsolescence.
“The communication segment to account for highest growth in the defense electronics obsolescence market during the forecast period.”
The market for defense electronics obsolescence has been divided into six segments: sensors, flight control, electronic warfare, human-machine interface, communication systems, and navigation systems. Rapid technological advancements can lead to the quick obsolescence of communication protocols and standards, necessitating frequent upgrades and equipment replacements to guarantee compatibility and performance. The communication techniques grow increasingly antiquated as a result.
“The airborne segment to account for largest market share in the defense electronics obsolescence market during the forecast period.”
Based on platform, the defense electronics obsolescence market has been segmented into Land, Naval, and Airborne. The Airborne platform will have the largest market share in the market as military aircrafts uses complex electronics like Radars, Communication system, Helmet-Mounted Displays (HMDs), palletized loading systems (PLS) and aerial delivery systems which have high risk of getting obsolete resulting in airborne segment to dominate the market.
“The North America market is projected to lead the market during the forecast period.”
North America takes the lead in this market because of its significant defense spending, innovative technology, and strong industrial foundation. North American corporations are at the forefront of creating sophisticated obsolescence management techniques that are suited to the distinct needs of different platforms, with a particular emphasis on land, naval, and aerial systems. Companies in the North American area foster innovation in obsolescence management, enabling military forces to preserve technological superiority and operational preparedness. They do this by strategically investing in research, development, and collaboration. North America, which leads the defense electronics obsolescence industry, is essential to maintaining stability in an increasingly complex geopolitical environment and defending national security interests.
Raytheon Technologies Corporation (US), BAE Systems (UK), L3Harris Technologies, Inc. (US), Thales (US) and Elbit Systems Ltd. (Israel) are some of the leading players operating in the defense electronics obsolescence market.
Breakdown of primaries
The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
• By Company Type: Tier 1–35%; Tier 2–45%; and Tier 3–20%
• By Designation: C Level–35%; Directors–25%; and Others–40%
• By Region: North America–35%; Europe–25%; Asia Pacific–30%; and Middle East–10%
Research Coverage
The study covers the defense electronics obsolescence market across various segments and subsegments. It aims at estimating the size and growth potential of this market across different segments based on system, platform, type and region. This study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to their solutions and business offerings, recent developments undertaken by them, and key market strategies adopted by them.
Key benefits of buying this report: This report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall defense electronics obsolescence market and its subsegments. The report covers the entire ecosystem of the defense electronics obsolescence market . It will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report will also help stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
• Analysis of key drivers (Leveraging Rapid Technological Advancements, Adhering to Stringent Regulatory Requirements and Standards, Navigating Supply Chain Disruptions, and Counteracting Evolving Threat Landscapes), restraints (High Costs of System Upgrades and Replacement, Intellectual Property Barriers in Defense Electronics Upgrades), opportunities (Strategic Adaptation through Remanufacturing and Reverse Engineering, , and Embracing Modularity to Future-Proof Defense Electronics), and challenges (Synchronizing System Upgrades and Operational Readiness in Defense Forces) influencing the growth in the market
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the defense electronics obsolescence market.
• Market Development: Comprehensive information about lucrative markets – the report analyses the defense electronics obsolescence market across varied regions
• Market Diversification: Exhaustive information about new solutions, untapped geographies, recent developments, and investments in defense electronics obsolescence market
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Raytheon Technologies Corporation (US), BAE Systems (UK), L3Harris Technologies, Inc. (US), Thales (US) and Elbit Systems Ltd. (Israel) among others in the defense electronics obsolescence market.
Table of Contents
1 INTRODUCTION 26
1.1 STUDY OBJECTIVES 26
1.2 MARKET DEFINITION 26
1.3 STUDY SCOPE 27
1.3.1 MARKET SEGMENTATION 27
1.3.2 REGIONAL SCOPE 27
1.3.3 YEARS CONSIDERED 28
1.4 INCLUSIONS AND EXCLUSIONS 28
1.5 CURRENCY CONSIDERED 30
1.6 STAKEHOLDERS 31
2 RESEARCH METHODOLOGY 32
2.1 RESEARCH DATA 32
2.1.1 SECONDARY DATA 33
- 2.1.1.1 Major secondary sources 34
2.1.2 PRIMARY DATA 34
- 2.1.2.1 Key industry insights 34
- 2.1.2.2 Key data from primary sources 35
2.2 MARKET SIZE ESTIMATION 35
2.2.1 BOTTOM-UP APPROACH 36
2.2.2 TOP-DOWN APPROACH 37
2.3 FACTOR ANALYSIS 38
2.3.1 INTRODUCTION 38
2.3.2 DEMAND-SIDE INDICATORS 38
- 2.3.2.1 Increasing complexity of defense systems 38
- 2.3.2.2 Upgrades and modernization programs 38
- 2.3.2.3 Regulatory compliance and standards 39
- 2.3.2.4 End-of-life management 39
- 2.3.2.5 Cybersecurity threats 39
2.3.3 SUPPLY-SIDE INDICATORS 39
- 2.3.3.1 Advancements in electronics manufacturing technology 39
- 2.3.3.2 Technological innovations and R&D investments 40
2.3.4 RECESSION IMPACT ANALYSIS 40
2.3.5 IMPACT OF RUSSIA-UKRAINE WAR 40
- 2.3.5.1 Impact of Russia-Ukraine war on macro factors of defense electronics obsolescence market 40
- 2.3.5.2 Impact of Russia-Ukraine war on micro factors of defense electronics obsolescence market 43
2.4 SELECTION CRITERIA FOR DEFENSE FLEET MANAGEMENT AND MODERNIZATION 45
2.5 MARKET BREAKDOWN AND DATA TRIANGULATION 46
2.6 RESEARCH ASSUMPTIONS 48
2.7 RESEARCH LIMITATIONS 48
2.8 RISK ANALYSIS 49
3 EXECUTIVE SUMMARY 50
4 PREMIUM INSIGHTS 53
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN DEFENSE ELECTRONICS OBSOLESCENCE MARKET 53
4.2 DEFENSE ELECTRONICS OBSOLESCENCE MARKET, BY SYSTEM 53
4.3 DEFENSE ELECTRONICS OBSOLESCENCE MARKET, BY PLATFORM 54
5 MARKET OVERVIEW 55
5.1 INTRODUCTION 55
5.2 MARKET DYNAMICS 56
5.2.1 DRIVERS 56
- 5.2.1.1 Rapid technological advancements leading to challenges in lifecycle management 56
- 5.2.1.2 Stringent regulatory requirements and standards 58
- 5.2.1.3 Potential supply chain disruptions 59
- 5.2.1.4 Evolving threat landscape 60
5.2.2 RESTRAINTS 61
- 5.2.2.1 High cost of system upgrades and replacements 61
- 5.2.2.2 Intellectual property barriers in defense electronics upgrades 61
5.2.3 OPPORTUNITIES 62
- 5.2.3.1 Strategic adaptation through remanufacturing and reverse engineering 62
- 5.2.3.2 Adoption of modular designs to future-proof defense electronics 62
5.2.4 CHALLENGES 63
- 5.2.4.1 Synchronizing system upgrades and operational readiness in defense forces 63
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS 64
5.3.1 NEW REVENUE SHIFTS AND REVENUE POCKETS IN DEFENSE ELECTRONICS OBSOLESCENCE MARKET 64
5.4 VALUE CHAIN ANALYSIS 65
5.4.1 RESEARCH & DEVELOPMENT 65
5.4.2 RAW MATERIALS 65
5.4.3 COMPONENT/PRODUCT MANUFACTURERS (OEMS) 65
5.4.4 INTEGRATORS AND SYSTEM PROVIDERS 66
5.4.5 END USERS 66
5.5 PRICING ANALYSIS 66
5.5.1 AVERAGE SELLING PRICE TREND ANALYSIS, BY SYSTEM 66
5.5.2 INDICATIVE PRICE TREND ANALYSIS 69
5.6 OPERATIONAL DATA 71
5.7 ECOSYSTEM MAPPING 75
5.7.1 PROMINENT COMPANIES 75
5.7.2 PRIVATE AND SMALL ENTERPRISES 75
5.7.3 END USERS 75
5.8 TECHNOLOGY ANALYSIS 77
5.9 TRADE ANALYSIS 78
5.10 USE CASE ANALYSIS 80
5.10.1 USE CASE 1: EARLY WARNING AND CONTROL SYSTEM UPGRADE BY INDIAN AIR FORCE FOR ENHANCED DETECTION CAPABILITIES 80
5.10.2 USE CASE 2: MILITARY COMMUNICATIONS SYSTEM UPGRADE BY US DEFENSE FORCES FOR IMPROVED SECURITY AND RELIABILITY 81
5.11 KEY CONFERENCES AND EVENTS 82
5.12 REGULATORY LANDSCAPE 83
5.12.1 NORTH AMERICA: REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 83
5.12.2 EUROPE: REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 83
5.12.3 ASIA PACIFIC: REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 84
5.12.4 MIDDLE EAST: REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 84
5.12.5 REST OF THE WORLD: REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 85
5.13 KEY STAKEHOLDERS AND BUYING CRITERIA 85
5.13.1 KEY STAKEHOLDERS IN BUYING PROCESS 85
5.13.2 BUYING CRITERIA 86
5.14 BUSINESS MODEL OF KEY MARKET PLAYERS 87
6 INDUSTRY TRENDS 89
6.1 INTRODUCTION 89
6.2 TECHNOLOGY TRENDS 89
6.2.1 ADVANCED COMPONENT OBSOLESCENCE MANAGEMENT TOOLS 90
6.2.2 MODULAR OPEN SYSTEMS APPROACH 90
6.2.3 DIGITAL TWINS 90
6.2.4 ADDITIVE MANUFACTURING 91
6.2.5 BLOCKCHAIN 91
6.3 IMPACT OF MEGATRENDS 91
6.3.1 MANAGING ACCELERATED COMPONENT OBSOLESCENCE 91
6.4 SUPPLY CHAIN ANALYSIS 92
6.5 INNOVATIONS AND PATENT REGISTRATIONS 94
6.6 TOTAL COST OF OWNERSHIP 97
6.7 TECHNOLOGY ROADMAP 102
7 DEFENSE ELECTRONICS OBSOLESCENCE MARKET, BY SYSTEM 104
7.1 INTRODUCTION 105
7.2 COMMUNICATIONS 106
7.2.1 TRANSPONDER 106
- 7.2.1.1 Advancements in Mode 5 IFF technology to drive segment growth 106
7.2.2 TRANSCEIVER 107
- 7.2.2.1 Evolving threat landscape and need for secure and reliable transmission to propel segment 107
7.2.3 ANTENNA 107
- 7.2.3.1 Enhanced capability of advanced antennas to boost segment growth 107
7.2.4 TRANSMITTER 108
- 7.2.4.1 Need for advanced military transmitter to drive innovation in segment 108
7.2.5 RECEIVER 108
- 7.2.5.1 Innovation-driven advancements to drive segment 108
7.3 NAVIGATION 109
7.3.1 INERTIAL NAVIGATION SYSTEM 109
- 7.3.1.1 Development of miniaturized and cost-effective systems to drive segment growth 109
- 7.3.1.2 Altimeter 109
- 7.3.1.3 Magnetometer 109
- 7.3.1.4 Gyroscope 109
7.3.2 GLOBAL POSITIONING SYSTEM 110
- 7.3.2.1 Advancements in anti-jam and anti-spoof capabilities in GPS technology to boost demand 110
7.3.3 NAVIGATION COMPUTER 110
- 7.3.3.1 Enhanced real-time data processing capabilities to drive segment growth 110
7.4 HUMAN MACHINE INTERFACE 111
7.4.1 NAVIGATION DISPLAY 111
- 7.4.1.1 Integration with emerging technologies to boost segment growth 111
7.4.2 PRIMARY FLIGHT DISPLAY 111
- 7.4.2.1 Development of new and advanced displays to boost demand 111
7.4.3 MULTI-FUNCTION DISPLAY 111
- 7.4.3.1 Evolving requirements from military sector to lead to increased demand 111
7.5 FLIGHT CONTROL 112
7.5.1 DIGITAL FLIGHT CONTROL COMPUTER 112
- 7.5.1.1 Enhanced precision and adaptability of digital systems to propel segment growth 112
7.6 TARGETING 112
7.6.1 RADAR 112
- 7.6.1.1 Shift in military requirements and tactics to drive segment 112
- 7.6.1.2 Antenna 113
- 7.6.1.3 Transmitter 113
- 7.6.1.4 Receiver 113
- 7.6.1.5 Digital signal processor 113
- 7.6.1.6 Power amplifier 113
- 7.6.1.7 Duplexer 113
7.6.2 ELECTRO-OPTIC & INFRARED 113
- 7.6.2.1 Limited service life for EO/IR systems leading to costly maintenance drives segment growth 113
- 7.6.2.2 Transmitter 114
- 7.6.2.3 Receiver 114
- 7.6.2.4 Beam expander 114
- 7.6.2.5 Optical sensor 114
- 7.6.2.6 Detector 114
- 7.6.2.7 Signal processor 114
7.7 ELECTRONIC WARFARE 114
7.7.1 JAMMER 114
- 7.7.1.1 Advancements in jamming techniques and countermeasure technology to propel segment growth 114
- 7.7.1.2 Transmitter 115
- 7.7.1.3 Receiver 115
- 7.7.1.4 Control unit 115
- 7.7.1.5 Display 115
7.8 SENSOR 115
7.8.1 INFRARED 115
- 7.8.1.1 Evolving operational needs and requirement for outdated sensors to boost segment growth 115
7.8.2 MOTION 116
- 7.8.2.1 Costly maintenance of aging sensors to drive segment growth 116
7.8.3 LIDAR 116
- 7.8.3.1 Need for sensors that help counter emerging threats to boost segment growth 116
7.8.4 PRESSURE 116
- 7.8.4.1 Trend towards miniaturization to boost segment growth 116
7.8.5 RADIATION 117
- 7.8.5.1 Advancements in alternative sensing technologies to drive segment 117
7.8.6 MAGNETIC 117
- 7.8.6.1 Need for sensors that meet specialized requirements to propel segment 117
7.8.7 BIOMETRIC 118
- 7.8.7.1 Focus on development of tamper-resistant sensors to boost segment growth 118
7.8.8 HUMIDITY/TEMPERATURE 118
- 7.8.8.1 Demand for sensors that provide enhanced performance and flexibility to drive segment 118
7.8.9 PROXIMITY 119
- 7.8.9.1 Requirement of sensors that facilitate seamless integration with interconnected defense networks to propel segment 119
8 DEFENSE ELECTRONICS OBSOLESCENCE MARKET, BY PLATFORM 120
8.1 INTRODUCTION 121
8.2 LAND 122
8.2.1 COMBAT VEHICLE 122
- 8.2.1.1 Increasing demand for electronics in asymmetric warfare to drive segment 122
- 8.2.1.2 Main battle tank 122
- 8.2.1.3 Infantry fighting vehicle 122
- 8.2.1.4 Armored personnel carrier 123
- 8.2.1.5 Light armored vehicle 123
8.2.2 COMBAT SUPPORT VEHICLE 123
- 8.2.2.1 Requirement for interoperability with various platforms and systems to boost segment growth 123
- 8.2.2.2 Armored combat support vehicle 123
- 8.2.2.3 Mine-resistant ambush-protected 123
8.3 NAVAL 124
8.3.1 AIRCRAFT CARRIER 124
- 8.3.1.1 Development of more efficient and advanced launch and recovery systems to propel segment 124
8.3.2 DESTROYER 124
- 8.3.2.1 Rapid advancements in sensor, communications, and weapon technologies to boost segment growth 124
8.3.3 FRIGATE 124
- 8.3.3.1 Evolving mission requirements to drive segment 124
8.3.4 CORVETTE 125
- 8.3.4.1 Need to achieve operational effectiveness in designated environments to propel segment 125
8.3.5 SUBMARINE 125
- 8.3.5.1 Evolution of anti-submarine warfare to boost segment growth 125
8.3.6 PATROL VESSEL 125
- 8.3.6.1 Growing requirement for substitution of outdated and ineffective electronics to drive segment 125
8.3.7 MINE COUNTERMEASURES SHIP 126
- 8.3.7.1 Development of more sensitive and accurate systems to boost segment growth 126
8.4 AIRBORNE 126
8.4.1 COMBAT AIRCRAFT 126
- 8.4.1.1 Rising need for interoperability and integration to boost drive segment 126
8.4.2 TRANSPORT AIRCRAFT 127
- 8.4.2.1 Growing requirement for maintenance and support of aging systems to propel segment 127
8.4.3 SPECIAL MISSION AIRCRAFT 127
- 8.4.3.1 Increasing production of aircraft that support wide range of specialized missions to drive market 127
8.4.4 COMBAT HELICOPTER 128
- 8.4.4.1 Rise in need for continuous upgrades to adapt to new emerging tactics will boost segment 128
9 TYPES OF DEFENSE ELECTRONICS OBSOLESCENCE 129
9.1 INTRODUCTION 130
9.2 LOGISTICS OBSOLESCENCE 130
9.3 FUNCTIONAL OBSOLESCENCE 130
9.4 TECHNOLOGY OBSOLESCENCE 131
10 REGIONAL ANALYSIS 132
10.1 INTRODUCTION 133
10.2 REGIONAL RECESSION IMPACT ANALYSIS 134
10.3 NORTH AMERICA 136
10.3.1 NORTH AMERICA: RECESSION IMPACT 136
10.3.2 NORTH AMERICA: PESTLE ANALYSIS 137
10.3.3 US 139
- 10.3.3.1 Focus of DOD on mitigation of obsolescence risks to drive market 139
10.3.4 CANADA 140
- 10.3.4.1 Significant government support for defense infrastructure modernization to propel market 140
10.4 EUROPE 141
10.4.1 EUROPE: RECESSION IMPACT 141
10.4.2 EUROPE: PESTLE ANALYSIS 142
10.4.3 UK 144
- 10.4.3.1 Increasing need to improve operational readiness of defense systems to boost market growth 144
10.4.4 FRANCE 145
- 10.4.4.1 Evolving defense needs to fuel market growth 145
10.5 ASIA PACIFIC 146
10.5.1 ASIA PACIFIC: RECESSION IMPACT 146
10.5.2 ASIA PACIFIC: PESTLE ANALYSIS 146
10.5.3 INDIA 149
- 10.5.3.1 Focus on modernization of aging electronic components and systems to drive market 149
10.5.4 AUSTRALIA 150
- 10.5.4.1 Growing efforts to upgrade military aircraft to boost market growth 150
10.6 MIDDLE EAST 151
10.6.1 MIDDLE EAST: RECESSION IMPACT 151
10.6.2 MIDDLE EAST: PESTLE ANALYSIS 151
10.6.3 SAUDI ARABIA 154
- 10.6.3.1 Rise in need to upgrade airborne surveillance system aircraft to drive market 154
10.6.4 UAE 155
- 10.6.4.1 Increasing demand for advanced border defense systems to boost market growth 155
11 COMPETITIVE LANDSCAPE 156
11.1 OVERVIEW 156
11.2 STRATEGIES ADOPTED BY KEY PLAYERS 156
11.3 RANKING ANALYSIS 158
11.4 REVENUE ANALYSIS 158
11.5 MARKET SHARE ANALYSIS 159
11.6 COMPANY EVALUATION MATRIX, 2022 161
11.6.1 STARS 161
11.6.2 EMERGING LEADERS 161
11.6.3 PERVASIVE PLAYERS 161
11.6.4 PARTICIPANTS 161
11.7 COMPANY FOOTPRINT 163
11.8 START-UP/SME EVALUATION MATRIX, 2022 166
11.8.1 PROGRESSIVE COMPANIES 166
11.8.2 RESPONSIVE COMPANIES 166
11.8.3 DYNAMIC COMPANIES 167
11.8.4 STARTING BLOCKS 167
11.8.5 COMPETITIVE BENCHMARKING 168
11.9 COMPETITIVE SCENARIOS AND TRENDS 170
11.9.1 DEALS 170
11.9.2 OTHER DEVELOPMENTS 171
11.10 FINANCIAL METRICS AND VALUATION 174
12 COMPANY PROFILES 175
12.1 INTRODUCTION 175
12.2 KEY PLAYERS 175
12.2.1 RAYTHEON TECHNOLOGIES CORPORATION 175
12.2.2 BAE SYSTEMS 181
12.2.3 THALES 186
12.2.4 L3HARRIS TECHNOLOGIES, INC 191
12.2.5 ELBIT SYSTEMS LTD 195
12.2.6 HEXAGON AB 199
12.2.7 LEONARDO S.P.A 201
12.2.8 CURTISS-WRIGHT CORPORATION 204
12.2.9 BHARAT ELECTRONICS LTD 207
12.2.10 ULTRA ELECTRONICS 209
12.2.11 HINDUSTAN AERONAUTICS LTD 210
12.2.12 LOCKHEED MARTIN CORPORATION 212
12.2.13 TT ELECTRONICS 215
12.2.14 SIEMENS AG 217
12.2.15 MEL SYSTEMS AND SERVICES LTD 219
12.3 OTHER PLAYERS 220
12.3.1 ACTIA 220
12.3.2 LARSEN & TOUBRO LIMITED 221
12.3.3 DEFENCE RESEARCH & DEVELOPMENT ORGANIZATION (DRDO) 222
12.3.4 CYIENT LIMITED 223
12.3.5 RADEL ADVANCED TECHNOLOGY PVT. LTD 224
12.3.6 ALL TECH ELECTRONICS 225
12.3.7 CONVERGE 226
12.3.8 EINFOCHIPS 227
12.3.9 A2 GLOBAL ELECTRONICS + SOLUTIONS 228
12.3.10 FERMIONX 229
13 APPENDIX 230
13.1 DISCUSSION GUIDE 230
13.2 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 231
13.3 CUSTOMIZATION OPTIONS 233
13.4 RELATED REPORTS 233
13.5 AUTHOR DETAILS 234