Forecasting the Surge in the Military Land Vehicle Electronics Market from USD 8.93 Billion (2024) to USD 15.2 Billion By 2035

Military Land Vehicle Electronics (Vetronics) Market Overview:

In 2024, the Military Land Vehicle Electronics (Vetronics) Market was estimated to be worth 8.93 billion USD. By 2035, it is anticipated that the military land vehicle electronics (Vetronics) market will have grown from 9.38 billion USD in 2025 to 15.2 billion USD. The Military Land Vehicle Electronics (Vetronics) Market is anticipated to develop at a compound annual growth rate (CAGR) of approximately 5.0% from 2025 to 2035.

What’s Fueling the Vetronics Boom

Modernization of Fleets and Rising Defense Budgets

Many nations worldwide are renewing their armored vehicles, tanks, infantry fighting vehicles, and other land platforms. These efforts are rarely superficial — upgrades in electronics have become non-negotiable for maintaining battlefield edge. More nations are allocating higher portions of their defense budgets toward vetronics, especially in North America, Europe, and the Asia-Pacific.

Technological Push: AI, Sensors, Connectivity

The integration of advanced sensors, artificial intelligence, machine learning, and digital electronics is transforming vehicle electronics from passive systems into intelligent, adaptive networks. For example, sensor fusion and predictive diagnostics are making vehicles smarter; autonomous features are becoming more viable; communication/navigation systems are becoming more robust and secure.

Survivability & Situational Awareness Emphasis

Enhancing vehicle survivability under modern battlefield conditions — including electronic warfare, drone threats, and cyber-intrusions — requires robust defensive systems and secure communication channels. Real-time situational awareness via surveillance, fire control, and navigation systems is increasingly seen as essential.

Global Geopolitical Pressures & Regional Dynamics

Asia-Pacific is witnessing growing investment in vetronics due to regional security challenges. Europe’s modernization push remains strong in the face of shifting threat perceptions. In North America, procurement programs continue to support advanced vehicle electronics integration. Meanwhile, regions such as South America, the Middle East, and Africa are stepping up, though often from a lower base.

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Key Sub-Markets & Segments to Watch

Applications: Command and control systems are forecasted to grow significantly (from ~US$1.88 billion in 2024 toward higher values by 2035), underlining the priority placed on leadership, coordination, and decision support. Communication, navigation, surveillance, and fire control systems will also see strong demand.

Types: Segments like defensive systems, tactical systems, electronic warfare systems, and combat systems are all critical. Defensive systems (armor electronics, threat detection, countermeasures) and electronic warfare in particular are gaining traction.

Vehicle Types: Armored vehicles and tanks remain dominant users of vetronics, given the complexity and mission criticality of their systems. Infantry fighting vehicles are increasing in importance, especially as they are expected to carry more intelligence, communication, and sensor loads. Transport vehicles, while necessary, may see more modest growth in electronics spend relative to fighting vehicles.

Technology: Digital electronics — for processing, connectivity, data handling — are taking centre stage. Advanced sensors and microelectromechanical systems (MEMS) are also standing out as enablers for compactness, agility, and real-time responsiveness. Analog electronics still have a role, especially in sensor interfacing and legacy systems, but their relative growth is slower.

Regions:

North America leads, both from capacity and defense budget standpoint. Estimated at ~US$4.0B in 2024, it is projected to grow significantly by 2035.

Europe is catching up with ongoing modernization, cross-border programs, and demand for interoperability.

 Asia-Pacific is growing fast, driven by large emerging markets (e.g. India, China) investing in defense, regional tensions, and domestic capability development.

South America & MEA are growing more gradually, but represent meaningful opportunities for vendors who can provide cost-competitive, ruggedized solutions.

Challenges & Strategic Considerations

Cybersecurity Risks: As vetronics systems become more networked — connecting sensors, communication, command & control — they also become more vulnerable. Ensuring data integrity, resisting intrusion, and securing legacy systems remains a high priority.

Cost vs. Capability Trade-Offs: Upgrading or replacing vehicle electronics is expensive. In many countries, budgets are constrained, meaning that solutions must offer meaningful ROI, maintainability, and interoperability with existing platforms.

Supply Chain & Standardization: Sourcing advanced sensors, microelectronics, and software often depends on complex global supply chains. Standardization across platforms and nations (for inter-operability) can be challenging yet valuable.

Regulatory and Policy Uncertainty: Export restrictions, import tariffs, domestic production mandates, and changing defence policy can all affect how quickly vetronics solutions are adopted or procured.

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Key Companies in the Global Military Land Vehicle Electronics (Vetronics) Market include:

• Textron

• QinetiQ

• Oshkosh Defense

• Leonardo

• General Dynamics

• Thales Group

• Elbit Systems

• Raytheon

• Northrop Grumman

• L3Harris Technologies

• Hensoldt

• Honeywell

• Kongsberg Gruppen

• Rheinmetall

• BAE Systems

• SAIC

What’s Next: Opportunities in the 2025-2035 Window

Autonomous & Semi-Autonomous Vehicles: The move toward autonomous land platforms (e.g. unmanned ground vehicles, convoys) will require high-integrity communication, redundancy, advanced sensors, and navigation systems.

Upgrading Legacy Fleets: Rather than replacing entire vehicles, many militaries will invest in retrofitting older platforms with modern electronics — an opportunity for modular, scalable systems.

Partnerships & Joint Development: Collaborations between governments, defence firms, and tech providers (including AI, sensor, and communications firms) can speed innovation and reduce cost.

Focus on Resilience and Survivability: Electromagnetic protection, hardened electronics, countermeasures, and anti-jamming capability will be more in demand.

Table of Contents

SECTION I: EXECUTIVE SUMMARY AND KEY HIGHLIGHTS

SECTION II: SCOPING, METHODOLOGY AND MARKET STRUCTURE

SECTION III: QUALITATIVE ANALYSIS

SECTION IV: QUANTITATIVE ANALYSIS

SECTION V: COMPETITIVE ANALYSIS ........

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