PUBLISHER: Aviation & Defense Market Reports (A&D) | PRODUCT CODE: 1896743
PUBLISHER: Aviation & Defense Market Reports (A&D) | PRODUCT CODE: 1896743
The Global Defense Vetronics market is estimated at USD 5.23 billion in 2026, projected to grow to USD 8.01 billion by 2036 at a Compound Annual Growth Rate (CAGR) of 4.35% over the forecast period 2026-2036.

The defense vetronics market encompasses the electronic systems integrated into military vehicles to enhance their performance, situational awareness, and operational efficiency. Vetronics-short for vehicle electronics-serves as the digital backbone of armored vehicles, tanks, and tactical transport platforms. These systems combine navigation, communication, surveillance, power management, and command-and-control functionalities, enabling real-time information sharing and improved battlefield coordination. As modern combat becomes increasingly network-centric, vetronics play a vital role in connecting vehicles to wider defense communication grids, ensuring seamless data exchange and mission adaptability. The demand for smarter, interconnected, and survivable land systems continues to grow as militaries modernize their fleets for both conventional and asymmetric warfare. Vetronics are therefore becoming essential for improving crew safety, mission accuracy, and interoperability across multi-domain defense environments.
The defense vetronics market encompasses the electronic systems integrated into military vehicles to enhance their performance, situational awareness, and operational efficiency. Vetronics-short for vehicle electronics-serves as the digital backbone of armored vehicles, tanks, and tactical transport platforms. These systems combine navigation, communication, surveillance, power management, and command-and-control functionalities, enabling real-time information sharing and improved battlefield coordination. As modern combat becomes increasingly network-centric, vetronics play a vital role in connecting vehicles to wider defense communication grids, ensuring seamless data exchange and mission adaptability. The demand for smarter, interconnected, and survivable land systems continues to grow as militaries modernize their fleets for both conventional and asymmetric warfare. Vetronics are therefore becoming essential for improving crew safety, mission accuracy, and interoperability across multi-domain defense environments.
The key drivers propelling the defense vetronics market include the increasing demand for connected, digitalized, and modular land platforms. As modern battlefields rely heavily on real-time data exchange, the need for integrated systems that enhance communication, navigation, and situational awareness has intensified. Defense modernization programs are focusing on upgrading legacy vehicles with advanced vetronic architectures to improve mission readiness and interoperability. The rise of electronic warfare and cyber threats has also driven the development of more secure, hardened systems capable of maintaining functionality under attack. Growing emphasis on crew safety, efficiency, and automated vehicle operation further accelerates innovation in control, display, and diagnostic technologies. Additionally, the expansion of unmanned ground vehicles and hybrid-electric propulsion systems has increased reliance on sophisticated vetronics for control and power distribution. Together, these factors underscore the strategic role of vetronics in enabling smarter, more resilient, and networked defense platforms.
Regional trends in the defense vetronics market reflect varying modernization priorities and industrial capabilities. North America continues to lead with extensive integration of advanced digital systems into armored fleets and next-generation combat vehicles. Europe is investing in modular vetronics solutions to enhance interoperability across multinational forces and joint missions. The Asia-Pacific region is witnessing rapid expansion driven by indigenous defense production, focusing on cost-effective and technologically advanced vehicle electronics. The Middle East is modernizing its armored fleets with emphasis on command-and-control, communication, and threat detection systems suited for desert and urban combat conditions. Latin America and Africa are gradually adopting vetronic upgrades through partnerships with international defense suppliers, emphasizing reliability and scalability. Across all regions, defense agencies are prioritizing the development of intelligent vehicle ecosystems that enhance situational awareness, combat survivability, and strategic mobility in increasingly digital warfare environments.
Leonardo DRS announced it has secured a U.S. Army contract to develop prototype Vehicle Integrated Power Kits (VIPKs) aimed at providing easily accessible, on-demand electrical power in operational environments. These kits will supply scalable, exportable power directly from tactical vehicles to mission-critical systems-such as communications, electronic warfare and counter-UAS capabilities-eliminating reliance on external power sources. The prototypes will be developed using Leonardo DRS's On-Board Vehicle Power (OBVP) technology, also known as TITAN, which can generate up to 120 kW of electrical power from the vehicle's drivetrain. This capability allows for the operation of high-energy systems including mobile command and control, missile defense launchers, radar systems, directed energy weapons and expeditionary power microgrids, whether the vehicle is in motion or stationary.
By Platform
By Region
By End User
The 10-year defense vetronics market analysis would give a detailed overview of defense vetronics market growth, changing dynamics, technology adoption overviews and the overall market attractiveness is covered in this chapter.
This segment covers the top 10 technologies that is expected to impact this market and the possible implications these technologies would have on the overall market.
The 10-year defense vetronics market forecast of this market is covered in detailed across the segments which are mentioned above.
The regional defense vetronics market trends, drivers, restraints and Challenges of this market, the Political, Economic, Social and Technology aspects are covered in this segment. The market forecast and scenario analysis across regions are also covered in detailed in this segment. The last part of the regional analysis includes profiling of the key companies, supplier landscape and company benchmarking. The current market size is estimated based on the normal scenario.
North America
Drivers, Restraints and Challenges
PEST
Key Companies
Supplier Tier Landscape
Company Benchmarking
Europe
Middle East
APAC
South America
This chapter deals with the key defense programs in this market, it also covers the latest news and patents which have been filed in this market. Country level 10 year market forecast and scenario analysis are also covered in this chapter.
US
Defense Programs
Latest News
Patents
Current levels of technology maturation in this market
Canada
Italy
France
Germany
Netherlands
Belgium
Spain
Sweden
Greece
Australia
South Africa
India
China
Russia
South Korea
Japan
Malaysia
Singapore
Brazil
The opportunity matrix helps the readers understand the high opportunity segments in this market.
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