Electronic Warfare Market Forecasts to 2030 - Global Analysis By Capability, By Platform, By Technology and By Geography

According to Stratistics MRC, the Global Electronic Warfare Market is accounted for $20.4 billion in 2023 and is expected to reach $33.2 billion by 2030 growing at a CAGR of 7.2% during the forecast period. Electronic warfare (EW) encompasses the use of electromagnetic spectrum to disrupt or protect communication and control systems. It includes electronic countermeasures (ECM) to jam enemy signals, electronic counter-countermeasures (ECCM) for defense, and electronic support measures (ESM) for intelligence gathering. EW provides a crucial advantage in modern warfare by enhancing situational awareness and disrupting adversary capabilities.

According to the Stockholm International Peace Research Institute (SIPRI), the global military expenditure was USD 1.98 Trillion in 2020 and has increased by 0.7% to USD 2.1 Trillion in 2021.

Market Dynamics:

Driver:

Rising geopolitical tensions and the increasing focus on national security

Nations confront complex threats, the demand for advanced electronic warfare capabilities has surged. The evolving nature of conflicts, characterized by cyber threats and electronic warfare challenges, propels investments in cutting-edge technologies. Governments recognize the pivotal role electronic warfare plays in safeguarding critical military assets and maintaining strategic superiority. Consequently, the electronic warfare market witnesses heightened interest and funding, as nations strive to fortify their defenses, respond to emerging threats, and bolster their overall security posture in an increasingly dynamic and contested global landscape.

Restraint:

Economic uncertainties and budget constraints

Governments and defense organizations allocate funds based on economic conditions, and during periods of uncertainty or downturns, defense budgets may face reductions. The high cost of developing and acquiring advanced electronic warfare technologies can lead to delays or cancellations of projects, impacting the industry's growth. Additionally, competition for limited defense budgets among various military capabilities further intensifies the strain on electronic warfare investments. Companies operating in this market must navigate the delicate balance between meeting stringent defense requirements and managing cost-effectiveness.

Opportunity:

Electronic warfare technologies with dual-use applications

By designing EW systems that not only cater to military needs but also find applications in civilian domains such as cybersecurity and telecommunications, companies can diversify their market reach. Dual-use technologies allow for a broader customer base, increased innovation, and potential collaboration with both military and commercial sectors. This not only enhances the economic viability of EW solutions but also fosters cross-sector partnerships, enabling shared expertise and resources. As the demand for sophisticated electronic capabilities grows in both military and civilian contexts, the development of EW technologies with dual-use applications stands as a key avenue for market expansion and sustained growth.

Threat:

Evolution of adversarial tactics

As technology advances, adversaries continuously seek innovative ways to counter existing EW systems. This dynamic landscape requires constant adaptation and enhancement of defensive capabilities to stay ahead of emerging threats. Adversaries may exploit vulnerabilities, employ stealthier communication methods or develop sophisticated electronic counter-countermeasure strategies. Rapid advancements in artificial intelligence, cyber capabilities, and signal processing further amplify the complexity of this threat.

COVID-19 Impact:

The COVID-19 pandemic has influenced the electronic warfare market by disrupting global supply chains, delaying production schedules, and affecting defense budgets. Governments worldwide shifted priorities towards public health, potentially impacting defense spending and acquisition plans. Travel restrictions also impeded collaboration and technology transfer. However, the crisis underscored the importance of resilient and adaptable electronic warfare systems in addressing emerging threats, leading to potential opportunities for innovation and increased investment in modernization efforts as nations seek to enhance their defense capabilities in response to evolving geopolitical challenges.

The electronic attack (EA) segment is expected to be the largest during the forecast period

The electronic attack (EA) segment is expected to have a lucrative growth. EA employs techniques such as jamming, spoofing, and signal interception to impede enemy communication, radar, and sensor systems. By degrading or neutralizing opposing electronic capabilities, EA enhances the survivability and effectiveness of friendly forces. In a constantly evolving threat landscape, the development of sophisticated EA systems is crucial for maintaining a strategic edge, as it enables forces to control and dominate the electromagnetic spectrum, shaping the outcome of conflicts and ensuring mission success.

The air-based segment is expected to have the highest CAGR during the forecast period

The air-based segment is anticipated to witness the fastest CAGR growth during the forecast period. These systems include radar jamming, signal intelligence, and electronic countermeasure capabilities. Airborne electronic warfare provides a strategic advantage by enabling the suppression of enemy air defences, protecting friendly aircraft, and ensuring mission success. Advanced air-based electronic warfare platforms can detect, analyze, and respond to diverse electronic threats, enhancing survivability and mission effectiveness. As air operations become increasingly complex, the integration of cutting-edge electronic warfare technologies into aerial platforms remains critical for maintaining air superiority and ensuring the success of military missions.

Region with largest share:

During the forecast period, it is expected that the North American Electronic Warfare market driven by extensive defense spending and technological advancements. The region's robust military infrastructure, particularly in the United States, fosters the development and deployment of sophisticated electronic warfare systems. The U.S. Department of Defense invests significantly in research and procurement, propelling innovation and sustaining a competitive edge. Additionally, the presence of major defense contractors and a focus on modernizing military capabilities contribute to North America's leadership in the electronic warfare sector, making it a pivotal hub for the development and implementation of cutting-edge electronic warfare technologies.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period driven by escalating regional tensions, military modernization initiatives, and technological advancements. Countries like China, India, and South Korea are investing significantly in electronic warfare capabilities to strengthen their defense posture. The increasing threat landscape, including cyber threats and evolving geopolitical dynamics, fuels the demand for sophisticated electronic warfare systems. Collaboration between regional defense industries and international partnerships further contributes to the growth of the electronic warfare market in the Asia-Pacific, making it a pivotal hub for developments in this critical defense sector.

Key players in the market:

Some of the key players in Electronic Warfare market include BAE Systems Plc., Thales Group, Elbit Systems Ltd., SAAB AB, General Dynamics Corporation, Israel Aerospace Industries Ltd. (IAI), Raytheon Technologies Corporation, L3Harris Technologies, Inc., Northrop Grumman Corporation, Leonardo SpA, Moog Inc. and Lockheed Martin Corporation.

Key Developments:

In December 2023, BAE Systems, Inc. and the U.S. Department of Commerce jointly reveal the inaugural funding under the CHIPS and Science Act, aimed at revitalizing a microelectronics facility..

In July 2023, Raytheon Technologies signed a contract with the naval air systems command to support Next-Generation Jammer (NGJ) Mid-Band (MB). The contract was worth USD 26.6 million and included the design, development, and testing of NGJ-MB software.

In March 2023, The Indian Ministry of Defense signed a contract with Bharat Electronics Limited (BEL), Hyderabad, to purchase two Integrated EW Systems, "Project Himshakti," at a total cost of approximately USD 362.2 million

In September 2022, Boeing (US) has contracted BAE Systems to build more Eagle Passive Active Warning Survivability Systems (EPAWSS), which offer cutting-edge situational awareness and self-defense capabilities, for American F-15E and F-15EX Eagle aircraft. The overall contract value to produce EPAWSS now stands at USD 351 million. According to the agreement, Boeing will keep installing EPAWSS on both new F-15EXs and existing F-15Es, giving the aircraft vital electromagnetic capabilities.

Capabilities Covered:

• Electronic Attack (EA)
• Electronic Protection (EP)
• Electronic Support (ES)
• Other Capabilities

Platforms Covered:

• Air-Based
• Land-Based
• Naval
• Space-Based

Technologies Covered:

• Antennas
• Radio Frequency (RF) Systems
• Infrared (IR) Systems
• Directed Energy Weapons
• Cyber Warfare
• Other Technologies

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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