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Electronic Warfare Market Poised to Witness High Growth Owing to Increasing Geopolitical Tensions

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ashwinicmi
Electronic Warfare Market Poised to Witness High Growth Owing to Increasing Geopolitical Tensions

Electronic warfare refers to military action involving the use of electromagnetic spectrum for employing weapons that use electromagnetic radiating or electric energy. Electronic warfare systems are crucial in modern warfare as they help detect, protect, and disrupt communications and radar signals. The need for these systems is rapidly increasing due to rising geopolitical tensions and international conflicts across the globe.

The electronic warfare market is estimated to be valued at US$ 18.45 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the electronic warfare market are BAE Systems plc, Elbit Systems Ltd., General Dynamics Corporation, Israel Aerospace Industries Ltd., L3Harris Technologies Inc., Leonardo SpA, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, SAAB AB, Thales Group, Mistral Solutions Pvt. Ltd.

, Chelton Limited, Rafael Advanced Defense Systems Ltd, Rohde & Schwarz India Pvt Ltd, QUEST GLOBAL, Mercury Systems, Inc., IAI, DRDO, TEKTRONIX, INC., and Tata Advanced Systems Limited. BAE Systems plc, Lockheed Martin Corporation, Northrop Grumman Corporation, and Raytheon Technologies Corporation collectively account for over 35% of the global Electronic Warfare Market Size share.

The increasing deployment of unmanned systems across armed forces globally presents lucrative growth opportunities for electronic warfare solution providers. Also, the increasing spending on border security and rising focus on asymmetric warfare tactics are expected to drive demand. Several key players are focused on partnerships and mergers & acquisitions for geographic and product line expansion to leverage growth opportunities across emerging markets such as Asia Pacific, Middle East, and Africa.

Market drivers and restrain

One of the key drivers for the electronic warfare market is the increasing geopolitical tensions and asymmetric warfare across various parts of the world. Many countries are increasingly investing in electromagnetic spectrum technologies as they play a critical role in military communications and intelligence gathering. This is driving demand for offensive and defensive electronic warfare systems globally.

However, the high costs associated with research, development, procurement and maintenance of electronic warfare systems pose a major challenge. Electronic warfare technologies involve complex algorithms, hardware designs and testing which require long development cycle times and significant investments. Budgetary constraints faced by some defense organizations may limit investments in such costly technologies, restraining market growth to some extent over the forecast period.

Segment Analysis

The electronic warfare market is divided in sub segments such as Electronic Support (ES), Electronic Attack (EA), and Electronic Protection (EP). The ES sub segment accounts for the largest market share currently and dominates the electronic warfare market. The ES sub segment monitors enemy radar signals to keep track of their activities and signal frequencies. It helps in planning tactical decisions by acquiring enemy information and avoiding detection.

The electronic warfare market is also segmented based on platforms such as airborne, ground, naval, and space. The airborne sub segment is dominating currently due to increasing investments in upgrading electronic warfare systems in aircraft and UAVs. The airborne sub segment holds the biggest share as militaries are focusing more on investments in aircraft mounted electronic support measures and electronic attack systems to gain dominance in aerial warfare.

Global Analysis

In terms of regions, North America dominates the electronic warfare market currently due to significant investments and presence of major players like Lockheed Martin, BAE Systems, Northrop Grumman in the region. The electronic warfare market in North America is further expected to grow at a steady rate during the forecast period. Asia Pacific is the fastest growing region in the electronic warfare market due to rising defense budgets of major countries like India, China and increasing procurement of electronic warfare systems by these countries. Countries are also focusing on development of indigenous electronic warfare capabilities in the region. The electronic warfare market is expected to grow steadily in the European region also during the forecast period.

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