What Will the Military Embedded Systems Market Look Like in the Coming Years?
The military embedded systems market size has seen notable growth in the past few years, accelerating from $1.75 billion in 2024 to a predicted $1.92 billion in 2025. This indicates a compound annual growth rate (CAGR) of 9.6%. Various factors such as advancements in microelectronics, rising global security challenges, need for real-time data processing, cybersecurity concerns, and evolution in unmanned systems have contributed to this growth.
Moreover, the military embedded systems market size is expected to continue its robust growth in the upcoming years. By 2029, the market is projected to reach $2.71 billion at a CAGR of 9.1%. Growth factors during this forecast period include increased focus on interoperability in joint operations, enhanced cyber resilience, a push towards energy efficiency, application in space-based systems, functionality in hypersonic weapon systems, and ongoing global military modernisation initiatives. Key trends that are expected to shape the market include rapid advancements in processing power, increased use of high-performance computing (HPC), focus on size, weight, and power (SWaP) optimisation, and integration of artificial intelligence (AI) and machine learning (ML).
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What’s Driving the Military Embedded Systems Market Growth?
Increasing global terrorism is identified as a key driver for growth in the military embedded systems market. Security screening systems such as military embedded systems are on higher demand than ever before, due to their application in tracking terrorist activities. According to the global terrorism index report by the Institute for Economics and Peace (IEP) in 2023, deaths per terrorist attack increased marginally in 2022, with an average of 1.7 deaths per attack, compared to 1.3 deaths per attack in 2021. Further, in 2022, total deaths due to terrorist activities stood at 6,701. This upward trend in worldwide terrorism has driven the demand for security screening systems, contributing to the market growth.
What Are the Key Segments in the Military Embedded Systems Market?
The report covers the following segments in the military embedded systems market;
1) By Component: Hardware, Software
2) By Installation Type: New installation, Upgradation
3) By Platform: Land, Airborne, Naval, Space
4) By Technology: Edge Computing, Fog Computing, Mist Computing
5) By Application: Intelligence, Surveillance, And Reconnaissance (ISR), Command And Control, Communication And Navigation, Electronic Warfare (EW), Weapon And Fire Control, Wearable, Other Applications
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Who Are the Major Players in this Industry?
The report identifies the following major players in the military embedded systems market: Xilinx Inc., Mercury Systems Inc., Curtiss-Wright Corporation, Kontron (S&T), SMART Embedded Computing, Advantech Co Ltd., Thales Group, Abaco Systems, Microsemi Corporation, General Micro Systems Inc., BAE Systems, Intel Corporation, Radisys Corporation, Telephonics Corporation, General Dynamics Corporation, Raytheon Company, Rockwell Collins, AMETEK, Saab AB, Boeing, Concurrent Technologies, Crystal Group Inc., Elma Electronic Inc., Excalibur Systems, Northrop Grumman Corporation, ECRIN Systems, Harris Corporation, Honeywell International Inc., IBM Corporation.
What Are the Emerging Trends in the Military Embedded Systems Market?
Product innovation has emerged as a pivotal trend within the military embedded systems market. One such example is US-based aerospace company Pratt & Whitney, who launched an AI-based aircraft engine inspection tool named ‘Percept’ in June 2023. An embedded military system, ‘Percept’ is a multi-sensor AI platform that provides real-time situational awareness and decision support for military operations. Users of this cloud-based computing system can record and photograph aircraft engines using a mobile device, and get instant comprehensive information about the parts’ availability.
How Do Different Regions Perform in the Military Embedded Systems Market?
North America was the largest region in the military embedded systems market in 2024. However, Asia-Pacific is expected to be the fastest-growing region during the forecast period. Other regions covered in the report include Western Europe, Eastern Europe, South America, the Middle East, and Africa.
What Does The Military Embedded Systems Market Report 2025 Offer?
The Military Embedded Systems Market report offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities. A military embedded system is an intricate set of hardware and software designed to fulfill a variety of military applications, including electronic warfare, satellite surveillance, and military traffic systems.
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