Electronic Warfare Market Size and Analysis by 2028

The electronic warfare market is projected to reach US$ 27,797.72 million by 2028 from US$ 18,192.85 million in 2021. It is expected to grow at a CAGR of 6.2% from 2021 to 2028.

Any activity involving the use of the electromagnetic spectrum or directed energy to control the spectrum, attack an adversary, or obstruct hostile attacks is referred to as electronic warfare. Electronic warfare aims to deny the enemy the advantage of the electromagnetic spectrum while ensuring that allied forces have unrestricted access to it. Modern warfare has always included electronic warfare; however, it has progressed far beyond radio jamming. During the forecast period from 2021 to 2028, the global electronic warfare market size is expected to grow due to increased innovation and the development of new warfare.

As per Insight partner market research analysis, the global market growth is primarily driven by the increasing procurement of electronic warfare systems. The frequency of bilateral military confrontations between countries is increasing rapidly, necessitating a greater requirement for countries' defense forces to strengthen their security measures. The rise in the deployment of electronic warfare systems on unmanned vehicles is the key factor supporting the market. However, limited access to electronic warfare manufacturing facilities in developing countries is restricting the growth of the market.

Strategic Insights

Impact of COVID-19 Pandemic on Electronic Warfare Market Growth

The onset of the COVID-19 crisis has posed numerous challenges and hampered the business dynamics. Many developing and developed countries' governments have limited their defense budgets. However, rising geographical tension between neighboring countries has led many governments to invest massive capital in their defense budget. Thus, with the rising defense budgets across the globe, the electronic warfare market is showing a Northward direction of growth. For instance, on 28 March 2022, the US government announced the fiscal year 2023 defense budget; the US government is investing US$ 773 billion, which is a 4.1% increase from the fiscal year 2022. The Chinese government has announced in the 2022 defense budget that the government will invest US$ 229.5 billion (CNY 1.45 trillion), which is a 7.1% increase from the previous year, and the Indian government is investing US$ 70.6 billion (INR 5.25 trillion) in 2022-2023. Thus, the rising defense budget is positively impacting the electronic warfare market.

Lucrative Regions for Electronic Warfare Market

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Market Insights – Electronic Warfare Market

The global electronic warfare market based on geography is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). In terms of electronic warfare market share, the North American market held the largest share in 2020 and is also expected to dominate the market during the forecast period. The ongoing digital transition has a significant impact across the electromagnetic spectrum (EMS). Adversaries use the EMS to plan and execute actions, while friendly forces try to maintain dominance in the combined, all-domain environment. The presence of well-established market players in Europe such as Saab, Bae Systems Thales Group, Cobham Limited, and Leonardo S.p.A. is further augmenting the growth of the electronic warfare market in the region. In 2021, BAE Systems received a US$ 493 million contract modification from Lockheed Martin to significantly upgrade and modernize the electronic warfare (EW) system for the F-35 Lightning II, enabling the fifth-generation fighter to detect and address evolving electromagnetic threats in contested battlespaces instantly. The ongoing war between Russia and Ukraine has further increased the growth of electronic warfare systems in the countries, which is augmenting the electronic warfare market growth.  .

The presence of well-established market players in Europe, such as Saab, Bae Systems Thales Group, Cobham Limited, and Leonardo S.p.A. is augmenting the growth of the electronic warfare market in the region.

The APAC market held the second-largest share in the electronic warfare market share in 2020. The rise in economies and technological advancements supports the growth of diversified industries and markets in APAC, including the military. India, China, South Korea, and Japan are among the major countries in the region with great military strength. These countries invest huge resources in military operations, which allows them to deploy advanced systems and technologies, including electronic warfare systems. Many East Asian countries are rapidly developing their electronic warfare capabilities, including their maritime EW capabilities. The development of EW capabilities reflects widespread regional efforts to achieve national self-reliance and the widespread recognition of the value of electronic warfare as a "force multiplier. It is further increasing the demand for electronic warfare across the region, thereby contributing to the growth of the regional electronic warfare market.

Component-Based Insights

Based on component, the electronic warfare market is segmented into hardware, software, and services. The hardware segment accounted for the largest market in 2020. The electronic warfare hardware is the collection of components, such as electronic sensors, antenna (8230AJ GPS/GNSS Anti-Jam Outdoor Antenna), voltage-controlled oscillator, tuning circuit, noise generator, RF amplification (gain stage), and power supply (battery), that are assembled in applications, such as jammer, sensor systems, weapon system, and radars. Advanced technologies counter current and emerging threats with broad bandwidth, near-instantaneous detection, and industry-leading signal processing. As a result, many countries are adopting fifth-generation hardware electronic systems to gain fasters and more reliable efficiency for electronic warfare applications. For instance, the US Army awarded Lockheed Martin Corporation a US$ 281 million contract to develop the Sentinel A4 system in September 2019. This high-capacity air and missile defense radar add to the defense against aerial threats. The hardware segment is dominating the market with the rise in defense spending of emerging economies.

The electronic warfare market is analyzed on the basis of component, application, product type, and geography. Based on component, the market is segmented into hardware, software, and services. By application, the market is segmented into electronic attack, electronic protection, and electronic warfare support. Based on product type, the market is segmented into countermeasure systems, jammers, sensor systems, weapons systems, and others. By geography, the electronic warfare market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

Lockheed Martin Corporation, Raytheon Technologies, L3Harris Corporation, Northrop Grumman Corporation, and BAE Systems Plc are prominent players in the electronic warfare market. The market is highly fragmented, with several players localized in a specific region to cater to domestic demand.

Players operating in the electronic warfare market are mainly focused on the development of advanced and efficient products.

• In 2021, L3 Harris won a US$ 120 million contract to upgrade Space Force electronic jammers. On December 23, 2020, the company received US$ 496 million from the US navy under the Next Generation Jammer Low Band aerial jamming program to manufacture Next Generation jammers.
• In 2022, Israel successfully tested the new "Iron Beam" laser-based air defense system. This is the world's first energy-based weapons system that uses a laser to shoot down incoming UAVs, rockets, and mortars.