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Global Military Embedded Systems Industry

Global Military Embedded Systems Industry

  • July 2021
  • 185 pages
  • ID: 5799128
  • Format: PDF
  • Global Industry Analysts


Table of Contents


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Global Military Embedded Systems Market to Reach $161.6 Billion by 2026

Embedded systems are both operated as part of bigger systems and independently. The systems though compact, are complete computer systems in themselves, designed for carrying out specific tasks. The smaller size of an embedded system combined with its ruggedness and low cost features make it useful for several applications in the military and defense sector. Embedded systems are used for intelligence, communication, surveillance & reconnaissance, remote operations, AI, electronic warfare and cyber warfare among many others. The systems are used in command and control systems, communication equipment, military computers and data storage devices among others. Traditional systems used by military, for computational purposes, lack in reliability, security and efficiency terms, whereas the advanced embedded systems and wireless technologies eliminate such shortcomings. The systems are also extremely useful in thwarting terrorism and hacking. An embedded system combines both the components software and hardware, which includes mechanical and electrical components. The hardware system of the computer is embedded with software, enabling it to perform specific functions. There are several sub-components in an embedded system, including multifunction I/O boards, single board computers, general purpose GPUs and rugged systems among others. The system is basically a microcontroller
or microprocessor-based device for performing analysis in the real time, a task which is extremely valuable for military operations. Over the years, embedded systems for the military witnessed several improvements, especially in processor technologies and integrated circuits, which led to reduced hardware costs.

Land, naval, space and airborne are the different platforms in which military embedded systems are used, with the land segment accounting for a major share owing to growing need for surveillance. There are different server architectures for military embedded systems but the most desired currently is the blade server architecture due to its increasing adoption in network centric avionics and military applications that necessitate higher end computing with increased input/output than what is possible with standard servers. Advanced blade servers also emerged, adoption of which is rapidly growing in the present scenario, especially for military applications that are network-centric.

Amid the COVID-19 crisis, the global market for Military Embedded Systems estimated at US$100.5 Billion in the year 2020, is projected to reach a revised size of US$161.6 Billion by 2026, growing at a CAGR of 8.3% over the analysis period. Hardware, one of the segments analyzed in the report, is projected to grow at a 7.8% CAGR to reach US$111.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 9.1% CAGR for the next 7-year period. This segment currently accounts for a 34.7% share of the global Military Embedded Systems market.

The U.S. Market is Estimated at $44.3 Billion in 2021, While China is Forecast to Reach $21.1 Million by 2026

The Military Embedded Systems market in the U.S. is estimated at US$44.3 Billion in the year 2021. The country currently accounts for a 41.65% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$21.1 Billion in the year 2026 trailing a CAGR of 10.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.9% and 7.3% respectively over the analysis period period. Within Europe, Germany is forecast to grow at approximately 7.2% CAGR while Rest of European market (as defined in the study) will reach US$23.4 Billion by the close of the analysis period.

Increasing expenditure of governments on strengthening respective military sectors is creating strong demand for military embedded systems. However, cloud computing, wireless technologies and multi-core processors and such other technological advancements are anticipated to disrupt the market for military embedded systems over the years ahead. Governments are also investing in research for developing more advanced embedded systems, which is also a market growth promoting factor. Nonetheless, embedded systems for military applications must be more secure than those used by civilians. The systems must be able to prevent data interception and reverse engineering and designed to perform in the harsh battlefield conditions. Components used in the systems must also be sourced from trusted entities for preventing any unsanctioned software entering into the devices.

There is a strong growing demand for multicore technologies employed in modern warfare. Demand had also increased for network centric warfare systems, wireless technologies and cloud computing which is driving the military embedded systems market worldwide. Other growth promoting factors include increasing focus of militaries worldwide on wireless technologies and cloud computing, rising military expenditure of developing countries in the East, and growing number of terrorism incidents among others. Increasing use of lightweight vehicles, smart wearables, and soldier`s smartphones are also creating ample demand growth opportunities for embedded systems in the military sector. Growing demand for lightweight and fuel efficient aircraft and other sophisticated combat systems also contribute to market growth.

Market growth however, may be restricted by stringent regulations governing use of embedded devices. Rules pertaining to designing of the products are also stringent, which holds the potential to restrict anticipated growth for the market to a certain extent.

Increasing complexities in development of embedded products, stringent security procedures and strict requirements for securing certifications for designs are also the factors restraining market growth. Development of compact embedded systems is becoming challenging by the day. The systems are being required to fit into different portable platforms used for military applications. The size of embedded systems is currently inversely proportional to the number of applications they have come to support. Skilled designers are the need of the hour for designing such complex embedded systems. Quality of code is also important for embedded systems, especially for those employed for security and safety-oriented applications in avionics. Constant upgradation of electronics used in military applications necessitates advancements in embedded systems as well. Designers are required to create components that consume less power and which are smaller in size, which also increased design complexity for embedded system.

By Application, Command & Control Segment to Reach $32 Billion by 2026

Global market for Command & Control (Application) segment is estimated at US$20 Billion in 2020, and is projected to reach US$32 Billion by 2026 reflecting a compounded annual growth rate of 8.2% over the analysis period. The United States constitutes the largest regional market for Command & Control segment, accounting for 39.8% of the global sales in 2020. China is poised to register the fastest compounded annual growth rate of 10.3% over the analysis period, to reach US$5 Billion by the end of the analysis period.

Select Competitors (Total 47 Featured)
  • Advantech Co., Ltd.
  • Concurrent Technologies Plc
  • Curtiss-Wright Corporation
  • Eurotech SpA
  • Kontron AG
  • Mercury Systems, Inc.
  • Microsemi Corporation
  • North Atlantic Industries, Inc.
  • Radisys Corporation
  • Xilinx Inc.

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