Dublin, June 18, 2025 (GLOBE NEWSWIRE) — The “Military Embedded Systems Market Opportunities and Strategies to 2034” report has been added to ResearchAndMarkets.com’s offering.
This report describes and explains the military embedded systems market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global military embedded systems market reached a value of nearly $1.74 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.59% since 2019. The market is expected to grow from $1.74 billion in 2024 to $2.58 billion in 2029 at a rate of 8.18%. The market is then expected to grow at a CAGR of 7.46% from 2029 and reach $3.7 billion in 2034.
The global military embedded systems markets is fairly fragmented, with large players operating in the market. The top 10 competitors in the market made up 15.10% of the total market in 2023. BAE Systems was the largest competitor with a 2.69% share of the market, followed by The Boeing Company with 1.94%, General Dynamics Corporation with 1.81%, Honeywell International Inc. with 1.66%, Leonardo S.p.A with 1.57%, Saab AB with 1.41%, Curtiss-Wright Corporation with 1.33%, Mercury Systems Inc. with 0.97%, Intel Corporation with 0.91% and NVIDIA Corporation with 0.81%.
Growth in the historic period resulted from the increased government and defense investment, rise in unmanned aerial vehicles, growth in demand for real-time data processing and rise in terrorist activities. Factors that negatively affected growth in the historic period were stringent military standards and challenges in upgrading legacy systems. Going forward, the increasing military modernization programs, increasing AI adoption, increasing cybersecurity threats targeting military networks and favorable government initiatives will drive the growth. Factor that could hinder the growth of the military embedded systems market in the future include complex systems and technological adaptation challenges.
North America was the largest region in the military embedded systems market, accounting for 39.75% or $694.27 million of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the military embedded systems market will be Asia-Pacific and North America where growth will be at CAGRs of 8.69% and 8.59% respectively. These will be followed by South America and Africa where the markets are expected to grow at CAGRs of 7.99% and 7.72% respectively.
The military embedded systems market is segmented by component into hardware and software. The hardware market was the largest segment of the military embedded systems market segmented by component, accounting for 60.14% or $1.05 billion of the total in 2024. Going forward, the software segment is expected to be the fastest growing segment in the military embedded systems market segmented by component, at a CAGR of 8.49% during 2024-2029.
The military embedded systems market is segmented by installation type into new installation and upgradation. The upgradation market was the largest segment of the military embedded systems market segmented by installation type, accounting for 55.66% or $972.28 million of the total in 2024. Going forward, the new installation segment is expected to be the fastest growing segment in the military embedded systems market segmented by installation type, at a CAGR of 9.59% during 2024-2029.
The military embedded systems market is segmented by platform into land, airborne, naval and space. The land market was the largest segment of the military embedded systems market segmented by platform, accounting for 43.04% or $751.86 million of the total in 2024. Going forward, the naval segment is expected to be the fastest growing segment in the military embedded systems market segmented by platform, at a CAGR of 9.70% during 2024-2029.
The military embedded systems market is segmented by technology into edge computing, fog computing and mist computing. The edge computing market was the largest segment of the military embedded systems market segmented by technology, accounting for 53.45% or $933.64 million of the total in 2024. Going forward, the edge computing segment is expected to be the fastest growing segment in the military embedded systems market segmented by technology, at a CAGR of 8.98% during 2024-2029.
The military embedded systems market is segmented by application into intelligence, surveillance and reconnaissance (ISR), command and control, communication and navigation, electronic warfare (EW), weapon and fire control, wearable and other applications. The intelligence, surveillance and reconnaissance (ISR) market was the largest segment of the military embedded systems market segmented by application, accounting for 29.29% or $511.66 million of the total in 2024. Going forward, the electronic warfare (EW) segment is expected to be the fastest growing segment in the military embedded systems market segmented by application, at a CAGR of 9.92% during 2024-2029.
The top opportunities in the military embedded systems market segmented by component will arise in the hardware segment, which will gain $490.88 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by installation type will arise in the new installation segment, which will gain $449.57 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by platform will arise in the land segment, which will gain $310.26 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by technology will arise in the edge computing segment, which will gain $501.51 million of global annual sales by 2029. The top opportunities in the military embedded systems market segmented by application will arise in the intelligence, surveillance, and reconnaissance (ISR) segment, which will gain $278.6 million of global annual sales by 2029.The military embedded systems market size will gain the most in the USA at $328.46 million.
Market-trend-based strategies for the military embedded systems market include focus on developing technological advancements such as rugged embedded AI (artificial intelligence) supercomputers, focus on developing innovative advancements such as modular embedded computing systems, focus on developing advanced products like rugged military embedded processors, focus on developing innovative tools such as rad-hard transceiver interface solutions and focus on developing strategic partnerships. Player-adopted strategies in the military embedded systems market include focus on new product developments and enhancing its business operations through new investments.
To take advantage of the opportunities, the analyst recommends the military embedded systems to focus on advancing rugged AI capabilities for harsh military environments, focus on expanding modular embedded computing for battlefield adaptability, focus on advancing rugged embedded processors for mission-critical performance, focus on accelerating investment in military embedded software solutions, expand in emerging markets, focus on capturing growth in the naval military embedded systems segment, focus on implementing value-based pricing to align with mission-critical demands, continue to use B2B promotions, focus on strengthening brand positioning through collaboration with defense primes and focus on expanding capabilities in electronic warfare systems.
Major Market Trends
- Rugged Embedded AI Supercomputers Enhance Military Autonomous Systems and Surveillance
- Modular Embedded Computing Enhances Battlefield Adaptability With Rapid Technology Upgrades
- Rugged Embedded Processor Enhances Mission-Critical Computing in Extreme Military Environments
- Rad-Hard Transceiver Interface Simplifies Integration for Military and Aerospace Communication
- Strategic Partnership Enhances Decision-Making and Connectivity for Military Operations
Key Mergers and Acquisitions
- SERMA GROUP Completed Merger With KN Systems
- Honeywell International Inc Completed Acquisition of CAES Systems Holdings LLC (CAES)
- Kratos Defense & Security Solutions Inc Acquired CTT Inc
Recent Developments
- New Project Enhances Military Situational Awareness Through Automatic 3D Modeling
- Software Development Unit Enables Smooth Transition to Next-Gen Space Computing
- Successful Demonstration Enhances Secure Connectivity for Military UAS Operations and Coordination
Markets Covered:
- Component: Hardware; Software
- Installation Type: New Installation; Upgradation
- Platform: Land; Airborne; Naval; Space
- Technology: Edge Computing; Fog Computing; Mist Computing
- Application: Intelligence, Surveillance and Reconnaissance (ISR); Command and Control; Communication and Navigation; Electronic Warfare (EW); Weapon and Fire Control; Wearable; Other Applications
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 331 |
| Forecast Period | 2024 – 2034 |
| Estimated Market Value (USD) in 2024 | $1.74 Billion |
| Forecasted Market Value (USD) by 2034 | $3.7 Billion |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
Companies Featured
- BAE Systems
- The Boeing Company
- General Dynamics Corporation
- Honeywell International Inc
- Leonardo S.p.A.
- Saab AB
- Curtiss-Wright Corporation
- Mercury Systems Inc.
- Intel Corporation
- NVIDIA Corporation
- Sentient Vision Systems
- Shield AI
- Nippon Kaiyo
- SRC, Inc.
- L3Harris Technologies
- ELTA Systems Group
- Korean Air Lines Co.
- Raytheon Australia
- Tata Advanced Systems Limited (TASL)
- Bharat Electronics Limited (BEL)
- Mitsubishi Heavy Industries (MHI)
- Hanwha Aerospace
- Nvidia
- China Electronics Technology Group Corporation (CETC)
- China Aerospace Science and Industry Corporation (CASIC)
- Mitsubishi Heavy Industries (MHI)
- Helsing Limited
- Saab
- Matra BAE Dynamics Alenia
- Thales Group
- Airbus Defence and Space
- Lockheed Martin
- Rheinmetall AG
- Kontron AG
- Eurotech S.p.A.
- Milrem Robotics
- Kvertus
- WB Group
- D-TA Systems Inc.
- Mercury Systems
- Crank AMETEK
- Xilinx
- Pratt & Whitney
- Northrop Grumman Corporation
- Honeywell International Inc
- Fortem Technologies
- Collins Aerospace Xilinx
- Mercury Systems
- EDGE Group
- Emirates Defense Technology
- Robotics Engineering Systems (RES)
- Proforce Limited
- Denel Dynamics
- Nexter
- Tellumat Defense
For more information about this report visit https://www.researchandmarkets.com/r/gkitga
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- Military Embedded Systems Market
