Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Military Embedded Systems Market size was over USD 1.8 billion in 2024 and is poised to exceed USD 5.45 billion by 2037, growing at over 8.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of military embedded systems is evaluated at USD 1.94 billion.
The high level of integration provided by military embedded systems for sensors and control devices along with the enhancements in integrated circuits are some of the significant factors fostering the market growth. Additionally, decrease in the overall hardware cost is supported by the reduction in chip size, which in turn, offers high efficiency and optimal power. Further, the increase in the government spending in military sector is increasing the demand for mobile command systems. Driven by these prominent factors along with the rising awareness regarding military embedded systems.
Military Embedded Systems Sector: Growth Drivers and Challenges
Growth Drivers
- Technological Advancements: The exposure of modern warfare systems along with the rising use of multicore technologies is driving the market growth of military embedded systems. The rising advancements in wireless technologies and cloud computing have led to the replacement of traditional computational systems. Further, increased usage of electronic warfare systems for network convergence and geospatial intelligence gathering is resulting into latest product development. In addition, procurement of advanced surveillance & monitoring systems is being made to cater the military needs. The development of mission critical embedded systems along with the rising requirement for onboard system applications is driving the market growth over the forecast period.
- Awareness about Military Embedded Systems: The rising awareness regarding the benefits of military embedded systems in emerging countries is leading to increased government spending on these systems. Hence, with the increasing adoption of machine learning and artificial intelligence, the demand for rugged military embedded systems will generate healthy growth for the market over the forecast period.
Challenges
- High Cost of Product: The increased cost of military embedded systems owing to the requirement of technical expertise and advanced technologies is acting as a major restraint into the growth of the market. Moreover, insufficiency of skilled military personnel is further hampering the growth of the market.
Military Embedded Systems Market: Key Insights
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
8.9% |
Base Year Market Size (2024) |
USD 1.8 billion |
Forecast Year Market Size (2037) |
USD 5.45 billion |
Regional Scope |
|
Military Embedded Systems Segmentation
On the basis of component type, the military embedded systems market is segmented into hardware and software, out of which, hardware segment is estimated to dominate the market on the account of rising demand for electronic hardware connected to driver assistance systems for hybrid combat vehicles. In addition, surge in the use of multicore processors and portable wearables are fueling the growth of the market. Moreover, healthy designing of chips for high level processing is further accelerating the growth of the market.
Our in-depth analysis of the global market includes the following segments
By Product Type |
|
By Component Type |
|
By Platform Type |
|
By Application Type |
|
By End Users |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportMilitary Embedded Systems Industry - Regional Synopsis
Geographically, the military embedded systems market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific industry is anticipated to dominate majority revenue share by 2037, attributed to presence of emerging economies taking initiatives to overcome the issues regarding security, latency and network bandwidth. Further, rising advancements in microprocessors and microcontrollers is leading to the reduction in cost of electronic products. Moreover, increased adoption of modular electronics and advanced lightweight armored vehicles is strengthening the growth of the market. The North America region is estimated to witness major share in the market owing to the rising investments in warfare capabilities along with the growth in network centric infrastructure.

Companies Dominating the Military Embedded Systems Landscape
- Intel Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Microsemi
- Kontron S&T AG
- Curtiss-Wright
- Xilinx
- Aitech
- Mercury Systems Inc.
- United Electronic Industries
- SDK Embedded Systems Ltd.
- Astronics Corporation
In the News
- On February 21, 2020: Mercury Systems collaborated with Hewlett Packard Enterprise OEM in order to build RES-XR6. The collaboration figures out the capabilities to mission critical defense and tactical edge applications.
Author Credits: Dhruv Bhatia
- Report ID: 2765
- Published Date: Jan 06, 2024
- Report Format: PDF, PPT