Electronic Warfare Market Research Report and Outlook 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.

The primary objective of electronic warfare is to prevent the enemy from exploiting the electromagnetic spectrum while ensuring unrestricted access for allied forces. Electronic warfare has always been a part of modern warfare, but its scope has expanded beyond radio jamming. With advancements in sensing, exploiting, and manipulating the electromagnetic spectrum, governments and key players are investing heavily in developing electronic warfare, which is expected to have a positive impact on the market. As it is a cost-effective and easily deployable method of stopping the enemy's radar operations and shielding similar equipment from interference, electronic warfare is becoming a priority. With increasing geopolitical tensions between neighboring countries, the demand for electronic warfare systems in the global market is expected to rise, providing lucrative growth opportunities for market players in the coming years.

The analysis of the electronic warfare market involves the categorization of the market on the basis of component, application, product type, and geography. The market's components are classified as hardware, software, and services, while the applications are divided into electronic attack, electronic protection, and electronic warfare support. The product type is segmented into countermeasure systems, jammers, sensor systems, weapons systems, and others. The market's geographical segmentation includes North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

The utilization of unmanned aerial systems by armed forces and non-state actors has become widespread. Even the smallest commercial drones can pose a serious threat when weaponized. As such, there is an urgent need to develop effective strategies to neutralize these drones as they proliferate on the battlefield. Electronic communications and technologies are essential for autonomous and remote-controlled vehicles, and as the use of unmanned systems expands, the demand for counter-unmanned aerial systems (UAS) and electronic warfare (EW) technologies to counter them also increases. The deployment of electronic warfare systems on unmanned vehicles has emerged as a significant driver of growth in the electronic warfare market.

Turkey's successful use of unmanned systems in conflicts in Syria, Libya, and Azerbaijan since 2016 has highlighted the importance of such capabilities in electronic warfare. In 2021, the Indian Army acquired new surveillance drones that allow for communication through a satellite. With the increasing procurement of unmanned vehicles, the electronic warfare systems market is expected to grow. The electronic defense/electronic attack system, consisting of two military trucks, is designed to jam and deceive both conventional and complex hostile radar, as well as analyze multiple target signals across a broad frequency range. These advancements in technology integrated with electronic warfare systems are predicted to boost the electronic warfare market during the forecast period.

Over the last decade, the electronic warfare market has experienced a surge in North America. The US has increased its military spending on acquiring updated vessels, equipment, and lethal and electronic warfare capabilities. According to Stockholm International Peace Research Institute (SIPRI), the US recorded an increase in military expenditure in 2020 compared to 2019. This rise in military spending by North American countries has a significant impact on the growth of the electronic warfare market in the region. The increasing incidents of riots, protests, and terrorism in the area have created a considerable demand for electronic warfare. Major countries with powerful military forces, such as Russia, France, the UK, Germany, and Italy, invest heavily in military technologies, including electronic warfare systems, to enhance their capabilities. According to SIPRI, in 2020, Germany, France, Italy, the UK, and Russia spent US$ 52.7 billion, US$ 52.7 billion, US$ 28.9 billion, US$ 59.2 billion, and US$ 61.7 billion, respectively, on military operations. The well-established market players in Europe, such as Saab AB, Bae Systems plc, Thales Group, Cobham plc, and Leonardo, are further driving the growth of the electronic warfare market in the region.

Lamperd Less Lethal, Inc.; Combined Systems, Inc.; Pepperball; and NonLethal Technologies, Inc. are the major companies operating in the North America electronic warfare market. The rising strategic initiatives and investments in new product developments are likely to propel the market's growth in the coming years.

Impact of COVID-19 Pandemic on Electronic Warfare Market Share

The COVID-19 pandemic had a negative impact on North America, including the US, Canada, and Mexico. The focus of federal governments in North America has shifted to healthcare facilities, resulting in cutbacks in defense spending. As a result, there are fewer opportunities for new procurement, and ongoing defense programs have faced challenges such as a slowdown in production facilities. This has affected the delivery of military vehicles, electronic warfare products, and aircraft carriers, among other things. For example, Lockheed Martin delivered only 120 aircraft in 2020, including 46 to international customers, due to delays caused by production slowdowns. The F-35 program's advanced aircraft, which is equipped with cutting-edge jammers, radar, laser, and electronic warfare systems, has been affected by these delays, slowing down the electronic warfare market's growth. Moreover, the decline in the labor workforce has resulted in a slowdown in the accelerated production rate of tier three and tier four suppliers, resulting in the delayed purchase of electronic equipment, further hindering the electronic warfare market's growth, according to Insight Partner Research analysis.

The growth of the global electronic warfare market is primarily attributed to the increasing tension among neighboring countries across developed and developing nations. Moreover, space is gradually emerging as a new arena for electronic warfare systems. The use of physical destruction, laser blinding, and electronic warfare techniques is expected to be employed to deny the enemy the use of their satellites and protect one's satellites for their force multiplier effect. It is crucial to determine the optimal approach to integrate space assets into military operations. Existing capabilities such as anti-satellite weapons, denial and deception tactics, jamming, usage of miniaturized satellites, hacking, and nuclear detonation can deny, disrupt, or physically destroy space systems and the terrestrial facilities that rely on them. Nevertheless, the limited access to electronic warfare manufacturing facilities in developing nations is hampering the growth of the electronic warfare market.

Lockheed Martin Corporation, Raytheon Technologies, L3Harris Corporation, Northrop Grumman Corporation, and BAE Systems Plc hold a significant percentage of the electronic warfare market share.

The electronic warfare market size has been determined through a comprehensive research process using both primary and secondary sources. In the initial stage, extensive secondary research was conducted from internal and external sources to gather qualitative and quantitative information pertaining to the electronic warfare market size. This process also involved obtaining an overview and market forecast of the electronic warfare market size for all its market segments. Additionally, several primary interviews were conducted with industry participants and commentators to verify the data and gain further analytical insights on the topic. The interviewees included industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as research analysts, valuation experts, and key opinion leaders who specialize in the market.