Electronic Warfare Market Research Report and Outlook by 2028

The electronic warfare sector is anticipated to grow significantly, reaching a valuation of approximately US$ 27,797.72 million by 2028, up from US$ 18,192.85 million in 2021. This growth represents a compound annual growth rate (CAGR) of 6.2% from 2021 through 2028.

The main goal of electronic warfare is to hinder adversaries from utilizing the electromagnetic spectrum while ensuring that allied forces can operate without restrictions. Although electronic warfare has long been integral to modern combat, its applications have broadened beyond mere radio jamming. With the evolution of technologies for sensing, exploiting, and manipulating the electromagnetic spectrum, governments and key industry players are making substantial investments in electronic warfare capabilities, which is expected to positively influence market dynamics. As a cost-effective and easily deployable strategy to disrupt enemy radar operations and protect similar systems from interference, electronic warfare is increasingly prioritized. The rising geopolitical tensions among neighboring nations are likely to escalate the demand for electronic warfare systems globally, creating promising growth prospects for market participants in the years ahead.

The assessment of the electronic warfare market involves categorizing it based on components, applications, product types, and geographical regions. The components are divided into hardware, software, and services, while applications are classified into electronic attack, electronic protection, and electronic warfare support. The product types include countermeasure systems, jammers, sensor systems, weapons systems, and others. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

The adoption of unmanned aerial systems (UAS) by military forces and non-state actors has become increasingly prevalent. Even small commercial drones can pose significant threats when equipped with weapons. Consequently, there is an urgent need to devise effective countermeasures against these drones as they become more common on the battlefield. Electronic communications and technologies are vital for both autonomous and remotely controlled vehicles, and as the deployment of unmanned systems grows, so does the demand for counter-UAS and electronic warfare technologies to neutralize them. The integration of electronic warfare systems with unmanned vehicles has emerged as a key growth driver in the electronic warfare market.

Turkey's effective use of unmanned systems in conflicts in Syria, Libya, and Azerbaijan since 2016 has underscored the strategic importance of these capabilities in electronic warfare. In 2021, the Indian Army acquired advanced surveillance drones capable of satellite communication. With the increasing acquisition of unmanned vehicles, the electronic warfare systems market is poised for expansion. The electronic defense/electronic attack system, which consists of two military trucks, is engineered to jam and deceive both conventional and sophisticated hostile radar systems while analyzing multiple target signals across a wide frequency spectrum. These technological advancements integrated with electronic warfare systems are expected to propel market growth during the forecast period.

In recent years, the electronic warfare market has seen significant growth in North America. The United States has ramped up military expenditures to acquire updated vessels, equipment, and advanced electronic warfare capabilities. According to the Stockholm International Peace Research Institute (SIPRI), military spending in the US increased in 2020 compared to 2019. This rise in defense budgets across North America has a considerable impact on the electronic warfare market's growth in the region. The surge in incidents of civil unrest, protests, and terrorism has further fueled the demand for electronic warfare solutions. Major military powers, including Russia, France, the UK, Germany, and Italy, are heavily investing in military technologies, including electronic warfare systems, to enhance their operational capabilities. SIPRI reported that in 2020, Germany, France, Italy, the UK, and Russia allocated US$ 52.7 billion, US$ 52.7 billion, US$ 28.9 billion, US$ 59.2 billion, and US$ 61.7 billion, respectively, for military operations. Established market players in Europe, such as Saab AB, Bae Systems plc, Thales Group, Cobham plc, and Leonardo, are also contributing to the growth of the electronic warfare market in the region.

Key companies in the North American electronic warfare market include Lamperd Less Lethal, Inc.; Combined Systems, Inc.; Pepperball; and NonLethal Technologies, Inc. The increasing strategic initiatives and investments in new product development are expected to drive market growth in the coming years.

Impact of COVID-19 Pandemic on Electronic Warfare Market Share

The COVID-19 pandemic adversely affected North America, including the US, Canada, and Mexico. The focus of federal governments shifted towards healthcare, leading to reductions in defense budgets. Consequently, there were fewer opportunities for new procurements, and ongoing defense programs faced challenges, including production slowdowns. This situation impacted the delivery of military vehicles, electronic warfare products, and aircraft carriers. For instance, Lockheed Martin delivered only 120 aircraft in 2020, with 46 going to international clients, due to production delays. The F-35 program, featuring advanced aircraft equipped with state-of-the-art jammers, radar, and electronic warfare systems, experienced setbacks that hindered the growth of the electronic warfare market. Additionally, a decline in the labor force contributed to a slowdown in production rates among tier three and tier four suppliers, further delaying the acquisition of electronic equipment and impeding market growth, as noted by Insight Partner Research analysis.

The expansion of the global electronic warfare market is primarily driven by escalating tensions among neighboring countries in both developed and developing regions. Furthermore, space is emerging as a new frontier for electronic warfare systems. Techniques such as physical destruction, laser blinding, and electronic warfare strategies are anticipated to be employed to deny adversaries access to their satellites while safeguarding one's own satellites for strategic advantages. It is essential to determine the best methods for integrating space assets into military operations. Existing capabilities, including anti-satellite weapons, denial and deception tactics, jamming, the use of miniaturized satellites, hacking, and nuclear detonation, can disrupt or physically eliminate space systems and the terrestrial infrastructures that depend on them. However, limited access to electronic warfare manufacturing facilities in developing countries poses a challenge to the growth of the electronic warfare market.

Prominent players in the electronic warfare market include Lockheed Martin Corporation, Raytheon Technologies, L3Harris Corporation, Northrop Grumman Corporation, and BAE Systems Plc, which collectively hold a significant share of the market.

The size of the electronic warfare market has been determined through a thorough research process that utilized both primary and secondary sources. Initially, extensive secondary research was conducted to gather qualitative and quantitative data regarding the electronic warfare market size. This phase also included obtaining an overview and market forecast for all segments of the electronic warfare market. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain further insights. Interviewees included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like research analysts, valuation experts, and key opinion leaders specializing in the market.