Defense Electronics Obsolescence Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Defense Electronics Obsolescence Market 

• The annual demand for defense electronics obsolescence was USD 2.73 billion in 2024 and is expected to reach USD 2.98 billion in 2025, up 9.3% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the defense electronics obsolescence market is expected to grow at a CAGR of 8.7%. The annual demand will reach USD 5.36 billion in 2032, which is more than 1.5 times the demand in 2025.
• During 2025-2032, the defense electronics obsolescence industry is expected to generate a cumulative sales opportunity of USD 32.74 billion.

High-Growth Market Segments: 

• North America dominated the global market.
• By system type, Navigation System segment dominated the global market and is expected to be the fastest growing during the forecast period.
• By platform type, Air segment is expected to grow at a faster pace during the forecast period.
• By type, Technical Obsolescence segment dominated the global market in 2024.

Market Statistics

Have a look at the sales opportunities presented by the defense electronics obsolescence market in terms of growth and market forecast.

Market Dynamics

Introduction:

What is defense electronics obsolescence?

Defense electronics obsolescence refers to the phasing out or unavailability of critical electronic components used in military systems due to technological advancements or discontinued production. It affects platforms such as aircraft, naval vessels, and land systems. Managing obsolescence is vital to ensure operational readiness, system reliability, and long-term support across defense and aerospace applications.

Market Drivers: 

Global Shift Towards Defense Modernization and Tech Evolution

• The rising demand for military modernization, alongside rapid advancements in defense electronics, is a key driver accelerating the defense electronics obsolescence market.
• As armed forces upgrade legacy systems with next-generation technologies, such as AI, advanced communication systems, and electronic warfare, older components become incompatible or discontinued.
• This is creating strong demand for obsolescence management solutions, including system redesign, lifecycle extension, and component sourcing, to ensure operational readiness and long-term platform sustainability.

Market Challenges: 

Complex Supply Chains and High Costs Hindering Obsolescence Management

• The defense electronics obsolescence market faces significant constraints due to the complexity of global supply chains and the high cost of managing obsolete components.
• Military platforms often rely on legacy electronics with limited sourcing options, making replacement efforts time-consuming and expensive. Adhering to strict military standards, ensuring interoperability, and conducting rigorous testing add further complexity.
• With rising R&D costs and constrained defense budgets, many armed forces are forced to extend the life of outdated systems, slowing market expansion and innovation.

Market Opportunities: 

Lifecycle Extension Programs

• Lifecycle extension programs offer a major growth opportunity in the defense electronics obsolescence market by enabling cost-effective modernization of aging military platforms.
• Through reverse engineering and remanufacturing of obsolete components, these programs help maintain operational readiness without full system replacements.
• With platforms like aircraft and naval vessels often outliving the lifespan of their electronics, such solutions reduce supply chain risks, lower lifecycle costs, and support sustainability, making them increasingly attractive to the defense organizations worldwide.

Segments' Analysis

By System Type

“Navigation System segment dominated the global market and is expected to be the fastest growing during the forecast period.”

• The Navigation System segment dominates the global defense electronics obsolescence market and is expected to grow the fastest, driven by increasing reliance on real-time positioning and integration across land, air, and naval platforms.
• Additionally, rising investments in GNSS upgrades, inertial navigation, and autonomous system integration are accelerating the segment’s expansion.

By Platform Type

“Air segment is expected to grow at a faster pace during the forecast period.”

• The Air segment is expected to grow at a faster pace during the forecast period, driven by increased aircraft modernization programs and the growing deployment of unmanned aerial systems (UAS).
• Rising demand for upgraded avionics, electronic warfare, and flight control systems in both manned and unmanned aircraft is fueling this growth.
• Additionally, investments in next-generation air defense and surveillance platforms are accelerating obsolescence management efforts in airborne systems.

By Region Type

“North America dominated the global market.”

• North America dominated the global defense electronics obsolescence market, owing to strong defense budgets and the presence of leading defense contractors and technology providers.
• The region’s focus on modernizing aging military platforms and ensuring operational readiness is driving demand for obsolescence management solutions.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the defense electronics obsolescence market -  

• Lockheed Martin Corporation
• Raytheon Technologies Corporation (now RTX Corporation)
• Northrop Grumman Corporation
• BAE Systems plc
• Thales Group
• L3Harris Technologies, Inc.
• Leonardo S.p.A.
• Elbit Systems Ltd.
• Mercury Systems, Inc.
• Bharat Electronics Ltd.

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments/Mergers & Acquisitions:

• In December 2024, A contract worth USD 1.2 billion was awarded for the procurement of six Next-Generation Missile Vessels (NGMVs), aimed at boosting naval strength through enhanced stealth and offensive capabilities.
• In December 2024, Israel’s Directorate of Defense Research and Development (DDR&D) finalized multiple agreements with Elbit Systems, totaling approximately USD 130 million, to supply advanced communication systems to the Israel Defense Forces (IDF).
• In August 2024, the U.S. Defense Logistics Agency (DLA) extended a USD 125.6 million, five-year contract to SRI International to continue manufacturing critical, obsolete microelectronic components required for military applications.
• In January 2024, the Commonwealth of Australia awarded a contract to BAE Systems for upgrading the Mk 45 Mod 2 naval gun systems on its Anzac-class frigates, underlining continued efforts in naval defense modernization.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The global defense electronics obsolescence market is segmented into the following categories. 

Global Defense Electronics Obsolescence Market, by System Type

• Communication System
• Navigation System
• Flight Control System
• Electronic Warfare System

Global Defense Electronics Obsolescence Market, by Platform Type

• Land
• Naval
• Air

Global Defense Electronics Obsolescence Market, by Type

• Supply Chain Obsolescence
• Functional Obsolescence
• Technical Obsolescence

Global Defense Electronics Obsolescence Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s global defense electronics obsolescence market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detaild manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 2.73 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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