Vetronics or vehicle electronics enables exchange of inter-vehicular and intra-vehicular information amongst the vehicles. This electronics is mainly used in the military environment and increases overall warfare capabilities. The global vetronics market is expecting steady growth in the next few years. This growth is expected to be driven by rising demand, changing nature of warfare and technological advancements in the vehicle electronics. Rising demand from emerging regions is also expected to play a crucial role in the overall development of the market in terms of revenue and global presence.
Segmentation in Vetronics Industry
The global vehicle electronics market is segmented on the basis of the types of applications, sub-systems, vehicles, and geographic regions. The sub-systems include observation and display systems, navigation, C3 systems, sensor and control systems, weapon control systems, power systems and so on. The applications are observed across homeland security and defense industries. The types of military land vehicles include AAV, IFV, UGV, APC, MBT, MRAP, LPV, and so on. On the basis of geographic regions, the vetronics market is segmented into Europe, North America, Asia Pacific, Latin America, Middle East and the rest of the world.
Drivers and Restraints
Major driving factors for the vetronics market include situational awareness, increased demand for armored vehicles, network centric battlefield warfare, embedded technology driven system commodity and shift towards COTS. According to the experts, defense offset policies and regulations and budget cuts are expected to be the strongest restraining factors for the vehicle electronics market. According to the experts, lack of skilled professionals and growing power issues are some of the major challenges for the market. However, the industry is expected to witness impressive business opportunities from new energy solutions and use of hybrid engine systems.
As per the experts, the global vetronics market is set to make steady growth in terms of demand as well as revenue. Rising demand is expected to create investment prospects for the global market. According to the research reports, the global market is expected to maintain a steady compound annual growth rate during the next few years. They also expected market to become worth more than $10.78 billion by the end of the year 2020. Changing architecture of vetronics and technological advancements are expected to create business opportunities in the vehicle electronics market during the next few years. During the forecasting period, North America is expected to dominate the global market. Apart from that Europe is also estimated to make steady progress during the study span provided by the researchers.