Defense Electronics Obsolescence Market Size, Analysis and Projections, 2025–

1. The global defense electronics obsolescence market was valued at USD 2,530.1 million in 2024 and is projected to grow from USD 2,736.3 million in 2025 to USD 5,005.7 million by 2032, registering a compound annual growth rate (CAGR) of 9.0% over the forecast period. In 2024, North America led the market, accounting for 45.6% of total global revenue, driven by strong military modernization initiatives and legacy system upgrades. As defense operations increasingly rely on sophisticated electronics, the challenge of managing obsolescence has taken center stage. Governments and defense contractors are now prioritizing operational readiness and lifecycle management to ensure sustained performance and combat efficiency. Understanding the Market: What Is Defense Electronics Obsolescence? Defense electronics obsolescence refers to the gradual loss of availability and support for electronic components used in military systems. With the rapid pace of technological advancements, components such as microprocessors, radar systems, and communication modules can become outdated or unsupported, posing significant operational and security risks. The market offers solutions that include component redesign, reverse engineering, strategic forecasting, and integrated lifecycle planning. These solutions are critical across defense platforms, including air, naval, and land-based systems, where aging hardware needs to function seamlessly with emerging technologies. Information Source: https://www.fortunebusinessinsights.com/defense-electronics-obsolescence-market-112861 Key Market Players: Defense Electronics Obsolescence Companies Raytheon Technologies Corporation (U.S.) BAE Systems (U.K.) L3 Harris Technologies Inc. (U.S.) Thales Group (France) Elbit Systems Ltd. (Israel) Lockheed Martin Corporation (U.S.) Northrop Grumman Corporation (U.S.) General Dynamics Corporation (U.S.) Bharat Electronics Ltd. (India) Leonardo S.p.A. (Italy) Market Segmentation: Defense Electronics Obsolescence Landscape The market is segmented across system type, platform, type of obsolescence, and region: By System: Communication System Navigation System Flight Control System Electronic Warfare System

2. Others By Platform: Land Naval Air By Type: Supply Chain Obsolescence Functional Obsolescence Technical Obsolescence By Region: North America Europe Asia-Pacific Latin America Middle East & Africa Market Dynamics Driving Factors: Operational Readiness & Lifecycle Management Fuel Market Growth With rising geopolitical tensions and the need for high readiness levels, the demand for efficient obsolescence management has intensified. Lifecycle management now plays a central role in mitigating component obsolescence, reducing maintenance downtime, and enhancing force effectiveness. Defense modernization programs, particularly in the U.S., India, and European Union countries, are prioritizing modular upgrades, digital twins, and long-term support strategies for existing systems. The emphasis on interoperability and supply chain resilience is also encouraging strategic collaborations between defense OEMs and technology providers. Restraints: Complex Supply Chains & High Costs Present Challenges Despite the growth outlook, the market faces significant hurdles. Managing obsolescence requires detailed component tracking, multi-vendor coordination, and expensive redesign or replacement solutions, which may be financially unviable for some defense programs. In addition, the global supply chain disruptions and chip shortages observed post- pandemic continue to impact project timelines and component availability. Industry Developments:

3. Recent developments illustrate the strategic focus on addressing obsolescence challenges: December 2024– A defense contract worth USD 1.2 billion was awarded for the procurement of six Next-Generation Missile Vessels (NGMVs), which integrate upgraded electronics with stealth and enhanced combat capabilities. This signals a growing emphasis on modernizing aging naval systems with future-ready technology.