The Next-Generation EW Sensors Market is projected to register a strong CAGR during the forecast period (2026-2031).
The next generation of electronic warfare (EW) sensors will be sophisticated systems capable of identifying, analyzing and reacting to electromagnetic energy in complex and contested environments. As part of the overall EW system in modern warfare, these EW sensors provide the foundation for electronic support measures (ESM), electronic attack (EA) and electronic protection (EP). Unlike current EW systems where the sensor is largely distinct from the processing system, next generation EW sensors will increasingly utilize artificial intelligence, machine learning and high-speed data processing as a means of performing real-time signal classification and adaptive threat response. The market is currently transforming multi-domain warfare systems that incorporate sensor technologies into integrated, network-based architectures for the defence community. Emerging multispectral sensor technologies will create a “system of systems” for electromagnetic warfare across the air, land, sea, space, and cyber domains.
Rising Defence Modernisation Programs: An Increase in Defence (Arms) Modernisation Around the World Governments worldwide, particularly in the U.S., are pouring billions into their military modernisation programs and expanding their capabilities through the acquisition of advanced EW systems. Advancement in the ability to use new sensor technology is essential for maintaining a dominant position in the electromagnetic spectrum, increasing situational awareness, and providing the means to counter very sophisticated adversaries. Growing defence budgets and an increasing number of defence procurement programs are driving demand for advanced EW sensor technologies.
Increasing Use of Unmanned and Autonomous Systems: The Increased Use of Unmanned and Autonomous Systems The rapid advancement and proliferation of drones and other autonomous systems will create a strong demand for lightweight yet very capable EW sensor technologies. These sensor technologies will allow for the detection of threats in real-time and provide effective countermeasures to such threats in a very rapidly changing operational environment. These sensors will also provide more operational flexibility and allow for effective utilisation of unmanned systems by applying modern warfare strategies across multiple domains.
Advancements in AI and Signal Processing Technologies: Progression of Artificial Intelligence and Signal Processing Technologies. Continuous research, development, and application of artificial intelligence and signal processing technologies will lead to much greater capabilities in EW sensor technologies. These technologies vastly improve the speed at which these sensors will perform data analysis, identification of potential threats, and adaptive response. Many AI/EW Sensors will be capable of operating independently, thereby reducing the requirement for human intervention, which results in increased efficiency and effectiveness in complex electromagnetic environments.
Growing Threat of Electronic and Cyber Warfare: The Growing Threat of Electronic Warfare/Digital and Cyber Warfare. As electronic and cyber threats to military operations become more complex, there will be an overall increase in the need for advanced EW sensor technologies. Electronic warfare tactics found on today’s battlefields require the ability to detect and counteract jamming, spoofing, and cyber-electromagnetic attacks to ensure that solutions to these problems will need to be in place. The threat of growing/evolving adversaries will quicken the pace of incorporating next-generation sensor technologies into the military.
The integration challenges and increased vulnerabilities associated with developing and using cyber systems, ensuring that systems are able to seamlessly communicate with and function together (interoperability), and building in resiliency against electronic warfare. New opportunities include cognitive electronic warfare based on artificial intelligence, new technology developments in quantum sensing, and the increasing use of sensors, which will continue throughout the world.
February 2025: BAE Systems advanced its electronic warfare portfolio by enhancing its AN/ASQ-239 Barracuda EW system used on the F-35 aircraft. The upgrade focuses on improved sensor sensitivity, faster signal processing, and enhanced threat detection capabilities, enabling better identification of advanced radar and electronic threats in contested environments.
The market is segmented by sensor type, platform, application and geography.
ESM sensors detect, intercept, and analyse electromagnetic signals generated by enemy systems, allowing for real-time assessment of the battlefield and identification of threats without requiring active transmission of signals. In 2025, wideband receivers will be improved with AI-based signal classification to enhance accuracy and speed. ESM sensors are extensively used in both airborne and naval platforms and are critical components of contemporary electronic warfare efforts and intelligence collection.
Airborne systems occupy the largest proportion of the electronic warfare sensor market, due to their unique ability to conduct wide-area surveillance, as well as their ability to be quickly deployed. Airborne EW systems use advanced electronic warfare sensors for detecting and electronically collecting information about threats and have become critical components of next-generation drones and aircraft. In 2025, as more aircraft use lightweight/high-performance sensors, it will become easier to make rapid decisions using EW systems on-the-spot.
Signal intelligence (SIGINT), or the collection and analysis of electronic signals to provide military and strategic intelligence, represents a significant portion of the electronic warfare (EW) sensor market. EW sensors facilitate the interception of both communication/electronics as well as radars, providing intelligence on the location and type of threats. In 2025, the use of AI/machine learning will increase the speed at which threats and patterns can be detected through the improved processing of signals. The increasing emphasis on electronic surveillance and intelligence-driven warfare is driving substantial demand for advanced SIGINT capabilities.
North America is the leading market for next-generation electronic warfare (EW) sensors as a result of significant military spending and cutting-edge technical capabilities. In fact, the United States is far ahead of other nations in developing artificial intelligence (AI) based EW systems and integrating multiple sensors into multi-domain operations. There are many entities involved in the innovation of cognitive electronic warfare (EW) systems and quantum sensing, including major defence contractors and research institutes. In addition, increased investment in unmanned systems and space-based defence means an uptick in demand for next generation EW sensors. As governments focus on maintaining their superiority in the electromagnetic (EM) spectrum and countering emerging threats, growth in demand for next-generation EW sensors will be ongoing. The combined efforts of the government, military and private sector participants will be used to rapidly develop and deploy next-generation EW sensor technologies.
South America is witnessing moderate growth as countries gradually invest in modernising defence systems. Brazil and Argentina are leading the adoption, focusing on improving surveillance and electronic warfare capabilities.
The European market for next-generation EW sensors is experiencing steady growth. One driver of continued growth is the increase in supernatural competition (i.e., competition arising from forces beyond what is considered normal) and increased funding for defence by NATO member nations. The investing nations are building and modernising their own EW capabilities and improving military readiness/capabilities through collaborative defence programs and creating joint ventures to achieve technological improvement in EW sensor technology. The general trend in 2025 is likely to be the integration of next-generation EW sensor technologies for multi-domain warfare and the creation of integrated defence systems. Germany, France and the UK are collectively concentrating on developing indigenous EW technologies and improving their national defence capability overall. Strengthening industrial relationships and building innovative research programs will ensure long-term growth prospects throughout the region.
The Middle East & Africa region is emerging as a significant market due to rising defence spending and ongoing geopolitical tensions. Countries in the Middle East are investing in advanced EW systems to strengthen military capabilities and protect critical infrastructure.
The Asia-Pacific region is expected to have the highest growth rate because of increased defence spending and concerns over existing threats to regional security. The nations of China, India, Japan and South Korea are all heavily investing in developing modern EW capabilities. The primary driver for increased demand for next-generation EW sensors will be the modernisation of military platforms and the widespread adoption of unmanned systems. Governmental organisations across the region will emphasise developing indigenous technologies in order to support and enable the rapid development of their military weapons systems.
Lockheed Martin
Northrop Grumman
BAE Systems
Thales Group
Raytheon Technologies
L3Harris Technologies
Saab AB
Elbit Systems
Leonardo S.p.A.
Rohde & Schwarz
Lockheed Martin is a major defense contractor offering advanced EW sensor systems integrated into airborne and naval platforms. The company focuses on AI-enabled electronic warfare and multi-domain integration, supporting next-generation military capabilities.
Northrop Grumman specializes in electronic warfare and sensor technologies, providing advanced ESM, radar warning, and signal intelligence systems. Its innovations in autonomous and cognitive EW strengthen its leadership in defense electronics.
| Report Metric | Details |
|---|---|
| Forecast Unit | Billion |
| Growth Rate | Ask for a sample |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Sensor Type, Platform, Application, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
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