Defense electronics is one of the most attractive areas within aerospace and defense for private equity investments, given recent developments in Iran, Ukraine, Gaza, and other regions.
Pitchbook reported that the private equity market saw 27 deals in defense electronics in 2025, up 93% from the prior year and the second-highest deal count going back to 2017.
“Electronics-intensive capabilities are capturing a heavy share of global defense procurement dollars. We see spending in this area expanding as militaries prioritize sensing, electronic warfare, resilient communications, and edge computing over force expansion,” the report stated.
The global defense electronics market was estimated at approximately $185 billion in 2025, growing at roughly 5% annually through 2035, according to Precedence Research.
Some of the leading defense electronics investors include J.F. Lehman & Co, Vance Street Capital, Audax Private …
This post was originally published here
