What Has Been Defense Market in Recent Years?
The defense market has seen considerable growth due to a variety of factors.
• Over the past few years, there has been significant growth in the defense market size. It is predicted to rise from $491.06 billion in 2024 to $527.06 billion in 2025, reflecting a compound annual growth rate (CAGR) of 7.3%.
The historic growth of the market can be traced back to a variety of factors including the increased utilization of military drones, an escalated demand for attack and transport helicopters, and lower interest rates. Other contributing factors have been the rise in military equipment expenditure and the progressive development of autonomous fighter jets, alongside an increase in general military spending.
What is the Market Size Forecast for the Defense Market?
The defense market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipated robust expansion in the coming years is set to push the defense market size to $676.64 billion by 2029, with a compound annual growth rate (CAGR) of 6.4%.
The projected growth during the forecast period can be credited to factors such as governmental interventions, advancements in technology, heightened internal and external security risks, the advancement of military helicopters, and military modernization. Key trends for this period include the introduction of unmanned combat vehicles, fresh and innovative military avionics upgrade programs, augmented and virtual reality developments, edge computing in defense, 3D printing technologies, strategic mergers and acquisitions, implementations of artificial intelligence (AI) in defense equipment like drones and helicopters, design enhancements and modularity for military weaponry, and day/night decamouflage technology for lightweight arms.
What Are The Core Factors Supporting Growth In Defense Market?
One of the prominent trends in this market is the wide acceptance of unmanned combat vehicles. These are motorized or machine-operated vehicles designed to function without human interferance. They are equipped with certain sensors for total awareness of the environment and optical avoidance, as well as steering actuators, brake systems, laser scanners, and other self-sufficient features that allow either remote control or autonomous operation of the vehicle. Their primary role is to explore the environment and relay the acquired data to the operator via teleoperation or independently address issues facing multiple technical difficulties. Notably, the Indian army undertook a series of hasty drone acquisitions in November 2022, using emergency powers. Each project has seen allocations of up to 3 billion rupees (approximately $36 million). The recent tender involves 1,000 unmanned surveillance helicopters, 163 drones for high-altitude logistics, 750 remotely piloted air vehicles, and 80 small remotely piloted aircraft systems.
What Are The Major Segments Within The Defense Market?
The defense market covered in this report is segmented –
1) By Type: Air-Based Defense Equipment, Sea-Based Defense Equipment, Land-Based Defense Equipment, Defense Equipment Maintenance, Repair And Overhauling Services, Defense Support And Auxiliary Equipment
2) By Operation: Autonomous Defense Equipment, Manual
3) By Platform: Airborne, Land, Naval
Subsegments:
1) By Air-Based Defense Equipment: Combat Aircraft, Unmanned Aerial Vehicles (UAVs) or Drones, Air Defense Systems, Helicopters, Surveillance And Reconnaissance Aircraft
2) By Sea-Based Defense Equipment: Naval Vessels, Amphibious Assault Ships, Maritime Patrol Aircraft, Naval Weapon Systems, Mine Countermeasure Vessels
3) By Land-Based Defense Equipment: Armored Vehicles, Artillery Systems, Infantry Fighting Vehicles (IFVs), Military Trucks and Logistics Vehicles, Ground-based Missile Systems
4) By Defense Equipment Maintenance: Scheduled Maintenance, Unscheduled Maintenance, Technical Support Services, Logistics Support, Fleet Management
5) By Repair and Overhauling Services: Component Repair, Engine Overhaul, Avionics Repair, Structural Repair, Systems Integration and Testing
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Which Trends Are Expected To Transform The Defense
The popularity of corner shot weapons is on the rise, largely due to the safety advantages they provide. A corner shot is a specific type of weapon accessory, essentially a folding framework fitted on guns such as a Glock, handgun, or Beretta 92. This unique framework lets the gun frame flex around corners to hit the target without leaving the soldiers vulnerable. Additionally, it features a bore-sighted, high-quality video camera, an LCD display, and an inherent tactical light for guidance and illumination. Corner shot rifles or guns are typically applied in war zones, inside armored vehicles and tanks, and on turrets, facilitating a full 360-degree field of coverage while keeping the person pulling the trigger safe inside the vehicle. Depending upon the weapon, the corner shot provides accuracy and effectiveness from 100 to 200 meters.
Who Are the Key Players in the Defense Market?
Major companies operating in the defense market include:
• Lockheed Martin Corporation
• Raytheon Technologies Corporation
• Northrop Grumman Corp
• General Dynamics
• The Boeing Company
• BAE Systems plc
• L3Harris Technologies
• Leonardo SpA
• Thales Group
• Huntington Ingalls Industries Inc
• Excel Laser Technology Private Limited
• Acuity Laser Measurement
• Prakash Laser
• Infrared Optics
• Kalaimakal Systems Private Limited
• Baoding Triangel Rsd Electronics Technology Limited
• Beijing Be-Better Technology Co. Ltd
• Shanghai Zhangjiagang Baorui Machinery Co. Ltd
• Guangzhou Blixun Electronics Co. Ltd
• Xi'an Lonn M&E Equipment Co. Ltd
• General Atomics Aeronautical Systems
• Elbit Systems Ltd
• AeroVironment
• China South Industries Group (CSGC)
• China Aerospace Science and Industry Corporation (CASIC)
• China North Industries Group Corporation Limited (Norinco)
• Jilin Ruikd Medical Photoelectric Technology Co. Ltd
• Changhe Aircraft Industries Corporation
• Shenyang Aircraft Corporation
• Babcock International
• BMARC
• BMT Group
• CBI Explosives Industry Group
• HSE explosives
• Chemring Energetics UK Ltd
• Orica UK Ltd
• CES Advanced Composites UK Ltd
• Conjay Collectors Ammunition Company Ltd
• Societe Suisse des Explosifs
• SSE Group
• BIAZZI SA
• Almaz-Antey
• United Aircraft Corporation
• Tactical Missiles Corporation
• Russian Helicopters
• Uralvagonzavod
• United Shipbuilding Corporation
• Advanced Composites Solutions
• AEL Sistemas
• Aeromot
• Agrale
• Airship do Brasil
• Telespazio
• ARSAT
• Airbus SE
• Saudi Arabian Military Industries (SAMI)
• Advanced Electronics Company
• Abu Dhabi Ship Building (ADSB)
• DragonFly Aerospace
• Armscor
• Atlantis Diesel Engines
• Atlas Aircraft Corporation
• OneWeb
What Is The Most Dominant Region In The Defense Market?
Asia-Pacific was the largest region in the defense market in 2024. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
