Defense Equipment Maintenance, Repair and Overhauling Services Market Report 2026

Defense Equipment Maintenance, Repair and Overhauling Services Market Overview

• Defense Equipment Maintenance, Repair and Overhauling Services market size has reached to $88.45 billion in 2025 • Expected to grow to $133.45 billion in 2030 at a compound annual growth rate (CAGR) of 8.8% • Growth Driver: Rising Defense Expenditure Fuels Growth In Defense Equipment Maintenance, Repair, And Overhaul Services • Market Trend: Strategic Partnerships Drive Enhanced Communication Services In Defense Equipment Maintenance And Repair • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Defense Equipment Maintenance, Repair and Overhauling Services Market?

The defense equipment maintenance, repair, and overhauling services refer to providing MRO services to all kinds of air, sea, and land-based defense equipment, including fighter aircraft and military helicopters. The main types of the defense equipment maintenance, repair and overhauling services include air based defense equipment MRO services, water based defense equipment MRO services, and land based defense equipment MRO services. Air based defense equipment MRO services refer to maintenance, repair, and overhauling activities specifically carried out for aircraft and aerial defense platforms to ensure operational readiness, safety, and longevity. The different service types include annual maintenance contract, individual works, and others, and they are used by several end-users such as military aviation, government defense organizations, and defense contractors.

What Is The Defense Equipment Maintenance, Repair and Overhauling Services Market Growth Forecast?

The defense equipment maintenance, repair and overhauling services market size is expected to see strong growth in the next few years. It will grow to $133.45 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to rising defense procurement to expand and modernize fleets boosting long-term mro needs, increasing adoption of predictive maintenance technologies for defense platforms, development of advanced diagnostics and digital twins improving overhaul efficiency, expanding global defense budgets supporting sustained mro investments, growth of outsourced mro partnerships between governments and private defense contractors. Major trends in the forecast period include predictive maintenance integration, rising demand for lifecycle extension services, increased focus on modular overhaul solutions, growing outsourcing of specialized mro tasks, expansion of multi-platform military support programs.

Global Defense Equipment Maintenance, Repair and Overhauling Services Market Segmentation

1) By Type: Air Based Defense Equipment MRO Services, Water Based Defense Equipment MRO Services, Land Based Defense Equipment MRO Services 2) By Service Type: Annual Maintenance Contract, Individual Works, Others 3) By End User: Military Aviation, Government Defense Organizations, Defense Contractors, Others Subsegments: 1) By Air-Based Defense Equipment MRO Services: Aircraft Maintenance, Helicopter Overhaul, Unmanned Aerial Vehicle (UAV) Services 2) By Water-Based Defense Equipment MRO Services: Naval Ship Maintenance, Submarine Overhaul, Maintenance Of Other Marine Vessels 3) By Land-Based Defense Equipment MRO Services: Ground Vehicle Maintenance, Armored Vehicle Overhaul, Maintenance Of Artillery Systems

What Is Driver Of The Defense Equipment Maintenance, Repair and Overhauling Services Market?

Increasing defense expenditure is expected to propel the growth of the defense equipment maintenance, repair, and overhaul services market going forward. Defense expenditure, also known as military expenditure, refers to the financial resources dedicated by a state to raising and maintaining an armed force or other methods essential for defense purposes. Defense expenditures provide funding for Defense MRO services, which are critical for ensuring the safety and airworthiness of military equipment. The budget allocated for defense MRO services is part of the overall defense budget, which funds a wide range of activities related to national defense. For instance, in April 2024, according to an analysis by Stockholm International Peace Research Institute, a Sweden-based international institute, in 2023, total global military spending reached $2.443 trillion, reflecting a 6.8% increase in real terms compared to 2022. Therefore, the increasing defense expenditure is driving the market for air and missile defense radar.

Key Players In The Global Defense Equipment Maintenance, Repair and Overhauling Services Market

Major companies operating in the defense equipment maintenance, repair and overhauling services market are United Technologies Corporation, Raytheon Co., Raytheon Technologies Corporation, The Boeing Company, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corp., Honeywell International Inc., BAE Systems plc, Boeing Defense Space & Security, Safran SA, Thales Group, L3Harris Technologies Inc., Rolls-Royce Holdings plc, Leidos Holdings Inc., Fluor Corporation, AECOM, Textron Inc., Huntington Ingalls Industries Inc., Science Applications International Corporation, Rheinmetall AG, KBR Inc., CACI International Inc., Elbit Systems Ltd., Hindustan Aeronautics Ltd., Leonardo S.p.A., Aerojet Rocketdyne Holdings Inc., AAR Corp., Kratos Defense & Security Solutions Inc., AM General, Aeronautical Systems Inc.

Global Defense Equipment Maintenance, Repair and Overhauling Services Market Trends and Insights

Major companies operating in the defense equipment maintenance, repair, and overhauling services market are adopting strategic partnerships approach to provide essential communication services to individuals, businesses, and governments. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in September 2023, Embraer SA, a Brazil-based aerospace corporation, partnered with SIA Engineering (Philippines) Corporation, a Philippines-based state-of-the-art MRO facility, to sign a non-binding memorandum of understanding to explore further partnership to include maintenance, repair and overhaul (MRO) services for Embraer’s E-Jets E2 family of aircraft.

What Are Latest Mergers And Acquisitions In The Defense Equipment Maintenance, Repair and Overhauling Services Market? Adani Defence Systems & Technologies Ltd. (ADSTL) Acquired Air Works

In December 2024, Adani Defence Systems & Technologies Ltd. (ADSTL), an India-based defense company that specializes in defense and aerospace solutions, acquired an 85.8% stake in Air Works India (Engineering) Pvt. Ltd. for $4.55 million (₹400 crore). ADSTL's acquisition of Air Works strengthens its capabilities in both commercial and defense aviation maintenance, repair, and overhaul (MRO) services. The integration of ADSTL’s strategic vision with Air Works’ expertise in MRO aligns with Adani Defence’s strategy to expand its footprint in the Indian aviation sector. Air Works is an India-based company providing aircraft maintenance, repair, and overhaul services.

Regional Insights

North America was the largest region in the defense equipment maintenance, repair and overhauling services market in 2025. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

What Defines the Defense Equipment Maintenance, Repair and Overhauling Services Market?

The defense equipment maintenance, repair, and overhauling services market consists of revenues earned by entities by providing defense equipment maintenance, repair, and overhauling services to defense equipment and components such as battleships, submarines, armored vehicles, missiles, and rocket launchers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Defense Equipment Maintenance, Repair and Overhauling Services Market Report 2026?

The defense equipment maintenance, repair and overhauling services market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the defense equipment maintenance, repair and overhauling services industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.