Defense Equipment Maintenance, Repair and Overhauling Services Market Report 2026

The defense equipment maintenance, repair and overhauling services market size has grown strongly in recent years. It will grow from $88.45 billion in 2025 to $95.26 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to growth in global defense fleets increasing demand for recurring mro services, rising complexity of air, sea, and land-based defense platforms requiring specialized maintenance, expansion of military operations driving higher wear and tear on equipment, increased reliance on OEM-authorized overhaul services for mission-critical systems, aging defense assets necessitating extensive refurbishment and life-extension programs.

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.

The rising defense expenditure is expected to significantly boost the growth of the defense equipment maintenance, repair, and overhaul (MRO) services market in the coming years. Defense expenditure, or military spending, refers to the financial resources allocated by a country for establishing and maintaining its armed forces and other essential defense mechanisms. These expenditures are crucial for funding defense MRO services, which ensure the safety and operational readiness of military equipment. The budget designated for defense MRO services forms part of the overall defense budget, which encompasses various activities related to national security. For example, in April 2024, an analysis by the Stockholm International Peace Research Institute, based in Sweden, indicated that total global military spending reached $2.443 trillion in 2023, marking a 6.8% increase in real terms compared to 2022. Thus, the increasing defense expenditure is driving demand for air and missile defense radar systems.

Major companies are adopting a strategic partnership approach to deliver essential communication services to individuals, businesses, and governments. Strategic partnerships involve leveraging mutual strengths and resources to achieve shared benefits and success. For example, Embraer SA, a Brazil-based aerospace corporation, partnered with SIA Engineering (Philippines) Corporation, a Philippines-based MRO facility, signing a non-binding memorandum of understanding in September 2023. This partnership aims to explore further collaboration, including maintenance, repair, and overhaul services for Embraer’s E-Jets E2 family of aircraft.

In December 2024, Adani Defence Systems & Technologies Ltd. (ADSTL), an India-based defense company specializing in defense and aerospace solutions, acquired an 85.8% stake in Air Works India (Engineering) Pvt. Ltd. for $4.55 million (₹400 crore). This acquisition enhances ADSTL’s capabilities in both commercial and defense aviation maintenance, repair, and overhaul (MRO) services. By integrating ADSTL’s strategic vision with Air Works’ MRO expertise, the company aligns with its strategy to expand its presence in the Indian aviation sector. Air Works is an India-based firm offering aircraft maintenance, repair, and overhaul services.

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.

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 the defense equipment maintenance, repair and overhauling services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the defense equipment maintenance, repair, and overhauling services market by increasing the cost of imported spare parts, specialized components, and advanced tooling required for air-, land-, and water-based defense platforms. These cost escalations and supply delays heavily affect segments such as aircraft maintenance, naval ship overhaul, and armored vehicle servicing, particularly in regions dependent on cross-border defense supply networks such as Asia-Pacific and Europe. However, tariffs have also encouraged domestic sourcing, local manufacturing investments, and the strengthening of regional defense MRO capabilities, creating selective positive outcomes for national industries.

The defense equipment maintenance, repair, and overhauling services market research report is one of a series of new reports that provides defense equipment maintenance, repair, and overhauling services market statistics, including defense equipment maintenance, repair, and overhauling services industry global market size, regional shares, competitors with a defense equipment maintenance, repair, and overhauling services market share, detailed defense equipment maintenance, repair, and overhauling services market segments, market trends and opportunities, and any further data you may need to thrive in the defense equipment maintenance, repair, repair, repair, and overhauling services industry. This defense equipment maintenance, repair, and overhauling services 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.

Defense equipment maintenance, repair, and overhaul (MRO) services involve providing maintenance, repair, and overhaul services for various air, sea, and land-based defense equipment, including fighter aircraft and military helicopters.

The primary types of defense equipment MRO services are air-based, water-based, and land-based. Air-based defense equipment MRO services encompass support and auxiliary equipment related to air-based defense, such as radar, satellites, sonar, and other auxiliary components. These services are utilized for various purposes, including annual maintenance contracts, individual projects, and others. The different sectors served include commercial aviation, business aviation, general aviation, military aviation, and others.

The countries covered in the defense equipment maintenance, repair and overhauling services 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.

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.

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.

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