Defense Global Market Report 2024

The defense market size has grown strongly in recent years. It will grow from $575.33 billion in 2023 to $616.32 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historical period can be attributed to the rising utilization of military drones, the demand for attack and transport helicopters, low-interest rates, heightened spending on military equipment, the increasing development of autonomous fighter jets, and a rise in military expenditure.

The defense market size is expected to see strong growth in the next few years. It will grow to $772.49 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to government initiatives, technological advancements, increasing internal and external security threats, the development of increasingly advanced military helicopters, and rising military modernization programs. Major trends in the forecast period include the adoption of unmanned combat vehicles, innovative military avionics upgrade programs, augmented and virtual reality applications, the integration of edge computing in defense, the utilization of 3D printing technology, strategic mergers and acquisitions, the incorporation of artificial intelligence (AI) in defense equipment (drones, helicopters, and others), design upgrades and modularity for military-style weapons, and the implementation of day/night decamouflage technology for light weapons.

The adoption of unmanned combat vehicles stands out as a major trend in the market. Unmanned combat vehicles are autonomous machines or motorized vehicles that operate without direct human intervention. Equipped with a set of sensors for 360-degree situational awareness, optical avoidance, steering actuators, brakes, and laser scanners, these vehicles feature various autonomous capabilities enabling remote or independent operation. They are commonly used for inspecting surroundings, relaying information to operators through teleoperation, or autonomously addressing situations involving technical challenges. For instance, in November 2022, the Indian army initiated urgent drone purchases, allocating up to 3 billion rupees (about $36 million) for each initiative. The procurement includes 1,000 unmanned surveillance helicopters, 163 high-altitude logistics drones, 750 remotely piloted aerial vehicles, and 80 miniature remotely piloted aircraft systems.

The anticipated growth in defense expenditures is poised to drive the defense market. Defense expenditure represents the financial resources allocated by a state for the establishment and maintenance of armed forces or other defense-related purposes. This funding supports the defense industry, encompassing the design, manufacturing, and maintenance of military equipment. In April 2022, according to the Stockholm International Peace Research Institute, global military spending reached an unprecedented $2.1 trillion in 2021. The increase of 0.7% in real terms compared to 2020 reflects continued growth in military expenditures worldwide. Notably, Russia increased its military spending by 2.9%, reaching $65.9 billion, while China, the world's second-largest spender, allocated an estimated $293 billion to its military, marking a 4.7% increase from 2020. Consequently, the surge in defense expenditure is a driving force behind the growth of the defense market.

Companies operating in the air-based defense equipment manufacturing sector are increasingly investing in the development of autonomous fighter jets. These aircraft, designed to operate without human pilots, offer extended flight durations and feature advanced sensors to scan for potential threats. Autonomous jets are capable of collecting intelligence, disrupting the electronic systems of enemy aircraft, and engaging other airborne threats. In line with this trend, Northrop Grumman Corporation, a US-based aerospace and defense technology company, unveiled the Model 437, an autonomous stealth jet with a 3,000-mile range, developed in collaboration with Scaled Composites. The Model 437 is built upon the technology demonstrator aircraft Model 401 Sierra, showcasing low-cost manufacturing capabilities.

Major companies operating in the defense market report are 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, BAE Systems Avionics, 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.

Asia-Pacific was the largest region in the defense market in 2023. 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.

The countries covered in the defense market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The defense market consists of sales of air-based, sea-based, and land-based defense equipment such as military aircraft, helicopter, satellites, and radars, as well as support services. 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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