The global military expenditure is estimated to be USD 2.56 trillion in 2024 and is expected to reach USD 2.68 trillion in 2025 at a growth rate of 4.9% from 2023 to 2024. The Global Defense Outlook 2025 provides an in-depth examination of significant trends and recent advancements in the defense sector. It anticipates potential future developments and associated opportunities in 2025 and beyond. This study is designed to empower participants in the defense industry to make strategic decisions, with a particular focus on key forthcoming opportunities.
Utilizing meticulously curated datasets within the Aerospace and Defense practice, the analysis incorporates insights from both the research team and industry experts. In addition to drawing on major findings from published syndicate studies, this outlook study incorporates firsthand observations from recent, thorough investigations. The analysis encompasses crucial programs and contracts, along with an assessment of the impact of ongoing and recent conflicts. Persistent threat perceptions and emerging defense risks are also addressed to validate future predictions.
Global macroeconomic trends are scrutinized to compare economic indicators and their correlation with defense spending, especially capital expenditure. Special attention is given to the competitive landscape of the defense industry, highlighting new product launches and significant contract wins to substantiate the developments and future opportunities under consideration.
The analysis goes on to evaluate the performance of the global defense industry in 2024 and projects the same for 2025. The predictive analysis for 2025 also outlines the expected key trends in the defense industry. This particular segment is crafted to offer a comprehensive overview of emerging opportunities for defense industry participants, particularly those targeted for customized, in-depth investigations by the Aerospace & Defense practice.
Report Scope:
- Base Year: 2024
- Study Period: 2023-2025
- Forecast Year: 2025
Geographical
- Scope: North America, Europe, Asia Pacific, and the Middle East
Key Concepts
- Global military expenditure analysis
- Fleet size analysis (land, airborne, and naval)
- Autonomous platforms
- Trending technologies
- Digital & innovative startups thriving in the defense sector
- Ai startups attracting investments from defense OEMS
- Major acquisitions in the defense sector
- Evolution of space as a critical warfighting domain
- Drones reshaping battlefield
- Growing focus on multidomain operations
- Growing adoption of unmanned underwater vehicles in defense
- Naval asset sustainment
- Predictive maintenance and digital twin technologies
- Geopolitical conflicts in the Middle East
Key Focus Areas
- Technological advancements and opportunities in the defense industry
Study Objectives
- To understand the key technologies and geo-political trends impacting the defense industry in 2025
- To estimate the defense industry performance at the global level, key regions, and sector/segment
- To identify growth opportunities and provide recommendations for market participants to tap key opportunities
Methodology
Secondary Research
- Historical data
- Analysis of defense budget allocation and relevant data collected from various defense associations and publications (UN Comtrade, Comptroller, and others) as well as third-party databases (SIPRI, Small Arms Survey, and others) across regions
- Key trends, market drivers, and restraints from various industry articles, reports, and journals
Discussions With Experts
- Opinions of key experts about market drivers and restraints, as well as industry performance
The Publisher's Analysis
- Existing domain knowledge to analyze and forecast various defense markets
Who Should be Interested in the Report
- Industry stakeholders (OEMs, Tier I and Tier II suppliers, service providers, and others) with business interests in Defense Outlook for 2025
- The report boasts of insights and market developments for leadership and teams aligned with strategy, product, R&D, sales, and marketing
Table of Contents
1. Executive Summary
2. Research Scope, Objectives, and Methodology
3. Global Macroeconomic Analysis
4. Global Defense Industry Performance
5. Key Developments in Global Defense Industry, 2024
6. Global Defense Industry: Competitive Landscape
7. Global Defense Industry Performance, 2024 vs. 2025
8. Key Trends in Defense Industry, 2025
9. Key Growth Opportunities and Recommendations
11. Appendix
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 104 |
| Published | February 2025 |
| Forecast Period | 2023 - 2024 |
| Estimated Market Value ( USD | $ 2.56 Trillion |
| Forecasted Market Value ( USD | $ 2.68 Trillion |
| Compound Annual Growth Rate | 4.9% |
| Regions Covered | Global |
