Global Defense Market Size Booming to Surpass Whopping USD 3.1 Trillion by 2031
Global Defense Market is flourishing because of the geopolitical instability, expanding defense budgets, and the escalating cyberthreat landscape.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Global Defense Market size at USD 2,156.5 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Global Defense Market size to expand at a significant CAGR of 5.5% reaching a value of USD 3,137 billion by 2031. The growth of Defense Market across the regions is propelled by escalating geopolitical tensions, heightened security imperatives, and a surge in military expenditures with pronounced expansion in Asia, the Middle East, North Africa, and Europe. Europe's defense outlays rose 11.7%, marking a decade of growth fueled by Russia's actions in Ukraine, while Russia's military expenditure, underscores its reinforced posture amidst fiscal pressures, contrasting with constrained US spending under the Fiscal Responsibility Act; simultaneously, India's "Atmanirbhar Bharat" initiative has propelled domestic defense production to a record INR 1.27 lakh crore, a 174% increase since 2014-15, transforming it into a manufacturing hub for platforms like the Tejas fighter jet and INS Vikrant, alongside a 30-fold increase in defense exports to INR 21,083 crore, with a government target of INR 50,000 crore by 2029, reflecting strategic investments in research, industrial corridors, and public-private partnerships, positioning India as a pivotal global player aiming for INR 3 lakh crore in defense production by 2029.
Opportunity - Growing Demand for Unmanned Systems
The growing demand for unmanned systems presents a significant growth opportunity for the major players in Global Defense Market. Unmanned systems, such as unmanned aerial vehicles (UAVs), unmanned combat vehicles, and autonomous drones, are increasingly being adopted for various military applications, including surveillance, reconnaissance, search and rescue operations, and tactical missions. These systems are equipped with advanced sensors, 360-degree situational awareness capabilities, and autonomous technologies, enabling them to operate remotely or make autonomous decisions without human intervention. This enhances operational efficiency, reduces risk to personnel, and improves mission outcomes. For instance, in November 2022, the Indian Army procured a wide range of unmanned systems under emergency powers, including surveillance helicopters, high-altitude logistics drones, and remotely piloted aerial systems, further indicating the military’s growing reliance on these technologies. The global surge in unmanned systems development is also reflected by advancements in commercial and civilian sectors, where drones are used for purposes ranging from agriculture and delivery to infrastructure inspection. As research and innovation in unmanned systems continue to evolve, these technologies offer an expanding array of applications and further fuel the market growth, positioning unmanned systems as a key area of focus and opportunity in the defense sector.
Impact of Escalating Geopolitical Tensions on Global Defense Market
Intensifying geopolitical tensions could disrupt the growth of Global Defense Market. Nations, responding to heightened conflict risks and regional instability, are strategically bolstering their military preparedness, thereby driving a substantial surge in defense expenditures. This prioritization manifests in amplified budgetary allocations and strategic investments targeting cutting-edge defense technologies. Consequently, the market experiences a pronounced escalation in demand for sophisticated military assets, encompassing advanced aircraft, next-generation weapons systems, and robust cybersecurity solutions, propelling market expansion. Furthermore, the prevailing geopolitical uncertainty accelerates the dynamics of arms races and fosters the formation of strategic alliances, further augmenting market dimensions. However, this dynamic landscape also presents formidable challenges, including intensified competitive pressures and the imperative for rapid innovation to effectively counter evolving and emergent security threats.
Europe Dominates Global Defense Market
Europe continues to lead Global Defense Market, driven by strategic capital allocations from key economies, such as Germany and France. Major European nations are channeling substantial resources into the development of next-generation aerial platforms, emphasizing high altitude performance and optimized fuel efficiency. Such advancements are critical for bolstering global search and rescue capabilities, particularly in the context of natural disasters and civil emergencies. Concurrently, a notable surge in the regional self-defense market is observed, driven by escalating crime rates and a robust ecosystem of domestic manufacturers. This expansion is further catalyzed by sustained investments in research and development, focusing on enhanced protective weaponry, and by evolving regulatory frameworks designed to address contemporary security challenges.
Competitive Landscape
Major companies in Global 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, 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, Raytheon, European Advanced Technology S.A., Cassidian Cyber Security, United Technologies, Hispano-Suiza, EBV Explosives Environmental Company, CADES Engineering Technologies Ltd, Bharat Dynamics Limited, Brazilian Company Avionics Services, Direction des Constructions Navales Services (DCNS), and General Atomics Aeronautical Systems. The presence of high number of companies intensify the market competition as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and Global Defense Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Defense Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
- 1. Research Framework
- 1.1. Research Objective
- 1.2. Product Overview
- 1.3. Market Segmentation
- 2. Executive Summary
- 3. Global Defense Market Insights
- 3.1. End User Value Chain Analysis
- 3.2. DROC Analysis
- 3.2.1. Growth Drivers
- 3.2.1.1. Rising Geopolitical Tensions
- 3.2.1.2. Increasing Defense Budgets
- 3.2.1.3. Growing Threat of Cyber Warfare
- 3.2.2. Restraints
- 3.2.2.1. High Development & Maintenance Costs
- 3.2.2.2. Regulatory Challenges & Export Retractions
- 3.2.3. Opportunities
- 3.2.3.1. Growing Demand for Unmanned Systems
- 3.2.3.2. Rising in Space-Based Defense Initiative
- 3.2.4. Challenges
- 3.2.4.1. Supply Chain Disruptions
- 3.2.4.2. Geopolitical Sanctions & Trade Barriers
- 3.3. Technological Advancements/Recent Developments
- 3.4. Regulatory Framework
- 3.5. Porter’s Five Forces Analysis
- 3.5.1. Bargaining Power of Suppliers
- 3.5.2. Bargaining Power of Buyers
- 3.5.3. Threat of New Entrants
- 3.5.4. Threat of Substitutes
- 3.5.5. Intensity of Rivalry
- 4. Global Defense Market: Marketing Strategies
- 5. Global Defense Market: Pricing Analysis
- 6. Global Defense Market: Geography Analysis
- 6.1. Global Defense Market, Geographical Analysis, 2024
- 6.2. Global Defense, Market Attractiveness Analysis, 2024–2031
- 7. Global Defense Market Overview
- 7.1. Market Size & Forecast, 2019–2031
- 7.1.1. By Value (USD Billion)
- 7.2. Market Share & Forecast
- 7.2.1. By Platform
- 7.2.1.1. Airforce
- 7.2.1.2. Land
- 7.2.1.3. Naval
- 7.2.2. By Type
- 7.2.2.1. Air-Based Defense Equipment
- 7.2.2.2. Sea-Based Defense Equipment
- 7.2.2.3. Land-Based Defense Equipment
- 7.2.2.4. Defense Equipment maintenance, Repair, & Overhauling Services
- 7.2.2.5. Defense Support & Auxiliary Equipment
- 7.2.3. By Operation
- 7.2.3.1. Autonomous Defense Equipment
- 7.2.3.2. Manual
- 7.2.4. By Region
- 7.2.4.1. North America
- 7.2.4.2. Europe
- 7.2.4.3. Asia Pacific (APAC)
- 7.2.4.4. Latin America (LATAM)
- 7.2.4.5. Middle East and Africa (MEA)
- 8. North America Defense Market
- 8.1. Market Size & Forecast, 2019–2031
- 8.1.1. By Value (USD Billion)
- 8.2. Market Share & Forecast
- 8.2.1. By Platform
- 8.2.2. By Type
- 8.2.3. By Operation
- 8.2.4. By Country
- 8.2.4.1. United States
- 8.2.4.1.1. By Platform
- 8.2.4.1.2. By Type
- 8.2.4.1.3. By Operation
- 8.2.4.2. Canada
- 8.2.4.2.1. By Platform
- 8.2.4.2.2. By Type
- 8.2.4.2.3. By Operation
- 9. Europe Defense Market
- 9.1. Market Size & Forecast, 2019–2031
- 9.1.1. By Value (USD Billion)
- 9.2. Market Share & Forecast
- 9.2.1. By Platform
- 9.2.2. By Type
- 9.2.3. By Operation
- 9.2.4. By Country
- 9.2.4.1. Germany
- 9.2.4.1.1. By Platform
- 9.2.4.1.2. By Type
- 9.2.4.1.3. By Operation
- 9.2.4.2. United Kingdom
- 9.2.4.2.1. By Platform
- 9.2.4.2.2. By Type
- 9.2.4.2.3. By Operation
- 9.2.4.3. Italy
- 9.2.4.3.1. By Platform
- 9.2.4.3.2. By Type
- 9.2.4.3.3. By Operation
- 9.2.4.4. France
- 9.2.4.4.1. By Platform
- 9.2.4.4.2. By Type
- 9.2.4.4.3. By Operation
- 9.2.4.5. Spain
- 9.2.4.5.1. By Platform
- 9.2.4.5.2. By Type
- 9.2.4.5.3. By Operation
- 9.2.4.6. Belgium
- 9.2.4.6.1. By Platform
- 9.2.4.6.2. By Type
- 9.2.4.6.3. By Operation
- 9.2.4.7. Russia
- 9.2.4.7.1. By Platform
- 9.2.4.7.2. By Type
- 9.2.4.7.3. By Operation
- 9.2.4.8. The Netherlands
- 9.2.4.8.1. By Platform
- 9.2.4.8.2. By Type
- 9.2.4.8.3. By Operation
- 9.2.4.9. Rest of Europe
- 9.2.4.9.1. By Platform
- 9.2.4.9.2. By Type
- 9.2.4.9.3. By Operation
- 10. Asia Pacific Defense Market
- 10.1. Market Size & Forecast, 2019–2031
- 10.1.1. By Value (USD Billion)
- 10.2. Market Share & Forecast
- 10.2.1. By Platform
- 10.2.2. By Type
- 10.2.3. By Operation
- 10.2.4. By Country
- 10.2.4.1. China
- 10.2.4.1.1. By Platform
- 10.2.4.1.2. By Type
- 10.2.4.1.3. By Operation
- 10.2.4.2. India
- 10.2.4.2.1. By Platform
- 10.2.4.2.2. By Type
- 10.2.4.2.3. By Operation
- 10.2.4.3. Japan
- 10.2.4.3.1. By Platform
- 10.2.4.3.2. By Type
- 10.2.4.3.3. By Operation
- 10.2.4.4. South Korea
- 10.2.4.4.1. By Platform
- 10.2.4.4.2. By Type
- 10.2.4.4.3. By Operation
- 10.2.4.5. Australia and New Zealand
- 10.2.4.5.1. By Platform
- 10.2.4.5.2. By Type
- 10.2.4.5.3. By Operation
- 10.2.4.6. Indonesia
- 10.2.4.6.1. By Platform
- 10.2.4.6.2. By Type
- 10.2.4.6.3. By Operation
- 10.2.4.7. Malaysia
- 10.2.4.7.1. By Platform
- 10.2.4.7.2. By Type
- 10.2.4.7.3. By Operation
- 10.2.4.8. Singapore
- 10.2.4.8.1. By Platform
- 10.2.4.8.2. By Type
- 10.2.4.8.3. By Operation
- 10.2.4.9. Vietnam
- 10.2.4.9.1. By Platform
- 10.2.4.9.2. By Type
- 10.2.4.9.3. By Operation
- 10.2.4.10. Rest of APAC
- 10.2.4.10.1. By Platform
- 10.2.4.10.2. By Type
- 10.2.4.10.3. By Operation
- 11. Latin America Defense Market
- 11.1. Market Size & Forecast, 2019–2031
- 11.1.1. By Value (USD Billion)
- 11.2. Market Share & Forecast
- 11.2.1. By Platform
- 11.2.2. By Type
- 11.2.3. By Operation
- 11.2.4. By Country
- 11.2.4.1. Brazil
- 11.2.4.1.1. By Platform
- 11.2.4.1.2. By Type
- 11.2.4.1.3. By Operation
- 11.2.4.2. Mexico
- 11.2.4.2.1. By Platform
- 11.2.4.2.2. By Type
- 11.2.4.2.3. By Operation
- 11.2.4.3. Argentina
- 11.2.4.3.1. By Platform
- 11.2.4.3.2. By Type
- 11.2.4.3.3. By Operation
- 11.2.4.4. Peru
- 11.2.4.4.1. By Platform
- 11.2.4.4.2. By Type
- 11.2.4.4.3. By Operation
- 11.2.4.5. Rest of LATAM
- 11.2.4.5.1. By Platform
- 11.2.4.5.2. By Type
- 11.2.4.5.3. By Operation
- 12. Middle East and Africa Defense Market
- 12.1. Market Size & Forecast, 2019–2031
- 12.1.1. By Value (USD Billion)
- 12.2. Market Share & Forecast
- 12.2.1. By Platform
- 12.2.2. By Type
- 12.2.3. By Operation
- 12.2.4. By Country
- 12.2.4.1. Saudi Arabia
- 12.2.4.1.1. By Platform
- 12.2.4.1.2. By Type
- 12.2.4.1.3. By Operation
- 12.2.4.2. UAE
- 12.2.4.2.1. By Platform
- 12.2.4.2.2. By Type
- 12.2.4.2.3. By Operation
- 12.2.4.3. Qatar
- 12.2.4.3.1. By Platform
- 12.2.4.3.2. By Type
- 12.2.4.3.3. By Operation
- 12.2.4.4. Kuwait
- 12.2.4.4.1. By Platform
- 12.2.4.4.2. By Type
- 12.2.4.4.3. By Operation
- 12.2.4.5. South Africa
- 12.2.4.5.1. By Platform
- 12.2.4.5.2. By Type
- 12.2.4.5.3. By Operation
- 12.2.4.6. Nigeria
- 12.2.4.6.1. By Platform
- 12.2.4.6.2. By Type
- 12.2.4.6.3. By Operation
- 12.2.4.7. Algeria
- 12.2.4.7.1. By Platform
- 12.2.4.7.2. By Type
- 12.2.4.7.3. By Operation
- 12.2.4.8. Rest of MEA
- 12.2.4.8.1. By Platform
- 12.2.4.8.2. By Type
- 12.2.4.8.3. By Operation
- 13. Competitive Landscape
- 13.1. List of Key Players and Their Offerings
- 13.2. Global Defense Company Market Share Analysis, 2024
- 13.3. Competitive Benchmarking, By Operating Parameters
- 13.4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
- 14. Impact of Escalating Geopolitical Tensions on Global Defense Market
- 15. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- 15.1. Lockheed Martin Corporation
- 15.2. Raytheon Technologies Corporation
- 15.3. Northrop Grumman Corp
- 15.4. General Dynamics
- 15.5. The Boeing Company
- 15.6. BAE Systems plc
- 15.7. L3Harris Technologies
- 15.8. Leonardo SpA
- 15.9. Thales Group
- 15.10. Huntington Ingalls Industries Inc
- 15.11. Excel Laser Technology Private Limited
- 15.12. Acuity Laser Measurement
- 15.13. Prakash Laser
- 15.14. Infrared Optics
- 15.15. Baoding Triangel Rsd Electronics Technology Limited
- 15.16. Beijing Be-Better Technology Co., Ltd
- 15.17. Shanghai Zhangjiagang Baorui Machinery Co., Ltd
- 15.18. Guangzhou Blixun Electronics Co., Ltd
- 15.19. Xi'an Lonn M&E Equipment Co., Ltd
- 15.20. Raytheon
- 15.21. European Advanced Technology S.A.
- 15.22. Cassidian Cyber Security
- 15.23. United Technologies
- 15.24. Hispano-Suiza
- 15.25. EBV Explosives Environmental Company
- 15.26. CADES Engineering Technologies Ltd
- 15.27. Bharat Dynamics Limited
- 15.28. Brazilian Company Avionics Services
- 15.29. Direction des Constructions Navales Services (DCNS)
- 15.30. General Atomics Aeronautical Systems
- 15.31. Other Prominent Players
- 16. Key Strategic Recommendations
- 17. Research Methodology
- 17.1. Qualitative Research
- 17.1.1. Primary & Secondary Research
- 17.2. Quantitative Research
- 17.3. Market Breakdown & Data Triangulation
- 17.3.1. Secondary Research
- 17.3.2. Primary Research
- 17.4. Breakdown of Primary Research Respondents, By Region
- 17.5. Assumptions & Limitations
- *Financial information of non-listed companies can be provided as per availability.
- **The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable
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