
United States Defense Market Report and Forecast 2025-2034
Description
The United States defense market size reached approximately USD 649.78 Billion in 2024. The market is estimated to grow at a CAGR of 0.80% in the forecast period of 2025-2034, supported by growing geopolitical tensions.
Key Trends in the Market
Defense refers to a country’s armed forces such as the army, navy and airforce, which are responsible for military warfare and dealing with external threats. It also refers to a range of defensive activities and the utilisation of weapons such as aeroplanes, artillery guns, and tanks to combat an enemy attack.
The EMR’s report titled “United States Defense Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Armed Force
As per the United States defense market analysis, air force occupies a significant share of the US market, owing to the growing efforts in the upgradation and replacement of ageing aircraft. The growing integration of the latest technologies in the airforce sector also supports the segment’s growth.
For example, in December 2023, Keysight Technologies, a manufacturer of electronic equipment, gained a contract of $18.5 million for the development of Electronic Warfare Threat Simulator (EWTS) systems for the US Air Force to analyse and create high-density threat environments. Moreover, the procurement of sophisticated military aircraft by the US government offers a positive market outlook.
Market Share by Type
Weapons and ammunition account for a substantial portion of the United States defense market share, due to factors such as surging combat operations, which require an effective weapon arsenal, as well as the rising partnership between the US and other countries for the production of weapons.
Increased deployment of high-end military weapons and ammunition in the country also supports the segment’s growth. Initiatives such as the Long Range Strike Bomber (LRS-B) programme of the US government aimed towards manufacturing stealth aircraft that can drop thermonuclear weapons in enemy territory without being detected are also propelling the market expansion.
Competitive Landscape
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States defense market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.
The Boeing Company
The Boeing Company, incorporated in 1916, is a manufacturer of aeroplanes, rotors, rockets, and satellites, among others. The company, based in Virginia, the United States, consists of four primary divisions such as Boeing Commercial Airplanes (BCZA), Boeing Capital, Boeing Global Services, and Boeing Defense, Space and Security (BDS). The company is accelerating the implementation of sustainable aviation fuels as a part of its sustainability initiative.
Lockheed Martin Corporation
Lockheed Martin Corporation, established in 1995, is a leading provider of aerospace and defense solutions. It operates in the sectors of aeronautics, missile and fire control, rotary and mission systems, and space. It is headquartered in Maryland, the United States and focuses on integrating artificial intelligence, hypersonics, and other innovative technologies in its operation.
Northrop Grumman Corp.
Northrop Grumman Corp., founded in 1994, is a global aerospace and defense company, with its headquarters in Virginia, the United States. Its comprehensive range of products includes engine components, unmanned aerial vehicles, hazardous-duty robots, and sensors, among others. The company is also known for offering services such as surveillance and reconnaissance, battle management, protected communication, and strike operations, among others.
Other United States defense market players include RTX Corporation, Thales SA, BAE Systems plc, SAAB AB, Airbus SE, Leonardo S.p.A, General Dynamics Corp., L3Harris Technologies Inc., and Huntington Ingalls Industries Inc., among others.
Key Trends in the Market
Defense refers to a country’s armed forces such as the army, navy and airforce, which are responsible for military warfare and dealing with external threats. It also refers to a range of defensive activities and the utilisation of weapons such as aeroplanes, artillery guns, and tanks to combat an enemy attack.
- One of the prominent United States defense market trends is the enforcement of cyber defense solutions as well as the development of cyber warfare capabilities by the US government to protect the critical defense infrastructure against ever-growing cyberattacks.
- Increased production of advanced defense equipment such as directed energy weapons that can provide high precision attacks and high-speed travel during time-critical military threats is another crucial trend boosting the US market expansion.
- The defense sector of the country is harnessing the capabilities of AI to enhance reasoning abilities for intelligence, surveillance, and reconnaissance (ISR) missions, predict military equipment failure using real-time data, and train armed forces in AI-driven simulation.
- Favourable government incentives to promote the development of advanced armed forces also contribute to the United States defense market growth. For example, in November 2023, the US Air Force awarded a contract of $2.3 billion to Boeing company for the production of 15 KC-46A Pegasus refuelling tankers to carry out refuelling missions around the world.
The EMR’s report titled “United States Defense Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Armed Force
- Army
- Navy
- Air Force
- Weapons and Ammunition
- Vehicles
- Communication Systems
- Personnel Training, Simulation, and Protection Equipment
- New England
- Mideast
- Great Lakes
- Plains
- Southeast
- Southwest
- Rocky Mountain
- Far West
As per the United States defense market analysis, air force occupies a significant share of the US market, owing to the growing efforts in the upgradation and replacement of ageing aircraft. The growing integration of the latest technologies in the airforce sector also supports the segment’s growth.
For example, in December 2023, Keysight Technologies, a manufacturer of electronic equipment, gained a contract of $18.5 million for the development of Electronic Warfare Threat Simulator (EWTS) systems for the US Air Force to analyse and create high-density threat environments. Moreover, the procurement of sophisticated military aircraft by the US government offers a positive market outlook.
Market Share by Type
Weapons and ammunition account for a substantial portion of the United States defense market share, due to factors such as surging combat operations, which require an effective weapon arsenal, as well as the rising partnership between the US and other countries for the production of weapons.
Increased deployment of high-end military weapons and ammunition in the country also supports the segment’s growth. Initiatives such as the Long Range Strike Bomber (LRS-B) programme of the US government aimed towards manufacturing stealth aircraft that can drop thermonuclear weapons in enemy territory without being detected are also propelling the market expansion.
Competitive Landscape
The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States defense market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.
The Boeing Company
The Boeing Company, incorporated in 1916, is a manufacturer of aeroplanes, rotors, rockets, and satellites, among others. The company, based in Virginia, the United States, consists of four primary divisions such as Boeing Commercial Airplanes (BCZA), Boeing Capital, Boeing Global Services, and Boeing Defense, Space and Security (BDS). The company is accelerating the implementation of sustainable aviation fuels as a part of its sustainability initiative.
Lockheed Martin Corporation
Lockheed Martin Corporation, established in 1995, is a leading provider of aerospace and defense solutions. It operates in the sectors of aeronautics, missile and fire control, rotary and mission systems, and space. It is headquartered in Maryland, the United States and focuses on integrating artificial intelligence, hypersonics, and other innovative technologies in its operation.
Northrop Grumman Corp.
Northrop Grumman Corp., founded in 1994, is a global aerospace and defense company, with its headquarters in Virginia, the United States. Its comprehensive range of products includes engine components, unmanned aerial vehicles, hazardous-duty robots, and sensors, among others. The company is also known for offering services such as surveillance and reconnaissance, battle management, protected communication, and strike operations, among others.
Other United States defense market players include RTX Corporation, Thales SA, BAE Systems plc, SAAB AB, Airbus SE, Leonardo S.p.A, General Dynamics Corp., L3Harris Technologies Inc., and Huntington Ingalls Industries Inc., among others.
Table of Contents
115 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 North America Defense Market Overview
- 5.1 Key Industry Highlights
- 5.2 North America Defense Historical Market (2018-2024)
- 5.3 North America Defense Market Forecast (2025-2034)
- 6 United States Defense Market Overview
- 6.1 Key Industry Highlights
- 6.2 United States Defense Historical Market (2018-2024)
- 6.3 United States Defense Market Forecast (2025-2034)
- 7 United States Defense Market by Armed Force
- 7.1 Army
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.2 Navy
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.3 Air Force
- 7.3.1 Historical Trend (2018-2024)
- 7.3.2 Forecast Trend (2025-2034)
- 8 United States Defense Market by Type
- 8.1 Weapons and Ammunition
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.1.3 Breakup by Type
- 8.1.3.1 Artillery and Mortar Systems
- 8.1.3.2 Infantry Weapons
- 8.1.3.3 Missile and Missile Defense Systems
- 8.1.3.4 Ammunitions
- 8.2 Vehicles
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 8.2.3 Breakup by Type
- 8.2.3.1 Land-based Vehicles
- 8.2.3.2 Sea-based Vehicles
- 8.2.3.3 Air-based Vehicles
- 8.3 Communication Systems
- 8.3.1 Historical Trend (2018-2024)
- 8.3.2 Forecast Trend (2025-2034)
- 8.4 Personnel Training, Simulation, and Protection Equipment
- 8.4.1 Historical Trend (2018-2024)
- 8.4.2 Forecast Trend (2025-2034)
- 9 United States Defense Market by Region
- 9.1 New England
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Mideast
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 9.3 Great Lakes
- 9.3.1 Historical Trend (2018-2024)
- 9.3.2 Forecast Trend (2025-2034)
- 9.4 Plains
- 9.4.1 Historical Trend (2018-2024)
- 9.4.2 Forecast Trend (2025-2034)
- 9.5 Southeast
- 9.5.1 Historical Trend (2018-2024)
- 9.5.2 Forecast Trend (2025-2034)
- 9.6 Southwest
- 9.6.1 Historical Trend (2018-2024)
- 9.6.2 Forecast Trend (2025-2034)
- 9.7 Rocky Mountain
- 9.7.1 Historical Trend (2018-2024)
- 9.7.2 Forecast Trend (2025-2034)
- 9.8 Far West
- 9.8.1 Historical Trend (2018-2024)
- 9.8.2 Forecast Trend (2025-2034)
- 10 Market Dynamics
- 10.1 SWOT Analysis
- 10.1.1 Strengths
- 10.1.2 Weaknesses
- 10.1.3 Opportunities
- 10.1.4 Threats
- 10.2 Porter’s Five Forces Analysis
- 10.2.1 Supplier’s Power
- 10.2.2 Buyer’s Power
- 10.2.3 Threat of New Entrants
- 10.2.4 Degree of Rivalry
- 10.2.5 Threat of Substitutes
- 10.3 Key Indicators for Demand
- 10.4 Key Indicators for Price
- 11 Competitive Landscape
- 11.1 Supplier Selection
- 11.2 Key Global Players
- 11.3 Key Regional Players
- 11.4 Key Player Strategies
- 11.5 Company Profiles
- 11.5.1 The Boeing Company
- 11.5.1.1 Company Overview
- 11.5.1.2 Product Portfolio
- 11.5.1.3 Demographic Reach and Achievements
- 11.5.1.4 Certifications
- 11.5.2 Lockheed Martin Corporation
- 11.5.2.1 Company Overview
- 11.5.2.2 Product Portfolio
- 11.5.2.3 Demographic Reach and Achievements
- 11.5.2.4 Certifications
- 11.5.3 Northrop Grumman Corp.
- 11.5.3.1 Company Overview
- 11.5.3.2 Product Portfolio
- 11.5.3.3 Demographic Reach and Achievements
- 11.5.3.4 Certifications
- 11.5.4 RTX Corporation
- 11.5.4.1 Company Overview
- 11.5.4.2 Product Portfolio
- 11.5.4.3 Demographic Reach and Achievements
- 11.5.4.4 Certifications
- 11.5.5 Thales SA
- 11.5.5.1 Company Overview
- 11.5.5.2 Product Portfolio
- 11.5.5.3 Demographic Reach and Achievements
- 11.5.5.4 Certifications
- 11.5.6 BAE Systems plc
- 11.5.6.1 Company Overview
- 11.5.6.2 Product Portfolio
- 11.5.6.3 Demographic Reach and Achievements
- 11.5.6.4 Certifications
- 11.5.7 SAAB AB
- 11.5.7.1 Company Overview
- 11.5.7.2 Product Portfolio
- 11.5.7.3 Demographic Reach and Achievements
- 11.5.7.4 Certifications
- 11.5.8 Airbus SE
- 11.5.8.1 Company Overview
- 11.5.8.2 Product Portfolio
- 11.5.8.3 Demographic Reach and Achievements
- 11.5.8.4 Certifications
- 11.5.9 Leonardo S.p.A
- 11.5.9.1 Company Overview
- 11.5.9.2 Product Portfolio
- 11.5.9.3 Demographic Reach and Achievements
- 11.5.9.4 Certifications
- 11.5.10 General Dynamics Corp.
- 11.5.10.1 Company Overview
- 11.5.10.2 Product Portfolio
- 11.5.10.3 Demographic Reach and Achievements
- 11.5.10.4 Certifications
- 11.5.11 L3Harris Technologies Inc.
- 11.5.11.1 Company Overview
- 11.5.11.2 Product Portfolio
- 11.5.11.3 Demographic Reach and Achievements
- 11.5.11.4 Certifications
- 11.5.12 Huntington Ingalls Industries Inc.
- 11.5.12.1 Company Overview
- 11.5.12.2 Product Portfolio
- 11.5.12.3 Demographic Reach and Achievements
- 11.5.12.4 Certifications
- 11.5.13 Others
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