Global Defense Market Report 2023: Sector to Reach $838.03 Billion in 2031

Growth in the historic period resulted from increasing the use of military drones, demand for attack and transport helicopters, low-interest rates, increasing spending on military equipment, increasing development of autonomous fighter jets and increasing military expenditure. Defense budget reductions in developed nations, high currency rate fluctuations, geopolitical tensions, volatile raw material prices and coronavirus pandemic are the factors that hindered the market growth.

Going forward, government initiatives, technology advancement, increasing internal and external security threats, increasingly advanced military helicopters and increasing military modernization programs will drive the growth. Factors that could hinder the growth of the defense market in the future include increased cyber-attacks, global recession and stringent regulations.

The defense market is segmented by type into air-based defense equipment, sea-based defense equipment, land-based defense equipment, defense equipment maintenance, repair and overhauling services and defense support and auxiliary equipment.

The air-based defense equipment market was the largest segment of the defense market segmented by type, accounting for 37.6% of the total in 2021. Going forward, the air-based defense equipment market is expected to be the fastest growing segment in the defense market segmented by type, at a CAGR of 8.4% during 2021-2026.

The land-based defense equipment market is further segmented by type into armored vehicles, missiles, tanks and small arms and light weapons. The missiles market was the largest segment of the land-based defense equipment market segmented by type, accounting for 52.3% of the total in 2021. Going forward, the missiles market is expected to be the fastest growing segment in the land-based defense equipment market segmented by type, at a CAGR of 8.4% during 2021-2026.

The defense equipment maintenance, repair and overhauling services market is further segmented by type into air-based defense equipment MRO services, water based defense equipment MRO services and land-based defense equipment MRO services. The air-based defense equipment MRO services market was the largest segment of the defense equipment maintenance, repair and overhauling services market segmented by type, accounting for 25.2% of the total in 2021.

Going forward, the air-based defense equipment MRO services market is expected to be the fastest growing segment in the defense equipment maintenance, repair and overhauling services market segmented by type, at a CAGR of 7.5% during 2021-2026.

Asia Pacific was the largest region in the defense market, accounting for 33.6% of the total in 2021. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the defense market will be North America and South America where growth will be at CAGRs of 8.9% and 8.0% respectively. These will be followed by Asia Pacific and Africa where the markets are expected to grow at CAGRs of 7.9% and 7.7% respectively.

The global defense market is highly concentrated, with a large number of players. The top ten competitors in the market made up to 51.28% of the total market in 2021. The market concentration can be attributed to the high entry barriers and high costs associated with expansion.

Going forward the market is expected to experience further consolidation with the rising number of mergers and collaboration among players in the market. Lockheed Martin Corporation was the largest competitor with 12.01% share of the market, followed by Raytheon Technologies Corporation with 7.74%, Northrop Grumman Corp with 7.33%, General Dynamics with 5.67%, The Boeing Company with 5.03%, BAE Systems plc with 3.71%, L3Harris Technologies with 3.19%, Leonardo SpA with 2.46%, Thales Group with 2.23%, and Huntington Ingalls Industries Inc. with 1.91%.

Market-trend-based strategies for the defense market include the adoption of unmanned combat vehicles, innovative new military avionics upgrade programs, augmented and virtual reality, edge computing in defense, use of 3D printing technology, strategic mergers and acquisitions, use of artificial intelligence (AI) in defense equipment (drones, helicopters and others), design upgradations and modularity for military-style weapons and day/night decamouflage technology for light weapons.

Player-adopted strategies in the defense market include focus on enhancing business by forming long term contracts to provide its services for critical missions, strategic investments in aligned businesses for future growth, expand product portfolio by developing new products and investing in modern warfare and missile technologies, aims to expand maritime operations through building new facilities and develop a robust defense infrastructure through investing in modern and advanced defense systems and companies.

To take advantage of the opportunities, the publisher recommends the defense companies to focus on unmanned combat vehicles, use 3D printing technology, use artificial intelligence (AI)in defense equipment, focus on use of day/night decamouflage technology, expand in emerging markets, continue to focus on developed markets, increase focus on mergers and acquisitions, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to target fast-growing platforms.

This report describes and explains the defense market and covers 2016 to 2021, termed the historic period, and 2021 to 2026 termed the forecast period, along with further forecasts for the period 2026-2031. The report evaluates the market across each region and for the major economies within each region.

Key Attributes:

Key Topics Covered:

1. Executive Summary

2. Table of Contents

3. List of Figures

4. List of Tables

5. Report Structure

6. Introduction and Market Characteristics

6.1. General Market Definition

6.2. Summary

6.3. Defense Market Definition and Segmentations

6.4. Market Segmentation By Type

6.4.1. Air Based Defense Equipment

6.4.2. Sea Based Defense Equipment

6.4.3. Land Based Defense Equipment

6.4.4. Defense Equipment Maintenance, Repair And Overhauling Services

6.4.5. Defense Support And Auxiliary Equipment

6.5. Market Segmentation By Operation

6.5.1. Autonomous Defense Equipment

6.5.2. Manual

6.6. Market Segmentation By Platform

6.6.1. Airborne

6.6.2. Land

6.6.3. Naval

7. Product/Service Analysis -Product/Service Examples

8. Supply Chain Analysis

8.1.1. Suppliers

8.1.2. Distribution

8.1.3. End Users

9. Customer Information

9.1. US Military Personnel Concerned About Keeping Pace With Adversaries

9.2. Space And Next-Gen Technologies Needed To Advance Defense Communications

9.3. US Defense Business Climate Suffers Due To COVID-19

9.4. Investment In Main Battle Tanks Is Worthwhile

9.5. Europeans Vote In Favor Of Defending Ukraine

10. Major Market Trends

10.1. The Adoption Of Unmanned Combat Vehicles

10.2. Innovative New Military Avionics Upgrade Programs

10.3. Augmented And Virtual Reality

10.4. Edge Computing In Defense

10.5. Use Of 3D Printing Technology

10.6. Strategic Mergers And Acquisitions

10.7. Use Of Artificial Intelligence (AI) In Defense Equipment (Drones, Helicopters And Others)

10.8. Design Upgradations And Modularity For Military-Style Weapons

10.9. Day/Night Decamouflage Technology For Light Weapons

11. Global Market Size And Growth

11.1. Market Size

11.2. Historic Market Growth, 2016 – 2021, Value ($ Billion)

11.2.1. Market Drivers 2016 – 2021

11.2.2. Market Restraints 2016 – 2021

11.3. Forecast Market Growth, 2021 – 2026, 2031F Value ($ Billion)

11.3.1. Market Drivers 2021 – 2026

11.3.2. Market Restraints 2021 – 2026

12. Global Market, Regional Analysis

12.1. Global Defense Market, By Region, Historic and Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

12.2. Global Defense Market, 2016 – 2026, Historic And Forecast, By Region

12.3. Global Defense Market, 2021 – 2026, Growth And Market Share Comparison, By Region

13. Global Market Segmentation

13.1. Global Defense Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

13.2. Global Defense Market, Segmentation By Operation, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

13.3. Global Defense Market, Segmentation By Platform, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

14. Defense Market Segments

14.1. Global Air Based Defense Equipment Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

14.2. Global Sea Based Defense Equipment Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

14.3. Global Land Based Defense Equipment Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

14.4. Global Defense Equipment Maintenance, Repair And Overhauling Services Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

14.5. Global Defense Support And Auxiliary Equipment Market, Segmentation By Type, Historic And Forecast, 2016 – 2021, 2026F, 2031F, Value ($ Billion)

15. Market Comparison with Macro Economic Factors

15.1. Defense Market Size, Percentage Of GDP, Global

15.2. Per Capita Average Defense Market Expenditure, Global