The defense market encompasses a comprehensive range of products, services, and solutions designed to ensure national security and military readiness. This market is crucial for the protection of a country's interests, both domestically and internationally, playing a vital role in global peacekeeping efforts and in the safeguarding of sovereign states against external threats. Defense equipment and services are utilized by national governments and military agencies, which rely on them for defense and strategic operations across air, land, and sea.
The defense market consists of sales of air-based, sea-based and land-based military equipment by entities (organizations, sole traders and partnerships) that produce air-based, sea-based and land-based military equipment. Air-based defense equipment includes aircraft, drones, and missile defense systems designed for aerial surveillance, combat, and support. Sea-based defense equipment encompasses naval vessels, submarines, and marine defense systems used for maritime security, patrol, and warfare. Land-based defense equipment comprises armored vehicles, artillery, and troop support systems essential for ground operations and fortification.
The global defense market was valued at $424,154.4 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 6.0%.
Demand For Attack And Transport Helicopters
During the historic period, demand for attack and transport helicopters drove the growth of the defense market. Attack helicopters are designed primarily for engaging enemy targets on the ground or in the air. Transport helicopters, also known as utility helicopters, are used for the transportation of personnel, equipment, supplies, and sometimes casualties. Attack and transport helicopters significantly enhance the capabilities of defense forces by providing close air support, anti-armor capabilities, reconnaissance capabilities, aerial fire support, force protection, troop mobility, and logistical support in a wide range of operational scenarios. For instance, in April 2022, according to the defense budget published by the United States Department of Defense for FY 2023, the budget for attack and transport helicopters increased. The budget for the Apache attack helicopter increased from 30 units to 35 units, whereas the budget for the King Stallion transport helicopter increased from $2.0 billion to $2.3 billion in 2023, compared to 2022. Therefore, demand for attack and transport helicopters drove the growth of the defense market.
Saab AB Expands US Presence With New Munitions Facility For Missile Production
Major companies operating in the defense market focus on expanding by investing in their facilities and staying ahead of competitors. A facility often refers to a building or physical structure designed for a specific purpose, such as manufacturing, healthcare, educational, or sports facilities. For instance, in March 2024, Saab AB, a Sweden-based aerospace and defense company, announced plans to expand its US footprint with a new munitions facility. Saab's new facility will bolster its capacity for producing ground combat weapons and missile systems, meeting increasing demand. It will support engineering and production for U.S. military missile systems, enhancing national defense capabilities with advanced manufacturing and technology.
The global defense market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 43.71% of the total market in 2023.
Defense Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global defense market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for defense? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The defense market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider Defense market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by operation and by platform market.
Product Analysis- The product analysis section of the report describes the leading products in the defense market, along with key features and differentiators for those products.
- Supply Chain- The supply chain section of the report defines and explains the key players in the defense industry supply chain.
- Customer Information- The chapter covers recent customer trends/preferences in the global defense market.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the defense market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by operation and by platform in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Background: Aerospace And Defense Market- This chapter describes the design, research, promotional and consulting services market of which the defense market is a segment. This chapter includes the global aerospace and defense market characteristics and (2018-23, 2028F) values and regional analyses for the design, research, promotional and consulting services market.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for Defense providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Air-Based Defense Equipment; Sea-Based Defense Equipment; Land-Based Defense Equipment; Defense Equipment Maintenance; Repair and Overhauling Services; Defense Support; Auxiliary Equipment.
- 2) By Operation: Autonomous Defense Equipment; Manual
- 3) By Platform: Airborne; Land; Naval
- Companies Mentioned: Lockheed Martin Corporation; Raytheon Technologies Corporation; Northrop Grumman Corp; General Dynamics; The Boeing Company.
- Countries: China; Australia; 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; Italy; Spain; UK; Austria; Belgium; Denmark; Finland; Ireland; Netherlands; Norway; Portugal; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; defense indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.