Land based Defense Equipment Market Report 2026

The land based defense equipment market size has grown strongly in recent years. It will grow from $46.33 billion in 2025 to $49.57 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to growth in procurement of armored and battle vehicles for ground combat operations, rising adoption of advanced turrets, remote-operated weapon stations, and cannon systems, increased deployment of land-based radars and sonars for battlefield awareness, development of armor packages and active protection systems enhancing survivability, expansion of small weapons production supporting infantry modernization programs.

The land based defense equipment market size is expected to see strong growth in the next few years. It will grow to $67.63 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to rising demand for next-generation land combat platforms with integrated digital systems, increasing adoption of autonomous and remotely controlled land-based defense equipment, advancements in sensor fusion and targeting technologies for enhanced battlefield effectiveness, expansion of defense budgets supporting modernization of ground forces, development of lightweight, modular armor and weapon systems improving operational mobility. Major trends in the forecast period include artificial intelligence & autonomous intelligence, autonomous systems, robotics & smart mobility, industry 4.0 & intelligent manufacturing, internet of things (iot), smart infrastructure & connected ecosystems, digitalization, cloud, big data & cybersecuritrising demand for advanced armored vehicle modernization, growing integration of active protection systems (aps), increasing adoption of remote weapon stations, expansion of precision-guided land-based missile systems, rising procurement of lightweight and modular small arms.

The overall economic growth of emerging economies is anticipated to have a positive effect on the land-based defense equipment market. The increase in disposable income, resulting from this economic growth, has positively influenced the demand for defense equipment. For example, in September 2024, the India Development Update (IDU), a publication from the World Bank, a US-based international development organization, reported that India experienced remarkable growth of 8.2 percent in FY23/24 and is projected to sustain strong growth at 7 percent in FY24/25, continuing this trend in FY25/26 and FY26/27. This stable economic growth is expected to enhance investments in the nation's security, thereby boosting the land-based defense equipment market during the forecast period.

Major companies are developing advanced land-based systems to improve mobility, strengthen ground combat capabilities, and enhance protection against evolving aerial threats. These advancements include next-generation tactical vehicles and autonomous defense platforms designed to offer greater flexibility, survivability, and rapid response in modern battlefield environments. For example, in September 2025, Rheinmetall AG, a Germany-based defense technology company, introduced a new light tactical vehicle and an air-defense drone system. The light tactical vehicle is built for high mobility and multi-role missions, while the air-defense drone incorporates advanced targeting and weapon systems to counter unmanned aerial threats. Together, these developments highlight the increasing focus on modular, networked, and mobile solutions for land-based defense operations.

In October 2024, Special Aerospace Services (SAS), a U.S.-based provider of spaceflight systems, precision manufacturing, and defense engineering solutions, acquired Concordia Technologies for an undisclosed amount. This acquisition is intended to expand SAS’s engineering capabilities in high-speed flight technologies, modeling and simulation, and rapid prototyping for U.S. defense programs. Concordia Technologies, a U.S.-based provider of advanced engineering services for missile and hypersonic weapon systems, specializes in system design, control algorithms, sensor development, and mission simulation for next-generation defense applications.

Major companies operating in the land based defense equipment market are China North Industries Group Corporation Limited, Raytheon Company, Lockheed Martin Corporation, Hanwha Corporation, General Dynamics Corporation, Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems plc, Thales Group, Leonardo S.p.A., Oshkosh Corporation, Rheinmetall AG, Elbit Systems Ltd., Larsen & Toubro Limited, Bharat Electronics Limited, Hyundai Rotem Company, Uralvagonzavod, RUAG Group, IVECO Defence Vehicles, Nexter Group, Patria Oyj, FNSS Savunma Sistemleri A.S., Navistar Defense LLC, Denel SOC Ltd, Israel Aerospace Industries Ltd., Krauss-Maffei Wegmann GmbH & Co. KG, Otokar Otomotiv ve Savunma Sanayi A.S., Paramount Group, Plasan Sasa Ltd., Rafael Advanced Defense Systems Ltd., Rostec State Corporation, ST Engineering, Tata Motors Limited, Ukroboronprom.

Asia-Pacific was the largest region in the land-based defense equipment market in 2025. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the land based defense equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the land-based defense equipment market by increasing the cost of importing critical components such as armor-grade steel, electronic subassemblies, propulsion systems, and advanced optical systems. These cost escalations particularly affect segments like armored vehicles, defense electronics, and missile systems, with regions such as Asia-Pacific and Europe facing the highest impact due to their dependence on cross-border defense supply chains. However, tariffs also encourage domestic production programs, promote local sourcing of raw materials, and support national defense manufacturing initiatives, offering limited but notable positive effects for regional defense contractors.

The land-based defense equipment market research report is one of a series of new reports that provides land-based defense equipment market statistics, including land-based defense equipment industry global market size, regional shares, competitors with a land-based defense equipment market share, detailed land-based defense equipment market segments, market trends and opportunities, and any further data you may need to thrive in the land-based defense equipment industry. This land-based defense equipment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

Land-based defense equipment comprises support and auxiliary tools utilized in land-based defense operations, encompassing weaponry. It involves components such as turrets, ROWS, cannons, missiles, armor packages, and active protection systems.

Primary types include armored vehicles, missiles, tanks, small arms, and light weapons. Armored fighting vehicles (AFVs) blend operational flexibility with offensive and defensive capabilities. These operations involve both autonomous and manually operated land-based defense equipment, serving various applications in military and law enforcement.

The countries covered in the land based defense equipment market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The land-based defense equipment market consists of sales of land-based defense equipment including battle vehicles, small weapons, radars, satellites, and sonars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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