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Japan Defense Market - Growth, Trends, and Forecast (2019 - 2024)

  • ID: 4557740
  • Report
  • Region: Japan
  • 105 pages
  • Mordor Intelligence
until Jul 01st 2019
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  • BAE Systems plc
  • Japan Steel Works Ltd
  • Kawasaki Heavy Industries
  • Komatsu Ltd
  • Raytheon Company
  • Thales Group
  • MORE
Market Overview

The Japan defense market is estimated to grow at a CAGR of over 2.5% during the forecast period 2019 - 2024.
  • The growth in the defense budget shall be a major driver for the Japan Defense Market.
  • Japan has the third largest economy in the world. Japanese defense industry shall witness growth in the coming years owing to various contracts being secured from the United States for the development of the defense sector.
Additionally, the growing threat from North Korea’s ballistic missiles and Chinese maritime expansion led to the 2017 defense budget of Japan being the sixth largest in the world (USD 47.2 billion). For the year 2018, Japan’s defense spending was USD 46.61 billion.
  • Japanese defense companies have also started to participate in various new defense programs for self-propelled artillery; armored fighting vehicles; and infantry fighting vehicles.
  • Additionally, the fight against terrorism is also expected to support the growth of the defense market in Japan.
  • Technological advancement shall lead to replacing of aging equipment and purchase of new equipment and this shall propel the growth of the defense market in Japan in the near future.
Scope of the Report

The study covers all aspects and provides insights about the budget allocation and spending in the Japan defense market. The report also includes details on ongoing projects and military procurement plans.

Key Market Trends

Air Force Segment will Register the Highest CAGR During the Forecast Period.

The air force segment is expected to experience the major growth in the Japan defense market during the forecast period owing to various ongoing procurement plans for replacing aging combat aircraft. Japan is currently, pushing ahead with research and development into advanced fighter jet technology, despite uncertainty over its acquisition strategy for a next-generation fighter. Japan is also in plans to upgrade its aging F-2 fighter aircraft fleet. The increasing military might of China has led to the Japanese government investing in advanced fighter aircraft with radar-evading stealth technology, advanced sensors to maintain situational awareness in the airspace, increasing data-processing power, and the ability to conduct secure, automated, real-time communications. In 2018, the Japanese government reported that they shall be acquiring 20 additional F-35 A stealth fighter jets from Lockheed Martin Corporation over the next six years. Moreover, acquiring of these aircraft shall provide Japan a competitive edge over potential foes in the Asia-Pacific while also increasing the reliance of Japan on the military technology of the US.

In addition, Japan is also in plans to develop their own fighter jet which has been codenamed as the F-3. On the other hand, the high cost of military aircraft development shall lead to Japan searching for foreign partners to collaborate on the project. Likewise, in 2018, the Japanese government reported that they shall be acquiring nine E-2D Advanced Hawkeye (AHE) Airborne Early Warning and Control (AEW&C) aircraft from the United States. The Japan Air Self Defense Force (JASDF) maintains a fleet of 13 E-2C Hawkeyes and four E-767 aircraft as part of its Airborne Early Warning Wing. The E-2Cs is expected to be phased out of the service by the late 2020s. Thus, upcoming procurements and developments shall increase the focus on this segment, and this shall be the reason for its expected high CAGR.

Japan Defense Market is Anticipated to Experience a Steady Growth During 2019-2024

Japan’s military spending in 2018 accounted for 2.6%, thereby reaching USD 46.6 billion in 2018. In 2018, the cabinet of Japanese Prime Minister announced that they have approved a plan to spend around USD 242.7 billion on defense expenditure for the next five years. The government’s defense policy features the conversion of the Japan Maritime Self-Defense Force’s (JMSDF’s) two Izumo-class helicopter carriers into multirole aircraft carriers from which the short take-off and vertical landing (STOVL) Lockheed Martin F-35B Lightning II Joint Strike Fighter can be operated. Additionally, the new National Defense Program Guidelines (NDPGs) and the associated Mid-Term Defense Plan (MTDP) have also put a strong emphasis on three new defense domains in the country, namely, cyber, space, and electronic warfare (EW). Developments in such domains are expected to be a part of Japan’s new multidimensional integrated defense force. Japan have also announced their intention of buying an additional 63 conventional take-off and landing (CTOL) F-35As and 42 STOVL F-35Bs over the coming decade for replacing 99 of the Japan Air Self-Defense Force’s (JASDF’s) 201 Boeing-Mitsubishi F-15J/DJ Eagle multirole combat aircraft.

In addition, Japan is joining the international race to add artificial intelligence and drones to its defense capabilities. Additionally, Japan is in plans to develop hypersonic weapons in order to deter Chinese attacks on disputed islands in the East China Sea. The 2019 defense budget of Japan is estimated at USD 48.4 billion and includes a two-pronged strategy to support its forces: shorter-term measures include upgrading electronic warfare and missile-defence capabilities and medium-term efforts which include research and development of hypersonic weapons. Additionally, for future defense capabilities, Japan is in plans to enhance their response capability by pursuing further joint operations and improve the mission-capable rate of their defense equipment while strengthening the logistical support foundations of the Self-Defense Forces (SDF). Thus, various ongoing developments shall lead to a growth in the Japan defense market in the near future.

Competitive Landscape

Various players such as Kawasaki Heavy Industries, Mitsubishi Heavy Industries, ShinMaywa Industries, Ltd., Japan Steel Works Ltd, and Toshiba Corporation hold significant market share during the forecast period. Various initiatives, and product innovations are being done by companies which have led them to strengthen their presence in the market. In 2018, Shinmaywa industries, Ltd. announced that they have signed a Memorandum of Understanding with Mahindra Defence for developing of US-2 amphibious aircraft.

As part of this package, any purchases made up to 30th June will receive the following:

1) Free update of the report in 6 months on request 

2) Free Market Estimate sheet excel data sheet
Note: Product cover images may vary from those shown
2 of 5


  • BAE Systems plc
  • Japan Steel Works Ltd
  • Kawasaki Heavy Industries
  • Komatsu Ltd
  • Raytheon Company
  • Thales Group
  • MORE
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 PESTLE Analysis


6.1 Armed Forces
6.1.1 Air Force Training and Simulation Communication Systems Weapons and Ammunition Manned and Unmanned Aerial Vehicles
6.1.2 Army Personal Training and Protection Communication Systems Weapons and Ammunition Manned and Unmanned Ground Vehicles
6.1.3 Navy Weapons and Ammunition Sea-based Manned and Unmanned Vehicles Communication Systems

7.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
7.2 Vendor Market Share
7.3 Strategies Adopted by Leading Players
7.4 Company Profiles
7.4.1 Kawasaki Heavy Industries
7.4.2 Lockheed Martin Corporation
7.4.3 The Boeing Company
7.4.4 BAE Systems plc
7.4.5 Raytheon Company
7.4.6 Northrop Grumman Corporation
7.4.7 Thales Group
7.4.8 Mitsubishi Heavy Industries
7.4.9 ShinMaywa Industries, Ltd.
7.4.10 Japan Steel Works Ltd
7.4.11 Toshiba Corp
7.4.12 Komatsu Ltd

Note: Product cover images may vary from those shown
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4 of 5
  • Kawasaki Heavy Industries
  • Lockheed Martin Corporation
  • The Boeing Company
  • BAE Systems plc
  • Raytheon Company
  • Northrop Grumman Corporation
  • Thales Group
  • Mitsubishi Heavy Industries
  • ShinMaywa Industries, Ltd.
  • Japan Steel Works Ltd
  • Toshiba Corp
  • Komatsu Ltd
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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