Defense Global Market Opportunities And Strategies To 2034

This report describes and explains the defense market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global defense market reached a value of nearly $473.47 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.54% since 2019. The market is expected to grow from $473.47 billion in 2024 to $682.1 billion in 2029 at a rate of 7.57%. The market is then expected to grow at a CAGR of 8.19% from 2029 and reach $1.01 trillion in 2034.

Growth in the historic period resulted from the rising geopolitical tensions, favorable government initiatives, growing adoption of unmanned combat vehicles and growing military modernization programs. Factors that negatively affected growth in the historic period were cybersecurity threats and defense budget reductions in developed nations.

Going forward, the rising homeland disaster and crisis response, rise in counter-terrorism operations, increasing focus on space-based defense capabilities and increasing defense and military budgets will drive the growth. Factor that could hinder the growth of the defense market in the future include technological complexity and integration challenges, complex regulatory and compliance requirements and trade war and tariffs.

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 34.40% or $162.89 billion of the total in 2024. Going forward, the defense equipment maintenance, repair and overhauling services segment is expected to be the fastest growing segment in the defense market segmented by type, at a CAGR of 8.31% during 2024-2029.

The defense market is segmented by operation into autonomous defense equipment and manual. The manual market was the largest segment of the defense market segmented by operation, accounting for 64.55% or $305.64 billion of the total in 2024. Going forward, the autonomous defense equipment segment is expected to be the fastest growing segment in the defense market segmented by operation, at a CAGR of 8.73% during 2024-2029.

The defense market is segmented by platform into airborne, land and naval. The airborne market was the largest segment of the defense market segmented by platform, accounting for 67.87% or $321.35 billion of the total in 2024. Going forward, the naval segment is expected to be the fastest growing segment in the defense market segmented by platform, at a CAGR of 8.31% during 2024-2029.

The defense market is segmented by application into mission systems, weapon systems, firearms and structural components. The mission systems market was the largest segment of the defense market segmented by application, accounting for 37.71% or $178.55 billion of the total in 2024. Going forward, the mission systems segment is expected to be the fastest growing segment in the defense market segmented by application, at a CAGR of 8.55% during 2024-2029.

Asia Pacific was the largest region in the defense market, accounting for 32.48% or $153.77 billion of the total in 2024. 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 Middle East and Africa where growth will be at CAGRs of 12.95% and 12.89% respectively. These will be followed by Eastern Europe and Western Europe where the markets are expected to grow at CAGRs of 9.03% and 8.07% respectively.

The global defense market is concentrated, with large players operating the market. The top ten competitors in the market made up to 46.51% of the total market in 2024. Lockheed Martin Corp. was the largest competitor with a 13.50% share of the market, followed by BAE Systems with 7.26%, Raytheon Technologies (RTX) Corp. with 5.61%, The Boeing Company with 4.55%, L3Harris Technologies Inc. with 3.60%, Airbus SE with 2.76%, Thales Group with 2.51%, Safran with 2.43%, Rheinmetall AG with 2.23% and AVIC (Aviation Industry Corp of China) with 2.07%.

The top opportunities in the defense market segmented by type will arise in the air-based defense equipment segment, which will gain $70.14 billion of global annual sales by 2029. The top opportunities in the defense market segmented by operation will arise in the manual segment, which will gain $121.39 billion of global annual sales by 2029. The top opportunities in the defense market segmented by platform will arise in the airborne segment, which will gain $139.22 billion of global annual sales by 2029. The top opportunities in the defense market segmented by application will arise in the mission systems segment, which will gain $90.53 billion of global annual sales by 2029. The defense market size will gain the most in the USA at $34.6 billion.

Market-trend-based strategies for the defense market include launch of innovative technologies, such as multi-layered, indigenous counter-drone systems, launch of innovative technologies, such as AI-based defense systems, launch of innovative technologies, such as advanced hexacopter drones, to enhance surveillance capabilities, focus on expanding by investing in their facilities, focus on collaborations and sales partnerships to strengthen their market position, launch of innovative product, such as autonomous military prototype vehicle, to enhance operational efficiency, launch of innovative technologies, such as AI (artificial intelligence)-enabled systems and focus on investments in next-gen technology to strengthen their position in the market.

Player-adopted strategies in the defense market include focus on strengthening its business operations through strategic partnerships and through securing new contracts.

To take advantage of the opportunities, the analyst recommends the defense market companies to focus on indigenous counter-drone innovation, focus on AI-enabled defense systems, focus on advanced hexacopter drone deployment, focus on defense equipment maintenance, repair and overhauling services, expand in emerging markets, continue to focus on developed markets, focus on expanding multi-channel distribution, focus on building strategic distribution partnerships, focus on value-based pricing aligned with market conditions, focus on aligning promotion with strategic objectives, focus on building measurable and targeted engagement, focus on developing skilled and trusted personnel.

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