The global defense industry is estimated at approximately USD 730 billion in 2025 and is projected to grow at a CAGR of 6.4% to reach approximately USD 1.05 trillion by 2031. The report sizes the commercially addressable market: revenue earned by prime and sub-tier contractors and suppliers for defense platforms, systems, software and services. It is not a measure of national defense budgets, and it states its scope exclusions explicitly. The 2025 base is anchored to published arms-industry revenue rankings rolled forward on company-level growth, then cross-checked against published equipment-only estimates, which are treated as a floor.
The market is analysed across 14 platform and product categories, from combat and mission aircraft (the largest category, at roughly 17% of 2025 value) and missiles, munitions and air and missile defense, to C4ISR, naval systems, land combat systems, military space, unmanned and counter-drone systems, cyber and defense IT, nuclear and strategic systems, and sustainment services. It is also analysed across 9 mission and end-use applications. Regional value is collated by supplier headquarters: North America (about 48.5% of 2025 value), Europe (27.9%), Asia Pacific (18.0%), Middle East & Africa (5.1%) and Latin America (0.5%).
Near-peer competition, munitions replenishment, rising European and Indo-Pacific procurement, the rapid adoption of unmanned and counter-drone systems, and nuclear and strategic modernization anchor the forecast. Restraints include budget delays, the single-customer structure of government procurement, and supply chain and workforce constraints. The report profiles 45 companies using annual-report data, each with company overview, key products and segments, financial performance, business strategy, SWOT analysis and strategic implications. It also provides Porter's Five Forces, PESTLE and SWOT analyses and a 2025-2031 outlook for corporate strategy, investment, M&A and procurement teams.
The market is analysed across 14 platform and product categories, from combat and mission aircraft (the largest category, at roughly 17% of 2025 value) and missiles, munitions and air and missile defense, to C4ISR, naval systems, land combat systems, military space, unmanned and counter-drone systems, cyber and defense IT, nuclear and strategic systems, and sustainment services. It is also analysed across 9 mission and end-use applications. Regional value is collated by supplier headquarters: North America (about 48.5% of 2025 value), Europe (27.9%), Asia Pacific (18.0%), Middle East & Africa (5.1%) and Latin America (0.5%).
Near-peer competition, munitions replenishment, rising European and Indo-Pacific procurement, the rapid adoption of unmanned and counter-drone systems, and nuclear and strategic modernization anchor the forecast. Restraints include budget delays, the single-customer structure of government procurement, and supply chain and workforce constraints. The report profiles 45 companies using annual-report data, each with company overview, key products and segments, financial performance, business strategy, SWOT analysis and strategic implications. It also provides Porter's Five Forces, PESTLE and SWOT analyses and a 2025-2031 outlook for corporate strategy, investment, M&A and procurement teams.
Table of Contents
1. Executive Summary
2. Industry Overview & Forecast
3. Market Segmentation by Type
4. Market Segmentation by Application
5. Regional Market Forecast
6. Country-Level Market Forecast
8. Key Company Profiles
9. Competitive Landscape
10. Porter's Five Forces Analysis
13. Future Trends & Outlook
List of Exhibits
Companies Mentioned
- Lockheed Martin
- RTX
- Northrop Grumman
- BAE Systems
- General Dynamics
- Boeing
- L3Harris Technologies
- Leonardo
- Airbus (Defence and Space)
- Thales
- Huntington Ingalls Industries
- Rheinmetall
- Hanwha Aerospace
- Leidos
- Booz Allen Hamilton
- Rolls-Royce (Defence)
- CACI International
- Elbit Systems
- Saab
- Israel Aerospace Industries
- Mitsubishi Heavy Industries
- Rafael Advanced Defense Systems
- ASELSAN
- EDGE Group
- Dassault Aviation
- SAIC
- Hindustan Aeronautics
- Textron
- Fincantieri
- Kawasaki Heavy Industries
- ST Engineering
- Bharat Electronics
- LIG Nex1
- Hensoldt
- Oshkosh
- BWX Technologies
- Korea Aerospace Industries
- QinetiQ
- Curtiss-Wright
- Kongsberg Gruppen
- CAE
- Babcock International
- Kratos Defense & Security Solutions
- AeroVironment
- Embraer
