In 2024, Japan's government expenditure on R&D in defense is forecasted to be $960.07 million, a decrease from $1,000 million in 2023. Projected expenditures show a downward trend with a year-on-year decrease: 3.97% in 2025, 4.05% in 2026, 4.13% in 2027, and 4.22% in 2028. Over the five-year forecast period, the compound annual growth rate (CAGR) is a negative trend at around -4.10%, reflecting a consistent reduction in spending.
Future trends to watch for:
- Potential geopolitical influences impacting defense R&D prioritization.
- Shifts towards more substantial investments in cybersecurity and AI within defense strategies.
- Government policy changes affecting defense spending allocations in response to global and regional security dynamics.
