Summary
Major companies in the defense market include Lockheed Martin Corporation, Raytheon Technologies Corporation, The Boeing Company, Raytheon Co, Northrop Grumman Corp, Bae Systems plc, Airbus Group SE, Leonardo SpA, Thales group, and General Dynamics.
The global defense market grew from $534.79 billion in 2022 to $577.19 billion in 2023 at a compound annual growth rate (CAGR) of 7.9%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The defense market is expected to grow to $718.12 billion in 2027 at a CAGR of 5.6%.
The defense market consists of sales of air-based, sea-based, and land-based defense equipment such as military aircraft, helicopter, satellites, and radars, as well as support services.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 defense refers to a range activities including production of air-based, sea-based, and land-based military equipment, including support and auxiliary equipment such as radar, satellites, sonars, and other auxiliary equipment, or maintain, repair, and overhaul defense equipment.
Asia-Pacific was the largest region in the defense market in 2022.Western Europe is expected to be the fastest growing region in the forecast period.
The regions covered in the defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main defense types are air-based defense equipment, sea-based defense equipment, land-based defense equipment, defense equipment maintenance, repair, and overhaul services, defense support, and auxiliary equipment.Air-based defense equipment includes support and auxiliary equipment for air-based defense, such as radar, satellites, sonar, and other auxiliary equipment.
The various operations include autonomous defense equipment, manuals and involve various platforms such as airborne, land, and naval.
The adoption of unmanned combat vehicles is one of the major trends in this market.An unmanned combat vehicle is a machine or motorized vehicle that runs without any physical human intervention.
These vehicles have a set of sensors for 360-degree situational awareness and for optical avoidance, steering actuators, brakes, and laser scanners, along with other autonomous features enabling remote or autonomous functioning of the vehicle.It is mostly used to inspect the surroundings and transfer the information to the operator through teleoperation or make autonomous decisions to deal with situations involving several technical challenges.
For instance, in January 2020, the U.S. Army awarded contracts for the development of robotic combat vehicles (RCV-M). It is an unmanned robotic teleoperation combat vehicle with an onboard 20-to 50-millimeter automatic cannon. It can fight alongside infantry and destroy enemy armored personnel carriers, trucks, and troops.
Corner shot weapons are increasingly becoming popular due to the safety features they offer.A corner shot is a specialized weapon accessory, essentially a hinged chassis installed on a pistol such as a Glock, a handgun, or a Beretta 92.
The hinge chassis allows the gun’s frame to bend around the corner and attack the target without exposing the soldiers.It is also equipped with a bore-sighted, high-resolution video camera, an LCD monitor, and a built-in tactical light for navigation and illumination.
The corner shot rifles or guns are widely used in battlefields, inside armored vehicles and tanks, on a turret up top, which will allow for a full 360-degree field of cover while the triggerman remains safely inside the vehicle. The weapon is accurate and effective up to 100 to 200 meters, depending on the type of weapon.
Companies in the air-based defense equipment manufacturing market are increasingly investing in the development of autonomous fighter jets.Autonomous fighter jets are jets that do not require human pilots to fly and can fly for longer periods of time.
Autonomous jets are equipped with sensors to scan for potential threats and process more information at a given time.These jets are well equipped to collect intelligence about the enemy, block the electronic systems of enemy aircraft, and shoot down other threats in the air.
Following the trend, in October 2021, Northrop Grumman Corporation, a US-based aerospace and defense technology company, developed a new autonomous aircraft called the Model 437, a stealth jet with a range of 3,000 miles that was created in partnership with Scaled Composites. The Scaled Composites-developed Model 401 Sierra, a low-cost manufacturing technology demonstrator aircraft, serves as the foundation for the Model 437.
The countries covered in the defense market report are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.
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.
The defense market research report is one of a series of new reports that provides defense market statistics, including defense industry global market size, regional shares, competitors with a defense market share, detailed defense market segments, market trends and opportunities, and any further data you may need to thrive in the defense industry. This defense market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
