Defence Market Size, Share, Growth, And Industry Analysis, By Type (Aircrafts, Ships, Vehicles, Equipment, Services), By Application (Air, Sea, Land), Regional Insights, and Forecast To 2032

Updated On: 08 July 2024

defence market Report Overview

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The global defence market size was USD 2155138.01 million in 2021 and the market is projected to touch USD 3686901.92 million by 2032 at a CAGR of 5.0% during the forecast period.

Defense means the military action of the state to prevent and resist aggression, stop armed subversive activities, terrorists, and others, to protect the sovereignty, unity, territorial integrity and security of the state. The increasing adoption of integrated protection technologies is likely to drive the growth of the market. Integrated defense technologies involve the integration of multiple systems and technologies to create complete defense systems. Incorporating advanced technologies such as automation and data analytics is consistent with modernization efforts to improve operational efficiency. There is a need for a highly capable, adaptable and technologically advanced military created a strong demand for modern defence system to support these evolving defense capabilities.

COVID-19 Impact: COVID-19 Pandemic Halted Production Unit Restricted Market Growth

The COVID-19 pandemic has been unprecedented and staggering, with the defence market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The rapid spread of COVID-19 significantly affected the global protective systems market in 2020 through the implementation of strict containment measures and the resulting impact across the globe. The COVID-19 pandemic has brought several challenges to the defense systems industry, such as disruptions in the supply chain of key raw materials, logistical challenges, reduction in defense spending in various countries and more. On the other hand, manufacturers of defense systems and service providers have had to reduce investment in research and development and business expansion to cope with the decline in revenues and productivity of the defense industry. The slow pace of production and significant delays in fulfilling purchase orders have been the biggest challenges in the defense systems market throughout the year and are expected to continue for several more years. The industry has been affected by the COVID-19 pandemic in several ways. Supply chain disruptions, including delays in delivering critical components, hampered production and maintenance operations. Lockouts and restrictions affected labor availability, which slowed production and maintenance. Market growth was also affected by budget restrictions and reallocation of funds to pandemic measures.

Latest Trends

"Air Force Segment Will Dominate The Market Growth During The Forecast Period "

Increased focus on  modernization of aircraft capabilities through delivery of various aircraft including  Dassault Rafale, Ilyushin Il-76 (A50E) (AEW), HAL Tejas LCA Mk 1, Dornier 228, HAL Dhruv ALH/Rudra and HAL Light Combat Helicopter is expected to grow the segment during the forecast period. India's growing efforts to achieve production and operational self-sufficiency are creating significant opportunities for regional vendors. India is currently working on its AMCA project. The first flight of the aircraft is expected in 2025-26, while full production could take place by 2030. HAL is developing a new 13-ton class Indian Multi-Role Helicopter for the Indian Armed Forces. Domestic medium lift helicopter can replace import of any class of armed forces. Given the scale of the investment, this program could be India's biggest helicopter design experiment to date.

defence market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Aircrafts, Ships, Vehicles, Equipment, and Services. Aircrafts is anticipated to be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Air, Sea, and Land. Air will be dominating segment.

Driving Factors

"Growing Demand For Lightweight, High-Performance Materials Is driving the Market Growth"

The main factors influencing the growth of the global aerospace and defense material market are the increasing investment in modernization and the growth of combat aircraft in various countries. In addition, the continuous development of aircraft materials, a high demand for  weight reduction to increase fuel efficiency, increased funding for the aircraft defense sector, an increase in the number of commercial aircraft and a huge increase in passenger and cargo traffic are also important growth factors in the global aerospace and defense market. The increasing number of commercial and cargo fleets around the world is also contributing to the defence market growth.

"Increasing Investment In Modernization Augment Market Growth"

The major factors influencing the growth of the global defence market during the forecast period are increasing investments in modernization and growth of combat aircraft in countries. In addition, the rapid development and application of advanced materials that continues to provide versatile defence market growth. The industry is experiencing advances due to the increasing integration of automation and robotics into maintenance tasks, an emphasis on cybersecurity to protect critical GSE systems from cyber threats, and the adoption of data analytics for predictive maintenance. Sustainability gained a boost with the introduction of environmentally friendly GSE solutions, followed by better interoperability and streamlining between different GSE types and military platforms maintenance processes. In addition, remote monitoring functions allow real-time monitoring.

Restraining Factors

"Challenge Is Strict Political Interventions And Certification Of Approved Sources And Interference With Practices "

A major challenge to the global aerospace and defense materials market is making certification an accepted source. Most global OEMs have a list of approved suppliers with long-term contracts for specific projects, and OEMs do not change suppliers later because it increases costs. As a result, it is difficult for an aviation and material company to serve several customers at the same time. Some political interventions at the global level challenge the growth of the market. For example, the European Defense Standards Information System and the European Defense Standard Reference System were established by the European Defense Agency (EDA) to ensure standardization of material and component specifications. Thus, certification from approved sources and political interferences are the main obstacles to the growth of the defence market.

defence market Regional Insights

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"Europe Will Lead Market Due To Increasing Investment in R&D"

Europe dominates the global defence market share and revenue, and will continue to dominate the market during the forecast period 2023-2030 due to major economies such as Germany and France making large investments in the development of advanced aircraft can work efficiently at high altitude and with minimal fuel consumption, which has led to them being called upon more often for search and rescue operations all over the world, especially during natural disasters or civil crises. In Europe, the market for self-defense products is expected to grow significantly over the forecast years. The expansion is due to a significant increase in crime and robberies and a strong presence of self-defense manufacturers in the region. Higher investment in R&D producing less harmful and protective self-defense weapons for the population is expected to boost the growth of the market. In addition, increasing crime is driving major changes in government regulations that are projected to expand the reach of the defence market.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios. Key industry players in the antacid tablet market have a significant impact on market dynamics. These companies are at the forefront of research and development, consistently introducing innovative formulations and product variations. Their focus on convenience and effectiveness sets industry standards and influences market growth.

List of Market Players Profiled

• Raytheon (U.S.)
• European Advanced Technology S.A. (Europe)
• Cassidian Cyber Security (Germany)
• United Technologies (U.S.)
• Hispano-Suiza (Spain)
• EBV Explosives Environmental Company (U.S.)
• CADES Engineering Technologies Ltd (Spain)
• BAE Systems Information and Electronic Systems Integration Inc. (U.K.)
• Bharat Dynamics Limited (India)
• Northrop Grumman and General Atomics Aeronautical Systems (U.S.)
• EUREST Raytheon Support Services (U.K.)
• Brazilian Company Avionics Services (Brazil)
• Direction des Constructions Navales Services (DCNS) (France)

Report Coverage

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.