Defense Market In 2029
Defense Market Growth
Defense Market Forecast
The Business Research Company’s Defense Global Market Report 2025 - Market Size, Trends, And Global Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, December 29, 2025 /EINPresswire.com/ -- Defense Market to Surpass $682 billion in 2029. Within the broader Aerospace & Defense industry, which is expected to be $1,102 billion by 2029, the Defense market is estimated to account for nearly 62% of the total market value.
Which Will Be the Biggest Region in the Defense Market in 2029
Asia Pacific will be the largest region in the defense market in 2029, valued at $218 billion. The market is expected to grow from $154 billion in 2024 at a compound annual growth rate (CAGR) of 7%. The strong growth can be attributed to the increasing focus on space-based defense capabilities and the expansion of defense and military budgets.
Which Will Be The Largest Country In The Global Defense Market In 2029?
The USA will be the largest country in the defense market in 2029, valued at $162 billion. The market is expected to grow from $128 billion in 2024 at a compound annual growth rate (CAGR) of 5%. The steady growth can be attributed to the the rise in counter-terrorism operations and the growing focus on space-based defense capabilities.
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What Will Be Largest Segment In The Defense Market In 2029?
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 will be the largest segment of the defense market segmented by type, accounting for 34% or $233 billion of the total in 2029. The air-based defense equipment market will be supported by advancements in stealth technology and radar evasion, increasing emphasis on rapid response and air superiority capabilities, rising development of integrated air defense systems (IADS), growing demand for multi-role fighter jets and unmanned aerial vehicles (UAVs) and the need for enhanced situational awareness and network-centric warfare to counter evolving aerial threats effectively.
The defense market is segmented by operation into autonomous defense equipment and manual. The manual market will be the largest segment of the defense market segmented by operation, accounting for 63% or $427 billion of the total in 2029. The manual market will be supported by the continued reliance on cost-effective and easily deployable weapon systems, the need for simple and reliable equipment in low-intensity conflicts and asymmetrical warfare, widespread availability and ease of use without requiring advanced technical training, strong demand from paramilitary and infantry units operating in rugged or remote environments and the preference for manual systems in scenarios where electronic or automated systems may be vulnerable to cyber-attacks or electronic warfare.
The defense market is segmented by platform into airborne, land and naval. The airborne market will be the largest segment of the defense market segmented by platform, accounting for 68% or $461 billion of the total in 2029. The airborne market will be supported by advancements in stealth and radar-evading technologies, increasing emphasis on multi-role combat and surveillance capabilities, rising development of unmanned aerial vehicles (UAVs) and drones, growing demand for advanced avionics and sensor integration and the need for enhanced situational awareness and rapid response to emerging threats in modern warfare.
The defense market is segmented by application into mission systems, weapon systems, firearms and structural components. The mission systems market will be the largest segment of the defense market segmented by application, accounting for 39% or $269 billion of the total in 2029. The mission systems market will be supported by advancements in integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) technologies, increasing demand for network-centric warfare capabilities, growing emphasis on real-time data fusion and decision-making, rising adoption of artificial intelligence and machine learning for threat analysis and the need for enhanced interoperability across multi-domain operations to improve situational awareness and operational effectiveness.
What is the expected CAGR for the Defense Market leading up to 2029?
The expected CAGR for the defense market leading up to 2029 is 8%.
What Will Be The Growth Driving Factors In The Global Defense Market In The Forecast Period?
The rapid growth of the global defense market leading up to 2029 will be driven by the following key factors that are expected to reshape military strategies, defense technologies, and national security operations worldwide.
Rising Homeland Disaster And Crisis Response - The rising homeland disaster and crisis response will become a key driver of growth in the defense market by 2029. Rising homeland disasters and crises, including natural disasters, pandemics, terrorist threats and industrial accidents, are prompting governments to enhance disaster response and emergency preparedness capabilities. This is driving increased demand for defense-related equipment, technologies and services such as communication systems, surveillance drones, rescue vehicles and protective gear. Consequently, defense companies are experiencing higher procurement and investment opportunities, supporting growth in the defense market. As a result, the rising homeland disaster and crisis response is anticipated to contributing to a 2.4% annual growth in the market.
Rise In Counter-Terrorism Operations - The rise in counter-terrorism operations will emerge as a major factor driving the expansion of the defense market by 2029. Counter-terrorism operations refer to coordinated actions by governments or security forces aimed at preventing, deterring and responding to terrorist activities to protect civilians, infrastructure and national security. Counter-terrorism initiatives drive increased procurement of specialized weapons, surveillance systems, armored vehicles, unmanned aerial vehicles and protective equipment, thereby enhancing defense sector sales. Consequently, the rise in counter-terrorism operations capabilities is projected to contributing to a 1.9% annual growth in the market.
Increasing Focus On Space-Based Defense Capabilities - The increasing focus on space-based defense capabilities within digital manufacturing processes will serve as a key growth catalyst for the defense market by 2029. The increasing focus on space-based defense capabilities is driving the growth of the defense market because governments and militaries are investing heavily in satellites, space surveillance systems, missile detection and communication networks. These capabilities enhance national security, early warning systems and strategic deterrence. As a result, defense companies see higher demand for space launch services, satellite technology, ground control infrastructure and advanced research and development. Therefore, this increasing focus on space-based defense capabilities across digital manufacturing operations is projected to supporting to a 1.7% annual growth in the market.
Increasing Defense And Military Budgets - The increasing defense and military budgets will become a significant driver contributing to the growth of the defense market by 2029. When governments increase defense spending, armed forces expand procurement of weapons, vehicles, aircraft, naval vessels and advanced technology systems. Higher budgets enable defense contractors to innovate and develop cutting-edge solutions, including drones, missile systems, cybersecurity platforms and AI-driven defense technologies. Consequently, the increasing defense and military budgets strategies is projected to contributing to a 1.4% annual growth in the market.
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What Are The Key Growth Opportunities In The Defense Market in 2029?
The most significant growth opportunities are anticipated in the airborne defense market, the manual defense solutions market, the defense mission systems market, and the air defense equipment market. Collectively, these segments are projected to contribute over $421 billion in market value by 2029, driven by advancements in autonomous defense technologies, enhanced situational awareness systems, and expanding applications across air, land, and naval defense sectors. This surge reflects the accelerating adoption of next-generation defense solutions that improve operational efficiency, mission readiness, and strategic defense capabilities, fueling transformative growth within the broader global defense industry.
The airborne defense market is projected to grow by $139 billion, the manual defense solutions market by $121 billion, the defense mission systems market by $91 billion, and the air defense equipment market by $70 billion over the next five years from 2024 to 2029.
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