U.S. Defense Equipment Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025

Description

The U.S. defense equipment market is witnessing steady expansion, driven by rising geopolitical tensions, a surge in defense spending, and continuous technological innovation. Estimated at USD 310 billion in 2024, the market is expected to grow to USD 435.8 billion by 2032, reflecting a CAGR of 4.5% over the forecast period.

This momentum is fueled by the Department of Defense's concentrated efforts to modernize military assets across various domains including air, naval, cyber, and space warfare. The market is also experiencing consolidation aimed at streamlining operations and strengthening the defense supply chain.

Key Insights

The Space Force is rapidly emerging as a key focus area, underscoring the strategic role of space in national defense.

While manual defense systems currently hold the majority share, autonomous equipment is gaining popularity due to its potential to enhance operational precision and reduce personnel risk.

Propulsion systems are transitioning from traditional internal combustion engines to electric and hybrid alternatives, driven by goals of energy efficiency and alignment with sustainability standards.

The Southern U.S. holds the largest regional share, attributed to the concentration of defense manufacturing hubs and military bases. Meanwhile, the Western region is projected to experience the fastest growth due to its strong innovation ecosystem and increasing defense investments.

Cutting-edge technologies, such as artificial intelligence and unmanned systems, are revolutionizing defense operations. Key innovations include AI-integrated aircraft like the Loyal Wingman, autonomous ground vehicles like RAIDER-X, and new developments in hypersonic and directed-energy weapons.

The market is largely consolidated, with major players engaging in strategic collaborations, acquisitions, and R&D efforts to bolster technological leadership and secure long-term contracts.

Robust government support through programs like the National Defense Authorization Act and increased military budgets is further reinforcing the development and deployment of advanced defense equipment.

Product Code: 13470

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by By Armed Forces
- 1.4.2. Market Size Breakdown, by By Operation
- 1.4.3. Market Size Breakdown, by By Propulsion
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Supply Chain and Value Chain Insights
5.8. Economic and Regulatory Impact
5.9. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Product Benchmarking of Key Players
6.5. Recent Strategic Developments by Key Players
6.6. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by By Armed Forces (2019-2032)
7.3. Market Revenue, by By Operation (2019-2032)
7.4. Market Revenue, by By Propulsion (2019-2032)
7.5. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Import/Export Policies
8.10. Compliance Requirements
8.11. Emerging Investment Areas
8.12. Major Ongoing Projects
8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by By Armed Forces (2019-2032)
- 8.13.2. Market Revenue, by By Operation (2019-2032)
- 8.13.3. Market Revenue, by By Propulsion (2019-2032)

Chapter 9. West Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Import/Export Policies
9.10. Compliance Requirements
9.11. Emerging Investment Areas
9.12. Major Ongoing Projects
9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by By Armed Forces (2019-2032)
- 9.13.2. Market Revenue, by By Operation (2019-2032)
- 9.13.3. Market Revenue, by By Propulsion (2019-2032)

Chapter 10. Midwest Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Import/Export Policies
10.10. Compliance Requirements
10.11. Emerging Investment Areas
10.12. Major Ongoing Projects
10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by By Armed Forces (2019-2032)
- 10.13.2. Market Revenue, by By Operation (2019-2032)
- 10.13.3. Market Revenue, by By Propulsion (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Import/Export Policies
11.10. Compliance Requirements
11.11. Emerging Investment Areas
11.12. Major Ongoing Projects
11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by By Armed Forces (2019-2032)
- 11.13.2. Market Revenue, by By Operation (2019-2032)
- 11.13.3. Market Revenue, by By Propulsion (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Defense Equipment Market Size & Share Analysis - Key Trends, Future Opportunities, Growth Strategies, and Forecasts (2025 - 2032)