PUBLISHER: The Business Research Company | PRODUCT CODE: 1833983
PUBLISHER: The Business Research Company | PRODUCT CODE: 1833983
Defense refers to the industry and activities involved in the development, production, deployment and maintenance of equipment, systems and services designed to protect nations and their interests from external threats. The defense market encompasses a broad range of military hardware, technology and support infrastructure that enables armed forces to conduct operations across land, air, sea.
The defense market consists of sales, by entities (organizations, sole traders, or partnerships), of defense that is used during peacetime for deterrence, training and surveillance and during times of conflict for combat, intelligence gathering, logistics and strategic operations. Users of defense equipment and services primarily include national governments and their military organizations, such as armies, navies, air forces and specialized defense agencies. In addition, defense contractors, private security companies and international organizations with peacekeeping or security mandates also utilize defense technologies and services.
The global defense market was valued at $361.65 billion in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 5.00%.
Rising Geopolitical Tensions
Rising geopolitical tensions fueled the growth of the defense market in the historic period. Escalating geopolitical tensions prompt nations to expand defense budgets to enhance military readiness, upgrade equipment and reinforce border security. This increased allocation fuels demand for advanced weaponry, surveillance systems and cutting-edge defense technologies. For instance, in August 2025, the U.S. imposed a 30% tariff on South African exports, citing concerns over domestic policies like affirmative action and land expropriation. This move strained bilateral relations and highlighted ideological differences between the two nations. Additionally, in February 2025, according to a report published by the United Nations Ukraine, a Ukraine-based government organization, civilian casualties increased by 30% in 2024 compared to 2023, as frontline hostilities escalated once again and the Russian Federation intensified its use of aerial bombs, short-range drones, long-range missiles and loitering munitions. Therefore, rising geopolitical tensions drove the growth of the defense market.
Next-Generation Indigenous Counter-Drone System Unveiled To Combat Swarm Threats
Major companies operating in the defense market are focusing on the launch of innovative technologies, such as multi-layered, indigenous counter-drone systems, to enhance national security capabilities and address evolving aerial threats. These systems aim to detect, track and neutralize hostile drones in real time, providing a robust defense against asymmetric warfare. For example, in May 2025, Solar defence and aerospace limited, an India-based subsidiary of Solar Industries India Ltd., known for development and manufacturing of defense and aerospace products, launched Bhargavastra. It is a low-cost, multi-layered micro-missile system capable of detecting swarms from over 6 km and neutralizing them within 2.5 km. The mobile platform, mounted on a light truck, fired salvos of up to 64 unguided micro-rockets and precision-guided micro-missiles in seconds, showcasing its rapid, adaptable and indigenous hard-kill defense against drone threats.
The global defense market is concentrated, with large players operating the market. The top ten competitors in the market made up to 46.51% of the total market in 2024.
Defense Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global defense market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for defense? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The defense market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider defense market; and compares it with other markets.