Market Size of Russia Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Russia Defense Market Analysis
The Russian defense market is expected to grow with a CAGR of 4.1% during the forecast period.
The COVID-19 pandemic's impact on the Russian economy was relatively low due to the country's defense spending. Russia is currently engaged in three active wars with neighboring countries: the Russo-Ukrainian War, the Russian military intervention in the Syrian Civil War, and the Central African Republic Civil War. Additionally, economic sanctions hit Russia over its annexation of Crimea from Ukraine and its ongoing invasion of the country.
Russia is the fifth largest country that spends highly on defense. The defense industry of Russia is a strategically important sector and creates high employment. It is also a significant player in the global arms market. According to the Stockholm International Peace Research Institute (SIPRI), Russia is the second largest conventional arms exporter after the United States, with USD 14.6 billion worth of exports in FY 2021. The Russian government revised its defense budget in September 2022. The country is expected to spend 4.7 trillion rubles (USD 77.7 billion) due to the ongoing war with Ukraine. The war depleted the country's inventory of arms, ammunition, and combat vehicles, leading to the country losing the stockpile of weapons and consequently needing to invest significantly into developing and manufacturing new weapons. The current geopolitical and economic crises resulting from the war are expected to drive a significant increase in demand for defense manufacturers and suppliers in the market during the forecast period.
Russia Defense Industry Segmentation
The Russian defense market is segmented by armed forces (army, navy, and air force) and type (fixed-wing aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, protection and training equipment, and unmanned systems). The report offers market size and forecast for all the above segments in terms of value (USD billion).
| By Armed Forces | |
| Army | |
| Navy | |
| Air Force |
| By Type | |
| Fixed Wing | |
| Rotorcraft | |
| Ground Vehicles | |
| Naval Vessels | |
| C4ISR | |
| Weapons and Ammunition | |
| Protection and Training Equipment | |
| Unmanned Systems |
Russia Defense Market Size Summary
The Russian defense market is poised for growth, driven by its strategic importance and substantial government investment. Despite economic challenges and international sanctions, Russia maintains a robust defense budget, positioning itself as a significant player in the global arms market. The ongoing conflicts in Ukraine, Syria, and the Central African Republic have necessitated increased military expenditure, particularly in arms and ammunition, to replenish depleted stockpiles. This has led to a surge in demand for defense manufacturers and suppliers, with a focus on developing and producing advanced weaponry. The Russian defense industry is characterized by its consolidation, with major state-owned enterprises like Almaz-Antey, United Aircraft Corporation, and Russian Helicopters leading the market. These companies are engaged in continuous technological advancements to enhance Russia's military capabilities.
The airforce segment, in particular, is expected to experience significant growth due to the ongoing war with Ukraine, which has prompted Russia to invest heavily in modernizing and expanding its aerial fleet. The acquisition of advanced fighter aircraft, such as the Su-57 and Su-34M, underscores this strategic focus. The introduction of new technologies, like the stealth fighter 'Checkmate,' highlights Russia's commitment to maintaining a competitive edge in aerial combat. The defense market's growth is further supported by the country's efforts to enhance its intelligence, surveillance, and reconnaissance capabilities. As Russia continues to navigate geopolitical tensions, its defense market is anticipated to expand, driven by both domestic needs and its role as a leading arms exporter.
Russia Defense Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Armed Forces
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2.1.1 Army
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2.1.2 Navy
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2.1.3 Air Force
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2.2 By Type
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2.2.1 Fixed Wing
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2.2.2 Rotorcraft
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2.2.3 Ground Vehicles
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2.2.4 Naval Vessels
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2.2.5 C4ISR
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2.2.6 Weapons and Ammunition
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2.2.7 Protection and Training Equipment
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2.2.8 Unmanned Systems
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Russia Defense Market Size FAQs
What is the current Russia Defense Market size?
The Russia Defense Market is projected to register a CAGR of 4.10% during the forecast period (2024-2029)
Who are the key players in Russia Defense Market?
United Shipbuilding Corporation, Almaz Antey Corporation, United Aircraft Corporation, Russian Helicopters and Tactical Missile Corporation are the major companies operating in the Russia Defense Market.
