South Korea Aerospace And Defense Market Size (2024 - 2029)

South Korea Aerospace and Defense Market Analysis

The South Korea Aerospace And Defense Market size is estimated at USD 4.46 billion in 2024, and is expected to reach USD 7.89 billion by 2029, growing at a CAGR of 9.38% during the forecast period (2024-2029).

The South Korean air transport industry stands out globally for its efficiency, showing consistent and robust growth. This growth has been propelled by escalating air traffic, substantial investments in airport infrastructure, and a rising appetite for new commercial aircraft.

In 2023, the South Korean government allocated approximately USD 47.9 billion to its defense, marking a 1.1% uptick from the previous year and a significant 34% surge over the decade from 2014 to 2023. Notably, in its 2022–2026 mid-term defense strategy, the Ministry of National Defense bolstered this commitment, pushing the defense budget to USD 271.5 billion. Heightened security concerns emanating from North Korea and escalating conflicts in neighboring Asian nations have underscored the imperative for South Korea to fortify its defense capabilities.

Investments in cutting-edge technologies further fuel anticipated market growth. These investments are geared toward enhancing the lethality, precision, and range of weaponry, bolstering communication capabilities, and providing advanced services to counter swiftly evolving threats.

Conversely, as global attention shifts toward environmental concerns and governmental bodies and defense agencies grapple with the need to curtail their greenhouse gas emissions, this environmental imperative could pose a challenge, potentially impacting the expansion of terrestrial and aerial military fleets in the coming years.

South Korea Aerospace and Defense Industry Segmentation

The South Korean aerospace and defense market mainly comprises companies that manufacture products for military use. International collaborations, partnerships, weapon and defense asset developments, space programs, and other important factors impact the South Korean defense and aerospace market.

The South Korean aerospace and defense market is segmented by industry and type. By industry, it is segmented into manufacturing, design, and engineering and maintenance, repair, and overhaul. By type, it is segmented into aerospace and defense. For each segment, the market sizing and forecasts have been provided based on value (USD).