Southeast Asia Defense Market Size (2024 - 2029)

Southeast Asia Defense Market Analysis

The Southeast Asia Defense Market size is estimated at USD 14.09 billion in 2024, and is expected to reach USD 19.27 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).

The ongoing dynamic growth of economies in Southeast Asia presents defense companies with significant opportunities. In the current scenario, various Southeast Asian countries are upgrading their military capabilities, with an eye toward better protecting their assets critical to exports and supply chains. Moreover, multiple countries in the region seek to defend their territorial integrity in a fast-changing security landscape. On the other hand, while there is growth in defense spending in the area, the scale and pace have varied significantly from country to country.

Various countries in Southeast Asia have increased their defense spending in recent years. The increasing need for military modifications by various defense forces in the region and growing territorial disputes are the main driving factors that will lead to the growth of new defense equipment purchases by countries in Southeast Asia in the future.

Moreover, the increasing defense budget of various Southeast Asian countries will drive the procurement of new defense systems. In addition, the modernization of the region's old and aging military equipment is anticipated to propel the procurement of newer generations of defense equipment. On the other hand, technological hindrances to the Transfer of Technology (ToT) from leading market players based in North America and Europe will restrict indigenous defense manufacturing capabilities in the region, which is expected to hamper market growth during the forecast period.

Southeast Asia Defense Market Industry Segmentation

The Southeast Asian defense market covers all military vehicles, armament, equipment procurements, and upgrade and modernization plans. The report provides insights into the budget allocation and spending of various countries in the region in the past, present, and during the forecast period.

The Southeast Asian defense market is segmented based on armed forces, type, and geography. By armed forces, the market is segmented into the air force, army, and navy. By type, the market is segmented into personnel training and protection, C4ISR and EW, vehicles, and weapons and ammunition. The report also offers market sizes and forecasts for four countries across the region. For each segment, the market sizes and forecasts have been done based on value (USD).