Market Size of UK Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 64.55 Billion |
| Market Size (2029) | USD 75.27 Billion |
| CAGR (2024 - 2029) | 3.12 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UK Defense Market Analysis
The UK Defense Market size is estimated at USD 64.55 billion in 2024, and is expected to reach USD 75.27 billion by 2029, growing at a CAGR of 3.12% during the forecast period (2024-2029).
As per NATO, the United Kingdom (UK) is one of the top countries globally in terms of defense spending. The country met 2% of its GDP target in 2021 and 2022. In February 2022, the government announced its plan to invest EUR 238 billion (USD 270 billion) in procuring new-generation military equipment and providing required services for existing services over 2021-2031. The investment is expected to support the government in strengthening its digital and cyber capabilities as well as air, land, and sea capabilities.
The country has been increasing its defense budget and spending over the past few years to achieve NATO's defense spending target of 2% of the total country's GDP, which is a significant driver for the market's growth.
As environmental concerns gain prominence worldwide, governments and defense organizations are under pressure to reduce their carbon footprint. This may act as a restraint and can impact the growth of land-based and air-based military vehicles during the forecast period.
Investments in technological advancements to enhance the lethality, precision, and range of weapons, communication range, and other support services to address new and rapidly evolving threats to the country are expected to propel the market's growth.
UK Defense Industry Segmentation
The study covers all aspects and provides insights into the budget allocation and spending in the UK defense market in the past and the present, along with the forecast for the future. The market includes details about the procurement and modernization plans of the UK armed forces. The market also includes investments in the development and launch of satellites, research and development of advanced technologies like directed energy weapons (DEWs) and composites, and advanced manufacturing technologies like 3D printing.
Based on armed forces, the market is segmented into army, navy, and air force. Based on type, the market is segmented into aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, and protection and training equipment. The market sizing and forecasts have been provided in value (USD).
| Armed Forces | |
| Army | |
| Navy | |
| Air Force |
| Type | |
| Fixed-wing Aircraft | |
| Rotorcraft | |
| Ground Vehicles | |
| Naval Vessels | |
| C4ISR | |
| Weapons and Ammunition | |
| Protection and Training Equipment | |
| Unmanned Systems |
UK Defense Market Size Summary
The UK defense market is poised for significant growth, driven by the country's commitment to meeting NATO's defense spending targets and enhancing its military capabilities across various domains. The government's strategic investments, including substantial funding for new-generation military equipment and technological advancements, are aimed at bolstering digital, cyber, air, land, and sea capabilities. The focus on maritime security, particularly in response to challenges post-Brexit, has led to increased efforts in strengthening naval capacities and governance mechanisms. This includes the development of nuclear-powered attack submarines and the expansion of the Royal Navy's fleet. The procurement of advanced aircraft and the upgrade of armed forces are also key components of the UK's defense strategy, ensuring operational readiness and addressing evolving threats.
The market landscape is characterized by a fragmented structure with open competition policies, allowing for the acquisition of defense equipment from both domestic and foreign sources based on performance, cost, and delivery advantages. Prominent players such as BAE Systems, Lockheed Martin Corporation, and Airbus SE are expected to maintain significant market shares, supported by strategic partnerships and development programs like the Tempest aircraft. The UK's defense market is further bolstered by ongoing contracts and orders, including substantial investments in naval and air force capabilities. These developments underscore the country's commitment to maintaining a robust defense posture and its strategic role in global security dynamics.
UK Defense Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.3 Market Restraints
-
1.4 Industry Attractiveness - Porter's Five Forces Analysis
-
1.4.1 Threat of New Entrants
-
1.4.2 Bargaining Power of Buyers/Consumers
-
1.4.3 Bargaining Power of Suppliers
-
1.4.4 Threat of Substitute Products
-
1.4.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 Armed Forces
-
2.1.1 Army
-
2.1.2 Navy
-
2.1.3 Air Force
-
-
2.2 Type
-
2.2.1 Fixed-wing Aircraft
-
2.2.2 Rotorcraft
-
2.2.3 Ground Vehicles
-
2.2.4 Naval Vessels
-
2.2.5 C4ISR
-
2.2.6 Weapons and Ammunition
-
2.2.7 Protection and Training Equipment
-
2.2.8 Unmanned Systems
-
-
UK Defense Market Size FAQs
How big is the UK Defense Market?
The UK Defense Market size is expected to reach USD 64.55 billion in 2024 and grow at a CAGR of 3.12% to reach USD 75.27 billion by 2029.
What is the current UK Defense Market size?
In 2024, the UK Defense Market size is expected to reach USD 64.55 billion.
