Market Size of US Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 309.77 Billion |
| Market Size (2029) | USD 367.30 Billion |
| CAGR (2024 - 2029) | 3.58 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Defense Market Analysis
The US Defense Market size is estimated at USD 309.77 billion in 2024, and is expected to reach USD 367.30 billion by 2029, growing at a CAGR of 3.58% during the forecast period (2024-2029).
The US defense market is expected to grow primarily due to the armed forces' procurement and upgrade activities to counter emerging threats. Several contracts from the military, air force, and naval force are currently underway, and many new contracts are anticipated to be dispersed during the forecast period, creating a parallel demand for defense equipment.
The US military uses multiple aircraft for usage across Air Force and Navy. Owing to the increasing international conflict with China over its aggression in the South China Sea, the United States is gearing up to tackle any potential issues China may create for countries with close ties with the United States, like Taiwan and Japan. As a result, significant investments into upgrading the existing fleet and/or purchasing a new fleet equipped with efficient technologies have been witnessed over the past years.
While the US aerospace and defense sector stands on the cusp of significant growth, it faces formidable challenges in supply chain vulnerabilities. The industry's supply chains, often global and intricate, are susceptible to disruptions, as evidenced by the impact of the pandemic on production and logistics. In addition, the increasing integration of digital technologies and connectivity in defense systems opens up new fronts in cybersecurity risks. State-sponsored cyber threats targeting defense contractors and critical infrastructure are becoming more sophisticated, posing a serious concern. For instance, in 2022, the number of cybersecurity attacks on federal agencies in the US was 30,659.
However, addressing these challenges presents opportunities for resilience and innovation within the industry. Strengthening supply chain resilience through localized production and diversification strategies may mitigate risks associated with global disruptions. Simultaneously, investing in robust cybersecurity measures and collaboration with cybersecurity experts may fortify the industry against evolving cyber threats, ensuring the continued integrity of critical defense systems.
US Defense Industry Segmentation
The US defense market covers all aspects, including details about the procurement and modernization plans of the US Armed Forces.
The US defense market is segmented by armed forces and type. By armed forces, the market is segmented into army, navy, and air force. By type, the market is segmented into fixed-wing aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, protection and training equipment, and unmanned systems. The report also covers the market sizes and forecasts for the US defense market.
For each segment, the market size is provided in terms of value (USD).
| Armed Force | |
| Army | |
| Navy | |
| Air Force |
| Type | |
| Fixed-wing Aircraft | |
| Rotorcraft | |
| Ground Vehicles | |
| Naval Vessels | |
| C4ISR | |
| Weapons and Ammunition | |
| Protection and Training Equipment | |
| Unmanned Systems |
US Defense Market Size Summary
The US defense industry is poised for significant growth, driven by the need for procurement and upgrades to address emerging global threats. The market is experiencing a surge in contracts across military, air force, and naval sectors, fueled by the increasing international tensions, particularly with China. This has led to substantial investments in modernizing and expanding the US military fleet, including aircraft and naval vessels, to ensure readiness and strategic advantage. The Air Force segment, in particular, is expected to see major growth due to plans for replacing aging combat aircraft and acquiring new unmanned aerial vehicles. The US government's commitment to enhancing its aerial capabilities is evident in its substantial budget allocations for next-generation fighter jets and advanced military technologies.
Despite the promising growth trajectory, the US defense industry faces challenges such as supply chain vulnerabilities and cybersecurity risks. The intricate and global nature of defense supply chains makes them susceptible to disruptions, as highlighted by the pandemic's impact. Additionally, the integration of digital technologies in defense systems introduces new cybersecurity challenges, with state-sponsored threats becoming increasingly sophisticated. However, these challenges also present opportunities for innovation and resilience, encouraging strategies like localized production and robust cybersecurity measures. The market remains semi-consolidated, with key players like Lockheed Martin, Boeing, RTX Corporation, General Dynamics, and Northrop Grumman expected to maintain significant market shares through strategic initiatives and product innovations. Long-term contracts and procurement plans are anticipated to drive revenue growth for these companies, further solidifying their positions in the market.
US 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 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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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 Armed Force
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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 Type
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2.2.1 Fixed-wing Aircraft
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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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US Defense Market Size FAQs
How big is the US Defense Market?
The US Defense Market size is expected to reach USD 309.77 billion in 2024 and grow at a CAGR of 3.58% to reach USD 367.30 billion by 2029.
What is the current US Defense Market size?
In 2024, the US Defense Market size is expected to reach USD 309.77 billion.
