APAC Defense Market Size

APAC Defense Market Analysis

The Asia-Pacific defense market is anticipated to register a CAGR of over 4% during the forecast period.

• Due to Covid-19, the countries in the Asia Pacific region were severely impacted economically and faced supply chain disruptions. The investments made by the countries in the region towards procuring and developing new technologies created a negligible impact of COVID-19 on the defense market and remained unaffected. 
• A progressive and strategic increase in the defense budget and the launch of infantry support projects are expected to create demand for sophisticated new-generation weapon systems with advanced capabilities, thereby driving the market in focus during the forecast period.
• The global military expenditure surpassed USD 2 trillion for the first time in 2021. China and India were the second and third largest defense spenders, with a defense budget of USD 293 billion and USD 76.6 billion, respectively. Due to the expansion of the defense industries in East Asian countries, including Japan, South Korea, Taiwan, and Singapore, as well as China and India, defense budgets may continue to rise. 
• Spending on the military in the region increased by more than 3.5%, surpassing that of Europe, Africa, and the Americas. The increasing geopolitical conflicts and border tension of neighboring countries in the region are fueling the rise in military expenditure of various countries in the region. This increase in military expenditure is propelling investments into the procurement of new land, air, and sea platforms. 
• Various government initiatives were taken to support the indigenous manufacturing of defense electronics in countries like China, India, and Japan, bolstering local manufacturing growth.