Japan Aerospace And Defense Market Size

Japan Aerospace & Defense Market Analysis

The Japan Aerospace And Defense Market size is estimated at USD 72.60 billion in 2024, and is expected to reach USD 93.90 billion by 2029, growing at a CAGR of 5.28% during the forecast period (2024-2029).

The Japanese aerospace sector is one of the largest in the world, with a strong international reputation, particularly in the field of research and development (R&D). Japanese companies have great potential in the research and development of dual-use aerospace defense technology, such as helicopters and light attack aircraft. In 2022, around 6.8 million passengers were carried on international flights via Japanese airlines, up from 1.4 million passengers in the previous year.

An increase in defense expenditure, rising procurement of next-generation weapons, and adoption of advanced technologies in military communication drive the growth of the market across Japan. According to the report published by Stockholm International Peace Research Institute (SIPRI) in 2022, Japan was the tenth largest defense spender in the world, with a defense budget of USD 46 billion. The country approved USD 51.4 billion in defense spending in FY2023.

The security environment in Japan has become increasingly stressed, with several international challenges and destabilizing factors becoming more acute. Hence, to adapt to the growing changes in the security environment, Japan has been strengthening its defense capabilities at a rapid pace. For the ninth consecutive year, the defense budget draft set a new record for Japan's national defense budget. For FY2023, the Japanese government approved 6.82 trillion yen (USD 51.4 billion), which showed an increase of 26.3% from the previous year. The growth in the defense budget and the ongoing military modernization are expected to be the major drivers for the growth of the market.