Market Size of NATO Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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NATO Defense Market Analysis
The NATO defense market is anticipated to register a CAGR of over 6% during the forecast period.
Due to COVID-19, several NATO nations were severely impacted economically and faced supply chain disruptions. Since the ramifications of such a situation for the defense sector could be catastrophic, the governments of the NATO nations mitigated the impact on the defense sector at an early phase. Thus, to defend political and defense interests, NATO member states acted collaboratively and aggressively. 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 into focus during the forecast period.
The rise in defense spending and modernization programs undertaken by military forces in major economies are driving the growth of the market. Various economic, legal, and political regulations affect the procurement of new military systems and are expected to hamper the growth of the market. The Russian-Ukraine war has impacted the defense spending by the NATO countries. Most European countries have increased their defense spending due to Russia's invasion. Germany has increased its defense spending above 2% of GDP and allocated 109 billion euros, which is more than the total defense budget for 2021. Factors such as these are fueling the growth of the NATO defense market.
