South Korea Aerospace And Defense Market Size

South Korea Aerospace And Defense Market Analysis

The South Korea Aerospace And Defense Market size is estimated at USD 4.46 billion in 2024, and is expected to reach USD 7.89 billion by 2029, growing at a CAGR of 9.38% during the forecast period (2024-2029).

The South Korean air transport industry is regarded as one of the most efficient industries in the world and continues to grow strongly and steadily. Over the past 20 years, Korea's international passenger traffic volumes have steadily increased. Rising air traffic, growing investment in airport infrastructure, and increasing demand for new commercial aircraft drive the growth of the aviation sector across the country.

The South Korean government spent around USD 46 billion on its defense sector in 2022. It declined by around 9% in 2022 but rose by around 5% during 2019-2022 and 18% between 2017-2022. In its mid-term defense plan for 2022–2026, the Ministry of National Defense increased its defense budget to USD 271.5 billion. The military aviation sector benefits from the increasing government investment in R&D and the procurement of advanced fighter jets, helicopters, and transport and training aircraft from the local players. Furthermore, growing security threats from North Korea and rising cross-border conflicts in Asian countries have led to a growing focus on enhancing the defense capabilities of the South Korean government.

The country's focus on the indigenization of defense equipment also provides huge growth prospects for local players in the country. South Korea is a global leader in several technological sectors, but its space program lags compared to its neighbours, China and Japan. The country also plans to take several initiatives for growth in the space sector during the forecast period.