| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 15.00 Billion |
| Market Size (2030) | USD 20.52 Billion |
| CAGR (2025 - 2030) | 6.47 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Defense Market Analysis
The Southeast Asia Defense Market size is estimated at USD 15.00 billion in 2025, and is expected to reach USD 20.52 billion by 2030, at a CAGR of 6.47% during the forecast period (2025-2030).
The ongoing dynamic growth of economies in Southeast Asia presents defense companies with significant opportunities. In the current scenario, various Southeast Asian countries are upgrading their military capabilities, with an eye toward better protecting their assets critical to exports and supply chains. Moreover, multiple countries in the region seek to defend their territorial integrity in a fast-changing security landscape. On the other hand, while there is growth in defense spending in the area, the scale and pace have varied significantly from country to country.
Various countries in Southeast Asia have increased their defense spending in recent years. The increasing need for military modifications by various defense forces in the region and growing territorial disputes are the main driving factors that will lead to the growth of new defense equipment purchases by countries in Southeast Asia in the future.
Moreover, the increasing defense budget of various Southeast Asian countries will drive the procurement of new defense systems. In addition, the modernization of the region's old and aging military equipment is anticipated to propel the procurement of newer generations of defense equipment. On the other hand, technological hindrances to the Transfer of Technology (ToT) from leading market players based in North America and Europe will restrict indigenous defense manufacturing capabilities in the region, which is expected to hamper market growth during the forecast period.
Southeast Asia Defense Market Trends
The Navy Segment to Showcase Remarkable Growth During the Forecast Period
After a period of robust growth, several Southeast Asian nations are bolstering their military prowess. They focus on safeguarding vital assets, particularly shipping lanes, ports, and maritime boundaries crucial for exports and supply chains. Additionally, they aim to uphold their territorial integrity amid a rapidly evolving security environment. Southeast Asia has deep economic ties with China, yet its defense interactions are hampered by China's assertiveness in the South China Sea, leading to tensions, notably with Vietnam and the Philippines.
Given that the well-being of Southeast Asian nations hinges on unimpeded sea access, maritime security is a top concern. The region's naval forces face a myriad of challenges, ranging from terrorism and smuggling to human and drug trafficking. Aging equipment is spurring demand for naval upgrades. For instance, in March 2023, ST Engineering Marine, a subsidiary of ST Engineering, secured a contract to build six Multi-role Combat Vessels (MRCVs) for the Republic of Singapore Navy (RSN). In April 2024, Thyssenkrupp Marine Systems unveiled the fourth submarine under the Type 218SG program. Moreover, ThyssenKrupp Marine Systems and ST Engineering have inked a pact to bolster the capabilities of Singapore's Type 218SG submarines throughout their service lives.
Given the array of potential challenges, Southeast Asian fleets are honing their capabilities for both peacetime operations and potential conflicts. This strategic focus is poised to propel the naval segment in the coming years.
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Singapore Projected to Dominate the Market During the Forecast Period
During the forecast period, Singapore is projected to maintain its market dominance, driven by heightened defense spending and an increased procurement of advanced weaponry. In 2023, Singapore allocated USD 13.2 billion to its defense budget, marking a 1.4% rise over the previous year. Notably, the Singapore Armed Forces (SAF) budget saw a substantial increase of around USD 509 million compared to 2022.
Singapore's defense expenditure is primarily fueled by concerns over terrorist threats, bolstering military capabilities through equipment acquisitions, overseas training programs, and active involvement in international peacekeeping and disaster relief efforts. For instance, in March 2023, the Singapore Army opted for Colt’s Infantry Automatic Rifles 6940 (IAR 6940) as its new section automatic weapon, replacing the long-serving ST Engineering’s 5.56 mm Ultimax 100 Mk2 light machine gun. The Colt’s 6940 rifle boasts a lighter build, a shorter barrel, and a higher fire rate than its competitor, Heckler & Koch's M27 5.56 mm IAR rifle.
Key players in Singapore's defense landscape, including Singapore Technologies Engineering Ltd, ST Engineering Land Systems Ltd, and Airbus Helicopters Southeast Asia Private Limited, are actively driving indigenous defense development. This, coupled with a surge in R&D investments, is propelling the country's defense market’s growth.
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Southeast Asia Defense Market Industry Overview
The Southeast Asian defense market is semi-consolidated, with local and global entities commanding substantial market shares. Key players, including Singapore Technologies Engineering Ltd, Lockheed Martin Corporation, Airbus SE, The Boeing Company, and Leonardo SpA, are at the forefront. These entities are notably focused on advancing military weaponry. Their strategies involve heavy R&D investments, integrating cutting-edge technologies like AI and IoT into military hardware, and enhancing operational efficiency. Moreover, the market is propelled by the increasing trend of long-term partnerships and contracts between defense OEMs and various armed forces.
For instance, in August 2023, Indonesia inked a deal with Lockheed Martin Corporation to procure 24 transport helicopters. The agreement, facilitated by Indonesia’s aerospace firm, Dirgantara Indonesia, underscores the nation's commitment to bolstering its military air capabilities.
Southeast Asia Defense Market Leaders
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Lockheed Martin Corporation
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Airbus SE
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The Boeing Company
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Leonardo S.p.A
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Singapore Technologies Engineering Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Southeast Asia Defense Market News
- September 2023: Elbit Systems announced that it would present Skylark 3 Hybrid Small Tactical Unmanned Aerial Systems (STUAS) for the first time at the Singapore Airshow. The Skylark 3 Hybrid hybrid propulsion system offers 18 hours of operations and improves mission effectiveness and cost efficiency.
- March 2023: Singapore’s Ministry of Defense exercised an option to acquire eight F-35B Lightning II Fighter multi-role combat aircraft from Lockheed Martin Corporation. The contract was signed in 2020 for 12 F-35Bs to be delivered by the end of the decade for the Republic of Singapore Air Force (RSAF).
Southeast Asia Defense Market Industry Segmentation
The Southeast Asian defense market covers all military vehicles, armament, equipment procurements, and upgrade and modernization plans. The report provides insights into the budget allocation and spending of various countries in the region in the past, present, and during the forecast period.
The Southeast Asian defense market is segmented based on armed forces, type, and geography. By armed forces, the market is segmented into the air force, army, and navy. By type, the market is segmented into personnel training and protection, C4ISR and EW, vehicles, and weapons and ammunition. The report also offers market sizes and forecasts for four countries across the region. For each segment, the market sizes and forecasts have been done based on value (USD).
| Armed Forces | Air Force |
| Army | |
| Navy | |
| Type | Personnel Training and Protection |
| C4ISR and EW | |
| Vehicles | |
| Weapons and Ammunition | |
| Country | Singapore |
| Indonesia | |
| Thailand | |
| Malaysia | |
| Rest of Southeast Asia |
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Southeast Asia Defense Market Research FAQs
How big is the Southeast Asia Defense Market?
The Southeast Asia Defense Market size is expected to reach USD 15.00 billion in 2025 and grow at a CAGR of 6.47% to reach USD 20.52 billion by 2030.
What is the current Southeast Asia Defense Market size?
In 2025, the Southeast Asia Defense Market size is expected to reach USD 15.00 billion.
Who are the key players in Southeast Asia Defense Market?
Lockheed Martin Corporation, Airbus SE, The Boeing Company, Leonardo S.p.A and Singapore Technologies Engineering Ltd. are the major companies operating in the Southeast Asia Defense Market.
What years does this Southeast Asia Defense Market cover, and what was the market size in 2024?
In 2024, the Southeast Asia Defense Market size was estimated at USD 14.03 billion. The report covers the Southeast Asia Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Southeast Asia Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Southeast Asia Defense Industry Report
Statistics for the 2025 Southeast Asia Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Defense analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
