Southeast Asia Defense Market Size

Southeast Asia Defense Market Analysis

The Southeast Asia Defense Market size is estimated at USD 14.09 billion in 2024, and is expected to reach USD 19.27 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).

The ongoing dynamic growth of economies in Southeast Asia presents defense companies with significant opportunities. In the present scenario, various Southeast Asian countries are now 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.

• There has been a growth in defense spending by various countries in the Southeast Asian region 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, the 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 the market growth during the forecast period.