Market Size of UK Defense Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Market Size (2024) | USD 64.55 Billion |
Market Size (2029) | USD 75.27 Billion |
CAGR (2024 - 2029) | 3.12 % |
Major Players*Disclaimer: Major Players sorted in no particular order |
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UK Defence Market Analysis
The UK Defense Market size is estimated at USD 64.55 billion in 2024, and is expected to reach USD 75.27 billion by 2029, growing at a CAGR of 3.12% during the forecast period (2024-2029).
Despite the impact of the COVID-19 pandemic on the country's economy, the government announced that it plans to increase its military budget in the coming years due to the need to enhance the capabilities of its armed forces.
As per NATO, the United Kingdom is one of the top countries globally in terms of defense spending. The country met its target of 2% of the GDP in 2019 and 2020. In February 2022, the government announced its plan to invest EUR 238 billion (USD 270 billion) into the procurement of new generation military equipment and provide required services for existing services over 2021-2031. The investment is expected to support the government in strengthening its digital and cyber capabilities, along with air, land, and sea capabilities.
The country has been increasing its defense budget and spending over the past few years to achieve NATO's defense spending target of 2% of the total country's GDP, which is acting as a major driver for the growth of the market.
The investments into technological advancements to enhance the lethality, precision, and range of weapons, communication range, and other support services to address new and rapidly evolving threats of the country are expected to propel the growth of the market.