UK Defense Market Trends

Statistics for the 2023 & 2024 UK Defense market trends, created by Mordor Intelligence™ Industry Reports. UK Defense trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of UK Defense Industry

This section covers the major market trends shaping the UK Defense Market according to our research experts:

The United Kingdom Plans to Increase its Investments in Naval Fleet Expansion and Modernization

Maritime security is an issue of critical importance to the United Kingdom, more so after the United Kingdom voted to leave the EU. Almost 95% of all UK imports and exports move by sea through over 400 British ports. The UK maritime security is complex and presents a host of challenges like the prospect of a terrorist attack at sea, the smuggling of illicit goods, threats to critical marine infrastructure, etc. This generates a need for the United Kingdom to enhance its maritime security capabilities. The United Kingdom has taken some important steps to strengthen its maritime security capacities and governance mechanisms, including the establishment of cross-governmental coordination bodies, such as the Joint Maritime Security Center. In March 2021, the government announced new plans to enhance the capabilities of the British Navy through investments for the addition of new surface ships, submarines, weapons, technologies, and missions. For instance, the Royal Navy plans to operate over 20 frigates and destroyers by the early 2030s, with plans to increase the size to 24. Furthermore, by 2022, the country plans to deploy automated and autonomous mine hunting systems as a part of GBP 1 billion (USD 1.87 billion) in mine warfare. Such robust plans are to enhance the naval capabilities of the country and will drive the market growth during the forecast period.

UK Defense Market Growth

The UK Defense Market is Expected to Experience a Steady Growth

The military spending of Europe accounted for over 15% of the global military spending in 2020. Russia, the United Kingdom, France, and Germany were among the top 10 military spending countries in the world in 2020. As of 2020, the country was the second-largest global defense exporter, and it had won defense orders worth almost USD 10.61 billion (GBP 7.9 billion). According to the UK MoD, the country's share of the global defense export market was estimated at 6% in 2020, with Europe, North America, and the Middle East being the country's largest export markets. Revenue expenditure forms the largest share of the UK defense budget. The United Kingdom is also the second-largest NATO defense spender after the United States. In 2020, the country was one of the only eight NATO members to meet the guidelines set by NATO to spend at least 2% of national GDP on defense annually. The United Kingdom's public sector expenditure on defense as a share of GDP in 2020 was 2.2%. In budget 2021, the government announced a budget increase of GBP 16.5 billion (USD 21.9 billion) with additional funding for developing the country's capabilities in advanced technologies like artificial intelligence, space, cyber, and the creation of sensor-laden connected hardware. Such investments are anticipated to boost the growth of the UK defense market.

UK Defense Market Analysis

UK Defence Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)