US Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The US Defense Market is Segmented by Armed Forces (Army, Navy, and Air Force) and Type (Fixed-Wing Aircraft, Rotorcraft, Ground Vehicles, Naval Vessels, C4isr, Weapons and Ammunition, Protection and Training Equipment, and Unmanned Systems). The Report Offers Market Size and Forecast for all the Above Segments in Value (USD).

US Defense Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

US Defense Market Size

US Defense Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 320.86 Billion
Market Size (2030) USD 382.56 Billion
CAGR (2025 - 2030) 3.58 %
Market Concentration Medium

Major Players

US Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Defense Market Analysis

The US Defense Market size is estimated at USD 320.86 billion in 2025, and is expected to reach USD 382.56 billion by 2030, at a CAGR of 3.58% during the forecast period (2025-2030).

The US defense market is expected to grow primarily due to the armed forces' procurement and upgrade activities to counter emerging threats. Several contracts from the military, air force, and naval force are currently underway, and many new contracts are anticipated to be dispersed during the forecast period, creating a parallel demand for defense equipment.

The US military uses multiple aircraft for usage across Air Force and Navy. Owing to the increasing international conflict with China over its aggression in the South China Sea, the United States is gearing up to tackle any potential issues China may create for countries with close ties with the United States, like Taiwan and Japan. As a result, significant investments into upgrading the existing fleet and/or purchasing a new fleet equipped with efficient technologies have been witnessed over the past years.

While the US aerospace and defense sector stands on the cusp of significant growth, it faces formidable challenges in supply chain vulnerabilities. The industry's supply chains, often global and intricate, are susceptible to disruptions, as evidenced by the impact of the pandemic on production and logistics. In addition, the increasing integration of digital technologies and connectivity in defense systems opens up new fronts in cybersecurity risks. State-sponsored cyber threats targeting defense contractors and critical infrastructure are becoming more sophisticated, posing a serious concern. For instance, in 2022, the number of cybersecurity attacks on federal agencies in the US was 30,659.

However, addressing these challenges presents opportunities for resilience and innovation within the industry. Strengthening supply chain resilience through localized production and diversification strategies may mitigate risks associated with global disruptions. Simultaneously, investing in robust cybersecurity measures and collaboration with cybersecurity experts may fortify the industry against evolving cyber threats, ensuring the continued integrity of critical defense systems.

US Defense Industry Overview

The US defense market is semi-consolidated as several players in the market support the US defense market. However, Lockheed Martin Corporation, The Boeing Company, RTX Corporation, General Dynamics Corporation, and Northrop Grumman Corporation are some prominent players expected to hold a significant share. These companies conduct various initiatives and product innovations to strengthen their presence in the market.

In this regard, in December 2023, the US Army and the Defense Innovation Unit selected Neya Systems, Robotic Research Autonomous Industries, and Carnegie Robotics to create heavy-duty vehicles capable of restocking soldiers in the field and independently navigating themselves in rugged terrains.

The provision of long-term contracts for the development of new military equipment and technologies is anticipated to propel the revenues of various companies in the US. For instance, in December 2023, the US Army Special Operations Aviation Command (USASOAC) awarded The Boeing Company a contract to deliver six MH-47G Block II Chinooks for USD 271 million. Such contracts are expected to help the companies increase their market share.

US Defense Market Leaders

  1. Lockheed Martin Corporation

  2. The Boeing Company

  3. General Dynamics Corporation

  4. RTX Corporation

  5. Northrop Grumman Corporation

  6. *Disclaimer: Major Players sorted in no particular order
US Defense Market Concentration
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US Defense Market News

February 2024: the USAF announced its plans to procure 26 E-7s from Boeing by 2032 to replace its aging E-3 Sentry airborne warning and control system aircraft fleet.

January 2024: Lockheed Martin Corporation announced that it plans to deliver 75 to 110 F-35s to the US in 2024. About 90% of the F-35s to be delivered in 2024 are in TR-3 configuration.

US Defense Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.4.1 Bargaining Power of Suppliers
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Threat of New Entrants
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

  • 5.1 Armed Force
    • 5.1.1 Army
    • 5.1.2 Navy
    • 5.1.3 Air Force
  • 5.2 Type
    • 5.2.1 Fixed-wing Aircraft
    • 5.2.2 Rotorcraft
    • 5.2.3 Ground Vehicles
    • 5.2.4 Naval Vessels
    • 5.2.5 C4ISR
    • 5.2.6 Weapons and Ammunition
    • 5.2.7 Protection and Training Equipment
    • 5.2.8 Unmanned Systems

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles
    • 6.2.1 Lockheed Martin Corporation
    • 6.2.2 The Boeing Company
    • 6.2.3 RTX Corporation
    • 6.2.4 General Dynamics Corporation
    • 6.2.5 Northrop Grumman Corporation
    • 6.2.6 L3Harris Technologies Inc.
    • 6.2.7 BAE Systems PLC
    • 6.2.8 CACI International Inc.
    • 6.2.9 Textron Inc.
    • 6.2.10 Elbit Systems Ltd
    • 6.2.11 Huntington Ingalls Industries Inc.
    • 6.2.12 Kongsberg Gruppen ASA
  • *List Not Exhaustive
  • 6.3 Other Players
    • 6.3.1 Airbus SE
    • 6.3.2 Teledyne Technologies Incorporated
    • 6.3.3 General Atomics
    • 6.3.4 AeroVironment Inc.
    • 6.3.5 Sig Sauer Inc.
    • 6.3.6 Leidos Holdings Inc.
    • 6.3.7 Saab AB

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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US Defense Industry Segmentation

The US defense market covers all aspects, including details about the procurement and modernization plans of the US Armed Forces.

The US defense market is segmented by armed forces and type. By armed forces, the market is segmented into army, navy, and air force. By type, the market is segmented into fixed-wing aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, protection and training equipment, and unmanned systems. The report also covers the market sizes and forecasts for the US defense market. 

For each segment, the market size is provided in terms of value (USD).

Armed Force Army
Navy
Air Force
Type Fixed-wing Aircraft
Rotorcraft
Ground Vehicles
Naval Vessels
C4ISR
Weapons and Ammunition
Protection and Training Equipment
Unmanned Systems
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US Defense Market Research FAQs

How big is the US Defense Market?

The US Defense Market size is expected to reach USD 320.86 billion in 2025 and grow at a CAGR of 3.58% to reach USD 382.56 billion by 2030.

What is the current US Defense Market size?

In 2025, the US Defense Market size is expected to reach USD 320.86 billion.

Who are the key players in US Defense Market?

Lockheed Martin Corporation, The Boeing Company, General Dynamics Corporation, RTX Corporation and Northrop Grumman Corporation are the major companies operating in the US Defense Market.

What years does this US Defense Market cover, and what was the market size in 2024?

In 2024, the US Defense Market size was estimated at USD 309.37 billion. The report covers the US Defense Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the US Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

US Defence Industry Report

The US defense market is on an upward trajectory, fueled by geopolitical tensions, technological advancements, and strategic military modernization. With a focus on segments like military fixed-wing aircraft, rotorcraft, submarines, and advanced weaponry, the market is adapting to trends such as cyber defense solutions and AI integration to boost ISR missions. The surge in advanced defense equipment production, alongside sustainable military practices, underscores a robust competitive landscape. Strategic insights emphasize the importance of R&D investments and government programs in driving demand for military platforms. Favorable government incentives further support the market's growth, solidifying the US's status as a global military leader. For a comprehensive understanding, Mordor Intelligence™ provides a detailed analysis, including market forecast, highlighting the US defense market's share, size, and revenue growth. Access this industry analysis through a free report PDF download for a snapshot of the evolving defense sector.