Market Size of US Defense Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 309.77 Billion |
| Market Size (2029) | USD 367.30 Billion |
| CAGR (2024 - 2029) | 3.58 % |
| Market Concentration | Medium |
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 309.77 billion in 2024, and is expected to reach USD 367.30 billion by 2029, growing at a CAGR of 3.58% during the forecast period (2024-2029).
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 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 |
US Defense Market Size Summary
The U.S. defense market is projected to experience steady growth in the coming years due to various factors. Despite the economic impact of the COVID-19 pandemic, the country has continued to increase its defense spending, focusing on research and development and the implementation of several long-term projects. The U.S. allocates the second-largest portion of its federal budget to military spending, surpassing the combined defense spending of several other countries. The ongoing political tensions with China and Russia, coupled with the need to replace aging military equipment, are expected to accelerate the market's growth. Additionally, the fight against terrorism and investments in advanced technologies like additive manufacturing for military applications are expected to provide future growth opportunities. Within the U.S. defense market, the air force segment is predicted to dominate during the forecast period. This is due to various procurement plans for replacing aging combat aircraft and new unmanned aerial vehicles. The U.S. Air Force is the world's most powerful and is equipped with the most modern technology that provides air support for land and naval forces. The country's diplomatic and military relations with nations such as Japan and Taiwan have compelled it to drive significant investments into increasing the fleet of aircraft. Furthermore, the U.S.'s involvement in the military conflict in the Middle-Eastern region has majorly driven its procurement of attack aircraft and transport aircraft.
Explore MoreUS Defense Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Armed Force
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2.1.1 Army
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2.1.2 Navy
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2.1.3 Air Force
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2.2 Type
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2.2.1 Fixed-wing Aircraft
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2.2.2 Rotorcraft
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2.2.3 Ground Vehicles
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2.2.4 Naval Vessels
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2.2.5 C4ISR
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2.2.6 Weapons and Ammunition
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2.2.7 Protection and Training Equipment
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2.2.8 Unmanned Systems
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US Defense Market Size FAQs
How big is the US Defense Market?
The US Defense Market size is expected to reach USD 309.77 billion in 2024 and grow at a CAGR of 3.58% to reach USD 367.30 billion by 2029.
What is the current US Defense Market size?
In 2024, the US Defense Market size is expected to reach USD 309.77 billion.
