Global Defence Spending Market Size To Worth USD 6.38 Trillion By 2035 | CAGR of 8.13%
Category: Aerospace & DefenseGlobal Defence Spending Market Size To Worth USD 6.38 Trillion By 2035
According to a research report published by Spherical Insights & Consulting, the Global Defence Spending Market is Expected to Grow from USD 2.7 Trillion in 2024 to USD 6.38 Trillion by 2035, at a CAGR of 8.13% during the forecast period 2025-2035.
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Browse key industry insights spread across 250 pages with 150 Market data tables and figures & charts from the report on the " Global Defence Spending Market Size, Share, and COVID-19 Impact Analysis, Spending Type (Personnel Expenditure, Operations & Maintenance, Procurement & Equipment, Research & Development (R&D), and Infrastructure & Facilities), By Application (Land Forces, Naval Forces, Air Forces, Cyber & Electronic Warfare, and Space-based Defence Systems), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 – 2035." Get Detailed Report Description Here: https://www.sphericalinsights.com/reports/defence-spending-market
The total amount of money that governments throughout the world spend on military operations, defense technologies, and security infrastructure is known as the "global defense spending market." States have increased their military preparedness in response to the escalation of regional conflicts, including the Israel-Hamas conflict, Russia's war in Ukraine, and the most recent geopolitical tensions between India and Pakistan. These increasing perceptions of threat are driving governments to prioritize defense resources to improve and strengthen military capabilities. Additionally, growing geopolitical instability and the revival of regional conflicts are two major reasons contributing to the increase in global defense spending. Additionally, in response to rising geopolitical instability and challenges to global security, global defense spending rose 7.4% in real terms from USD 2.24 trillion in 2023 to USD 2.46 trillion in 2024. This rise is faster than previous years (6.5 percent in 2023 and 3.5% in 2022), and reflects increased military modernization initiatives in important regions such as Asia, Europe, the Middle East, and North Africa (MENA). The average amount spent on defense worldwide rose from 1.8% of GDP in 2023 and 1.6% in 2022 to 1.9% of GDP in 2024. However, global defense spending is constrained by several factors, including legislative limitations, budgetary constraints, and shifting geopolitical conditions. In the largest military market globally, defense spending has decreased as a result of budgetary constraints imposed by the U.S. Fiscal Responsibility Act of 2023.
The procurement & equipment segment held a substantial share in 2024 and is anticipated to grow at a significant CAGR during the projected timeframe.
Based on the spending type, the defence spending market is divided into personnel expenditure, operations & maintenance, procurement & equipment, research & development (r&d), and infrastructure & facilities. Among these, the procurement & equipment segment held a substantial share in 2024 and is anticipated to grow at a significant CAGR during the projected timeframe. This market category is leading due to the need for enhanced military capabilities, geopolitical tensions, and continuing modernization projects. Countries prioritize procurement in order to maintain combat preparedness, enhance strategic deterrence, and integrate advanced technologies such as artificial intelligence (AI), hypersonic weapons, and cybersecurity systems.
The air forces segment accounted for a significant share in 2024 and is estimated to grow at a remarkable CAGR during the forecast period.
Based on the application, the defence spending market is divided into land forces, naval forces, air forces, cyber & electronic warfare, and space-based defence systems. Among these, the air forces segment accounted for a significant share in 2024 and is estimated to grow at a remarkable CAGR during the forecast period. Nations place a high value on air superiority due to its strategic importance in modern warfare, its rapid deployment capabilities, and the development of stealth and hypersonic aircraft. Furthermore, continued advancements in air combat capabilities have been prompted by rising geopolitical tensions and concerns about border security.
North America is estimated to hold a substantial share of the defence spending market over the forecast period.
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North America is estimated to hold a substantial share of the defence spending market over the forecast period. In 2024, the US spent $997 billion, or 36.7% of global military spending, maintaining its position as the largest defense spender in the world. This spending was far more than the defense budgets of the following eight largest military spenders combined. North America was responsible for the majority of global defense spending on a regional basis due to U.S. military modernization programs, strategic alliances, and geopolitical obligations. Modern weaponry procurement, cybersecurity enhancements, space-based defense systems, and personnel costs were all covered under the budget. The Pentagon's financial audit also highlighted ongoing efforts to improve financial efficiency and operational readiness.
Asia Pacific is predicted to have the rapid CAGR growth in the defence spending market over the predicted timeframe. The fastest-growing region is Asia-Pacific, which is fueled by rising defense spending in China, India, and Japan. Concerns about regional security, India's modernization efforts, and China's military growth have all contributed to a sharp rise in defense spending. The rapid advancements in cybersecurity, AI-driven military applications, and space-based defense systems have made this sector the fastest-growing market.
Major key players in the defence spending market include Lockheed Martin, BAE Systems, Northrop Grumman, Boeing, Raytheon Technologies, General Dynamics, L3Harris Technologies, and Others.
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Market Segment
This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the defence spending market based on the below-mentioned segments:
Global Defence Spending Market, By Spending Type
- Personnel Expenditure
- Operations & Maintenance
- Procurement & Equipment
- Research & Development (R&D)
- Infrastructure & Facilities
Global Defence Spending Market, By Application
- Land Forces
- Naval Forces
- Air Forces
- Cyber & Electronic Warfare
- Space-based Defence Systems
Global Defence Spending Market, By Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
About the Spherical Insights & Consulting
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