Global Defense Industry Strategic Research Report

The global defense industry generated approximately USD 730 billion of revenue in 2025 and is projected to reach about USD 1,059 billion by 2031, a compound annual growth rate of 6.4%. The estimate is deliberately conservative, since it is anchored to the largest ranked producers and does not add unreported activity.

Demand is driven by record order books, higher European budgets, replenishment of munitions and air defense stocks, and rapid adoption of unmanned systems, space assets and electronic warfare. World military expenditure reached USD 2,887 billion in 2025, and prime contractors report multi-year backlogs that make near-term revenue largely contracted.

North America holds roughly half of industry revenue, followed by Europe and Asia Pacific. Europe is the fastest-growing major region as procurement budgets rise, while the Middle East expands through domestic champions and export programs. Missiles and munitions, unmanned systems, space and ammunition grow faster than the market; sustainment grows slower.

The report covers 45 companies across 27 named countries in five regions, with a full 2022 to 2031 value series for every platform type, mission application, region and country.

Scope of the Global Defense Industry Strategic Research Report

This report provides market sizing across platform and mission segments, regional and country splits, a competitive landscape of 45 profiled companies, and forecast analysis for 2025-2031.

Segment by Type

• Combat, Transport and Mission Aircraft
• Military Rotorcraft and Tiltrotor Systems
• Missiles, Munitions and Air and Missile Defense Systems
• Naval Ships, Submarines and Maritime Systems
• Armored Vehicles, Artillery and Land Combat Systems
• Ammunition, Small Arms and Ordnance
• Military Space and Satellite Systems
• Unmanned Systems and Counter-Drone Solutions
• C4ISR, Radar and Electronic Warfare Systems
• Cyber, Defense IT and Mission Software
• Military Propulsion, Engines and Subsystems
• Nuclear, Strategic and Deterrence Systems
• Training, Simulation and Synthetic Environments
• Sustainment, Maintenance and Logistics Services

Segment by Application

• Air Power and Air Defense
• Land Power and Ground Combat
• Naval and Maritime Operations
• Space and Strategic Deterrence
• Intelligence, Surveillance and Reconnaissance
• Command, Control, Communications and Cyber Operations
• Training, Simulation and Readiness
• Logistics, Sustainment and Support Services
• Homeland Security, Border Protection and Special Operations

Who Can Use This Report?

Defense primes and tier-one suppliers planning portfolios; investors and lenders assessing backlog and capacity; government procurement and industrial policy teams; export-control and offset advisers; and new entrants in drones, space and electronic warfare.