While global tensions rise, the defense industry is seeing explosive growth, with the worldwide market hitting a staggering $592 billion in revenue last year and becoming one of the most critical and competitive sectors on earth.
Key Takeaways
- Global defence market revenue reached $592 billion in 2022, marking a 3.7% increase from 2021
- US defence budget for FY2023 totaled $858 billion, representing 40% of global military spending
- European defence spending grew by 14% in 2022 to $295 billion, driven by Ukraine conflict
- US defence industry employs 1.1 million direct jobs in 2022
- UK defence sector supports 138,000 direct jobs and 255,000 total
- European defence industry 530,000 direct jobs in 2021
- Global arms production $108 billion TIV 2021-2022
- US share of global arms exports 40% 2018-2022
- F-35 production 156 aircraft delivered in 2022
- Global R&D spending in defence $130 billion 2022
- US DoD RDT&E budget $119 billion FY2023
- Lockheed Martin R&D spend $1.9 billion 2022
- US arms exports $238 billion 2018-2022
- France arms exports €10.8 billion 2022
- Russia arms exports $15 billion 2022 down from prior
Global defence spending rises significantly worldwide, driven by regional conflicts and strategic competition.
Employment Statistics
- US defence industry employs 1.1 million direct jobs in 2022
- UK defence sector supports 138,000 direct jobs and 255,000 total
- European defence industry 530,000 direct jobs in 2021
- India's defence sector 1.2 million jobs including MSMEs
- Lockheed Martin workforce 114,000 employees globally 2022
- Boeing 156,000 employees, 72,000 in defence 2022
- BAE Systems 93,000 employees worldwide 2022
- Northrop Grumman 95,000 employees 2022
- RTX 174,000 employees 2022
- Thales Group 81,000 employees 2022
- Leonardo S.p.A. 53,000 employees 2022
- Global defence workforce projected 10 million by 2030
- US DoD civilian workforce 800,000 in 2023
- French defence industry 165,000 direct jobs 2021
- German defence sector 80,000 jobs 2022
- Russian defence industry 2 million workers approx 2022
- South African defence industry 15,000 direct jobs
- Australian defence workforce 70,000 direct 2022
- Canadian defence industry 60,000 jobs 2022
- Brazilian defence sector 200,000 jobs 2021
- Turkish defence industry 100,000+ jobs 2022
- Israeli defence sector 50,000 high-tech jobs
- Sweden defence industry 20,000 jobs 2022
- Netherlands defence 25,000 jobs 2022
- Poland defence industry growth to 40,000 jobs by 2025
- Global defence jobs contribute $500 billion to GDP annually
- US defence primes added 10,000 jobs in 2022
- Top 100 arms firms employ 2.5 million people 2022
- Women in US defence workforce 20% in 2022
Employment Statistics Interpretation
The global defence industry employs a surprisingly human scale, with millions of jobs worldwide—from an American factory technician to an Indian MSME engineer—quietly building the precarious foundations upon which geopolitical stability, for better or worse, is maintained.
Export and Trade
- US arms exports $238 billion 2018-2022
- France arms exports €10.8 billion 2022
- Russia arms exports $15 billion 2022 down from prior
- Germany arms exports €9.5 billion 2022
- China arms exports up 5.2% 2018-2022
- UK arms exports £11.4 billion 2022
- Italy arms exports €4.4 billion 2022
- South Korea arms exports $17 billion cumulative 2017-2022
- Turkey drone exports $1 billion+ 2022, Bayraktar TB2 to 30 countries
- Sweden Gripen exports to Brazil/Thailand, $5 billion deals
- India arms imports $20 billion 2018-2022, 9.8% global share
- Saudi Arabia arms imports top recipient $38 billion 2018-2022
- Australia F-35 exports potential, but imports $30 billion
- Global South arms imports 25% rise 2018-2022
- UAE arms exports emerging $1 billion 2022
- Poland arms imports surge $10 billion 2022 for Ukraine aid too
- Middle East arms imports 29% global 2018-2022
- Africa arms trade volume up 17% 2018-2022
- Asia-Oceania arms imports 41% global share
- FMS sales US $80 billion FY2022
- Direct commercial sales $100 billion US 2022
- Global used equipment trade $5 billion annual
- Top exporter France to India Rafale $8.7 billion deal
Export and Trade Interpretation
While America's defense industry runs a global arms supermarket with $238 billion in sales, France and Russia hustle in the luxury and discount aisles respectively, as a restive world shops in record numbers, proving peace is, for now, a rather unpopular concept.
Financial Metrics
- Global defence market revenue reached $592 billion in 2022, marking a 3.7% increase from 2021
- US defence budget for FY2023 totaled $858 billion, representing 40% of global military spending
- European defence spending grew by 14% in 2022 to $295 billion, driven by Ukraine conflict
- China's official military expenditure in 2022 was $292 billion, estimated actual up to $477 billion
- India defence budget 2023-24 at $73.8 billion, up 13% YoY
- UK defence spending 2022: £46.4 billion (2.1% GDP)
- Russia military expenditure $86.4 billion in 2022, down 5.4% in real terms
- Saudi Arabia defence budget $75 billion in 2022, 7.1% of GDP
- Global arms trade volume $108 billion in 2016-2020 period
- Top 100 arms companies sales $592 billion in 2022, up 3.7%
- Lockheed Martin revenue $67.6 billion in 2022, 91% from defence
- RTX (Raytheon) defence revenue $40.9 billion in 2022
- Boeing defence segment $26.5 billion revenue 2022
- Northrop Grumman sales $12.2 billion Q4 2022
- BAE Systems revenue £23.3 billion in 2022
- Global defence electronics market $213 billion by 2027, CAGR 5.8%
- Defence IT market size $102 billion in 2023
- Aerospace & defence M&A deals value $50 billion in 2022
- US DoD procurement budget $168 billion FY2023
- NATO collective defence spending $1.1 trillion in 2022
- Australia defence budget AUD 52.6 billion 2023-24
- France defence spending €53.5 billion 2023
- Japan defence budget ¥6.8 trillion FY2023, up 26%
- South Korea defence budget $46.2 billion 2023
- Turkey defence industry exports $4.4 billion 2022
- Israel defence budget $23.4 billion 2023
- Global missile defence market $12.5 billion 2022
- Cyber defence market $150 billion by 2028, CAGR 12%
- UAV market in defence $23 billion 2023
- Global defence logistics market $48 billion 2022
Financial Metrics Interpretation
The world, in a stunning display of misplaced priorities, now spends nearly $600 billion a year—enough to colonize Mars or cure diseases—just to remind ourselves that we still haven't evolved past the art of threatening each other with increasingly expensive toys.
Production and Sales
- Global arms production $108 billion TIV 2021-2022
- US share of global arms exports 40% 2018-2022
- F-35 production 156 aircraft delivered in 2022
- Global fighter jet production 300 units/year avg 2022
- US naval shipbuilding: 2 carriers, 10 destroyers annually planned
- Tank production global 500 units 2022, led by Russia/China
- Drone production US 1,000+ military UAVs/year
- Artillery systems production 2,000 howitzers globally 2022
- Missile production Raytheon 5,000 Javelins 2022 ramp-up
- Submarine construction: US Virginia class 2/year
- Helicopter production global 400 military helos/year
- Ammunition production US 1.5 billion rounds/year capacity
- Armored vehicle production Europe 1,000 APCs/IFVs 2022
- Radar systems production 500 units/year global
- Satellite production for defence 50 launches/year
- Cyber tools production thousands annually by firms like Palantir
- Personal weapons production 10 million small arms/year global
- Global shipbuilding military 20 major vessels/year
- Engine production for jets 1,000 units/year by GE/Pratt
- Electronic warfare pods 2,000/year production ramp
- Global tank exports 1,200 units 2018-2022
- HIMARS launchers produced 500+ since 2019
- Patriot systems delivered 10 batteries 2022
Production and Sales Interpretation
The United States anchors the global defense industry like a general insisting on the head of the table, evident as it builds two carriers a year while Russia and China churn out tanks, the world churns out artillery shells by the thousands, and I'm left wondering if Raytheon's 5,000 Javelins can also be used to pop the cork on the $108 billion arms trade champagne bottle.
R&D Investment
- Global R&D spending in defence $130 billion 2022
- US DoD RDT&E budget $119 billion FY2023
- Lockheed Martin R&D spend $1.9 billion 2022
- Europe defence R&D €12 billion annually avg
- China defence R&D estimated $40 billion 2022
- DARPA budget $4 billion FY2023
- Hypersonic weapons R&D global $5 billion/year
- AI in defence R&D $10 billion US alone 2023
- Quantum tech defence funding $1.2 billion EU 2023-2027
- Space defence R&D $20 billion global 2022
- Biotech defence R&D $500 million US 2022
- Directed energy weapons R&D $1 billion US Navy
- BAE Systems R&D £1.1 billion 2022
- Thales R&D €1.3 billion 2022
- Northrop Grumman R&D $2.4 billion 2022
- Boeing R&D defence $3 billion 2022
- Israel defence R&D 5% GDP equivalent $20 billion
- UK defence R&D £6.6 billion 2022-23
- Russia hypersonic R&D $2 billion annual
- India DRDO budget ₹23,000 crore 2023
- Australia defence R&D AUD 3.4 billion 2022
- Global VC investment defence tech $5 billion 2022
- Stealth tech R&D cumulative $500 billion since 1970s
- NGAD fighter R&D $5 billion US FY2023
R&D Investment Interpretation
The world's military powers are engaged in a breathtakingly expensive, multi-trillion-dollar science fair where the blue ribbon winners get to rewrite the rules of geopolitics.
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