As global tensions escalate, the defense industry is experiencing an unprecedented surge, with worldwide military expenditure soaring to $2.4 trillion and high-tech sectors from AI to hypersonic weapons driving a market on track to surpass $790 billion in just five years.
Key Takeaways
- The global defense market size reached USD 598.4 billion in 2023 and is expected to grow to USD 791.7 billion by 2028 at a CAGR of 5.75%.
- Global military expenditure totaled $2,443 billion in 2023, marking a 6.8% increase from 2022.
- The aerospace and defense sector generated $837 billion in revenue worldwide in 2023.
- Defense spending by the United States reached $916 billion in 2023, accounting for 37% of global total.
- China’s military expenditure grew by 6.0% to $296 billion in 2023.
- Russia increased defense spending by 24% to $109 billion in 2023.
- Lockheed Martin reported $67.6 billion in defense revenue for 2023.
- RTX (Raytheon) generated $68.9 billion in net sales in 2023, with defense segment at $40.6 billion.
- Northrop Grumman’s 2023 sales reached $39.3 billion, primarily defense.
- Global R&D spending in defense reached $108 billion in 2023.
- US DoD R&D budget for FY2024 is $145 billion.
- Hypersonic weapons market projected to grow from $5.1 billion in 2023 to $12.2 billion by 2030.
- Global defense industry employed 3.5 million people directly in 2023.
- US defense sector supported 2.9 million jobs in 2023.
- Global arms exports totaled $238 billion in 2018-2022 period, averaging $47.6 billion annually.
The global defense industry is growing significantly, driven by rising military spending worldwide.
Employment and Exports
1Global defense industry employed 3.5 million people directly in 2023.
Verified2US defense sector supported 2.9 million jobs in 2023.
Verified3Global arms exports totaled $238 billion in 2018-2022 period, averaging $47.6 billion annually.
Verified4US arms exports accounted for 40% of global total in 2018-2022.
Directional5France was second largest arms exporter with 11% share 2018-2022.
Single source6Russia’s arms exports fell 53% in 2018-2022 compared to prior period.
Verified7China exported arms worth $11 billion in 2018-2022, 5.8% share.
Verified8Germany’s arms exports reached $9.9 billion in 2018-2022.
Verified9Top 100 arms companies’ total sales $592 billion in 2022.
Directional10Defense industry generated $150 billion in exports for US in 2023.
Single source11Europe’s defense employment totals 1.2 million workers.
Verified12India’s defense exports hit $2.6 billion in FY2023-24.
Verified13Global defense supply chain employs over 10 million indirectly.
Verified14UK defense sector employs 145,000 directly and supports 250,000 more.
Directional15Australia’s defense industry workforce is 95,000 strong in 2023.
Single source16Brazil defense exports reached $1.8 billion in 2023.
Verified17South Africa’s arms exports totaled $0.6 billion in 2022.
Verified18Turkey’s defense exports surged to $5.5 billion in 2023.
Verified19Canada defense industry employs 65,000 people.
DirectionalEmployment and Exports Interpretation
It’s a sobering testament to modern geopolitics that an industry which provides millions of livelihoods and a nation's economic muscle is, by its very design, eternally hoping its best products never have to be used.
Government Spending
1Defense spending by the United States reached $916 billion in 2023, accounting for 37% of global total.
Verified2China’s military expenditure grew by 6.0% to $296 billion in 2023.
Verified3Russia increased defense spending by 24% to $109 billion in 2023.
Verified4India’s military budget rose 4.2% to $83.6 billion in 2023.
Directional5Saudi Arabia spent $75.8 billion on defense in 2023, up 4.7%.
Single source6UK defense spending totaled $74.9 billion in 2023, a 5.9% increase.
Verified7Germany’s military expenditure surged 11% to $66.8 billion in 2023.
Verified8France spent $61.3 billion on defense in 2023, up 5.2%.
Verified9Japan’s defense budget reached $50.2 billion in 2023, a 11% increase.
Directional10South Korea allocated $46.3 billion to defense in 2023, up 3.9%.
Single source11Australia’s military spending was $32.3 billion in 2023, rising 5.6%.
Verified12UAE defense expenditure stood at $22 billion in 2023.
Verified13Israel spent $27.5 billion on defense in 2023, a 24% increase.
Verified14Brazil’s military budget was $21.8 billion in 2023, up 2.5%.
Directional15Italy allocated $32.5 billion to defense in 2023.
Single source16Canada spent $26.9 billion on military in 2023, a 24% rise.
Verified17Poland’s defense spending jumped 75% to $31.6 billion in 2023.
Verified18Turkey expended $15.8 billion on defense in 2023.
Verified19NATO members’ total defense spending reached $1.34 trillion in 2023.
Directional20Europe’s military expenditure totaled $457 billion in 2023, up 16%.
Single source21Middle East defense spending was $243 billion in 2023.
Verified22Asia and Oceania region spent $629 billion on defense in 2023.
Verified23Africa’s military expenditure reached $52 billion in 2023, a 22% increase.
Verified24The Americas accounted for 42% of global military spending in 2023.
DirectionalGovernment Spending Interpretation
The world is collectively betting nearly two trillion dollars that peace is just the profitable pause between preparing for wars.
Major Companies
1Lockheed Martin reported $67.6 billion in defense revenue for 2023.
Verified2RTX (Raytheon) generated $68.9 billion in net sales in 2023, with defense segment at $40.6 billion.
Verified3Northrop Grumman’s 2023 sales reached $39.3 billion, primarily defense.
Verified4Boeing Defense, Space & Security segment revenue was $25.0 billion in 2023.
Directional5General Dynamics achieved $42.3 billion in 2023 revenue.
Single source6BAE Systems reported £25.3 billion ($32.1 billion) in sales for 2023.
Verified7L3Harris Technologies had $19.4 billion in 2023 revenue.
Verified8Leonardo S.p.A. generated €15.3 billion ($16.7 billion) in 2023 orders.
Verified9Thales Group’s 2023 sales reached €18.4 billion.
Directional10Saab AB reported SEK 52.5 billion ($5.0 billion) in 2023 net sales.
Single source11Huntington Ingalls Industries revenue was $11.6 billion in 2023.
Verified12Textron’s defense segment contributed $4.8 billion to 2023 revenue.
Verified13Elbit Systems reported $6.5 billion in 2023 revenues.
Verified14Dassault Aviation’s order intake was €28.1 billion in 2023.
Directional15Rheinmetall AG achieved €7.2 billion in 2023 sales.
Single source16Airbus Defence and Space generated €11.8 billion in 2023 revenue.
Verified17Rolls-Royce Defence sales were £6.7 billion in 2023.
Verified18Israel Aerospace Industries (IAI) had $5.6 billion in 2023 sales.
Verified19Kongsberg Gruppen ASA revenue reached NOK 42.7 billion in 2023.
Directional20Lockheed Martin delivered 158 F-35 aircraft in 2023.
Single sourceMajor Companies Interpretation
In the high-stakes poker game of global security, the likes of Lockheed and RTX casually bet tens of billions per hand, while Lockheed alone reminds us this isn't just theory by dealing 158 F-35s off the deck in a single year.
Market Size and Growth
1The global defense market size reached USD 598.4 billion in 2023 and is expected to grow to USD 791.7 billion by 2028 at a CAGR of 5.75%.
Verified2Global military expenditure totaled $2,443 billion in 2023, marking a 6.8% increase from 2022.
Verified3The aerospace and defense sector generated $837 billion in revenue worldwide in 2023.
Verified4Defense spending as a share of global GDP stood at 2.2% in 2023.
Directional5The global military aircraft market is projected to grow from $115.5 billion in 2024 to $162.8 billion by 2032 at a CAGR of 4.4%.
Single source6Worldwide defense IT spending reached $142 billion in 2023.
Verified7The naval vessels market size was valued at $50.2 billion in 2023 and expected to reach $72.4 billion by 2032.
Verified8Global missile defense systems market was USD 12.5 billion in 2023, projected to hit USD 22.1 billion by 2032.
Verified9Defense electronics market size stood at USD 213.5 billion in 2023, growing to USD 331.2 billion by 2032 at 5% CAGR.
Directional10The global land vehicles defense market is estimated at $32.5 billion in 2024, reaching $45.2 billion by 2030.
Single source11C4ISR systems market valued at $115.2 billion in 2023, projected to $162.4 billion by 2030.
Verified12Global military robots market size was $16.3 billion in 2023, expected to grow to $31.2 billion by 2030 at 9.8% CAGR.
Verified13Defense cyber security market reached $22.1 billion in 2023, forecasted to $47.9 billion by 2030.
Verified14The soldier systems market size was valued at $12.4 billion in 2023 and is projected to grow to $22.8 billion by 2032.
Directional15Global ammunition market size stood at $23.6 billion in 2023, expected to reach $32.1 billion by 2030.
Single source16Military communication market valued at $44.2 billion in 2023, projected to $72.5 billion by 2030 at 7.4% CAGR.
Verified17The global military radar market size was USD 15.6 billion in 2023 and is expected to reach USD 23.4 billion by 2031.
Verified18Defense simulation and training market size was $12.8 billion in 2023, projected to $24.5 billion by 2032.
Verified19Global armored vehicles market revenue was $32.7 billion in 2023, expected to grow to $45.9 billion by 2030.
Directional20Military drones market size estimated at $13.9 billion in 2023, reaching $47.1 billion by 2032 at 14.5% CAGR.
Single source21The global military submarine market size was valued at $35.2 billion in 2023 and is projected to grow to $52.8 billion by 2032.
Verified22Defense logistics market size stood at $248.4 billion in 2023, forecasted to $365.2 billion by 2030.
Verified23Global CBRN defense market was $12.1 billion in 2023, expected to reach $18.9 billion by 2030.
Verified24Military wearable market size valued at $4.2 billion in 2023, projected to $12.5 billion by 2032.
Directional25The global directed energy weapons market size was USD 3.2 billion in 2023, growing to USD 12.4 billion by 2032.
Single sourceMarket Size and Growth Interpretation
Despite our collective hope for a peace dividend, humanity appears to be placing a rather robust and diversified bet on its own continued insecurity, with next-generation drones, cyber defenses, and even sci-fi energy weapons leading the charge in a market that treats global tension as a growth industry.
R&D and Technology
1Global R&D spending in defense reached $108 billion in 2023.
Verified2US DoD R&D budget for FY2024 is $145 billion.
Verified3Hypersonic weapons market projected to grow from $5.1 billion in 2023 to $12.2 billion by 2030.
Verified4AI in defense market size was $9.2 billion in 2023, expected to reach $38.8 billion by 2030.
Directional5Directed energy weapons R&D investments topped $2.5 billion globally in 2023.
Single source6Quantum technology in defense market valued at $0.8 billion in 2023, projected to $4.5 billion by 2030.
Verified7Global investment in military space systems reached $60 billion in 2023.
Verified8Cyber defense R&D spending by top nations exceeded $25 billion in 2023.
Verified9Unmanned underwater vehicles (UUV) R&D market at $2.1 billion in 2023.
Directional10Additive manufacturing in defense valued at $1.4 billion in 2023 for R&D.
Single source11Stealth technology development costs averaged $10 billion per program globally.
Verified12Big data analytics in military R&D market size $3.5 billion in 2023.
Verified13Blockchain for defense supply chain R&D at $0.5 billion in 2023.
Verified14Electronic warfare systems R&D investments hit $8.2 billion in 2023.
Directional15Autonomous systems R&D funding reached $15.4 billion worldwide in 2023.
Single source165G military applications R&D market $1.2 billion in 2023.
Verified17Biometric identification tech in defense R&D valued at $0.9 billion.
VerifiedR&D and Technology Interpretation
While we're trying to solve climate change and disease here on Earth, our top global minds are quietly dedicating hundreds of billions to perfecting new ways to make each other vanish from it.
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