United States Defense Market Report and Forecast 2024-2032

United States Defense Market Outlook

The United States defense market size reached approximately USD 649.78 billion in 2023. The market is estimated to grow at a CAGR of 0.8% in the forecast period of 2024-2032, supported by growing geopolitical tensions.

Key Trends in the Market

Defense refers to a country’s armed forces such as the army, navy and airforce, which are responsible for military warfare and dealing with external threats. It also refers to a range of defensive activities and the utilisation of weapons such as aeroplanes, artillery guns, and tanks to combat an enemy attack.

• One of the prominent United States defense market trends is the enforcement of cyber defense solutions as well as the development of cyber warfare capabilities by the US government to protect the critical defense infrastructure against ever-growing cyberattacks.

• Increased production of advanced defense equipment such as directed energy weapons that can provide high precision attacks and high-speed travel during time-critical military threats is another crucial trend boosting the US market expansion.

• The defense sector of the country is harnessing the capabilities of AI to enhance reasoning abilities for intelligence, surveillance, and reconnaissance (ISR) missions, predict military equipment failure using real-time data, and train armed forces in AI-driven simulation.

• Favourable government incentives to promote the development of advanced armed forces also contribute to the United States defense market growth.  For example, in November 2023, the US Air Force awarded a contract of $2.3 billion to Boeing company for the production of 15 KC-46A Pegasus refuelling tankers to carry out refuelling missions around the world.

Market Analysis

Based on armed force, the market is divided into army, navy, and air force. The United States defense market segmentation, on the basis of type, includes weapons and ammunition, vehicles, communication systems, and personnel training, simulation, and protection equipment.

The weapons and ammunition segment is further categorised based on type into artillery and mortar systems, infantry weapons, missile and missile defense systems, and ammunitions. The vehicles segment is further classified based on type into land-based vehicles, sea-based vehicles, and air-based vehicles. The major regional markets of defense in the United States are New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United States defense market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• The Boeing Company 

• Lockheed Martin Corporation

• Northrop Grumman Corp.

• RTX Corporation

• Thales SA

• BAE Systems plc

• SAAB AB

• Airbus SE

• Leonardo S.p.A

• General Dynamics Corp.

• L3Harris Technologies Inc.  

• Huntington Ingalls Industries Inc.

• Others

Market Share by Armed Force

As per the United States defense market analysis, air force occupies a significant share of the US market, owing to the growing efforts in the upgradation and replacement of ageing aircraft. The growing integration of the latest technologies in the airforce sector also supports the segment’s growth.

For example, in December 2023, Keysight Technologies, a manufacturer of electronic equipment, gained a contract of $18.5 million for the development of Electronic Warfare Threat Simulator (EWTS) systems for the US Air Force to analyse and create high-density threat environments. Moreover, the procurement of sophisticated military aircraft by the US government offers a positive market outlook.

Market Share by Type

Weapons and ammunition account for a substantial portion of the United States defense market share, due to factors such as surging combat operations, which require an effective weapon arsenal, as well as the rising partnership between the US and other countries for the production of weapons.

Increased deployment of high-end military weapons and ammunition in the country also supports the segment’s growth. Initiatives such as the Long Range Strike Bomber (LRS-B) programme of the US government aimed towards manufacturing stealth aircraft that can drop thermonuclear weapons in enemy territory without being detected are also propelling the market expansion.

Competitive Landscape

The Boeing Company, incorporated in 1916, is a manufacturer of aeroplanes, rotors, rockets, and satellites, among others. The company, based in Virginia, the United States, consists of four primary divisions such as Boeing Commercial Airplanes (BCZA), Boeing Capital, Boeing Global Services, and Boeing Defense, Space and Security (BDS). The company is accelerating the implementation of sustainable aviation fuels as a part of its sustainability initiative.

Lockheed Martin Corporation, established in 1995, is a leading provider of aerospace and defense solutions. It operates in the sectors of aeronautics, missile and fire control, rotary and mission systems, and space. It is headquartered in Maryland, the United States and focuses on integrating artificial intelligence, hypersonics, and other innovative technologies in its operation.

Northrop Grumman Corp., founded in 1994, is a global aerospace and defense company, with its headquarters in Virginia, the United States. Its comprehensive range of products includes engine components, unmanned aerial vehicles, hazardous-duty robots, and sensors, among others. The company is also known for offering services such as surveillance and reconnaissance, battle management, protected communication, and strike operations, among others.

Other United States defense market players include RTX Corporation, Thales SA, BAE Systems plc, SAAB AB, Airbus SE, Leonardo S.p.A, General Dynamics Corp., L3Harris Technologies Inc., and Huntington Ingalls Industries Inc., among others.

Key Highlights of the Report