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The defense market size in US is forecast to increase by USD 169.43 billion at a CAGR of 4.91% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. First, there is a rising demand for Unmanned Aerial Vehicles (UAVs), which are increasingly being used for surveillance, reconnaissance, and military operations. Second, the investment in robust cybersecurity infrastructure in the US defense sector is on the rise, as the threat of cyber-attacks continues to grow. Third, there is a trend towards defense modernization, with significant investments being made in new technologies and capabilities to maintain the US military's technological edge. These trends are expected to continue, driving growth in the defense industry and creating opportunities for companies in areas such as UAV manufacturing, cybersecurity, and defense technology development.
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In the defense sector, having a robust market intelligence platform is crucial for staying ahead of the curve. Such platforms provide real-time insights into supply-demand dynamics, enabling decision-makers to adjust strategies accordingly. Moreover, they offer valuable data on various aspects, including overhaul services for maintaining critical assets like aircraft carriers. With Aircraft Carriers being integral components of naval forces, ensuring their optimal functionality is paramount. Market intelligence helps in identifying service providers offering efficient overhaul services to extend the lifespan and enhance the performance of these carriers. By leveraging insights from the market intelligence platform, defense organizations can streamline their operations, optimize resource allocation, and prioritize areas that require immediate attention. Ultimately, this leads to better preparedness and readiness to respond effectively to evolving threats and challenges in the global defense landscape.
The increase in demand for unmanned aerial vehicles in US is the key factor driving the growth of the market. The defense market in the United States is experiencing significant growth, driven by increasing military expenditures and budget authority as outlined in the President's budget request. This trend is fueled by the demand for advanced technologies, such as helicopters, self-contained UAVs, and space capabilities, from FDI investors and the Space Force. Changing regulations and upgrade contracts for advanced aircraft, satellites, and defense contracts are also contributing to this growth. The risk of terrorism and the need for effective counterterrorism efforts have heightened the importance of strategic resources, including intelligence capabilities, operational bases, and military communications.
Moreover, seamless connectivity, intelligence sharing, and deployable networking are essential for contemporary defense strategies. Defense expenditures are influenced by strategic imperatives, such as the range and size of the army and air force, and the defense budget. Emerging threats, including terrorism, insurgency, and asymmetric warfare, continue to drive demand for UAVs and other advanced technologies. Major competitors in the market include revenues and market shares of self defense products, Global Market Model, macroeconomic indicators, and insights from market intelligence platforms. Market dynamics are shaped by both drivers and restraints, including technological advancements and geopolitical tensions. Hence, such factors are driving the self defense products market during the forecast period.
An increase in technological innovation in the defense industry is the primary trend in the market growth. Increase in technological innovation in defense industry is the market trend during the market growth. The defense market in the US is significantly driven by military expenditures, with the President's budget request serving as a key indicator. Aerospace and defense companies in the US are focusing on advanced technologies to enhance their offerings, such as fuel-efficient helicopter designs, energy-efficient propulsion systems, and aerodynamic enhancements. FDI investors are increasingly interested in the US defense industry due to its strategic resources and space capabilities, which include the Space Force and evolving Space Force regulations. Upgrade contracts for defense platforms, including advanced aircraft and satellites, are a significant source of revenue for industry players.
Moreover, the Navy is also a major customer, with a focus on counterterrorism efforts and operational bases to mitigate the risk of terrorist attacks. Changing regulations and the need for seamless connectivity and intelligence sharing are driving demand for deployable networking and contemporary defense technologies. Defense expenditures are influenced by strategic imperatives and emerging threats, with major competitors including European and Asian countries. Market intelligence platforms and macroeconomic indicators provide valuable insights into market trends and drivers and restraints. The defense budget is expected to continue growing, with revenues and market shares for key players in the Global Market Model anticipated to increase. Hence, such factors are driving the market during the forecast period.
The shortage of skilled labor in the defense industry in the US is a major challenge to the growth of the market. The US defense market's expansion during the forecast period may face challenges due to the nation's insufficient supply of skilled workers in engineering, technology, and research fields. This labor shortage impedes defense companies' capacity to innovate and create new technologies, hindering their ability to stay competitive in a rapidly evolving industry. Delays in project timelines for defense programs ensue, leading to setbacks in product development, testing, and deployment, negatively impacting market growth. The defense sector's demand for skilled labor results in elevated labor costs as businesses vie for top talent. Military expenditures, as outlined in the President's budget request, are subject to these challenges. Key areas of focus include helicopter production, FDI investors in space capabilities, the Space Force, and changing regulations. Upgrade contracts for advanced aircraft, satellites, and defense contracts for the Navy are also at risk due to these constraints.
However, the defense industry faces various drivers and restraints, including the risk of terrorism and counterterrorism efforts, the need for strategic resources, and the development of intelligence capabilities. Operational bases and deployable networking are essential components of contemporary defense strategies. Evolving security threats necessitate seamless connectivity and intelligence sharing between military branches. Defense budgets and emerging threats are significant strategic imperatives for major competitors. Global Market Model analysis and macroeconomic indicators are crucial market intelligence platforms for understanding defense expenditures and market shares. Hence, such factors are hindering the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airbus SE: The company offers the Eurofighter Typhoon, a versatile swing-role combat aircraft, as well as the A400M, C295, and CN235 airlifters, which are renowned for their robustness and reliability.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The manual defense equipment segment is estimated to witness significant growth during the forecast period. Manual defense equipment is military hardware, tools, and devices that are operated manually by personnel without the use of automation or electronic systems. These include a variety of weapons, protective gear, and support equipment that require direct human intervention to deploy and use in defense operations.
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The manual defense equipment segment accounted for USD 358.95 billion in 2018 and showed a gradual increase during the forecast period. Manual defense equipment has a wide range of applications in the US defense sector and is critical to ensuring the effectiveness, safety, and success of military operations. Some major applications include Small Arms and Infantry Weapons, Personal Protective Equipment (PPE), Handheld Communication Devices, Field Engineering Tools, Medical Kits and First Aid Supplies, and Prominent suppliers of manual defense equipment to the US military. Hence, such factors are fuelling the growth of this segment during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The military expenditure across nations continues to be large, driving the need for comprehensive market intelligence platforms. Companies rely on such platforms to identify supply-demand gaps and make informed decisions. A leading market intelligence firm offers deep insights through extensive company research and consumer research, aiding stakeholders in Air-based defense and Sea-based defense sectors. Technologies like radar and sonars play pivotal roles in enhancing defense support and auxiliary equipment, supply demand, supporting fighter aircrafts, military helicopters, and military gliders and drones. From battle force ships to nuclear submarines, the defense market size encompasses diverse assets, including missiles, tanks, and light weapons. Amidst external security threats, military modernization initiatives focus on unmanned combat vehicles and military avionics upgrade programs, leveraging technology advancement such as augmented and virtual reality and edge computing. Strategic mergers and acquisitions drive artificial intelligence integration and design upgradations, ensuring readiness in a dynamically evolving landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.91% |
Market growth 2024-2028 |
USD 169.43 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.47 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, BAE Systems Plc, Elbit Systems Ltd., General Dynamics Corp., General Electric Co., General Motors Co., Honeywell International Inc., Huntington Ingalls Industries Inc., Kongsberg Gruppen ASA, L3Harris Technologies Inc., Lockheed Martin Corp., Neo Tech Inc., Northrop Grumman Corp., Oshkosh Corp., Polaris Inc., QinetiQ Ltd., Revision Military, RTX Corp., Safeguard, Smith and Wesson Brands Inc., Textron Inc., Thales Group, and The Boeing Co |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Platform
8 Market Segmentation by End-user
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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