China Defence Market (2026-2032) | Share, Competitive Landscape, Companies, Outlook, Forecast, Segmentation, Size & Revenue, Growth, Trends, Value, Analysis, Industry

Market Forecast By Armed Forces (Army, Navy, Air Forc), By Type (Personal Training and Protection, Communication Systems Vehicle, Weapons and Ammunition) And Competitive Landscape

Product Code: ETC6741182 Publication Date: Sep 2024 Updated Date: Feb 2026 Product Type: Market Research Report
Publisher: 6Wresearch Author: Sumit Sagar No. of Pages: 75 No. of Figures: 35 No. of Tables: 20

China Defence Market Growth Rate

According to 6Wresearch internal database and industry insights, the China Defence Market is projected to grow at a compound annual growth rate (CAGR) of 7.6% during the forecast period from 2026 to 2032.

Five-Year Growth Trajectory of the China Defence Market with Core Drivers

Below mentioned are the evaluation of year-wise growth rate along with key drivers:

Years Est. Annual Growth (%) Growth Drivers
2021 5.1% New military equipment modernization and robust support for local defence manufacturing.
2022 5.6% Increase in defence budget and expansion of naval capabilities.
2023 6% Focus on advanced weapons systems and communication technology.
2024 6.5% Improving border security and upgrading air defence systems.
2025 6.9% Developing next-generation platforms, smart weapons systems and defence electronics.

Topics Covered in the China Defence Market Report

The China Defence Market report thoroughly covers the market by armed forces and by type. It provides an unbiased and detailed analysis of ongoing market trends, opportunities, challenges, and market drivers, helping stakeholders align their strategies with current and future market dynamics.

China Defence Market Highlights

Report Name China Defence Market
Forecast period 2026-2032
CAGR 7.6%
Growing Sector Defence & Aerospace

China Defence Market Synopsis

China Defence Market is anticipated to experience a high degree of growth as a result of the ongoing modernization of the nation armed forces, the increasing emphasis on self-reliance in the production of defence armaments and the increasing levels of investment being made into cutting-edge military technologies. Additional factors driving this growth are various government initiatives that support strengthening national security through enhanced indigenous production of defence weaponry as well as improving combat readiness across land, air and sea combat forces.

Rapid development of weapons systems, armored vehicles, communication systems, and training solutions is further accelerating the China Defence Market Growth. With long-term strategic defence planning and strong domestic manufacturing capabilities, the China Defence Market is expected to expand steadily.

Evaluation of Growth Drivers in the China Defence Market

Below mentioned are some prominent drivers and their impact on the China Defence Market dynamics:

Drivers Primary Segment Affected Why It Matters (Evidence)
Military Modernization Programs All Segments Large-scale modernization initiatives drive demand for advanced equipment, systems, and platforms.
Indigenous Manufacturing Focus Weapons, Vehicles Local production of weapons and vehicles lead to reduction of reliance on import.
Technological Advancements Communication Systems AI, automation and advanced technologies will enhance the efficiency of military operations.
Rising Border Security Needs Army, Air Force The focus on land and air defence will lead to an increase procurement of weapons.
Strategic Naval Expansion Navy Expansion of fleet increases demand for ships, submarines and naval weapons.

China Defence Market is projected to grow at a CAGR of 7.6% from 2026 to 2032. Major growth factors include rising defence expenditure, government-backed modernization programs, and increasing deployment of advanced military technologies. The rising demand for modern weapons, communication systems, and armored vehicles across the Army, Navy, and Air Force, focuses on strengthening its defence capabilities and strategic deterrence.

Evaluation of Restraints in the China Defence Market

Below mentioned are some major restraints and their influence on the China Defence Market dynamics:

Restraints Primary Segment Affected What This Means (Evidence)
High Development Costs Weapons Systems Advanced defence systems require heavy investment, increasing procurement costs.
Complex Regulatory Approvals All Segments Strict compliance and approval procedures can lead to delay in the execution of the project.
Technology Integration Challenges Communication Systems Incorporating new technologies with legacy systems can slow-down the implementation and deployment.
Skilled Workforce Requirement Manufacturing High reliance on specialized skills may limit the speed of the production expansion.
Long Procurement Cycles Vehicles, Weapons Lengthy procurement procedures can slow the growth of the market.

China Defence Market Challenges

China Defence Industry faces several challenges such as high cost of research and development costs advanced weapons systems, complex regulations and approval processes, and the integration of new technologies with existing infrastructure of the military. Long procurement cycles and the need for skilled technical workers also create obstacles. Despite these issues, ongoing government support, a focus on domestic manufacturing, and long-term defence modernization plans help drive market growth.

Emerging Trends in the China Defence Market

Trends driving the China Defence Market include:

  • Growth of Smart Weapons Systems: More use of precision-guided and technology-enabled weapons improves combat efficiency and accuracy.
  • Expansion of Defence Electronics: Rising demand for communication, radar, and surveillance systems is improving the battlefield awareness.
  • Naval Fleet Modernization: Development of advanced naval platforms is strengthening the maritime capabilities and security.
  • Rise of Autonomous Defence Platforms: The adoption of unmanned and semi-autonomous systems supports strategic defence goals.

Investment Opportunities in the China Defence Market

Key investment avenues in the China Defence Market are:

  • Advanced Communication Systems: Investment in high-speed communication and secure communication will lead to major growth in the military.
  • Armored and Tactical Vehicles: The establishment of next-generation Military Vehicles will enhance mobility and protection.
  • Defence Training Solutions: Use of simulation and training technologies will improve efficiency and readiness of the forces.
  • Naval Defence Systems: Investment in naval ship building and weapon will increase maritime defence capability.

Top 5 Leading Players in the China Defence Market

Below is the list of prominent companies leading in the China Defence Market:

1. Aviation Industry Corporation of China (AVIC)

Company Name Aviation Industry Corporation of China (AVIC)
Established Year 2008
Headquarters Beijing, China
Website Click Here

AVIC is a major state-owned defence company specializing in military aircraft, aerospace systems, and advanced aviation technologies.

2. China North Industries Group Corporation (NORINCO)

Company Name China North Industries Group Corporation (NORINCO)
Established Year 1980
Headquarters Beijing, China
Website -

NORINCO is a leading defence manufacturer focusing on armored vehicles, weapons systems, and military equipment.

3. China Shipbuilding Industry Corporation (CSIC)

Company Name China Shipbuilding Industry Corporation (CSIC)
Established Year 1999
Headquarters Beijing, China
Website -

CSIC is a key player in naval defence, engaged in the construction of warships, submarines, and marine defence systems.

4. China Aerospace Science and Technology Corporation (CASC)

Company Name China Aerospace Science and Technology Corporation (CASC)
Established Year 1999
Headquarters Beijing, China
Website -

CASC specializes in missile systems, space technologies, and advanced aerospace defense solutions.

5. China Electronics Technology Group Corporation (CETC)

Company Name China Electronics Technology Group Corporation (CETC)
Established Year 2002
Headquarters Beijing, China
Website Click Here

CETC focuses on defence electronics, communication systems, radar, and information security solutions.

Government Regulations Introduced in the China Defence Market

According to Chinese government data, a comprehensive regulatory and policy framework has been established to boost the domestic defence sector and improve related capabilities on national security.  The Military-Civil Fusion strategy is the primary avenue for this initiative, by fostering cooperation between civilian industries and armed forces, developing technologies, manufacturing capabilities, and innovations in order to move forward through the integration of civilian and defence systems. This strategy supports efficient resource utilization, accelerates technological development, and strengthens indigenous defence production. The Made in China 2025 initiative further reinforces defence manufacturing by prioritizing high-end equipment, advanced materials, aerospace systems, electronics, and intelligent manufacturing technologies that are critical for modern military systems.

Future Insights of the China Defence Market

China Defence Market Share is expected to witness robust and sustained growth driven by a numerous modernization programs initiated by the government, strategic investments made by private companies and the military, and an increasing emphasis on developing advanced defence technologies. The country focus on developing indigenous R&D capabilities, new-generation and next-generation weapons, smart combat systems, and advanced communications systems will continue to improve operational efficiency throughout the Army, Navy, and Air Force. The market is projected to expand through the development of integrated defence platforms, including unmanned systems, artificial intelligence-enabled weapons, cyber defence solutions, and precision-guided munitions.

Market Segmentation Analysis

The report offers a comprehensive study of the following market segments and their leading categories:

By Armed Forces – Army to dominate the market

According to Ekta, Senior Research Analyst, 6Wresearch, the Army segment is expected to dominate the China Defence Market due to high demand for weapons, armored vehicles, and ground-based communication systems to strengthen land defence and border security.

By Type – Weapons and Ammunition to dominate the market

Weapons and Ammunition are expected to dominate the market owing to continuous upgrades, modernization programs, and rising focus on precision and advanced weapon systems across armed forces.

Key Attractiveness of the Report

  • 10 Years of Market Number
  • Historical Data Starting from 2022 to 2025
  • Base Year: 2025
  • Forecast Data until 2032
  • Key Performance Indicators Impacting the Market
  • Major Upcoming Developments and Projects

Key Highlights of the Report:

  • China Defence Market Outlook
  • Market Size of China Defence Market, 2025
  • Forecast of China Defence Market, 2032
  • Historical Data and Forecast of China Defence Revenues & Volume for the Period 2022- 2032
  • China Defence Market Trend Evolution
  • China Defence Market Drivers and Challenges
  • China Defence Price Trends
  • China Defence Porter's Five Forces
  • China Defence Industry Life Cycle
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Armed Forces for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Army for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Navy for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Air Forc for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Type for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Personal Training and Protection for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Communication Systems Vehicle for the Period 2022- 2032
  • Historical Data and Forecast of China Defence Market Revenues & Volume By Weapons and Ammunition for the Period 2022- 2032
  • China Defence Import Export Trade Statistics
  • Market Opportunity Assessment By Armed Forces
  • Market Opportunity Assessment By Type
  • China Defence Top Companies Market Share
  • China Defence Competitive Benchmarking By Technical and Operational Parameters
  • China Defence Company Profiles
  • China Defence Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the following China Defence Market segments:

By Armed Forces

  • Army
  • Navy
  • Air Force

By Type

  • Personal Training and Protection
  • Communication Systems
  • Vehicle
  • Weapons and Ammunition

China Defence Market (2026-2032): FAQs

China Defence Market is expected to grow at a compound annual growth rate of 7.6% during the forecast period of 2026 to 2032.
The main factors increasing the growth include military modernization, indigenous manufacturing initiatives, and rising investment in advanced defence technologies.
The Army dominates due to high demand for weapons, vehicles, and ground-based systems.
Major trends include smart weapons adoption, defence electronics expansion, and naval modernization.
Government initiatives such as Military-Civil Fusion and domestic procurement policies promote innovation and self-reliance.
6Wresearch actively monitors the China Defence Market and publishes its comprehensive annual report, highlighting emerging trends, growth drivers, revenue analysis, and forecast outlook. Our insights help businesses to make data-backed strategic decisions with ongoing market dynamics. Our analysts track relevent industries related to the China Defence Market, allowing our clients with actionable intelligence and reliable forecasts tailored to emerging regional needs.
Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com
1 Executive Summary
2 Introduction
2.1 Key Highlights of the Report
2.2 Report Description
2.3 Market Scope & Segmentation
2.4 Research Methodology
2.5 Assumptions
3 China Defence Market Overview
3.1 China Country Macro Economic Indicators
3.2 China Defence Market Revenues & Volume, 2022 & 2032F
3.3 China Defence Market - Industry Life Cycle
3.4 China Defence Market - Porter's Five Forces
3.5 China Defence Market Revenues & Volume Share, By Armed Forces, 2022 & 2032F
3.6 China Defence Market Revenues & Volume Share, By Type, 2022 & 2032F
4 China Defence Market Dynamics
4.1 Impact Analysis
4.2 Market Drivers
4.2.1 Increase in military spending by the Chinese government
4.2.2 Rising geopolitical tensions and security threats in the region
4.2.3 Technological advancements and innovation in defense systems
4.2.4 Growing focus on enhancing domestic defense capabilities
4.2.5 Expansion of China's military presence in international markets
4.3 Market Restraints
4.3.1 Budget constraints and economic slowdown
4.3.2 International criticisms and sanctions affecting defense trade
4.3.3 Regulatory challenges and restrictions on technology transfers
4.3.4 Competition from global defense players
4.3.5 Cybersecurity threats and vulnerabilities in defense systems
5 China Defence Market Trends
6 China Defence Market, By Types
6.1 China Defence Market, By Armed Forces
6.1.1 Overview and Analysis
6.1.2 China Defence Market Revenues & Volume, By Armed Forces, 2022- 2032F
6.1.3 China Defence Market Revenues & Volume, By Army, 2022- 2032F
6.1.4 China Defence Market Revenues & Volume, By Navy, 2022- 2032F
6.1.5 China Defence Market Revenues & Volume, By Air Forc, 2022- 2032F
6.2 China Defence Market, By Type
6.2.1 Overview and Analysis
6.2.2 China Defence Market Revenues & Volume, By Personal Training and Protection, 2022- 2032F
6.2.3 China Defence Market Revenues & Volume, By Communication Systems Vehicle, 2022- 2032F
6.2.4 China Defence Market Revenues & Volume, By Weapons and Ammunition, 2022- 2032F
7 China Defence Market Import-Export Trade Statistics
7.1 China Defence Market Export to Major Countries
7.2 China Defence Market Imports from Major Countries
8 China Defence Market Key Performance Indicators
8.1 Research and development (RD) investment in defense technology
8.2 Number of successful defense technology collaborations and partnerships
8.3 Rate of adoption of advanced defense technologies
8.4 Level of operational readiness and efficiency of defense forces
8.5 Defense industry innovation index
9 China Defence Market - Opportunity Assessment
9.1 China Defence Market Opportunity Assessment, By Armed Forces, 2022 & 2032F
9.2 China Defence Market Opportunity Assessment, By Type, 2022 & 2032F
10 China Defence Market - Competitive Landscape
10.1 China Defence Market Revenue Share, By Companies, 2025
10.2 China Defence Market Competitive Benchmarking, By Operating and Technical Parameters
11 Company Profiles
12 Recommendations
13 Disclaimer

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