How big is the Defence Market | Growth and Size Overview 2025

Q: What is the market size of the defence market in 2025 and 2031?

The defence market was valued at USD 510 billion in 2025 to over USD 770 billion by 2031.

Q: What is the CAGR of the defence market between 2025 and 2031?

The defence market is anticipated to expand at a CAGR of 6.1% during the forecast period.

Q: What are the key trends in the defence market?

Key trends of defence market include digitization of defence infrastructure, rising use of unmanned systems, space-focused defence strategies.

Q: What are the main drivers of the defence market?

The defence market is driven by increased geopolitical instability, defence budget hikes, push for indigenization, and advancements in defence technology.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5870

Publication Date: Jul 2025

What is the Defence Market Size?

According to 6Wresearch internal database and industry insights, the Global Defence market was valued at USD 510 billion in 2024 and is anticipated to exceed USD 770 billion by 2031, registering a steady at a CAGR of 6.1% during the forecast period.

This market is witnessing significant growth driven by increasing geopolitical tensions, rising military modernization programs, and expanding defence budgets worldwide. The surge in demand for advanced technologies such as AI, autonomous systems, cyber-defence solutions, and smart weaponry is transforming military capabilities. Additionally, joint ventures between private and government entities and the shift toward indigenous defence production are fuelling the market expansion.

Major Growth Factors of the Defence Market

Rising global defence expenditures
Surge in military modernization programs
Increasing demand for cybersecurity and surveillance
Adoption of AI and autonomous technologies
Growth in cross-border tensions and threats
Expansion of defence industrial bases in emerging nations
Rising focus on space and missile defence systems
Government policies favouring domestic production

Defence Market Trends

The defence market is witnessing a growing shift toward automation, unmanned platforms, and digital warfare solutions. Nations are increasingly focusing on integrated defence systems that offer real-time data sharing and situational awareness. The trend of public-private collaboration for R&D and production is also gaining momentum. Furthermore, the adoption of dual-use technologies is blurring the lines between military and civilian applications.

Emerging Developments in the Defence Market

The defence market is emerging with major investments in hypersonic weapon systems, quantum communication, and next-gen radar technologies. Governments are focusing on strengthening cybersecurity and space defence capabilities. The emergence of defence startups and innovation hubs is accelerating the pace of advanced system development. Additionally, multi-domain integration strategies are becoming a key focus in defence modernization.