How big is the military industry market | Size & Trends 2031

Q: What is the overall size of the military industry market?

The military industry market is projected to reach USD 721.5 Billion by 2031.

Q: Which technologies are transforming the military industry?

Artificial intelligence, autonomous systems, cyber warfare, and hypersonic weapons are major technological disruptors.

Q: Which regions dominate military spending worldwide?

North America, Asia-Pacific, and Western Europe are the leading regions in terms of defense expenditure.

Q: What types of military platforms are experiencing the most investment?

Land systems, air defense, naval fleets, and unmanned platforms are key areas of military investment.

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Code: MTA7307

Publication Date: Aug 2025

How big is the military industry market?

According to 6Wresearch internal database and industry insights, the Military Industry Market was valued at USD 534.8 Billion in 2024 and is projected to reach USD 721.5 Billion by 2031, expanding at a compound annual growth rate (CAGR) of 4.34% during the forecast period.

Growing defense budgets, improvements in combat system technology, and the modernization of military fleets in strategic areas like North America, Europe, and Asia-Pacific are driving the market.

Growth Factors for Military Industry Market

Growing regional conflicts and geopolitical tensions are driving up demand for sophisticated defense systems.
In both developed and developing nations, military modernization programs are driving the development of land, air, and naval defense technologies.
Significant contributions are being made by investments in next-generation communication networks, AI-powered surveillance, and unmanned systems (UAVs, UGVs).
Cybersecurity and electronic warfare are growing in popularity as nations seek to protect critical infrastructure from cyberattacks.
Worldwide spending is increased by cooperative international defense alliances like NATO, which promote cooperative military drills and defense procurement.

Military Industry Market Trends

The military industry market is undergoing a transformative shift with the increasing adoption of autonomous platforms, AI-powered warfare systems, and integrated battlefield communication networks. Advances in research and development are leading to the development of directed-energy systems, next-generation stealth technologies, and hypersonic weapons. In an effort to lessen their carbon footprints, military fleets are investigating electric and hybrid propulsion systems as sustainability gains popularity.

Emerging Developments in the Military Industry Market

Quantum computing, cyberwarfare preparedness, and AI-enabled threat detection systems are redefining modern military strategy and impacting the military industry market. To improve mission effectiveness and coordination, cross-domain operations which combine air, land, sea, space, and cyber capabilities are being developed. Countries are promoting domestic defense manufacturing and investing in robust logistics in response to worldwide supply chain vulnerabilities in an effort to reduce reliance on foreign suppliers.