China Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Explore the following in-depth analysis and actionable insights in the China Defense Market’ report:

  • China defense budget: Detailed analysis of China FY2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: The procurement policy and process is explained. This is coupled with an analysis of China’s military doctrine and strategy to provide a comprehensive overview of the country’s military regulation.
  • Security Environment: Political alliances and perceived security threats to China are examined and they help to explain trends in spending and modernization.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the country’s defense industry.

How is the ‘China Defense Market’ report different from other reports in the market?

Making the right business decisions that are based on in-depth analysis and understanding of the market dynamics, to gain a competitive edge is key to every country’s defense department.  Below are the top benefits you will gain by purchasing this report:

  • Determine prospective investment areas based on a detailed trend analysis of China’s defense market over the next five years.
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the China market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving China’s defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Chinese government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country.

We recommend this valuable source of information to anyone involved in:

  • Defense Startups, Original Equipment Manufacturers (OEMs),
  • Defense Planners and Government Bodies
  • Business Development and Market Intelligence
  • Investment Analysts and Portfolio Managers
  • Professional Services – Investment Banks, PE/VC firms
  • M&A/Investment, Management Consultants, and Consulting Firms

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China Defense Market Report Overview

The China defense budget is worth $230.3 billion in 2023, and, is anticipated to register a CAGR of more than 6% during 2024-2028. Territorial claims in the South China Sea and the increasing strength and assertiveness of the US have spurred the Chinese government to enhance its military capabilities.

The consequent demand for defense equipment will revolve around fighter and multirole aircraft, corvettes, infrastructure construction, submarines, naval vessels, and surveillance equipment.

China Defense Market Outlook, 2023-2028 ($ Billion)

China Defense Market Outlook, 2023-2028 ($ Billion)

>>> Buy the Full Report to Know More About China Defense Market Forecast @ –

The China defense budget market research report provides the market size forecast and the projected growth rate for the next five years. It also covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Defense Budget (2023) $230.3 Billion
CAGR (2024-2028) >6%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Segment ·       Missile and Missile Defense Systems

·       Submarines

·       Military Fixed-Wing Aircraft

·       Naval Vessels and Surface Combatants

·       Tactical Communications Systems

·       EO/IR Systems

·       Military Radar

·       Electronic Warfare Systems

·       Underwater Warfare Systems

·       INS GNSS

Leading Companies ·       China Precision Machinery Import-Export Corp

·       Chengdu Aircraft Industry Group

·       Jiangnan Shipyard (Group) and Dalian Shipbuilding Industry Company

·       China Shipbuilding Industry Co Ltd (CSIC)

·       Hudong-Zhonghua Shipbuilding (Group) Co Ltd

·       Guangzhou Wenchong Shipyard Co Ltd

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China Defense Market Drivers

Spending on modernization programs is expected to propel the spending on the defense sector in China.

  • Xi Jinping, the President of the People’s Republic of China (PRC) and the General Secretary of the Communist Party of China (CCP) has same aspirations as his predecessors which is to make China the center of the global economy, this in turn drove his vision of building a modern and battle-ready PRC.
  • Factors such as tension in the South China Sea have also paved the way for modernization of the army, which will drive the defense budget.

China Military Doctrines and Defense Strategies

China’s military doctrine has been consistently evolving since the inception of the People’s Republic of China in 1949. Under the Chinese definition of military strategy, the military doctrine is an inseparable part of the national defense strategy and Chinese President Xi Jinping’s grand vision for the “great rejuvenation of the Chinese nation”. This notion refers to both economic development and territorial unification under the Chinese Communist Party. The implications for defense are the modernization and professionalization of the military forces and personnel.

The technological overhaul of the military forces aims to achieve three strategic goals such as mechanization, the modernization of military equipment by 2020, and progress toward the digitization of network systems for ‘smart’ capabilities. Currently, legacy land platforms are lagging behind advancements in the air and maritime domains.

China Defense Market Segmentation by Segment

The missile and missile defense system is the largest sector within the China defense market.

The key segments in the China defense market are missile and missile defense systems, submarines, military fixed-wing aircraft, naval vessels and surface combatants, tactical communications systems, EO/IR Systems, military radar, electronic warfare systems, underwater warfare systems, and INS GNSS among others. Platform Based MDS segment within the missile and missile defense systems sector is the primary contributor to the growth of this sector.

China Defense Market Analysis by Segment, 2023 (%)

China Defense Market Analysis by Segment, 2023 (%)

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China Defense Market - Competitive Landscape

China is in the process of acquiring 60 HQ-19 between 2020-2035.

Some of the leading defense companies operating in China are China Precision Machinery Import-Export Corp, Chengdu Aircraft Industry Group, Jiangnan Shipyard (Group) and Dalian Shipbuilding Industry Company, China Shipbuilding Industry Co Ltd (CSIC), and Hudong-Zhonghua Shipbuilding (Group) Co Ltd and Guangzhou Wenchong Shipyard Co Ltd among others. Potentially deployed on land and at sea, the HQ-19 represents a very capable complement to the S-400 systems China purchased from Russia. In 2018, China announced that it had conducted the successful testing of the HQ-19s, without giving further details on the weapon system.

China Defense Market Analysis by Players, 2023 (%)

China Defense Market Analysis by Players, 2023 (%)

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Segments Covered in the Report

China Defense Segment Outlook (Value, $ Billion, 2019-2028)

  • Missile And Missile Defense Systems
  • Submarines
  • Military Fixed-Wing Aircraft
  • Naval Vessels and Surface Combatants
  • Tactical Communications Systems
  • EO/IR Systems
  • Military Radar
  • Electronic Warfare Systems
  • Underwater Warfare Systems

Key Highlights

• Drivers of Defense expenditure include Military moderniz, Tension in the South China SeaTension in the South China Sea

• Major ongoing procurement program include procurement of HQ-19, J-20 Black Eagle, Tang-class

Chengdu Aircraft Industrial (Group) Co. Ltd.
China Aerospace Science and Industry Corporation
Shenyang Aircraft Corporation

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historical And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation

  • 3. Military Doctrine And Security Environment

    • 3.1. Military Doctrine And Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy And Regulations

    • 4.1. Procurement Policy and Market Regulations
    • 4.2. Market Entry Routes
    • 4.3. Key Challenges
    • 4.4. Major Deals and M&A

  • 5. Market Attractiveness And Emerging Opportunities

    • 5.1. Market Attractiveness
    • 5.2. Top Sectors in the China Defense Market
    • 5.3. Top Defense Segments By Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. Defense Platform Acquisitions By Value
    • 6.3. HQ-19
    • 6.4. J-20 Black Eagle
    • 6.5. Aircraft Carriers (004)
    • 6.6. Tang-class (Type 096)
    • 6.7. Type 054A
    • 6.8. J-10
    • 6.9. Renhai-class (Type 055) Destroyers
    • 6.10. Y-20
    • 6.11. WZ-8
    • 6.12. Heavy-Lift Helicopters

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in China
    • 8.2. Main Defense Companies

  • 9. Appendix

    • 9.1. About This Report
    • 9.2. About Us
    • 9.3. Contact Us

Frequently asked questions

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