United States (US) Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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US Defense Market Report Overview

The US defense budget was worth $818.8 billion in 2023, which was a 10.7% rise from the previous year. This is in response to the deteriorating global security environment such as the Russian invasion of Ukraine and continued tensions with China over territory in the South China Sea and wider Indo-Pacific. Numerous geo-strategic and domestic political imperatives continue to drive US expenditure as defense capabilities gain growing political importance. The country’s defense budget is expected to grow at a CAGR of more than 2% during 2024-2028.

US Defense Market Outlook, 2024-2028 ($ Million)

US Defense Market Outlook, 2024-2028 ($ Million)

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The US defense market research report provides the market size forecast and the projected growth rate for the next five years. Furthermore, our analysts have carried out a comprehensive industry analysis to determine key market drivers, emerging technology trends, key sectors, and major challenges faced by market participants, in this report. The US defense market study has also assessed key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Market Size (2023) $818.8 billion
CAGR (2024-2028) >2%
Forecast Period 2024-2028
Historical Period 2019-2023
Key Drivers ·        Sustainment of the domestic US defense industry

·        Russia, the war in Ukraine, and the NATO alliance

·        Global military modernization

Key Sectors ·        Military Simulation & Training

·        Military Fixed Wing Aircraft

·        Military Land Vehicles

·        Tactical Communication Systems

·        Naval Vessels and Surface Combatants

·        Military Unmanned Aerial Vehicles

Leading Companies ·        General Electric

·        Lockheed Martin

·        RTX Corp

·        The Boeing Co

·        General Dynamics

·        Northrop Grumman

·        Honeywell International

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US Defense Market Drivers

The key factors driving the US defense market growth are the sustainment of the domestic US defense industry, Russia, the war in Ukraine, & the NATO alliance, and the global military modernization among others.

Russia, the war in Ukraine, and the NATO alliance: Historic geopolitical tensions between the US and Russia resurfaced and deteriorated following the Russian invasion of Georgia in 2008 and the subsequent invasion of Ukraine in 2014. The full-scale invasion of Ukraine in 2022 further exacerbated these tensions, driving the US to expand its military and geopolitical support for the Ukrainian state through donations of equipment and providing financing for material purchases.  Beyond the scope of Ukraine, the threat of Russian military aggression has also driven the US to support the modernization of NATO capabilities by incentivizing Allied states to support the Ukrainian war effort in exchange for US Foreign Military Sales (FMS) agreements to replace donated equipment and modernize legacy capabilities.

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US Military Doctrines and Defense Strategies

The return of great power competition is reshaping the US military doctrine and defense policy to reflect the threat of high-intensity warfare. The US Department of Defense has outlined four strategic priorities within the 2022 National Defense Strategy (NDS) document which have and continue to shape US military and national security doctrine. The country’s defense strategy outlook is characterized by the need to enhance deterrence through growing investment and collaboration with both military and industry partners. Furthermore, the US military doctrine and strategy are increasingly being reshaped by the emergence of new technologies and capabilities such as progress in the development of hypersonic weapons, activities in the space domain, and enhancing military cyber warfare capabilities among others.

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US Defense Market Segmentation by Sectors

The key sectors in the US defense market are military simulation & training, military fixed-wing aircraft, missiles & missile defense systems, military land vehicles, tactical communication systems, naval vessels and surface combatants, and military unmanned aerial vehicles, among others. In 2023, the most attractive sector in the American defense market was military simulation & training followed by military fixed-wing aircraft. The US military is investing heavily in its simulation and training systems to properly prepare its personnel. Among these investments are forward-looking and novel training solutions implementing modern computing and AI for high-fidelity simulation of combined arms warfare. The next largest segment is air trainers, supporting the US military’s wide array of air platforms.

US Defense Market Analysis by Sectors, 2023 (%)

US Defense Market Analysis by Sectors, 2023 (%)Buy the Full Report for More Sector Insights into the US Defense Market

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US Defense Market - Competitive Landscape

A few of the leading defense companies operating in the US are:

  • General Electric
  • Lockheed Martin
  • RTX Corp
  • The Boeing Co
  • General Dynamics
  • Northrop Grumman
  • Honeywell International

Lockheed Martin Corp (Lockheed Martin) provides advanced technology systems and products for defense, civil and commercial applications. The company offers management, technical, engineering, scientific, logistics, and information services. Its product portfolio includes military and rotary-wing aircraft, airlifter, ground vehicles, missiles and guided weapons, radar systems, sensors, unmanned systems, and naval systems.

US Defense Market Analysis by Companies

US Defense Market Analysis by Companies

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Segments Covered in the Report

US Defense Market Sectors Outlook (Value, $ Million, 2020-2029)

  • Military Fixed Wing Aircraft
  • Military Land Vehicles
  • Tactical Communication Systems
  • Naval Vessels and Surface Combatants
  • Military Unmanned Aerial Vehicles


The report provides:

  • Detailed analysis of the US 2023 defense budget broken down into market size and market share.
  • Overview of key current and future acquisitions.
  • Explanation of the procurement policy and process.
  • Analysis of the US military doctrine and strategy to provide a comprehensive overview of US military procurement regulation.
  • Outline of political alliances and perceived security threats to the US and trends in spending and modernization.
  • Analysis of the competitive landscape and strategic insights of the US defense industry.

Key Highlights

• Drivers of Defense expenditure include Russia, Ukraine and European Security, tensions in the Middle East, and military technology and rearmament

• Major ongoing procurement program include procurement of F-35 A, B & C, Columbia-class submarines, and Virginia-class submarines

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the US defense market over the next five years.
  • Understand the underlying factors driving demand for different defense and internal security segments in the US 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 the US 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 US 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. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.

General Dynamics Electric Boat and Newport News Shipbuilding
AeroVironment Inc
Airbus Helicopters
SAS​Arcturus UAV
Precision Integrated Programs
Wildflower International LTD
Atmospheric & Space Technology Research Associates
General Atomics
Electromagnetic Systems Group
Austal Ltd
Austal USA
BAE Systems Plc
Ball Aerospace & Technologies Corporation
Bath Iron Works​
Bell Textron Inc
Saab AB
Northrop Grumman
Bollinger Mississippi Shipbuilding
Bollinger Shipyards LLC​
Crowley Government Services Inc
DRS Sustainment Systems Inc
Dzyne Technologies
Eastern Shipbuilding Group Inc​
Fincantieri SpA​
General Atomics Aeronautical Systems Inc
Huntington Ingalls Industries
General Dynamics Land Systems Inc
General Dynamics National Steel and Shipbuilding Company​
​GM Defense​
Insitu Inc​
Inventech Marine Solutions LLC​
Kratos Defense & Security Solutions Inc
L3Harris Technologies and Air Tractor​
L3Harris Technologies Inc​
Leidos and L3Harris Technologies Inc
Leidos Holdings Inc​
Leonardo DRS Inc​
Leonardo Helicopters LLC
Lockheed Martin and York Space Systems​
Lockheed Martin Corp​
Lockheed Martin Missiles and Fire Control​
Mayman Aerospace​
Metal Shark Boats​
Newport News Shipbuilding​
Northrop Grumman Aeronautics Systems​
Northrop Grumman Corp​
Northrop Grumman​
Oceaneering International Inc
Orion Space Solutions (OSS)
Oshkosh Defense LLC​
Polaris Government & Defense​
Pratt Miller Defense​
QinetiQ North America
Rheinmetall AG and General Dynamics Land Systems​
Ribcraft USA LLC​
Robotic Research
,Serco Inc
Beier Integrated Systems LLC
DRS Naval Power Systems Inc
ICE FLOE LLC (dba Nichols Brothers Boat Builders)
Metron Inc.
Submergence Group LLC
Thrustmaster of Texas Inc.​
Sikorsky Aircraft Corp​Skydio Inc
Space X
Strategic Airborne Operations JV LLC​
Swiftships Inc.
Teledyne Brown Engineering Inc
Teledyne FLIR LLC​
Textron Aviation Inc
Textron Systems and General Dynamics Land Systems​
Textron Systems Corp​
Thoma-Sea Marine Constructors LLC​
Vigor Shipyards Inc​
VT Halter Marine Inc
Modutech Marine Inc
Conrad Shipyard LLC​
York Space Systems
Yugoimport SDPR​

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historic and Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation
    • 2.6. Key Market Trends and Insights

  • 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. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of European Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness and Emerging Opportunities

    • 5.1. Market Attractiveness by Defense Sector
    • 5.2. Top Sectors in the United States Defense Market
    • 5.3. Top Defense Segments by Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. F-35 (All variants)
    • 6.3. Columbia-class
    • 6.4. Virginia-class
    • 6.5. B-21 Raider
    • 6.6. Arleigh Burke-class
    • 6.7. Gerald R. Ford-class
    • 6.8. Next Generation Air Dominance (NGAD)
    • 6.9. CH-53K King Stallion
    • 6.10. Large Surface Combatant / DDG (X)
    • 6.11. V-280 Valor (Future Long-Range Assault Aircraft (FLRAA))
    • 6.12. America-class LHA
    • 6.13. XM30 Mechanized Infantry Combat Vehicle (MICV)

  • 7. Fleet Size

    • 7.1. Army
    • 7.2. Air Force
    • 7.3. Navy

  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating in the US
    • 8.2. Main Defense Companies

  • 9. Appendix

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

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