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)
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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 (%)
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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
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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
Scope
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.
AeroVironment Inc
Airbus Helicopters
SASArcturus UAV
Boeing
L3Harris
Precision Integrated Programs
Textron
Wildflower International LTD
Atmospheric & Space Technology Research Associates
General Atomics
Electromagnetic Systems Group
RTX
Austal Ltd
Austal USA
BAE Systems Plc
Ball Aerospace & Technologies Corporation
Bath Iron Works
Bell Textron Inc
Leonardo
Saab AB
Kratos
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
Caterpillar
DRS Naval Power Systems Inc
ICE FLOE LLC (dba Nichols Brothers Boat Builders)
Metron Inc.
Submergence Group LLC
Thrustmaster of Texas Inc.
Sikorsky Aircraft CorpSkydio 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
XTEND
York Space Systems
Yugoimport SDPR
Table of Contents
Frequently asked questions
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What was the US defense market size in 2023?
The defense market size in the US was $818.8 billion in 2023.
-
What will the US defense market growth rate be during the forecast period 2024-2028?
The defense market in the US is expected to achieve a CAGR of more than 2% during 2024-2028.
-
Which sector accounted for the highest market attractiveness in the US defense market in 2024?
Military simulation & training accounted for the highest market attractiveness in the US defense market in 2024.
-
Which are the key companies operating in the US defense market?
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, and Honeywell International, among others.
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