INDUSTRY REPORT
“ The global defence market reached a value of nearly US $ 474.69 billion in 2021 , having grown at a compound annual growth rate ( CAGR ) of 4.0 % since 2016 .”
INDUSTRY REPORT
SWORD AND SHIELD
We highlight recent analysis of the global defence market as well as opportunities , trends and the adoption of new manufacturing technologies .
F-15 fighter jet ( image : Boeing ).
The global defence market is highly concentrated , with many players . The top ten competitors in the market took an estimated 51 % of the total market in 2021 . Market concentration can be attributed to high entry barriers and the high costs associated with expansion . The market is expected to experience further consolidation with a rising number of mergers and collaboration among players in the market .
The COVID-19 pandemic affected the industry globally , as countries implemented strict lockdown measures and social distancing norms to restrict the swift spread of the pandemic . Manufacturing facilities around the world were shut down during the initial stages of the pandemic . Supply-chain issues meant shortages of materials such as microchips and microelectronics , delaying technology roll-outs . However , the Russian invasion of Ukraine has thrown defence back into the spotlight again , as over 50 countries have pledged to help build Ukraine ’ s defence .
The defence market is segmented by type into air-based defence equipment ; sea-based defence equipment ; land-based defence equipment ; defence equipment maintenance , repair and overhauling services and defence support and auxiliary equipment .
Global defence market analysis
According to a January 2023 report by The Business Research Company , the global defence market reached a value of nearly
The market is expected to grow from US $ 474.69 billion in 2021 to US $ 687.84 billion in 2026 at a rate of 7.7 %
22 | ismr . net | ISMR July / August 2023