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APAC Defense Market Size (2024 - 2029)

The Asia-Pacific defense market is projected to experience growth driven by strategic increases in defense budgets and the demand for advanced weapon systems. Despite economic challenges and supply chain disruptions caused by Covid-19, the market remained resilient due to continued investments in new technologies. The region's military expenditure has been rising, fueled by geopolitical tensions and border conflicts, leading to increased procurement of land, air, and sea platforms. Government initiatives to support local defense manufacturing in countries like China, India, and Japan are further contributing to the market's expansion.

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Market Size of APAC Defense Industry

APAC Defense Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 4.00 %
Market Concentration Low

Major Players

APAC Defense Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Defense Market Analysis

The Asia-Pacific defense market is anticipated to register a CAGR of over 4% during the forecast period.

  • Due to Covid-19, the countries in the Asia Pacific region were severely impacted economically and faced supply chain disruptions. The investments made by the countries in the region towards procuring and developing new technologies created a negligible impact of COVID-19 on the defense market and remained unaffected. 
  • A progressive and strategic increase in the defense budget and the launch of infantry support projects are expected to create demand for sophisticated new-generation weapon systems with advanced capabilities, thereby driving the market in focus during the forecast period.
  • The global military expenditure surpassed USD 2 trillion for the first time in 2021. China and India were the second and third largest defense spenders, with a defense budget of USD 293 billion and USD 76.6 billion, respectively. Due to the expansion of the defense industries in East Asian countries, including Japan, South Korea, Taiwan, and Singapore, as well as China and India, defense budgets may continue to rise. 
  • Spending on the military in the region increased by more than 3.5%, surpassing that of Europe, Africa, and the Americas. The increasing geopolitical conflicts and border tension of neighboring countries in the region are fueling the rise in military expenditure of various countries in the region. This increase in military expenditure is propelling investments into the procurement of new land, air, and sea platforms. 
  • Various government initiatives were taken to support the indigenous manufacturing of defense electronics in countries like China, India, and Japan, bolstering local manufacturing growth.

APAC Defense Industry Segmentation

The Asia-Pacific defense market covers all aspects of the military vehicle, armament, and other equipment procurements, as well as the upgrade and modernization plans. It also provides insights into the budget allocation and spending of the various countries in the region in the past and present, as well as during the forecast period.

The Asia-Pacific defense market is segmented by armed force, type, and country. By armed force, the market is segmented into the air force, army, and navy. By type, the market is divided into personnel training and protection, communication systems, weapons and ammunition, and vehicles. By geography, the market is segmented into China, India, Japan, South Korea, Australia, and the Rest of Asia-Pacific. 

The market sizing and forecasts have been provided in value (USD billion) for all the above segments.

Armed Forces
Air Force
Army
Navy
Type
Personnel Training and Protection
Training and Simulations
Protection Equipment
Communication Systems
Vehicles
Land-based Vehicles
Sea-based Vehicles
Air-based Vehicles
Weapons and Ammunition
Artillery and Mortar Systems
Infantry Weapons
Missiles and Missile Defense System
Ammunition
Geography
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
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APAC Defense Market Size Summary

The Asia-Pacific defense market is poised for steady growth, driven by strategic increases in defense budgets and the demand for advanced weapon systems. Despite the economic challenges posed by the Covid-19 pandemic, the defense sector in the region remained resilient, with countries investing in new technologies and infrastructure. The rising geopolitical tensions and border conflicts have further fueled military expenditure, prompting investments in land, air, and sea platforms. The air force segment holds a significant share of the market, with countries like China and India heavily investing in aircraft, UAVs, and related technologies to enhance their military capabilities. The demand for maritime patrol aircraft and UAVs is also on the rise, driven by the need for intelligence, surveillance, and reconnaissance missions.

India is expected to experience notable growth in the defense market, supported by increased defense spending and efforts to modernize its military equipment. The country is focusing on procuring advanced weapons and ammunition to strengthen its defense capabilities amid rising tensions with neighboring countries. The market is characterized by a fragmented landscape with numerous suppliers offering a range of defense equipment. While the region relies on imports from the United States and Russia, there is a significant push towards indigenous manufacturing in countries like China, India, and Japan. Initiatives such as India's "Make in India" aim to boost domestic production, supporting local manufacturers and reducing dependency on foreign imports.

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APAC Defense Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Armed Forces

      1. 2.1.1 Air Force

      2. 2.1.2 Army

      3. 2.1.3 Navy

    2. 2.2 Type

      1. 2.2.1 Personnel Training and Protection

        1. 2.2.1.1 Training and Simulations

        2. 2.2.1.2 Protection Equipment

      2. 2.2.2 Communication Systems

      3. 2.2.3 Vehicles

        1. 2.2.3.1 Land-based Vehicles

        2. 2.2.3.2 Sea-based Vehicles

        3. 2.2.3.3 Air-based Vehicles

      4. 2.2.4 Weapons and Ammunition

        1. 2.2.4.1 Artillery and Mortar Systems

        2. 2.2.4.2 Infantry Weapons

        3. 2.2.4.3 Missiles and Missile Defense System

        4. 2.2.4.4 Ammunition

    3. 2.3 Geography

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 South Korea

      5. 2.3.5 Australia

      6. 2.3.6 Rest of Asia-Pacific

APAC Defense Market Size FAQs

The APAC Defense Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

Lockheed Martin Corporation, The Boeing Company, Aviation Industry Corporation of China, General Dynamics Corporation and BAE Systems plc are the major companies operating in the APAC Defense Market.

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APAC Defense Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)