| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 49.62 Billion |
| Market Size (2030) | USD 61.26 Billion |
| CAGR (2025 - 2030) | 4.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UK Defense Market Analysis
The UK Defense Market size is estimated at USD 49.62 billion in 2025, and is expected to reach USD 61.26 billion by 2030, at a CAGR of 4.30% during the forecast period (2025-2030).
The UK, as a NATO member, maintains a defense expenditure of 2.3% of its GDP in 2024, exceeding NATO's minimum requirement of 2%. The UK is among 23 of 32 NATO member countries meeting this target in 2024. The government plans to increase defense spending to 2.5% of GDP by 2030. Between February 2022 and the end of 2024, the UK allocated over USD 9 billion in military support to Ukraine. The Ministry of Defense's Equipment Plan for 2023-2033 designates USD 355 billion for equipment and support expenditure. The government aims to bolster its digital, cyber, and military capabilities with the new investment.
In recent years, the country has consistently increased its defense budget, fueling market growth. This surge in defense expenditures has catalyzed investments in advanced defense technologies, modernization of military equipment, and an overall enhancement of national security.
Growing environmental concerns worldwide are pressuring governments and defense organizations to reduce their carbon emissions. This environmental focus may constrain the growth of land-based and air-based military vehicles during the forecast period. The market growth is driven by investments in technological advancements that enhance weapon capabilities, including lethality, precision, range, communication systems, and support services to counter emerging national security threats.
UK Defense Market Trends
The Navy is Expected to Witness the Highest Growth During the Forecast Period
Following its decision to exit the EU, the UK has underscored the paramount importance of maritime security. With over 400 British ports facilitating nearly 95% of the nation's imports and exports, the stakes are undeniably high. The UK's maritime landscape is fraught with challenges, from potential terrorist threats at sea and the smuggling of illicit goods to safeguarding critical marine infrastructure. In response, the UK is bolstering its maritime security measures. Notably, the establishment of the Joint Maritime Security Center highlights the UK's commitment, serving as a cross-governmental body to enhance naval security and governance.
In February 2024, the UK Ministry of Defense awarded Thales a 15-year USD 2.2 billion contract to enhance Royal Navy (RN) ship availability and resilience. The contract addresses the Royal Navy's requirement for extended platform deployment due to growing global instability. The agreement will sustain more than 450 skilled engineering, IT, and support positions in the UK while creating hundreds of apprenticeship and training opportunities throughout the country.
Additionally, the British government announced plans to enhance the Royal Navy's capabilities through investments in surface ships, submarines, weapons, technologies, and missions. The Royal Navy aims to operate over 20 frigates and destroyers by the early 2030s, with plans to increase this number to 24. These expansion plans are expected to strengthen the country's naval capabilities and support market growth during the forecast period.
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Fixed-wing Aircraft is Expected to Dominate the Market During the Forecast Period
By procuring advanced aircraft, the UK bolsters its military capabilities, enhancing both strategic and tactical operations. As a result, the nation is actively acquiring the latest transport aircraft. With defense spending on the rise, the military transport aircraft market is poised for growth.
According to the Defense Equipment Plan for 2023 to 2033, the UK is set to bolster its armed forces to counter emerging threats. Over the next decade, the UK plans to invest a substantial USD 355 billion in equipment purchases and support. Highlighting this commitment, the UK's military budget for 2023 reached USD 74.9 billion, marking a notable 15% increase from 2022. This allocation represents 2.3% of the country's total government spending. Furthermore, as a NATO member, the UK is bound to allocate 2% of its annual GDP to defense.
In a move underscoring its defense ambitions, the UK unveiled plans in October 2023 to commence trials for the new Protector surveillance aircraft. Set to undergo test flights until its anticipated service entry in late 2024, this uncrewed RAF aircraft is designed for global surveillance missions. Furthermore, by May 2024, the Royal Air Force's fleet of 33 F-35B Lightning II fighter jets, known for their vertical and short take-off and landing capabilities, will be operational on the two Queen Elizabeth class aircraft carriers. With plans to expand this fleet to 74 jets in the second batch, the F-35s will significantly bolster the UK's carrier strike capabilities, fueling demand for fixed-wing aircraft in the coming years.
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UK Defense Industry Overview
The UK defense market is fragmented in nature. The Ministry of Defense (MoD) often turns to foreign sources for defense equipment, weighing performance, cost, and delivery advantages against British alternatives. Key players like Airbus SE, Lockheed Martin Corporation, BAE Systems plc, Leonardo S.p.A., and THALES are set to maintain their significant market share throughout the forecast period.
BAE Systems, a leading tier-1 supplier for the F-35 program, is also at the forefront of developing the Tempest aircraft. This aircraft is being jointly developed by a consortium that includes the UK Ministry of Defense, BAE Systems, Rolls-Royce, Leonardo SpA, and MBDA. With plans to induct the Tempest by 2035, it aims to succeed the Eurofighter Typhoon in both the Royal Air Force and the Italian Air Force (AMI). Such collaborative efforts in government development and procurement programs are poised to bolster these companies' market shares in the years ahead.
UK Defense Market Leaders
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BAE Systems plc
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Lockheed Martin Corporation
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Airbus SE
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Leonardo S.p.A.
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THALES
- *Disclaimer: Major Players sorted in no particular order
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UK Defense Market News
- May 2024: The United Kingdom is advancing its sovereign hypersonic strike capability through a new collaborative framework agreement. Ninety organizations from industry and academia have joined the more than USD 1 billion Hypersonic Technologies & Capability Development Framework (HTCDF).
- March 2024: The UK signed a contract worth USD 700 million with a defense shipbuilder, Babcock, for a major refit of HMS Victorious, one of Britain's four Vanguard-class nuclear-powered ballistic missile submarines.
UK Defense Industry Segmentation
The UK defense market study analyzes historical, current, and projected budget allocation and spending patterns. The market comprises various activities, products, and services that support national defense and security requirements. The country's defense strategy focuses on protecting against external and internal threats while safeguarding strategic interests.
The study examines procurement and modernization plans for the UK armed forces. It also covers investments in satellite development and deployment, research and development of advanced technologies such as directed energy weapons (DEWs), hypersonic missiles, unmanned systems, advanced composites, and advanced manufacturing technologies, including 3D printing.
The UK defense market is segmented into armed forces and type. By armed forces, the market is classified into army, navy, and air force. By type, the market is segmented into fixed-wing aircraft, rotorcraft, ground vehicles, naval vessels, C4ISR, weapons and ammunition, protection and training equipment, and unmanned systems. The report offers the market size and forecasts in value (USD) for all the above segments.
| Armed Forces | Army |
| Navy | |
| Air Force | |
| Type | Fixed-wing Aircraft |
| Rotorcraft | |
| Ground Vehicles | |
| Naval Vessels | |
| C4ISR | |
| Weapons and Ammunition | |
| Protection and Training Equipment | |
| Unmanned Systems |
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UK Defense Market Research Faqs
How big is the UK Defense Market?
The UK Defense Market size is expected to reach USD 49.62 billion in 2025 and grow at a CAGR of 4.30% to reach USD 61.26 billion by 2030.
What is the current UK Defense Market size?
In 2025, the UK Defense Market size is expected to reach USD 49.62 billion.
Who are the key players in UK Defense Market?
BAE Systems plc, Lockheed Martin Corporation, Airbus SE, Leonardo S.p.A. and THALES are the major companies operating in the UK Defense Market.
What years does this UK Defense Market cover, and what was the market size in 2024?
In 2024, the UK Defense Market size was estimated at USD 47.49 billion. The report covers the UK Defense Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Defense Industry Report
The UK defence industry is on the brink of significant growth, fueled by rearmament, international partnerships, and a push towards modernizing capabilities for high-intensity warfare. This industry analysis underscores the strategic importance of sectors such as submarines, military land vehicles, and tactical communications, highlighting the UK's commitment to enhancing its military doctrine and defense strategies. With a focus on strengthening maritime security and naval capabilities, the UK defence market is expanding, supported by advancements in military technology like autonomous and unmanned systems. The competitive landscape is driven by key UK defence companies leading in innovation, making the UK defence industry analysis crucial for stakeholders. This dynamic market presents numerous opportunities, as detailed in the Mordor Intelligence™ Industry Reports, which offer statistics on market share, size, and revenue growth, along with a market forecast outlook. For a comprehensive understanding of the UK defence market, download a free report PDF sample from Mordor Intelligence™, providing valuable insights for businesses and stakeholders in the defence sector.
