United States Defense Market - Growth, Trends, and Forecast (2019 - 2024)

The United States Defense Market is segmented by Armed Forces (Air Force, Army, and Navy).

Market Snapshot

United States Defense Market Summary
Study Period:


Base Year:



Greater than 5%

Key Players:

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Market Overview

The US defense market is estimated to register a CAGR of over 5% during the forecast period, 2019 - 2024.

  • The growth in the defense budget is expected to be a major driver for the US defense market.
  • In the United States, military spending has been considered to be the second-largest item in the federal budget, after social security. The country spends more on their defense, than the total defense spending done by countries, such as China, Saudi Arabia, Russia, United Kingdom, India, France, Japan, Germany, and South Korea combined, according to data published by the SIPRI (Stockholm International Peace Research Institute). For the year 2018, the US defense spending was USD 649 billion. 
  • Additionally, fight against terrorism, externally and internally, is also expected to support the growth of the defense market in the United States.
  • Technological advancement may lead to replacing of ageing equipment, as well as the purchase of new equipment, and this is expected to propel growth in the near future.  

Scope of the Report

The study covers all aspects and provides insights about the budget allocation and spending in the US defense market in the past and the present, along with forecast for the future. The analysis of the US Homeland Security is also included within the scope of the report.

Armed Forces
Air Force
Training and Simulation
Communication Systems
Weapons and Ammunition
Manned and Unmanned Aerial Vehicles
Personal Training and Protection
Communication Systems
Weapons and Ammunition
Manned and Unmanned Ground Vehicles
Weapons and Ammunition
Sea-based Manned and Unmanned Vehicles
Communication Systems

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Key Market Trends

The Air Force Segment is Expected to Register the Highest Growth Rate During the Forecast Period

The air force segment is expected to experience the major growth in the US defense market during the forecast period, owing to various procurement plans for replacing of aging combat aircraft, as well as procurement plans for new unmanned aerial vehicles. For the fiscal year 2020, the US Air Force has requested USD 165.5 billion, which may be used to fund new technology development. The increase in the amount may lead to funding for the next generation fighter jets of the US Air Force. A new report published in 2018 by the Center for Strategic and Budgetary Assessments (CSBA), approved by the US Congress, stated that the US Air Force is in need of 386 operational squadrons, in order to counter any future threats posed by Russia and China. According to the study, there were shortfalls in the tanker, bomber, fighter, strike/reconnaissance drones, and command-and-control/intelligence, surveillance, and reconnaissance inventories. The CSBA in their study further also revealed that the Air Force is in need of 14 bomber squadrons, 62 fighter squadrons, 54 tanker squadrons, 27 strike/reconnaissance drone squadrons, and 62 C2/ISR squadrons by 2030. Thus, upcoming procurements may increase the focus on this segment, and this is expected to be the reason for its expected high CAGR.

United States Defense Market segment

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The United States Defense Market is Expected to Experience a Steady Growth in the Next Few Years

In 2918, the United States military spending grew by 4.6%, thus reaching USD 649 billion in 2018. The United States is the largest military spending country in the world and accounted for 36% of the total global defense spending in 2018. The US military’s superpower can be attributed to its military aircraft fleet, with 13,400 aircraft, which is the largest in the world. Additionally, 40% of the entire military budget of DoD (Department of Defense) is allocated for procurement of military electronics and related technologies, such as computers, sensors, communications, integrated circuits, electronic warfare (EW), surveillance and reconnaissance, and power electronics. Various ongoing developments are expected to lead to the growth in the US defense market in the near future.

United States Defense Market Geography

Competitive Landscape

Various players, such as Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, and Northrop Grumman Corporation, among others, hold significant market share during the forecast period in the US defense market. Various initiatives, as well as product innovations, are done by companies to strengthen their presence in the market. In 2019, Lockheed Martin Corporation announced that they have won a USD 879 million contract for sustainment and maintenance of parts of the Minuteman III intercontinental ballistic missile. Additionally, in 2018, Northrop Grumman Corporation announced that they have acquired a USD 3.6 billion air force contract for large aircraft infrared countermeasures equipment and support. The deal is expected to be completed by 2025.

Major Players

  1. Lockheed Martin Corporation
  2. The Boeing Company
  3. Raytheon Company
  4. General Dynamics Corporation
  5. Northrop Grumman Corporation

* Complete list of players covered available in the table of contents below

United States Defense Market Complan

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 PESTLE Analysis




    1. 7.1 Armed Forces

      1. 7.1.1 Air Force

        1. Training and Simulation

        2. Communication Systems

        3. Weapons and Ammunition

        4. Manned and Unmanned Aerial Vehicles

      2. 7.1.2 Army

        1. Personal Training and Protection

        2. Communication Systems

        3. Weapons and Ammunition

        4. Manned and Unmanned Ground Vehicles

      3. 7.1.3 Navy

        1. Weapons and Ammunition

        2. Sea-based Manned and Unmanned Vehicles

        3. Communication Systems


    1. 8.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 8.2 Vendor Market Share

    3. 8.3 Strategies Adopted by Leading Players

    4. 8.4 Company Profiles

      1. 8.4.1 Lockheed Martin Corporation

      2. 8.4.2 The Boeing Company

      3. 8.4.3 Raytheon Company

      4. 8.4.4 General Dynamics Corporation

      5. 8.4.5 Northrop Grumann Corporation

      6. 8.4.6 United Technologies Corporation

      7. 8.4.7 L3 Technologies Inc.

      8. 8.4.8 BAE Systems PLC

      9. 8.4.9 CACI International Inc.

      10. 8.4.10 Navistar Defense LLC

      11. 8.4.11 Textron Inc.

      12. 8.4.12 Collins Aerospace

      13. 8.4.13 Orbital ATK Inc.

      14. 8.4.14 General Electric Company

    5. *List Not Exhaustive

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