Leading Growth Driver in the Defense Market in 2025: Growing Adoption Of Unmanned Combat Vehicles Driver's Influence

What market dynamics are playing a key role in accelerating the growth of the defense market?
One of the significant shifts in the market is towards the use of unmanned combat vehicles. These are technologically advanced machines, or motorized vehicles, that operate without the need for human intervention. Equipped with various sensors for complete situational awareness and optical avoidance such as steering actuators, brakes, and laser scanners, these vehicles come with cutting-edge autonomous capabilities which allow them to function either remotely or independently. Their primary function is to scout the environment and relay the data back to the operator either through teleoperation or make self-sufficient decisions while managing a variety of technical difficulties. For example, as recently as November 2022, the Indian army embarked on a significant procurement spree for drones, swiftly executing purchases worth up to 3 billion rupees (roughly $36 million) per project under emergency powers. This included the tendering for a variety of equipment including 1,000 unmanned surveillance helicopters, 163 high altitude logistics drones, 750 remotely piloted aerial vehicles, and 80 miniature remotely piloted aircraft systems.

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How will the growth rate of the defense market shape industry trends by 2034?
The size of the defense market has witnessed robust expansion in recently passed years. There is a predicted increase from $491.06 billion in 2024 to $527.06 billion in 2025, indicating a compound annual growth rate (CAGR) of 7.3%. Elements contributing to this growth in historical times include enhanced usage of military drones, demand for transportation and attack helicopters, low interest rates, augmented spending on military gear, development of autonomous fighter aircraft, and rising military expenditure.

Predictions suggest substantial expansion of the defense market in the coming years, reaching $676.64 billion by 2029, with a compound annual growth rate of 6.4%. This projected growth during the given period is attributed to the initiatives of different governments, advancements in technology, escalating internal and external security concerns, continuous development in military helicopters, and progressive steps in military modernization. The forecast period also shows a trend towards adopting unmanned combat vehicles, innovative new military avionics improvements, augmented and virtual reality, incorporation of edge computing in defense, application of 3D printing technology, strategic collaborations and mergers, employment of artificial intelligence (AI) in defense amenities like drones and helicopters, upgrades in design and modularity of military-grade weapons, and the use of day/night decamouflage technology in light weapons.

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What trends are poised to drive the future success of the defense market?
The popularity of corner shot weapons is growing, largely due to the added safety benefits they provide. A corner shot weapon is a highly specialized accessory that can be fitted to firearms like a Glock, a handgun or a Beretta 92, functioning as a hinged chassis. It enables the firearm to curve around corners to strike the target, all while not compromising the safety of the soldiers. The accessory is also fitted with a bore-sighted video camera of high resolution, an LCD monitor, and a tactically integrated light for illumination and navigation purposes. These corner shot rifles or guns are extensively employed in war zones, within armored vehicles and tanks, and on top of turrets, allowing a comprehensive 360-degree coverage while ensuring the safety of the triggerman inside the vehicle. The weapon has an impressive accuracy and is effective over a range of 100 to 200 meters, although this may vary depending on the specific weapon.

Which primary segments of the defense market are driving growth and industry transformations?
The defense market covered in this report is segmented -

1) By Type: Air-Based Defense Equipment, Sea-Based Defense Equipment, Land-Based Defense Equipment, Defense Equipment Maintenance, Repair And Overhauling Services, Defense Support And Auxiliary Equipment
2) By Operation: Autonomous Defense Equipment, Manual
3) By Platform: Airborne, Land, Naval

Subsegments:
1) By Air-Based Defense Equipment: Combat Aircraft, Unmanned Aerial Vehicles (UAVs) or Drones, Air Defense Systems, Helicopters, Surveillance And Reconnaissance Aircraft
2) By Sea-Based Defense Equipment: Naval Vessels, Amphibious Assault Ships, Maritime Patrol Aircraft, Naval Weapon Systems, Mine Countermeasure Vessels
3) By Land-Based Defense Equipment: Armored Vehicles, Artillery Systems, Infantry Fighting Vehicles (IFVs), Military Trucks and Logistics Vehicles, Ground-based Missile Systems
4) By Defense Equipment Maintenance: Scheduled Maintenance, Unscheduled Maintenance, Technical Support Services, Logistics Support, Fleet Management
5) By Repair and Overhauling Services: Component Repair, Engine Overhaul, Avionics Repair, Structural Repair, Systems Integration and Testing

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Which geographical regions are pioneering growth in the defense market?
Asia-Pacific was the largest region in the defense market in 2024. Western Europe is expected to be the fastest growing region in the forecast period. The regions covered in the defense market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

Who are the influential players reshaping the defense market landscape?
Major companies operating in the defense market include Lockheed Martin Corporation, Raytheon Technologies Corporation, Northrop Grumman Corp, General Dynamics, The Boeing Company, BAE Systems plc, L3Harris Technologies, Leonardo SpA, Thales Group, Huntington Ingalls Industries Inc, Excel Laser Technology Private Limited, Acuity Laser Measurement, Prakash Laser, Infrared Optics, Kalaimakal Systems Private Limited, Baoding Triangel Rsd Electronics Technology Limited, Beijing Be-Better Technology Co., Ltd, Shanghai Zhangjiagang Baorui Machinery Co., Ltd, Guangzhou Blixun Electronics Co., Ltd, Xi'an Lonn M&E Equipment Co., Ltd, General Atomics Aeronautical Systems, Elbit Systems Ltd, AeroVironment, China South Industries Group (CSGC), China Aerospace Science and Industry Corporation (CASIC), China North Industries Group Corporation Limited (Norinco), Jilin Ruikd Medical Photoelectric Technology Co., Ltd, Changhe Aircraft Industries Corporation, Shenyang Aircraft Corporation, Babcock International, BMARC, BMT Group, CBI Explosives Industry Group, HSE explosives, Chemring Energetics UK Ltd, Orica UK Ltd, CES Advanced Composites UK Ltd, Conjay Collectors Ammunition Company Ltd, Societe Suisse des Explosifs, SSE Group, BIAZZI SA, Almaz-Antey, United Aircraft Corporation, Tactical Missiles Corporation, Russian Helicopters, Uralvagonzavod, United Shipbuilding Corporation, Advanced Composites Solutions, AEL Sistemas, Aeromot, Agrale, Airship do Brasil, Telespazio, ARSAT, Airbus SE, Saudi Arabian Military Industries (SAMI), Advanced Electronics Company, Abu Dhabi Ship Building (ADSB), DragonFly Aerospace, Armscor, Atlantis Diesel Engines, Atlas Aircraft Corporation, OneWeb

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What Is Covered In The Defense Global Market Report?

• Market Size Forecast: Examine the defense market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the defense market for a structured understanding.
• Key Players Overview: Analyze major players in the defense market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the defense market.
• Segment Contributions: Evaluate how different segments drive overall growth in the defense market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the defense market.
• Industry Challenges: Identify potential risks and obstacles affecting the defense market.
• Competitive Landscape: Review strategic developments in the defense market, including expansions, agreements, and new product launches.

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