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Defense Budget Analysis Market Size to Reach $2575.12 Billion by 2029 | Growth at 5.4% CAGR Forecast
Defense Budget Analysis
What is the Projected Market Size of the Defense Budget Analysis Industry?
Remarkable growth has been seen in the defense budget analysis market size in the past few years. It is projected to expand from $1980.33 billion in 2024 to $2084.03 billion in 2025, showing a compound annual growth rate (CAGR) of 5.2%. The expansion during the historic period can be credited to the mounting demand for sophisticated data management solutions, a surging focus on unmanned solutions, escalating global disputes, an increase in occurrences of armed conflicts, and heightened global security threats.
What Will Be the Size of the Defense Budget Analysis Market by 2029?
The market size for defense budget analysis is projected to witness impressive expansion in the coming years, increasing to the value of $2575.12 billion by 2029, with a CAGR of 5.4%. This growth over the predicted period can be ascribed to elements such as escalating geopolitical discord, modernization initiatives in military sector, rising demand for cutting-edge defense technologies, an upsurge in the threats to cybersecurity, and the growing utilization of cloud computing. Notable trends anticipated in this period include advanced armament, the integration of artificial intelligence and cybersecurity into defense structures, strategic alliances, sophisticated weaponry and defense systems, as well as increased investments in research and development tasks.
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What Are the Key Drivers Accelerating Growth in the Defense Budget Analysis Market?
The growth of the defense budget analysis market is projected to accelerate in the face of mounting geopolitical tensions. These tensions stem from conflicts or intense rivalry among nations or regions, sparked by political, economic, or military dynamics. As nations strive to secure strategic resources such as energy, minerals, and technology which are crucial for their economic and military superiority, geopolitical tensions escalate. This race for dominance triggers conflicts, engenders trade disagreements, and undermines regional stability. The purpose of defense budget analysis is to evaluate military capacities and strategic priorities, playing a significant role in dictating power dynamics and in turn, intensifying geopolitical tensions. For example, the Global Terrorism Index documented a substantial hike in terrorism-related fatalities to 8,352 in 2023, a 22% increase compared to the previous year. This research was performed by the Australia-based Institute for Economics & Peace, a renowned think tank involved in research and education. Not only did the number of fatalities increase, but the severity of attacks also saw a surge from 1.6 to an average of 2.5 deaths per attack in the same review period. These mounting geopolitical tensions hence are instrumental in propelling the growth of the defense budget analysis market.
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How Is the Defense Budget Analysis Market Segmented by Type, Application, and Region?
The defense budget analysis market covered in this report is segmented -
1) By Allocation Type: Military Expense, Admin Expense
2) By Technology Allocation: Advanced, Conventional
3) By System Allocation: Electronics, Armaments
4) By Sales Allocation: Foreign Military Expense Sales, Indigenous Sales
5) By Platform Allocation: Land, Airborne, Naval, Space, Cyber
Subsegments:
1) By Military Expense: Procurement And Acquisition, Research And Development (R&D), Operations And Maintenance, Personnel And Salaries, Infrastructure And Facilities
2) By Admin Expense: Logistics And Support Services, Training And Education, Healthcare And Welfare Programs, IT And Communication Systems, Miscellaneous Administrative Costs
What Are the Key Trends Driving Growth in the Defense Budget Analysis Market?
Leading firms in the defense budget analysis market are turning their focus towards technological advancements like AI accelerators to improve data-led decision-making and operational effectiveness. An AI accelerator is either a specialized piece of hardware or software created to optimize AI-inflicted data processing and decision-making. To illustrate, Thales SA, an aerospace and defense enterprise from France, launched cortAIx in February 2025. This AI accelerator is developed to deliver secure data analysis and decision-making solutions for armed forces, aircraft manufacturers, and operators of critical infrastructure. This endeavor is intended to increase AI-driven abilities, aiding the function of advanced systems and sensors in constrained environments. This effort is in line with the UK government's AI opportunities action scheme, augmenting the AI-inflicted defense capabilities.
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Who Are the Leading Companies Driving Growth in the Defense Budget Analysis Market?
Major companies operating in the defense budget analysis market are RTX Corporation, The Boeing Company, Lockheed Martin Corporation, International Business Machines Corporation (IBM), Northrop Grumman Corporation, Mitsubishi Heavy Industries Ltd., BAE Systems plc, Safran S.A., Thales S.A., Boston Consulting Group Inc., Science Applications International Corporation (SAIC), CACI International Inc., Dassault Systèmes SE, Hexagon AB, Blue Yonder Group Inc., Palantir Technologies Inc., TT Electronics plc, Mistral Solutions Pvt. Ltd., Lumivero LLC, Decision Lens Inc.
Which Is the Leading Region in the Global Defense Budget Analysis Market?
North America was the largest region in the defense budget analysis market in 2024. The regions covered in the defense budget analysis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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