United States Defense Market Report and Forecast 2025-2034

Key Trends in the Market

Defense refers to a country’s armed forces such as the army, navy and airforce, which are responsible for military warfare and dealing with external threats. It also refers to a range of defensive activities and the utilisation of weapons such as aeroplanes, artillery guns, and tanks to combat an enemy attack.

• One of the prominent United States defense market trends is the enforcement of cyber defense solutions as well as the development of cyber warfare capabilities by the US government to protect the critical defense infrastructure against ever-growing cyberattacks.

• Increased production of advanced defense equipment such as directed energy weapons that can provide high precision attacks and high-speed travel during time-critical military threats is another crucial trend boosting the US market expansion.

• The defense sector of the country is harnessing the capabilities of AI to enhance reasoning abilities for intelligence, surveillance, and reconnaissance (ISR) missions, predict military equipment failure using real-time data, and train armed forces in AI-driven simulation.

• Favourable government incentives to promote the development of advanced armed forces also contribute to the United States defense market growth.  For example, in November 2023, the US Air Force awarded a contract of $2.3 billion to Boeing company for the production of 15 KC-46A Pegasus refuelling tankers to carry out refuelling missions around the world.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Market Analysis

Market Share by Armed Force

As per the United States defense market analysis, air force occupies a significant share of the US market, owing to the growing efforts in the upgradation and replacement of ageing aircraft. The growing integration of the latest technologies in the airforce sector also supports the segment’s growth.

For example, in December 2023, Keysight Technologies, a manufacturer of electronic equipment, gained a contract of $18.5 million for the development of Electronic Warfare Threat Simulator (EWTS) systems for the US Air Force to analyse and create high-density threat environments. Moreover, the procurement of sophisticated military aircraft by the US government offers a positive market outlook.

Market Share by Type

Weapons and ammunition account for a substantial portion of the United States defense market share, due to factors such as surging combat operations, which require an effective weapon arsenal, as well as the rising partnership between the US and other countries for the production of weapons.

Increased deployment of high-end military weapons and ammunition in the country also supports the segment’s growth. Initiatives such as the Long Range Strike Bomber (LRS-B) programme of the US government aimed towards manufacturing stealth aircraft that can drop thermonuclear weapons in enemy territory without being detected are also propelling the market expansion.

Competitive Landscape

Other United States defense market players include RTX Corporation, Thales SA, BAE Systems plc, SAAB AB, Airbus SE, Leonardo S.p.A, General Dynamics Corp., L3Harris Technologies Inc., and Huntington Ingalls Industries Inc., among others.