Summary

The world defense budget is estimated to be USD 2,004.7 billion in 2023 and is expected to reach USD 2,546.9 billion by 2028 at a CAGR of 4.9% from 2023 to 2028. Maintaining a modern and well-equipped military force is a critical factor driving the rise in defense budget allocation. Many countries face the challenge of outdated equipment, aging infrastructure, and the need to replace or upgrade existing assets. To ensure military readiness and effectiveness, defense budgets are directed toward the acquisition of new platforms, equipment, and technologies. This includes investments in next-generation fighter jets, naval vessels, intelligence systems, cyber defense capabilities, and personnel training. Modernization efforts aim to address capability gaps, enhance operational effectiveness, and adapt to evolving threats, leading to increased defense expenditures.

The cyber subsegment is projected to witness the highest CAGR during the forecast period.
The cyber platform is projected to grow at the highest CAGR; with the increasing reliance on digital systems and the growing threat landscape in cyberspace, governments worldwide recognize cybersecurity’s critical importance and are allocating significant resources to bolster their cyber defense capabilities. The cyber platform encompasses investments in technologies, infrastructure, and personnel training related to cybersecurity. As cyber threats become more sophisticated and pervasive, there is a pressing need to strengthen defense mechanisms, develop advanced cybersecurity tools, and enhance the resilience of critical infrastructure against cyber-attacks.

The military expense subsegment is projected to dominate the world defense budget analysis by allocation type.
In the forecast period, the military expense subsegment is anticipated to have the largest market share within the defense budget allocation market. Military expenses include personnel salaries, training, operations, equipment procurement, research and development, maintenance, and modernization of military assets. Several factors contribute to the dominance of the military expense subsegment. Firstly, maintaining a capable and well-equipped military force is a top priority for governments worldwide to ensure national security and defense preparedness. This requires significant investments in personnel, training, and the acquisition of advanced weaponry and technology.

North America is expected to account for the largest market share in 2023
North America is poised to capture the largest market share in the defense budget allocation, driven by several influential factors. Foremost among these factors is the significant defense budget of the United States, which consistently ranks as the world’s highest defense spender. The United States allocates substantial resources to maintain its military readiness, global military presence, and technological advancements. As a result, its defense spending contributes significantly to the overall market share in North America. Moreover, North America boasts a thriving defense industry and is a hub for cutting-edge technology development. The region hosts renowned defense contractors, research institutions, and aerospace companies, fostering innovation and driving defense spending. This advanced industry ecosystem enables North America to remain at the forefront of defense technologies, further solidifying its market dominance.


The break-up of the profile of primary participants in the World defense budget analysis:
• By Company Type: Tier 1 – 40%, Tier 2 – 30%, and Tier 3 – 30%
• By Designation: C Level – 30%, Director Level – 20%, Others-50%
• By Region: North America –35%, Europe – 20%, Asia Pacific – 30%, Middle East– 10%, and Latin America – 5%
Prominent countries include the US, China, India, Russia, Saudi Arabia, the UK, and France, among others.

Research Coverage:

This research report categorizes the world defense budget analysis by By Allocation Type, Departmental Allocation, Platform Allocation, System Allocation, Domain Allocation, Technology Allocation, and By Region. The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the world defense budget analysis. A detailed analysis of the critical countries has been done to provide insights into their defense overview; key strategies; Contracts, partnerships, agreements, new mergers and acquisitions, and recent developments associated with the world defense budget analysis.


Reasons to buy this report:
Analysis of key drivers (Increasing global security threats and geopolitical tensions, modernization and upgrading of military capabilities, and technological advancements in defense systems), restraints (Budget constraints and fiscal limitations, economic downturns and recessions, and shifting geopolitical dynamics and changing priorities), opportunities (Defence market expansion in emerging economies, growing demand for cybersecurity and counterterrorism capabilities, and advancements in autonomous systems and artificial intelligence), and challenges (Uncertainty and unpredictability of global security threats, rapidly evolving nature of warfare and asymmetric threats, and balancing defense spending with other social and economic priorities) influencing the growth of world defense budget analysis.

• Product Development/Innovation: Detailed insights on upcoming technologies and research & development activities in the world defense budget analysis

• Market Development: Comprehensive information about lucrative markets – the report analyses the world defense budget analysis across varied regions

• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the world defense budget analysis

• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading contractors in the world defense budget analysis