In 2024, Poland's defense spending as a share of gross domestic product was **** percent, the highest of all NATO member states, followed by Estonia at **** percent, and then the United States at **** percent. It is a target of NATO that every member country should spend at least two percent of their GDP on defense. As of this year, it is estimated that all but eight of the alliance's 31 member states were meeting this target. The average expenditure on defense expenditure across all NATO member states was **** percent in 2024, compared with **** percent in the previous year. NATO, Trump, and the War in Ukraine Russia's full-scale invasion of Ukraine in February 2022 shook many European powers out of a creeping complacency that had set in since the end of the Cold War. It led directly to the applications of Sweden and Finland to the alliance in 2022, with the latter joining later that year. The conflict has however also underlined how Europe's security is still underpinned by American military power, with the United States the main contributor of military aid to Ukraine. Furthermore, in overall defense spending, the U.S. spends far more than the rest of NATO combined. The current Trump administration has frequently criticized NATO states that they see as taking advantage of this discrepancy, urging other members to reach and even exceed the two percent threshold. Article 5 triggered in the aftermath of 9/11 While NATO was founded with the aim of deterring the Soviet Union in the Cold War, its central defense clause "Article 5" whereby an attack on one member is considered an attack on all, has only been triggered once; after the 9/11 terrorist attacks on the United States. NATO's involvement in the subsequent War in Afghanistan was a direct result of this, with troops supporting the operation from across the alliance. Although NATO's focus drifted towards counter-insurgency, and the threat from terrorism in this period, its original purpose has become far more important recently.

In 2024, the United States spent an estimated ***** billion U.S. dollars on defense. This makes their defense budget, by far, the biggest out of all the NATO members. Germany was the country with the second-highest defense expenditure at **** billion U.S. Dollars, with the UK following in third.

The combined defense expenditure for members of NATO was approximately 1.47 trillion U.S. dollars in 2024, the highest NATO members have collectively spent on defense during the provided time period. During this time period, NATO's collective defense spending was lowest in 2015, at 895.68 billion dollars, but has increased every year since then, reaching over one trillion U.S. dollars for the first time in 2019.

Replication data for the manuscript Spending on Personnel or Equipment: panel analysis of military expenditures in the NATO countries 2005-2019

The NATO ammunition market, valued at $8.41 billion in 2025, is projected to experience steady growth, driven by escalating geopolitical tensions, increasing defense budgets among member nations, and modernization efforts across armed forces. The 3.78% CAGR indicates a consistent demand for ammunition, fueled by both routine military exercises and potential conflict scenarios. Key drivers include the ongoing need to replenish depleted stockpiles following recent conflicts, a focus on enhancing the lethality and precision of existing weapon systems through advanced ammunition technologies, and the development of next-generation ammunition incorporating smart features and improved effectiveness. Market trends show a shift towards precision-guided munitions (PGMs) and smaller-caliber ammunition that optimizes logistics and reduces collateral damage. However, restraints include fluctuating raw material prices, stringent export controls, and the increasingly complex regulatory landscape surrounding ammunition production and trade within the NATO alliance and internationally. The market is segmented by production and consumption analyses, providing insights into manufacturing capabilities and demand patterns within specific NATO nations. Import and export analyses reveal critical trade dependencies and supply chain dynamics within the alliance. Price trend analysis suggests a potential upward trajectory due to increased demand and production costs. Major players such as RUAG International, Rheinmetall, General Dynamics, and Northrop Grumman are key contributors to this market, competing through innovation, technological advancements, and strategic partnerships. The regional distribution of the NATO ammunition market is influenced by the concentration of military bases and defense manufacturing capabilities. North America and Europe are expected to dominate the market due to higher defense spending and a robust industrial base. However, regions such as the Middle East and Asia-Pacific are likely to witness increasing demand based on their growing defense budgets and regional security concerns. While specific regional market share data is not provided, it's reasonable to assume a significant portion is held by the key players' home countries in North America and Europe, with a smaller, yet growing, share in other regions. The forecast period of 2025-2033 provides a comprehensive outlook on the market's evolution, allowing stakeholders to make informed investment and strategic decisions. Detailed analysis of each segment, incorporating value and volume data, provides a nuanced understanding of the market's complexities and potential for future growth. This insightful report provides a detailed analysis of the Ammunition Market in NATO, offering a comprehensive overview of the market's dynamics, trends, and future outlook from 2019 to 2033. The study, covering the historical period (2019-2024), base year (2025), and forecast period (2025-2033), offers valuable insights for industry stakeholders, investors, and policymakers. The market is segmented by key players including RUAG International, Rheinmetall, General Dynamics, and others, analyzing production, consumption, import/export values (in millions of units), and price trends. This report is essential for understanding the complex landscape of NATO ammunition supply chains, military spending, and defense procurement. Key drivers for this market are: , Increasing Number Of Air Passengers; Use Of Portable Electronic Devices. Potential restraints include: , High Cost Of Connectivity Equipments. Notable trends are: The Medium Caliber Segment Will Showcase Remarkable Growth During the Forecast Period.

The defence budget is influenced by the ,Bundeswehrplan’, i.e. the basic plan for the German Federal Armed Forces. Generally speaking, the defence budget ranges permanently between the military requirements as concerns the armys defence mandate and the financial and economic possibilities which are politically justifiable. These considerations are the starting point for the empiric and descriptive study in hand, analysing the development and structure of Germanys defence spending since the formation of the German Federal Armed Forces. Doubtless the level of defence spending correlates with the scale and intensity of the armed forces` tasks. Hereby, the analysis focuses not only on the military aspects, but also on the political, economic, and social determinants, which influence the scale of the defence tasks and, thereby, the amount of defence spending. Furthermore, any possibility to rationalise the maintenance of the German Federal Armed Forces, which could be effected by an internal optimisation and by a privatisation of services wherever useful, are weighed up with regard to the political objective of a “Slim state”. Due to the exponential increase of costs as to any project development and procurement, armament cooperations with partner states have become necessary for the implementation of major armament projects in the face of reduced budgets and a decreasing national production. In addition, the intensive involvement of the Federal Republic of Germany in international defence structures brought about new aspects and demands, which comply with the interests of all people seaking security. However, the morality and acceptance of a future Security Policy within our society will depend essentially on the satisfaction of such need for security, and on the functions of military force hereby, applied within the scope of peace securing measures.” (Hintz, F. K., 2000: Entwicklung und Struktur bundesdeutscher Verteidigungsausgaben aus staatswirtschaftlicher Sicht [Development and Structure of the Defence Spending of the FRG under the Aspect of the National Economy]. Dissertation, University of Koblenz-Landau, abstract).

The empirical part of this study can be outlined as follows:

(1) Structure of defence budget: The defence budget includes all estimated and expectable budgetary revenues, considering the payable budget expenditures as well as the respectively required commitment authorisations, established posts, and other positions within the area of operations of the German Federal Ministry of Defence. In accordance with the vertical classification of the budget, the ‘content’ of the Single Plan No. 14 (“Einzelplan 14”, area of operations of the Federal Ministry of Defence, Bonn) is divided into single ‘chapters’. Each such chapter, in its turn, is partitioned by single ‘titles’, according to an arrangement plan for the federal budget.

2) Development of defence spending: The defence expenditures are presented by means of a level-related analysis (absolute in relation to the gross domestic product or GDP) and an analysis focused on structure. In the respective documents published by the German Federal Ministry of Defence, (non-intensive) operational expenditures are distinguished from defence-intensive expenditures. In doing so, all operational costs are classified in three categories: personnel costs, materials, and other operational costs. Accordingly, all defence-intensive expenditures are listed in four categories: research, development, and testing; military acquirements; military facilities; other investments. Finally, the expenditures are shown as per the different sections of the armed forces: army, air force, and navy.

(3) International comparison: Since there is a lack of more reliable figures about e.g. the member states of the Warsaw Treaty Organization, this international comparison is limited to the NATO states. The NATO defines the term “defence expenditure” as “the national governmentsexpenditures which are exclusively intended for the countries armed forces”; in terms of the NATO regulations, this is a binding definition. Furthermore, the North Atlantic Treaty Organization has developed standardised criteria in this regard. Hereby the German defence expenditures are differentiated. Apart from the above-mentioned “Single Plan No. 14”, which comprises approximately 80% of the defence spending as accounted for by the NATO, also other expenses on the part of the German federal government are i...

NATO Ammunition Market Outlook

The global NATO ammunition market size was valued at approximately USD 10.2 billion in 2023 and is projected to reach around USD 14.8 billion by 2032, growing at a CAGR of 4.2% during the forecast period. The market's growth is predominantly driven by increasing defense expenditures, geopolitical tensions, and technological advancements in ammunition production.

One of the primary growth factors for the NATO ammunition market is the rising defense budgets across various nations, particularly among NATO member countries. As geopolitical tensions rise, countries are allocating more resources to bolster their military capabilities, which includes the procurement of advanced ammunition. The escalating conflicts and security threats in various parts of the world necessitate advanced, reliable, and efficient ammunition, further driving the market's growth.

Technological advancements in ammunition manufacturing and design have also significantly contributed to the market's expansion. Innovations such as smart ammunition, which includes guided munitions with enhanced accuracy, and environmentally friendly ammunition, which reduces environmental impact, are becoming increasingly adopted. These advancements not only improve the effectiveness of military operations but also cater to the growing environmental concerns associated with traditional ammunition.

Additionally, the increasing focus on modernization programs within military forces globally is a key driver of market growth. Many countries are investing in the modernization of their military equipment and arsenals, including the procurement of new types of ammunition. This trend is supported by government initiatives and funding aimed at enhancing national security and defense capabilities, thereby positively impacting the NATO ammunition market.

The integration of an Ammunition Handling System is becoming increasingly important in modern military operations. These systems are designed to enhance the efficiency and safety of ammunition storage, transportation, and loading processes. By automating many of the manual tasks associated with ammunition handling, these systems reduce the risk of accidents and improve the speed of ammunition deployment. This is particularly crucial in high-stakes environments where time and precision are of the essence. As military forces seek to streamline their operations and enhance combat readiness, the demand for advanced ammunition handling systems is expected to rise, further driving the growth of the NATO ammunition market.

The regional outlook for the NATO ammunition market highlights significant growth potential in North America and Europe, driven by the high defense budgets and technological advancements in these regions. The United States, a prominent member of NATO, continuously invests in modernizing its military infrastructure, including ammunition. Similarly, European countries are also ramping up their defense spending in response to regional security challenges, thus bolstering the market growth in this region.

Type Analysis

The NATO ammunition market can be segmented by type into small caliber ammunition, medium caliber ammunition, and large caliber ammunition. Small caliber ammunition, which includes rounds such as 5.56mm and 7.62mm, is widely used in small arms and light weapons. This segment is expected to witness significant growth due to the high demand from military and law enforcement agencies for training and operational purposes. The versatility and effectiveness of small caliber ammunition make it a staple in various defense and security applications.

Medium caliber ammunition, typically ranging from 20mm to 40mm, is used in a variety of applications including vehicle-mounted weapon systems and anti-aircraft guns. The demand for medium caliber ammunition is driven by the need for reliable and powerful ammunition that can be used in diverse combat scenarios. This type of ammunition is crucial for engaging both ground and air targets, making it an essential component of modern military arsenals.

Large caliber ammunition, which includes artillery shells and tank rounds, is vital for heavy weaponry and large-scale military operations. The increasing focus on enhancing artillery capabilities and the need for long-range, high-impact ammunition are key factors driving the growth of this segment. Large caliber amm

The NATO C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) market is experiencing robust growth, driven by increasing geopolitical instability and the need for enhanced interoperability and situational awareness among member nations. The market, estimated at $XX million in 2025, is projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 3% through 2033. This expansion is fueled by several key factors. Firstly, modernization initiatives across NATO forces are pushing demand for advanced C4ISR systems capable of integrating diverse data sources and platforms. Secondly, the rising threat of cyber warfare and asymmetric conflicts necessitates sophisticated cybersecurity measures and resilient communication networks, boosting investment in this sector. Furthermore, the development and adoption of artificial intelligence (AI) and machine learning (ML) technologies are enhancing the analytical capabilities of C4ISR systems, leading to improved decision-making and quicker response times. Finally, the increasing focus on joint operations and multinational exercises further fuels the demand for seamless interoperability between different national systems within the NATO framework. Regional variations are evident, with North America (primarily the United States) and Western Europe (the United Kingdom, France, Germany, Italy, and Spain) comprising the largest market shares due to their significant defense budgets and advanced technological capabilities. However, growth is also anticipated in other NATO countries as they strive to enhance their defense capabilities and integrate with the broader NATO C4ISR architecture. While budgetary constraints and the complexity of integrating legacy systems could pose challenges, the strategic importance of C4ISR to NATO's collective security will likely offset these restraints, ensuring sustained market growth in the forecast period. Key players like Lockheed Martin, Northrop Grumman, BAE Systems, and Thales are actively involved in developing and supplying cutting-edge C4ISR solutions, shaping the competitive landscape and driving innovation in the market. Notable trends are: Air Segment To Exhibit a Significant Growth Rate During The Forecast Period.

United Kingdom UK: Military Expenditure as % of General Government Expenditure data was reported at 4.658 % in 2017. This records a decrease from the previous number of 4.676 % for 2016. United Kingdom UK: Military Expenditure as % of General Government Expenditure data is updated yearly, averaging 6.272 % from Dec 1988 (Median) to 2017, with 30 observations. The data reached an all-time high of 10.176 % in 1988 and a record low of 4.658 % in 2017. United Kingdom UK: Military Expenditure as % of General Government Expenditure data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

The NATO Ammunition Market, valued at $727.92 million in 2025, is projected to experience robust growth, driven by increasing geopolitical instability and the consequent rise in defense spending across NATO member states. The market's Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033 indicates a steady expansion, fueled by modernization efforts within armed forces and a growing demand for advanced ammunition technologies. Key drivers include the escalating need for precision-guided munitions, the development of next-generation ammunition with enhanced lethality and range, and the continuous investment in research and development to improve ammunition effectiveness and safety. Market segmentation reveals significant regional variations, with North America and Europe anticipated to hold substantial market shares, owing to their significant defense budgets and robust military infrastructure. However, the Asia-Pacific region is expected to demonstrate considerable growth potential, driven by increasing defense modernization initiatives and escalating geopolitical tensions in the area. Competitive dynamics are shaped by the presence of established industry players like BAE Systems, General Dynamics, and Rheinmetall, alongside other prominent companies continuously striving for innovation and market expansion. The market's growth trajectory is influenced by several factors. Restraints include fluctuating global economic conditions, potentially impacting defense spending. Furthermore, stringent regulations surrounding ammunition production and disposal pose challenges for market participants. Nevertheless, technological advancements in areas like smart munitions and the increasing adoption of environmentally friendly ammunition production methods offer significant opportunities for future growth. The market's regional breakdown reflects the strategic importance of NATO's geographical positioning; regions experiencing geopolitical instability are likely to exhibit higher demand for ammunition. This necessitates manufacturers to adopt agile supply chain management strategies to meet fluctuating demand and ensure timely delivery to crucial locations. The competitive landscape will likely remain highly consolidated, with larger players leveraging their technological advantages and global reach to maintain their market positions.

United States US: Military Expenditure: % of GDP data was reported at 3.149 % in 2017. This records a decrease from the previous number of 3.222 % for 2016. United States US: Military Expenditure: % of GDP data is updated yearly, averaging 4.864 % from Sep 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 9.063 % in 1967 and a record low of 2.908 % in 1999. United States US: Military Expenditure: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

Denmark DK: Military Expenditure: % of GDP data was reported at 1.174 % in 2017. This records an increase from the previous number of 1.172 % for 2016. Denmark DK: Military Expenditure: % of GDP data is updated yearly, averaging 1.965 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 3.042 % in 1963 and a record low of 1.116 % in 2015. Denmark DK: Military Expenditure: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Denmark – Table DK.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

United States US: Military Expenditure: % of Central Government Expenditure data was reported at 8.807 % in 2017. This records a decrease from the previous number of 9.042 % for 2016. United States US: Military Expenditure: % of Central Government Expenditure data is updated yearly, averaging 11.141 % from Sep 2001 (Median) to 2017, with 17 observations. The data reached an all-time high of 11.769 % in 2011 and a record low of 8.807 % in 2017. United States US: Military Expenditure: % of Central Government Expenditure data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.); ; Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.; Weighted average; Data for some countries are based on partial or uncertain data or rough estimates.

UAE military spending/defense budget for 2014 was 22.76 billion US dollars, a 3.42% decline from 2013.

<ul style='margin-top:20px;'>

<li>UAE military spending/defense budget for 2013 was <strong>23.56 billion US dollars</strong>, a <strong>23.85% increase</strong> from 2012.</li>
<li>UAE military spending/defense budget for 2012 was <strong>19.02 billion US dollars</strong>, a <strong>0.82% decline</strong> from 2011.</li>
<li>UAE military spending/defense budget for 2011 was <strong>19.18 billion US dollars</strong>, a <strong>9.58% increase</strong> from 2010.</li>
</ul>Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country).

Anti-Radiation Missile Market Outlook

The global anti-radiation missile market size is projected to grow from USD 1.5 billion in 2023 to USD 3.2 billion by 2032, exhibiting a CAGR of 8.5% during the forecast period. The significant growth in this market is primarily driven by increasing defense budgets across various countries, technological advancements in missile guidance systems, and the rising need for precision strike capabilities against radar-equipped targets.

One of the major growth factors for the anti-radiation missile market is the increasing global defense expenditure. Countries in both developed and developing regions are ramping up their military budgets to enhance their defense capabilities. The allocation of funds towards advanced weapon systems, including anti-radiation missiles, is a reflection of the growing acknowledgment of modern warfare's complexity and the necessity for advanced countermeasure tools. Nations are increasingly focusing on acquiring high-tech offensive and defensive systems to ensure national security and maintain strategic superiority, which in turn is boosting the demand for anti-radiation missiles.

Technological advancements in missile guidance systems have also played a pivotal role in the growth of the anti-radiation missile market. Innovations such as GPS/INS (Global Positioning System/Inertial Navigation System) integration, passive and active radar homing capabilities, and enhanced electronic counter-countermeasures (ECCM) have significantly improved the precision, reliability, and effectiveness of anti-radiation missiles. These technological improvements allow for more accurate targeting and destruction of radar-equipped enemy systems, thereby increasing the strategic value of these missiles in modern combat scenarios.

Additionally, the increasing need for precision strike capabilities is driving the market for anti-radiation missiles. As warfare dynamics evolve, there is a growing emphasis on minimizing collateral damage while ensuring the destruction of critical enemy systems, such as radar installations. Anti-radiation missiles are specifically designed to home in on and neutralize radar sources, thus playing a crucial role in achieving precision strikes. This capability is particularly valuable in modern combat environments where stealth and accuracy are paramount, further propelling the demand for these advanced weapon systems.

From a regional perspective, North America holds a substantial share of the anti-radiation missile market, largely due to the United States' extensive defense budget and continuous investments in advanced military technologies. Europe is also expected to witness significant growth, driven by increased defense spending and modernization programs among NATO countries. Meanwhile, the Asia Pacific region is anticipated to be the fastest-growing market, with countries such as China and India significantly ramping up their defense capabilities in response to regional security challenges.

Type Analysis

The anti-radiation missile market can be segmented by type into air-to-ground, surface-to-surface, and surface-to-air missiles. Each type serves distinct purposes and is optimized for specific combat scenarios. Air-to-ground anti-radiation missiles are designed for deployment from aircraft, targeting enemy radar installations on the ground. These missiles are often favored for their ability to be launched from high-speed, high-altitude platforms, allowing for rapid and precise strikes. The increasing deployment of air-to-ground missiles is driven by their effectiveness in suppressing enemy air defenses (SEAD) and ensuring air superiority in conflict zones.

Surface-to-surface anti-radiation missiles, on the other hand, are launched from ground-based platforms and are used to target and destroy enemy radar systems that are also ground-based. These missiles are crucial for land forces to weaken or disable enemy radar capabilities, thereby reducing the threat of guided missile attacks and facilitating safer maneuvering of ground troops. The demand for surface-to-surface missiles is particularly high in regions with active land-based military operations, as they provide a strategic advantage in controlling the battlefield.

Surface-to-air anti-radiation missiles are designed to be launched from ground-based platforms with the objective of neutralizing airborne radar systems, including those used by enemy aircraft and drones. These missiles play a critical role in air defense strategies, allowing armed forces to protect their airspace from radar-guided t

Cyprus CY: Military Expenditure: % of GDP data was reported at 1.825 % in 2023. This records an increase from the previous number of 1.823 % for 2022. Cyprus CY: Military Expenditure: % of GDP data is updated yearly, averaging 1.920 % from Dec 1985 (Median) to 2023, with 39 observations. The data reached an all-time high of 9.129 % in 1992 and a record low of 1.270 % in 1985. Cyprus CY: Military Expenditure: % of GDP data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Cyprus – Table CY.World Bank.WDI: Defense and Official Development Assistance. Military expenditures data from SIPRI are derived from the NATO definition, which includes all current and capital expenditures on the armed forces, including peacekeeping forces; defense ministries and other government agencies engaged in defense projects; paramilitary forces, if these are judged to be trained and equipped for military operations; and military space activities. Such expenditures include military and civil personnel, including retirement pensions of military personnel and social services for personnel; operation and maintenance; procurement; military research and development; and military aid (in the military expenditures of the donor country). Excluded are civil defense and current expenditures for previous military activities, such as for veterans' benefits, demobilization, conversion, and destruction of weapons. This definition cannot be applied for all countries, however, since that would require much more detailed information than is available about what is included in military budgets and off-budget military expenditure items. (For example, military budgets might or might not cover civil defense, reserves and auxiliary forces, police and paramilitary forces, dual-purpose forces such as military and civilian police, military grants in kind, pensions for military personnel, and social security contributions paid by one part of government to another.);Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security.;Weighted average;Data for some countries are based on partial or uncertain data or rough estimates.

The Military Aircraft Modernization and Retrofit Market, valued at $52.33 billion in 2025, exhibits a modest CAGR of 0.04%. This seemingly low growth rate masks significant underlying dynamism. While the overall market expansion is slow, driven by factors such as budget constraints and the maturation of existing aircraft fleets, strong growth pockets exist within specific segments and regions. Key drivers include the increasing need to extend the service life of aging aircraft, incorporating advanced technologies like improved avionics, sensors, and weaponry to maintain operational effectiveness against evolving threats. Furthermore, the rising demand for enhanced situational awareness and improved communication systems fuels the retrofitting of existing military aircraft. However, the market faces restraints including high modernization costs, technological obsolescence of older platforms making some retrofits impractical, and the competing demands for defense budgets. The market is segmented by production and consumption analysis, offering insights into manufacturing capacity and end-user demand across different geographical regions. Import and export analyses provide valuable data on global trade flows within the industry, further indicating areas of high growth potential and supply chain dependencies. Price trend analysis within these segments can identify areas of cost pressures and opportunities for cost savings through innovative retrofit solutions. The leading players, including L3Harris Technologies Inc, Safran, Honeywell International Inc, and others, are actively engaged in developing and supplying advanced modernization and retrofit solutions, intensifying competition and driving innovation. Regional analysis reveals varying market dynamics. North America, particularly the United States, remains a dominant force, driven by a large existing fleet of military aircraft requiring modernization. Europe also presents a significant market due to ongoing investments in upgrading aging fleets within NATO and national air forces. The Asia-Pacific region exhibits substantial growth potential fueled by increasing military spending and the modernization of air forces in countries like China and India. However, the Middle East and Africa, while exhibiting less growth compared to other regions, present niche opportunities in specific countries with modernization programs for their existing fleets. This segmentation underscores the importance of a tailored strategy that considers the specific needs and priorities of each region. The forecast period of 2025-2033 promises further evolution, with increased focus on digital technologies, artificial intelligence, and cybersecurity integration within military aircraft, creating new opportunities for market players. This report provides a detailed analysis of the Military Aircraft Modernization and Retrofit Market, encompassing the period from 2019 to 2033. It offers in-depth insights into market dynamics, key players, technological advancements, and future growth prospects. The report leverages data from the base year 2025, with estimations for 2025 and forecasts spanning 2025-2033, using historical data from 2019-2024. This comprehensive study is crucial for stakeholders seeking to understand the evolving landscape of military aircraft upgrades and retrofits, including manufacturers, government agencies, and investors. The report analyzes the market in millions of USD. Recent developments include: June 2023: Following the announcement of the qualification of the combat aircraft to the F4.1 standard in March 2023, DGA, the French procurement agency, proceeded with retrofitting the Dassault Rafale for the Block 4.2 standard. The contract for upgrading the Rafale to the F4 standard had been granted to Dassault Aviation in 2019 under a USD 2.04 billion development contract., March 2022: Lockheed Martin Corporation's LMT business segment, Aeronautics, received a modification contract from the Air Force Life Cycle Management Center, Wright-Patterson Air Force Base, OH, for providing F-16 retrofits. The value of the contract was USD 33.6 million. Under the contract, the company would offer the Kapton replacement harness installation, harness one-time inspections, and aircraft mod line extension of 140 Taiwan F-16A/B aircraft.. Key drivers for this market are: , Increasing Number Of Air Passengers; Use Of Portable Electronic Devices. Potential restraints include: , High Cost Of Connectivity Equipments. Notable trends are: Fixed-Wing Aircraft Segment Holds Highest Shares in the Market.

Armoured Fighting Vehicles Market Outlook

As of 2023, the global armoured fighting vehicles (AFV) market size is estimated to be valued at approximately $32 billion, with a projected compound annual growth rate (CAGR) of 4.5% from 2024 to 2032. By 2032, the market size is anticipated to reach around $47 billion. The growth of this market is driven by increased defense spending and modernization programs aimed at enhancing military capabilities globally. The need for improved survivability, mobility, and firepower for military forces further fuels the demand for advanced armoured fighting vehicles, as geopolitical tensions and asymmetric warfare continue to persist across various regions.

The primary growth driver in the armoured fighting vehicles market is the escalating defense budgets of nations worldwide. With global defense spending at an all-time high, countries are investing heavily in the modernization of their military fleets, including the procurement of new-generation armoured fighting vehicles. This trend is especially noticeable in countries facing security challenges or those with aspirations of enhancing their geopolitical influence. Furthermore, technological advancements play a crucial role in shaping the demand for armoured vehicles. The integration of cutting-edge technologies such as artificial intelligence, autonomous systems, and advanced weaponry into these vehicles is making them more effective and efficient, thereby increasing their attractiveness to military forces. This technological evolution not only enhances the operational capabilities of armoured fighting vehicles but also ensures their relevance in modern warfare scenarios.

Another significant factor contributing to the growth of the AFV market is the increasing emphasis on homeland security and counter-terrorism efforts. Governments and law enforcement agencies worldwide are prioritizing the acquisition of armoured vehicles to bolster their capabilities in addressing internal security threats. These vehicles are essential in providing protection to personnel while maintaining the ability to respond effectively to various security challenges, including urban warfare, riot control, and border security operations. As the nature of threats evolves and becomes more complex, the demand for versatile and adaptable armoured fighting vehicles continues to rise. Additionally, the adoption of armoured vehicles by non-military sectors such as private security firms further diversifies the market demand.

Regional outlook for the armoured fighting vehicles market indicates significant growth across various geographies. North America, led by the United States, remains a dominant player due to its substantial defense budget and continuous investments in military modernization programs. Europe is experiencing a resurgence in defense spending, driven by regional security concerns and commitments to NATO. The Asia Pacific region is anticipated to witness the highest growth rate, propelled by rising tensions in the South China Sea, border disputes, and the need for military upgrades in countries like China, India, and Japan. Meanwhile, the Middle East and Africa are also increasing their procurement of armoured vehicles due to ongoing conflicts and the necessity to combat insurgency threats. Latin America's growth is relatively moderate but is expected to pick up as governments focus on strengthening their defense capabilities.

Vehicle Type Analysis

The vehicle type segment in the armoured fighting vehicles market is categorized into main battle tanks, infantry fighting vehicles, armoured personnel carriers, and others. Main battle tanks (MBTs) continue to hold a significant share due to their critical role in offensive operations and battlefield dominance. These heavily armoured and powerfully armed vehicles are undergoing continuous upgrades to enhance their lethality, survivability, and mobility. The modernization of aging fleets and the development of next-generation MBTs are driving substantial investments in this segment. Key manufacturers are focusing on incorporating advanced armor technologies, active protection systems, and remote weapon stations to meet the evolving requirements of modern warfare.

Infantry fighting vehicles (IFVs) are witnessing growing demand due to their versatility and ability to support mechanized infantry operations. These vehicles provide a balance between firepower, protection, and mobility, making them essential for various military operations, including urban warfare and counter-insurgency. The integration of improved communication systems, enhanced situational awareness, and upgraded armament systems

Space vehicle and missile manufacturers, which develop and manufacture missiles, rockets, spacecraft and related equipment and components, have faced heavy volatility through the current period. Since the US government, particularly the Department of Defense (DOD) and NASA, accounts for the majority of spending on missile and space products, performance closely correlates with government spending levels. Historically, when Congressional attempts to rein in spending, funding sharply declines. Even so, rising global tensions have led to surging domestic and international defense spending. Companies have generally benefited from increased sales of Patriot systems and similar products to NATO and other foreign allies and interests. Revenue has climbed at an expected CAGR of 2.1% to $44.1 billion through the current period, including a 2.1% jump in 2025 where profit reached 7.3% of revenue. The industry's commercial space activity has increased. NASA has implemented several programs designed to increase commercial participation and competition in space flight. For example, the agency has encouraged commercial space vehicle development from SpaceX, Northrop Grumman, Boeing and Sierra Nevada through freight and crew supply mission contracts to the International Space Station. In addition to government-backed commercial spaceflight programs, other private companies have entered the space market, including Virgin Galactic, Blue Origin LLC and companies that focus on launching smaller satellites. Supply chain disruptions have also influenced revenue and profit potential. Shortages and higher costs have contributed to longer lead times, delays and volatile profit as companies struggled to meet contract parameters and maintain production schedules. Disruptions have been especially pronounced in defense markets, where companies are beholden to various protectionist policies, like Buy American regulations. On the other hand, Buy American regulations have limited the impact of input tariffs. The necessity of US defense goods has also prevented these products from being targeted by retaliatory tariffs. The industry will expand at an expected CAGR of 2.5% to $50.0 billion through the outlook period. During the period, non-NATO defense spending alongside research and development spending will balloon, contributing to solid growth. High tensions, especially in the Middle East, Russia and China, will also contribute to more available defense contracts. The industry's space segment will also continue the rapid development of new products, particularly as the US Space Force expands and the commercial space tourism industry grows. The Artemis program will also massively spur space spending, encouraging companies to consolidate and invest in new technologies to acquire lucrative contracts.

As a share of gross domestic product (GDP), Ukraine spent more on its military than any other country in 2023, reaching 37 percent of the country's GDP. The high figure is due to the country being invaded by Russia in February 2022. Algeria and Saudi Arabia followed behind.Leading military spending countriesIn gross terms, the countries with the highest military spending are the United States, China, and Russia. However, these are countries with large populations and GDPs, and smaller countries usually cannot compete alone, regardless of how much they invest. For this reason, they form alliances such as the North Atlantic Treaty Organization (NATO). NATO countries aim to pool two percent of their GDP towards their own militaries and to aid each other in case of war. Regional differencesThe past decade has seen an increase in global military spending. This has not been distributed evenly. That period saw large positive changes in military spending from several Asian countries, including a large increase from China. While this does not reflect the number of active conflicts, it reflects growing tensions in global affairs.