Aerospace Industry Today

Defense Science and Technology Research Market Size Valued at USD 32.9 Billion in 2025, Projected to Reach USD 45.3 Billion by 2035, Exhibiting a CAGR of 3.3% | Forecast (2025–2035)

The global defence science & technology research market, valued at USD 31.9 billion in 2024, is set to grow at a CAGR of roughly 3.3 % to reach USD 45.3 billion by 2035.
Published 11 November 2025

Market Overview

In an era of evolving threats and complex geopolitical landscapes, the global Defense Science and Technology Research Market —spanning electronics, materials science, artificial intelligence, cyber-security and weapon systems—is gaining critical strategic importance. According to a recent report by Wise Guy Reports, the market was valued at USD 31.9 billion in 2024 and is expected to grow to USD 32.9 billion in 2025, ultimately reaching USD 45.3 billion by 2035, at a compound annual growth rate (CAGR) of approximately 3.3 % for the period 2025-2035.

The defence science and technology research market encompasses a wide array of R&D activities funded by governments, private sector and public-private partnerships. It covers research areas such as electronics (valued at around USD 8 billion in 2024 for that segment alone) and is driven by growing national security imperatives. Regionally, North America remains dominant, with Europe and Asia-Pacific emerging as significant growth zones amid rising defence expenditures and technological modernization.

Growth Factors

Several forces are underpinning the growth of this sector:

  • Rising defence expenditure – As nations respond to shifts in strategic balance, budgets for research into advanced defence capabilities are increasing.
  • Technological advancement and threat evolution – The advancement of AI, autonomous systems, cyber-security tools and unmanned platforms is reshaping how research is directed and funded.
  • Modernization programmes – Armed forces globally are moving to update legacy systems, requiring new research into materials, electronics and weapon systems.
  • Collaborative funding models – Public-private partnerships and dual-use research (civilian + military) are becoming more common, expanding the scope of research investment.

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Key Companies Profiled:

Raytheon Technologies, Lockheed Martin, Leonardo, Rockwell Collins, General Dynamics, HII, Mitre Corporation, Thales Group, BAE Systems Applied Intelligence, Elbit Systems, Northrop Grumman, L3Harris Technologies, Honeywell, Institute for Defense Analyses, Saab, BAE Systems

Key Trends and Opportunities

Within the broader market, several trends stand out:

  • Electronics research maintains leadership – Within the research-area segmentation, electronics was valued at around USD 8 billion in 2024 and is projected to grow to roughly USD 11 billion by 2035.
  • Cyber-security and AI ascendancy – As digital threats and autonomous operations proliferate, research into cyber-defence, machine learning, simulation and modelling is accelerating.
  • Regional shifts – North America remains the largest market (ca. USD 12 billion in 2024) while Asia-Pacific is rapidly rising, driven by regional security concerns and increased defence budgets.
  • Dual-use and sustainability – Research programmes increasingly target technologies that serve both defence and civilian applications, as well as sustainability objectives within military operations.
  • Testing, prototyping, simulation demand – Application segments such as simulation & modelling, data analysis, prototyping, and testing & evaluation are seeing growing investment as research moves from concept to deployment.

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Future Outlook

Looking ahead, the market’s steady expansion at ~3.3 % CAGR suggests measured but reliable growth rather than explosive leaps. Key implications include:

  • Defence-technology providers will need to focus on incremental enhancements as much as disruptive leaps—optimising cost, reliability and integration.
  • Nations and industry players that can combine AI, cyber-resilience and autonomous systems are in strong position to capture value.
  • Emerging markets in Asia-Pacific, Latin America, Middle East & Africa will increasingly matter—especially if geopolitical tensions intensify.
  • Research funding models will continue evolving: hybrid public–private schemes, international collaboration and dual-use innovation will shape winners.
  • For investors and stakeholders, the message is clear: this is a stable, strategically-critical market—not a rapid-fire boom—so long-term positioning, partnerships and innovation pipelines will matter most.

Conclusion

The defence science and technology research market is a vital backbone of national security and defence-industry innovation. With a base size of USD 31.9 billion in 2024, projected growth to USD 45.3 billion by 2035 and a CAGR of roughly 3.3 %, the sector offers both strategic relevance and steady growth potential. As technologies evolve—from AI and cyber-security to autonomous systems and new materials—organisations that can align research, funding and real-world defence missions will be best placed to lead. The evolving regional dynamics and funding models further emphasise that future success will depend on global cooperation, scale and innovation agility.

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Table of Contents

  • Executive Summary
  • Market Introduction
  • Market Dynamics
  • Market Segmentation
  • Regional Analysis
  • Competitive Landscape
  • Future Outlook
  • Conclusion
  • Appendix

Explore our Global Report in Regional Languages

防衛科学技術研究市場  | Markt für Verteidigungswissenschaft und -technologieforschung  | Marché de la recherche en sciences et technologies de défense  | 국방과학기술연구시장  | 国防科技研究市场  | Mercado de investigación en ciencia y tecnología de defensa

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