The military platforms market is poised for significant growth, driven by escalating geopolitical tensions and a surge in defence spending. Projections indicate the market will expand from USD 49.87 billion in 2024 to USD 84.41 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.8%. This growth is underpinned by a global push to modernise air, land, and naval platforms, with a particular emphasis on integrating artificial intelligence (AI), machine learning, and robotics to enhance operational efficiency and mission capabilities.
The rise of unmanned and autonomous systems is reshaping the battlefield, reducing human risk and extending mission durations. These advancements are not only improving operational effectiveness but also redefining the strategic landscape of modern warfare. As nations prioritise technological superiority, the demand for cutting-edge military platforms is set to accelerate, particularly in regions where defence budgets are expanding.
Recent developments highlight the dynamic nature of the sector. Russia’s decision to restrict voice calls on Telegram and WhatsApp, citing non-compliance with legal obligations, underscores the broader geopolitical shifts influencing digital sovereignty and communication security. Meanwhile, Joby Aviation’s collaboration with L3Harris Technologies to develop a hybrid electric vertical takeoff and landing (eVTOL) aircraft for military applications signals a growing trend towards sustainable and versatile defence solutions. The aircraft, designed for contested logistics and intelligence, surveillance, and reconnaissance (ISR) missions, exemplifies the industry’s shift towards autonomous and adaptable platforms.
North America remains at the forefront of military platform modernisation, with the U.S. and Canada leading the charge. Elbit Systems reported a 13% year-over-year increase in its order backlog for Q2 2025, reflecting robust demand for advanced defence technologies. Similarly, V2X secured a $4.3 billion contract with the U.S. Air Force to support T-6 aircraft, demonstrating the sector’s financial resilience and growth potential.
Europe is also ramping up its defence initiatives. Germany’s historic €400 billion defence spending plan, the largest since World War II, underscores the continent’s commitment to rearmament and technological advancement. Meanwhile, Japan is emerging as a significant arms exporter, with Mitsubishi Heavy Industries securing a $6.5 billion contract to supply frigates to Australia. This marks the company’s first international sale of a complete defence platform since World War II, highlighting the globalisation of defence procurement.
In India, efforts to achieve defence self-reliance are gaining momentum. Hindustan Aeronautics Limited (HAL) and other Defence Public Sector Units (DPSUs) are strengthening the aerospace and defence manufacturing ecosystem. Reliance Infrastructure has also secured major defence contracts, including a ₹20,000 crore deal with a U.S. firm for servicing Indian jets and helicopters, and a ₹600 crore export order from Germany’s Rheinmetall. These developments underscore the strategic importance of indigenous manufacturing and international partnerships in the defence sector.
Key market opportunities include the integration of AI and robotics to enhance platform capabilities, investment in domestic manufacturing to reduce reliance on foreign suppliers, and strategic partnerships between nations and defence contractors. These collaborations are fostering innovation and expanding market reach, positioning the military platforms market for sustained growth.
The sector is also witnessing significant merger and acquisition (M&A) activity. In July 2025, Chesapeake Technology International Corp. (CTI), a portfolio company of Bluestone Investment Partners, was acquired by Parsons Corporation for $89 million. CTI specialises in advanced simulation and modelling solutions for defence applications. In June 2025, Thyssenkrupp announced plans to spin off 49% of its defence division, Thyssenkrupp Marine Systems (TKMS), through a listing scheduled for later in the year. TKMS manufactures frigates, submarines, and advanced sensor technologies. Additionally, Porsche SE, through its holding company, is seeking partnerships with German family offices to invest in emerging defence technology companies.
As the military platforms market evolves, the interplay between technological innovation, geopolitical dynamics, and strategic alliances will shape its trajectory. The sector’s ability to adapt to emerging threats and leverage cutting-edge advancements will be critical in defining the future of defence and security.
