The Southeast Asia Defense Market size is estimated at USD 14.09 billion in 2024, and is expected to reach USD 19.27 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).
The ongoing dynamic growth of economies in Southeast Asia presents defense companies with significant opportunities. In the present scenario, various Southeast Asian countries are now upgrading their military capabilities, with an eye toward better protecting their assets critical to exports and supply chains. Moreover, multiple countries in the region seek to defend their territorial integrity in a fast-changing security landscape. On the other hand, while there is growth in defense spending in the area, the scale and pace have varied significantly from country to country.
The Southeast Asian defense market is semi-consolidated, with several local and global players holding significant shares. Some prominent players in the market are Singapore Technologies Engineering Ltd, Lockheed Martin Corporation, Airbus SE, The Boeing Company, and Leonardo SpA. The key players in the market highly focus on developing advanced weapons for military forces. Increasing investment in research and development and introducing technologies in military equipment such as artificial intelligence (AI) and the Internet of Things (IoT) will improve overall military operations. Growing long-term contracts and partnerships of defense OEMs with armed forces of different countries drive the market growth.
For instance, in August 2023, Indonesia signed a contract with Lockheed Martin Corporation to procure 24 transport helicopters. The agreement was signed between Indonesia’s aerospace company, Dirgantara Indonesia, and Lockheed Martin Corporation. Under the contract, the company will deliver 24 Sikorsky S-70M Black Hawk GFA-type helicopters to strengthen the country’s military air fleet.
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