The U.S. defense market is the world's largest and most technologically advanced, with the FY2026 budget request totaling $961.6 billion in base funding plus $150 billion under reconciliation. The Pentagon proposes $179 billion for RDT&E — a 27% year-over-year increase. Key growth programs include the B-21 Raider, Columbia-class submarine, NGAD, Golden Dome, Replicator autonomous systems, and hypersonics. The U.S. A&D market is projected to reach $610 billion by 2031 at a 5.67% CAGR. Defense revenues account for 69.78% of the market, anchored by multi-year procurement contracts.
This report provides significant competitor information, analysis, and insight critical to the development and implementation of effective marketing and R&D programs.
Topics Covered
• U.S. Defense Market Size and Forecast 2025-2031 by Segment and Service
• FY2026 Budget Analysis — Service Allocations, Technology Priorities, and Program Funding
• Pentagon RDT&E — $179 Billion Allocation by Technology Category
• Key Program Analysis — B-21, Columbia-Class, NGAD, Golden Dome, and Replicator
• Industrial Base Assessment — Prime Contractors, Second Tier, and Critical Suppliers
• CMMC and Industrial Security — Impact on Competitive Landscape
• Defense-Tech and Non-Traditional Suppliers — Market Entry and Growth
• Export and FMS — U.S. Arms Transfer Programs and International Sales
• Business Development Strategy — Positioning, Capture, and Competitive Analysis
Table of Contents
1. Executive Summary
2. Market Overview
3. U.S. Defense Market Size and Forecast 2025-2031 by Segment and Service
4. FY2026 Budget Analysis
5. Pentagon RDT&E
6. Key Program Analysis
7. Industrial Base Assessment
8. CMMC and Industrial Security
9. Defense-Tech and Non-Traditional Suppliers
10. Export and FMS
11. Competitive Landscape
12. Regional Market Analysis
13. Strategic Conclusions and Recommendations
14. Appendix
List of Tables
Table 1. U.S. Defense Market — Market Size and Forecast 2025-2030
Table 2. U.S. Defense Market — Market Size by Segment 2025
Table 3. U.S. Defense Market — Market Size by Region 2025-2030
Table 4. U.S. Defense Market — Key Demand Drivers and Impact Assessment
Table 5. U.S. Defense Market — Technology and Segment Growth Comparison 2025-2030
Table 6. U.S. Defense Market — Market Share by Leading Supplier 2025
Table 7. U.S. Defense Market — Recent M&A and Partnership Activity 2023-2025
Table 8. U.S. Defense Market — North America Market Size and Forecast 2025-2030
Table 9. U.S. Defense Market — Europe Market Size and Forecast 2025-2030
Table 10. U.S. Defense Market — Asia-Pacific Market Size and Forecast 2025-2030
Table 11. U.S. Defense Market — Investment Opportunity Assessment by Segment
Table 12. U.S. Defense Market — Key Risks and Mitigation Strategies
Companies Profiled
Airbus
BAE Systems
Boeing
GE Aerospace
General Dynamics
L3Harris Technologies
Leonardo
Lockheed Martin
Northrop Grumman
RTX
