Japan Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026

Japan Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026 report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Over the historic period, the surge in Japan’s defense expenditure was mainly driven by its need to counter potential threats from China, Democratic People’s Republic of Korea (DPRK) or North Korea. Over 2017-2021, Japan’s defense expenditure grew at a CAGR of 2.69% and reached US$48.6 billion in 2021. Even with the outbreak of Covid-19, the country did not see any cutbacks in the defense budget despite the GDP drop in 2020. The country’s defense expenditure is anticipated to value US$69.4 billion in 2026, owing to the need to adequately finance its own national defense capabilities to further strengthen the alliance and regional security. Recently, Japan scrapped its long-standing 1% GDP ceiling for annual defense spending. It reflects the country’s intent to bolster its own national defense capabilities. Since the 1990s, the only year that Japan's defense spending exceeded 1% of GDP was 2010, when GDP dropped after the global financial crisis. The country's defense budget has grown for nine straight years through fiscal 2021 but has remained below 1% of GDP. By lifting the cap, Japan would not bound by any regulations to control defense spending and can freely increase its defense expenditure in correlation to the level of threat. Hence, Japan’s defense budget is expected to increase at a CAGR of 7.33% over 2022-2026.

This report offers detailed analysis of Japan's defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

The defense expenditure is expected to be largely driven by efforts to enhance the combat potential of JSDF in order to counter the rising military strength of North Korea, the Chinese intrusion on offshore islands within the vicinity of the country, and Russian activities in the disputed Northern territory.

Who Should Buy

– Defence Startups, Original Equipment Manufacturers (OEMs), Defence Planners, Aerospace and Defence Integrators, Venture Capital Firms, Government Agencies, Head of Marketing, Head of Sales, CEOs and Senior Executives.

– The concerned stakeholders can utilize the report to identify high growth segments and customize their offerings to match the project requirements.

– The Venture Capital Firms can utilize the project details, growth rate, and market size to identify and fund high potential startups.


In particular, it provides an in-depth analysis of the following –

– Japan defense budget: detailed analysis of Japan FY2021 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.

– Regulation: the procurement policy and process is explained. This is coupled with an analysis of Japan military doctrine and strategy to provide a comprehensive overview of Japan's military regulation.

– Security Environment: political alliances and perceived security threats to Japan are examined; there help to explain trends in spending and modernisation.

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

– Competitive landscape and strategic insights: analysis of the competitive landscape of the Japnese defense industry.

Reasons to buy

– Determine prospective investment areas based on a detailed trend analysis of the Japan defense market over the next five years

– Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Japanese market and identify the opportunities offered.

– Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others

– Identify the major threats that are driving the Japan defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion

– Channel resources by focusing on the ongoing programs that are being undertaken by the Japanese government

– Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

Companies mentioned

Lockheed Martin Corp

Boeing Defense

Space & Security

Northrop Grumman Corp

Bell Agusta Aerospace Company

Raytheon Missiles & Defense

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historical And Forecast

Drivers Of Defense Expenditure

Analysis Of Defense Budget Allocation

Key Market Trends and Insights

Military Doctrine And Security Environment

Military Doctrine And Strategy

Primary Threat Perception

Political And Strategic Alliances

Geopolitical Social And Economic Scenario

Market Entry Strategy And Regulations

Procurement Policy and Process

Market Regulations

Market Entry Route

Key Challenges

Major Deals and M&A

Market Attractiveness And Emerging Opportunities

Market Attractiveness, 2020 2025

Top Defense Segments By Value

Import And Export Market Dynamics

Import Market Dynamics

Export Market Dynamics

Defense Platform Acquisitions

F 35 A

F X indigenous fighter jet

Kawasaki P 1

30 DX Multi Mission Frigate

C 2

F 35 B

E 2 D

Taigei class

Fleet Size

Competitive Landscape

Defense Companies Operating In Japan

Main Defense Companies


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