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Japan Defense Market Size, Share, Growth & Demand By 2026-2034

Posted by Jackleen on December 08, 2025 - 7:09am

Japan Defense Market Size and Growth Overview (2026-2034)

Market Size in 2025: USD 36.4 Billion

Market Forecast in 2034: USD 45.1 Billion

Market Growth Rate 2026-2034: 2.43%

According to the latest report by IMARC Group, Japan's defense market size reached USD 36.4 billion in 2025. Looking forward, IMARC Group expects the market to reach USD 45.1 billion by 2034, exhibiting a growth rate (CAGR) of 2.43% during 2026-2034. 

Request the Report Sample (2026 Edition): https://www.imarcgroup.com/japan-defense-market/requestsample

Japan Defense Market Trends & Drivers

The Japan defense market is experiencing robust growth driven by escalating geopolitical tensions in the Asia-Pacific region, particularly concerning China's military assertiveness in the East China Sea and North Korea's continued nuclear and missile development programs. These security challenges have prompted Japan to fundamentally reassess its defense posture, leading to historic increases in military spending and capability enhancement initiatives. The government's commitment to achieving 2% of GDP in defense spending by 2027, as outlined in the National Security Strategy, represents a seismic shift from the post-World War II informal cap of 1% GDP, demonstrating Japan's determination to address the most severe security environment since 1945.

Technological modernization stands at the forefront of market expansion, with substantial investments directed toward standoff weapons, integrated air and missile defense systems, space-based capabilities, and cyber defense infrastructure. Japan's Defense Buildup Program allocates JPY 43 trillion (USD 315 billion) over five years through 2027, prioritizing indigenous production capabilities and reducing reliance on foreign imports. The development of hypersonic weapons, extended-range Type 12 missiles, and the procurement of advanced platforms like F-35 fighter jets exemplify this modernization drive. Additionally, the revision of defense export policies and the establishment of programs like Official Security Assistance are opening new revenue streams for Japanese defense contractors, while strategic partnerships with allies, including the United States, Australia, and European nations, are fostering technology transfers and collaborative development projects that strengthen Japan's defense industrial base and market competitiveness.

Japan Defense Industry Segmentation

The report has segmented the industry into the following categories:

Breakup by Armed Forces:

  • Air Force
  • Army
  • Navy

Breakup by Type:

  • Personnel Training and Protection
  • C4ISR and EW (Command, Control, Communications, Computers, Intelligence, Surveillance, Reconnaissance, and Electronic Warfare)
  • Vehicles
  • Weapons and Ammunition

Breakup by Region:

  • Kanto Region
  • Kinki Region
  • Central/ Chubu Region
  • Kyushu-Okinawa Region
  • Tohoku Region
  • Chugoku Region
  • Hokkaido Region
  • Shikoku Region

Request a Customized Version of This Report for Deeper Insights: https://www.imarcgroup.com/request?type=report&id=15074&flag=E

Competitive Landscape:

  • BAE Systems PLC
  • Kawasaki Heavy Industries Ltd.
  • Lockheed Martin Corporation
  • Mitsubishi Heavy Industries Ltd
  • Northrop Grumman
  • ShinMaywa Industries, Ltd.
  • Subaru Corporation (Toyota)
  • Thales Group
  • The Boeing Company
  • The Japan Steel Works, LTD.
  • Toshiba Corporation

Recent News and Developments in Japan Defense Market

  • 11 April 2023: Japan’s Defense Ministry announced that it signed contracts worth nearly 380 billion yen (U.S. $3 billion) with the country’s top defense contractor, Mitsubishi Heavy Industries, to develop and mass produce long-range missiles for deployment as early as 2026.
  • 26 May 2023: Japan and the United Arab Emirates agreed on a deal on defense equipment and technology transfers in a move that enables joint research, development, and production.

Key highlights of the Report:

  • Market Performance (2020-2025)
  • Market Outlook (2026-2034)
  • COVID-19 Impact on the Market
  • Porter's Five Forces Analysis
  • Strategic Recommendations
  • Historical, Current, and Future Market Trends
  • Market Drivers and Success Factors
  • SWOT Analysis
  • Structure of the Market
  • Value Chain Analysis
  • Comprehensive Mapping of the Competitive Landscape

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:
Street: 563-13 Kamien
Area: Iwata
Country: Tokyo, Japan
Postal Code: 4380111
Email: sales@imarcgroup.com