JAPAN DEFENSE MARKET

The robust development of Japan Defense Market is driven by the growing initiatives to strengthen defense capabilities and protect national security in light of rising global geopolitical tensions. The demand for defense related products is projected to skyrocket owing to growing tension in the region in coming years.

Major Japan Defense Market Drivers and Trends

The Japanese rising defense spending reflects its response to a more complex regional security landscape including concerns over North Korea’s advancing missile capabilities and China’s increasing regional influence. The allocation of resources to defense capabilities stems from the need to safeguard sovereignty and uphold a credible defense stance. Japan’s domestic defense sector serves as the cornerstone of the market, enhancing the country’s industrial capabilities and fostering technological progress, while stimulating job creation, promoting innovation, and supporting economic expansion. Support from the government for local defense enterprises combined with investments in defense R&D is pivotal in stimulating industry growth. In December 2022, Japan’s cabinet greenlit a historic defense budget of 6.82 trillion yen for the Japanese Fiscal Year 2023 which marks a notable 26.3 percent increase in comparison to the previous year. Furthermore, the Ministry of Defense intends to make significant investments in the R&D of defense systems innovation which includes enhancing long-range defense capabilities, developing counter-HGV capabilities, and advancing next-generation combat aircraft under the Global Combat Air Program in collaboration with the UK and Italy.

The country’s defense modernization efforts encompass upgrades to maritime and air defense systems alongside substantial investments in cyber and space capabilities. The armed forces are poised to acquire and enhance capabilities in new domains like cyberspace and the electromagnetic spectrum supported by substantial investments in R&D which aims to stimulate market growth. Moving forward, partnerships with international counterparts can create opportunities for technological progress and collaborative ventures, enabling manufacturers to access global expertise through strategic alliances. Moreover, the country’s steps towards reduce limitations on arm exports could allow Japanese defense manufacturers to expand into new markets.

However, there are some challenges that can hinder the expansion of Japan defense market size. The Asia-Pacific’s geopolitical tensions create complexities given Japan’s intricate diplomatic ties with neighboring countries. Its strict regulations on arms exports could also limit the global sales opportunities for its defense industry, thereby potentially restricting market expansion through constraints on international sales and collaborations. It also faces financial constraints that could restrict its defense spending capability as the government must balance allocations among sectors such as infrastructure and economic development which potentially limits resources for military investments and acquisitions.

Based on the armed forces market segmentation, Japan defense industry market is categorized into the army, air force, and navy with the army forecasted to capture the highest revenue share in the foreseeable future. The army serves primarily as a ground-based military force engaged in ground combat and defending territorial boundaries, equipped mainly with artillery, tanks, and land vehicles.

Top market Players:

Various notable players operating in the market include Mitsubishi Heavy Industries, Japan Steel Works, Toshiba Corporation, among others.

Segments covered in the Report:

The Japan Defense Market has been segmented on the basis of type, operation and platform. based on the type, the market is segmented into air-based defense equipment, sea-based defense equipment, land-based defense equipment, defense equipment maintenance, repair and overhauling services, defense support and auxiliary equipment. based on the operation, the market is segmented into autonomous defense equipment, manual. based on the platform, the market is segmented into airborne, land, naval.

Market Segmentation

Japan Defense Market by Type

• • Air-Based Defense Equipment
  • Sea-Based Defense Equipment
  • Land-Based Defense Equipment
  • Defense Equipment Maintenance, Repair and Overhauling Services
  • Defense Support and Auxiliary Equipment

Japan Defense Market by Operation

• • Autonomous Defense Equipment
  • Manual

Japan Defense Market by Platform

• • Airborne
  • Land
  • Naval

Japan Defense Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Mitsubishi Heavy Industries
  • Japan Steel Works
  • Toshiba Corporation