Japan Aerospace and Defense Market Expected to Reach USD 82.4 Billion by 2033 - IMARC Group

Japan Aerospace and Defense Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan aerospace and defense market size was valued at USD 55.0 Billion in 2024, and it is expected to reach USD 82.4 Billion by 2033, exhibiting a growth rate (CAGR) of 4.6% from 2025 to 2033.

The market in Japan is mainly bolstered by the dual usage of security and aeronautical technologies, including light attack planes and helicopters, which presents huge opportunities for industries in the country. For instance, based on the Stockholm International Peace Research Institute (SIPRI) study, Japan ranked tenth in the world for spending on defense, with approximately USD 46 Billion in budget. In FY2023, the nation authorized the spending of about USD 51.4 Billion. This assists in minimizing reliance on foreign entities.

Besides this, the defense industry plays an important role in securing countries and maintaining peace and order by equipping armed forces with the required tools and technologies. For example, Mitsubishi Heavy Industries projected in November 2023 that its defense sales would double up to ¥ 1 Trillion (USD 6.7 Billion) by 2026 and continue to grow as geopolitical concerns support MHI's operations. Additionally, the newest five-year strategy of the government in the country indicates a 56% growth in defense expenditure through 2027 from the preceding term. Moreover, Japan continues to offer a profitable marketplace for aircraft parts, imported aircraft, and engines. For instance, in March 2023, Japan Airlines (JAL) ordered 21 Boeing B737 MAX aircraft for around USD 2.5 Billion.

Japan Aerospace and Defense Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include the Kanto region, Kansai/Kinki region, Central/ Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. The elevating need for self-reliance to reduce dependencies on foreign entities for important technologies and equipment is fueling several initiatives to strengthen the aerospace and defense market in Japan.

Kanto Region Aerospace and Defense Market Trends:

The aerospace and defense industry is centered around numerous companies in the Kanto region, including Tokyo, where the Japan Aerospace Exploration Agency (JAXA) is headquartered. Major players like IHI Corporation specialize in manufacturing jet engines and propulsion systems. Moreover, NEC Corporation and Fujitsu influence aerospace innovations by developing advanced satellite, radar communication, and cybersecurity solutions.

Kansai/Kinki Region Aerospace and Defense Market Trends:

Japan's Kansai/Kinki region is well-known for a number of defense and aerospace firms, including Kawasaki Heavy Industries and Mitsubishi Heavy Industries. These companies produce engines, airplanes, and other parts, such as radar systems, communication systems, and defense electronics.

Central/Chubu Region Aerospace and Defense Market Trends:

One prominent location in Japan for the aerospace and defense industry is Central/Chubu. Numerous aerospace institutions and businesses in the region are involved in various defense programs, such as ChubuSat-1, a microsatellite technology demonstration mission created by a consortium of Chubu region universities and aerospace businesses.

Kyushu-Okinawa Region Aerospace and Defense Market Trends:

Japan has air and space defense facilities in Kyushu-Okinawa, such as air bases and defense equipment manufacturers. The United States and Japan also conduct joint exercises in the region. The Western Air Defense Force (WADF) is headquartered at Kasuga Air Base. Strategic capabilities are expected to bolster the market in the coming years.

Tohoku Region Aerospace and Defense Market Trends:

The Tohoku University, located in the Tohoku area of Japan, is well-known for its aerospace engineering department, which carries out research and instruction on aircraft vehicles. The department's R&D activities focus on spacecraft propulsion engines, which aid in the advancement of spacecraft and airplanes.

Chugoku Region Aerospace and Defense Market Trends:

The Chugoku region has a fully developed advanced air and space defense industry. This is in addition to a well-connected network of small and medium-sized enterprises (SMEs) that specialize in the production of high-precision robots for aerospace applications. The region is also a transportation hub for western Japan. It has a modern airport as well as a seaport.

Hokkaido Region Aerospace and Defense Market Trends:

The Hokkaido region of Japan has a spaceport and a military base that facilitate the aerospace and defense sector. The Hokkaido Spaceport (HOSPO) is located in the town of Taiki and is part of a vision to create a commercial spaceport in Japan. Moreover, the key emphasis of the aerospace and defense sector is centered around the Chitose Air Base, a major facility of the Japan Air Self-Defense Force (JASDF).

Shikoku Region Aerospace and Defense Market Trends:

The industrial capabilities and geographical position of the Shikoku region contribute largely to the aerospace and defense market in the country. In line with this, the presence of various specialized companies that focus on precision engineering and manufacturing components important for air defense applications is also positively influencing the market in this region.

Top Companies Leading in the Japan Aerospace and Defense Industry

There are several companies in the Japan aerospace and defense market. They include Kawasaki Heavy Industries Ltd., Lockheed Martin Corporation, Mitsubishi Heavy Industries Ltd., Northrop Grumman Corporation, ShinMaywa Industries Ltd., Thales Group, among many others. They are vigorously engrossed in offering engineering assistance for the MRO and development of aircraft engines. Additionally, Mitsubishi Heavy Industries and the country's defense ministry sealed a USD 3 Billion contract in April 2023 to develop and mass-manufacture long-range missiles for setting out by 2026.

Japan Aerospace and Defense Market Segmentation Coverage

• Based on the service type, the market has been classified into manufacturing and MRO. Aerospace and defense manufacturing encompasses the design, development, and production of engines, aircraft, and space vehicles. Meanwhile, MRO ensures aircraft safety, reliability, and availability.
• Based on the platform, the market has been categorized into terrestrial, aerial, and naval. These platforms are utilized for several purposes, including surveillance, reconnaissance, and intelligence gathering. The terrestrial platform consists of observation systems situated on land. For air defense, reconnaissance, air logistics, casualty evacuation, search and rescue, and other purposes, the aerial platform encompasses UAVs. Finally, the naval platform has marine aviation to fly against close land targets and maritime systems to protect the nation's maritime interests.
• Based on the sector, the market has been divided into aerospace and defense. The manufacturing, design, and maintenance of airplanes, spacecraft, and associated systems are all included in the aerospace sector. It covers space exploration, commercial aviation, and military aircraft. However, in order to serve present and future army and defense needs, the defense sector offers governments military capabilities.

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