Defense Support and Auxiliary Equipment Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Type (Military Radars, Military Satellites, Others), By Application Type (Autonomous Land Based Defense Equipment, Manual), By Payload Type (Intelligence, Surveillance and Reconnaissance (Isr), Communication, Navigation), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 175.81 Billion
CAGR (2026-2031)	7.05%
Fastest Growing Segment	Military Radars
Largest Market	North America
Market Size (2031)	USD 264.58 Billion

Market Overview

The Global Defense Support and Auxiliary Equipment Market will grow from USD 175.81 Billion in 2025 to USD 264.58 Billion by 2031 at a 7.05% CAGR. Defense Support and Auxiliary Equipment encompasses the secondary systems and hardware essential for the operational readiness and sustainment of primary military platforms, including radar, sonar, navigation aids, and logistics machinery. Growth in this sector is primarily fueled by the imperative to extend the lifecycle of legacy assets through electronic modernization and the rising demand for interoperable communication networks that facilitate joint alliance operations. Additionally, the increasing integration of autonomous support vehicles to minimize personnel risk in contested environments is accelerating investment in advanced control technologies.

However, market expansion is currently impeded by severe supply chain constraints and skilled labor shortages which create production bottlenecks and delay equipment delivery. These industrial challenges complicate the ability of manufacturers to meet surging global requirements despite the favorable budget environment. According to the Aerospace, Security and Defence Industries Association of Europe, in 2025, the defense sector generated a turnover of €183.4 billion for the 2024 period, representing a 13.8 percent annual increase.

Key Market Drivers

Escalating Global Defense Expenditures and Budget Allocations serve as the foundational catalyst for the Global Defense Support and Auxiliary Equipment Market, ensuring sustained funding for secondary systems that are often overshadowed by primary combat platforms. As nations prioritize the modernization of logistics chains, engineering support, and maintenance depots, the capital flow into the auxiliary sector has surged to match the procurement of frontline assets. This financial commitment allows defense forces to procure advanced navigation aids, field hospitals, and material handling equipment necessary for prolonged operations, directly expanding the addressable market for support hardware. According to the Stockholm International Peace Research Institute (SIPRI), April 2024, in the 'Trends in World Military Expenditure, 2023' Fact Sheet, total global military expenditure reached $2443 billion in 2023, representing a real-terms increase of 6.8 percent from the previous year.

Rising Geopolitical Tensions and Regional Security Instability are reshaping procurement priorities, compelling armed forces to enhance their operational readiness and deployable support capabilities in anticipation of high-intensity conflicts. The return of great power competition has exposed gaps in supply chain resilience and battlefield sustainment, triggering urgent requirements for armored logistics vehicles, mobile command posts, and autonomous resupply systems that can survive in contested environments. This threat environment drives immediate investments in equipment that ensures interoperability among allied forces. According to NATO, February 2024, in the 'Secretary General welcomes unprecedented rise in NATO defence spending' press release, NATO Allies in Europe were projected to invest a combined total of $380 billion in defense in 2024. Consequently, industry players are witnessing rapid order growth; for instance, according to Rheinmetall AG, August 2024, in the 'Financial report for the first half of 2024', the company reported a 33 percent year-on-year increase in group sales to €3.8 billion, fueled significantly by high demand in the military business sector.

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Key Market Challenges

Severe supply chain constraints and skilled labor shortages constitute the critical impediments currently stalling growth in the Global Defense Support and Auxiliary Equipment Market. These interconnected industrial deficiencies directly counter the sector's expansion by creating significant production bottlenecks that prevent manufacturers from fulfilling surging global demand. As legacy assets require complex electronic modernization and autonomous systems demand advanced engineering, the scarcity of specialized technicians and component unavailability extends lead times. Consequently, capital allocated for defense modernization cannot be effectively converted into delivered operational readiness, causing a backlog that undermines the sustainment of primary military platforms.

This inability to scale production capacity is statistically evident within the broader industrial base. According to the National Defense Industrial Association, in its 'Vital Signs 2025' report, 54 percent of private sector respondents identified supply chain challenges as a pressing issue facing the defense industrial base. This data highlights a systemic fragility where logistics machinery, navigation aids, and communication networks—essential for joint alliance operations—face delivery delays. Such disruptions force defense agencies to defer upgrade programs, thereby dampening immediate market revenue realization despite a favorable budgetary environment.

Key Market Trends

The Implementation of Additive Manufacturing for On-Demand Spare Parts Production is fundamentally altering supply chain dynamics by enabling the decentralized fabrication of critical components at the point of need. Defense agencies are increasingly investing in industrial 3D printing technologies to bypass traditional manufacturing bottlenecks and rapidly sustain legacy platforms that suffer from part obsolescence. This shift not only reduces the logistical footprint required for transporting spare inventories but also accelerates equipment repair cycles in contested environments where secure supply lines are compromised. According to Velo3D, December 2025, the company secured a contract valued at $32.6 million with the U.S. Defense Innovation Unit to support Project FORGE, an initiative specifically designed to eliminate production impediments for major weapon systems through advanced additive manufacturing.

Simultaneously, the Transition to Renewable Energy Microgrids for Forward Operating Bases is gaining momentum as military forces seek to reduce their reliance on vulnerable fossil fuel convoys and enhance energy independence. By integrating solar arrays, battery storage, and intelligent management systems, armed forces can maintain operational continuity during grid outages while significantly lowering the acoustic and thermal signatures associated with conventional diesel generators. This operational energy transformation is critical for sustaining long-duration missions in remote locations where fuel resupply is logistically challenging. Highlighting this investment priority, according to SAM.gov, July 2025, the U.S. Army Corps of Engineers awarded a $26.4 million contract to City Light & Power FTR, LLC for power generation and microgrid construction at Fort Riley, underscoring the growing commitment to resilient, independent energy infrastructure.

Segmental Insights

The Military Radars segment represents the fastest-growing area within the Global Defense Support and Auxiliary Equipment Market. This rapid expansion is primarily driven by the critical need for improved situational awareness and early warning capabilities among national defense organizations. As geopolitical tensions rise, governments are actively modernizing aging infrastructure to detect evolving aerial threats, including unmanned aerial vehicles and high-speed missiles. Consequently, defense ministries globally are allocating substantial resources toward upgrading to advanced radar technologies that offer better precision and coverage, thereby fueling the significant momentum of this segment.

Regional Insights

North America maintains a leading position in the Global Defense Support and Auxiliary Equipment Market, primarily due to the substantial defense expenditure of the United States. This dominance is driven by extensive modernization programs initiated by the U.S. Department of Defense to enhance military readiness and logistical capabilities. The region benefits from a strong industrial base containing major contractors that manufacture essential auxiliary systems, including training simulators and field support units. Additionally, consistent government funding for maintaining naval and air fleet operations ensures a steady demand for support equipment throughout the region.

Recent Developments

• In October 2025, Huntington Ingalls Industries entered into a strategic collaboration with HD Hyundai Heavy Industries to jointly develop next-generation auxiliary ships for naval operations. The agreement, finalized during a summit in Gyeongju, established a framework for the co-design and construction of support vessels intended to deliver fuel, ammunition, and logistical supplies to military fleets. This partnership aimed to combine the manufacturing capacity of the South Korean shipbuilder with the naval engineering expertise of the U.S. defense company. The collaboration also outlined plans to explore joint investments in facilities to support the maintenance, repair, and overhaul of allied naval forces.
• In October 2025, Oshkosh Defense launched a new family of autonomous vehicles designed to enhance military logistics and operational support capabilities. Unveiled at the Association of the United States Army (AUSA) annual meeting, the lineup included the Extreme Multi-Mission Autonomous Vehicle (X-MAV) and the Medium Multi-Mission Autonomous Vehicle (M-MAV). These platforms were engineered with a modular open system architecture to accommodate diverse payloads, ranging from counter-unmanned aerial systems to long-range munitions launchers. The company highlighted that these autonomous solutions would significantly improve the agility, resilience, and multi-mission flexibility of ground forces in contested environments.
• In September 2025, Rheinmetall introduced the Ermine, a new family of lightweight tactical hybrid vehicles, at the Defence and Security Equipment International (DSEI) exhibition in London. The vehicle range was designed to support airborne and special operations forces with a highly mobile platform capable of transporting payloads of up to one ton. The system featured a diesel-electric hybrid drivetrain that enabled silent operation for stealth missions and functioned as a mobile microgrid to power external equipment. This product launch aimed to provide modern armed forces with a sustainable and versatile solution for tactical transport, reconnaissance, and casualty evacuation.
• In February 2025, Milrem Robotics unveiled the HAVOC 8x8 Robotic Combat Vehicle, a new unmanned ground platform developed for multi-role military support, at the International Defence Exhibition (IDEX). The system was designed to perform a wide range of auxiliary functions, including heavy cargo transport, casualty evacuation, and the integration of remote weapon stations. Equipped with a hybrid-electric propulsion system, the vehicle offered extended operational endurance and the capability to move silently to avoid enemy detection. The company emphasized that this autonomous platform would serve as a critical force multiplier, reducing risks to personnel while enhancing ground unit capabilities.

Key Market Players

• Oshkosh Corporation
• Northrop Grumman Corporation
• General Dynamics Corporation
• BAE Systems plc
• Textron Inc.
• RTX Corporation
• Rheinmetall AG
• L3Harris Technologies, Inc.
• Mitsubishi Heavy Industries, Ltd.
• Honeywell International Inc

By Type	By Application Type	By Payload Type	By Region
Military Radars Military Satellites Others	Autonomous Land Based Defense Equipment Manual	Intelligence Surveillance and Reconnaissance (Isr) Communication Navigation	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Defense Support and Auxiliary Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Defense Support and Auxiliary Equipment Market, By Type:

• Military Radars
• Military Satellites
• Others

• Defense Support and Auxiliary Equipment Market, By Application Type:

• Autonomous Land Based Defense Equipment
• Manual

• Defense Support and Auxiliary Equipment Market, By Payload Type:

• Intelligence
• Surveillance and Reconnaissance (Isr)
• Communication
• Navigation

• Defense Support and Auxiliary Equipment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE