April 18, 2025 4:32 am
What is the Defense Industry?
The defense industry is the heart of designing, researching, building and maintaining the equipment that militaries use. These industrial products include everything from small firearms to advanced missile systems, drones, naval ships and even sophisticated cyber tools.

What’s Defense Industry’s Main Purpose?

The defense industry equips the armed forces of a country with the means necessary to protect the country. It equips a country or organization with the means to protect its interests and, when necessary, to engage in conflict. It supports land, naval, air and intelligence officers and other specialized units.

Who Creates All This Equipment?

Governments partner with defense companies, from global leaders to smaller firms, to make it happen. Some are private, others state-owned. Names like Lockheed Martin, BAE Systems, Baykar and Thales come to mind. Countries such as the US, China, Russia, and Turkey have thriving defense sectors that supply their own forces and export to others worldwide.

Is Defense Industry All About Weapons?

Not quite! Weapons are a key part, but the industry also spans cybersecurity solutions, radar systems, communication networks, logistics, and even artificial intelligence for battlefield support. It’s a broad field with many layers.

Military vs. Civilian Products

Here’s something interesting: some companies work in both worlds. They might build a fighter jet for a military contract and then create a commercial airliner for your next trip. For example, Boeing develops cutting-edge military aircraft such as the F-15EX, but also produces the 787 Dreamliner for international travel.

Top 20 Military Powers in 2025

Rank Country PwrIndx (Global Firepower 2025) Defense Budget (approx.) Notable Defense Industries
1 United States 0.0744 $895 billion Lockheed Martin, RTX, Northrop Grumman
2 Russia 0.0788 $100 billion Rostec, Almaz-Antey, UAC
3 China 0.0788 $266.8 billion Norinco, AVIC, CETC
4 India 0.1184 $75 billion HAL, DRDO, Bharat Dynamics
5 South Korea 0.1656 $50 billion Hanwha Aerospace, KAI
6 United Kingdom 0.1785 $71.5 billion BAE Systems, Rolls-Royce
7 France 0.1878 $55 billion Thales, Dassault, Naval Group
8 Japan 0.1839 $57 billion Mitsubishi Heavy Industries
9 Türkiye 0.1902 $32 billion ASELSAN, TUSAŞ, Baykar
10 Italy 0.2164 $30 billion Leonardo, Fincantieri
11 Brazil 0.2415 $20 billion Embraer, Avibras
12 Pakistan 0.2513 $10 billion PAC, HIT
13 Indonesia 0.2557 $9 billion PT Pindad, PT PAL
14 Germany 0.2601 $55 billion Rheinmetall, Hensoldt
15 Israel 0.2661 $24 billion IAI, Elbit Systems, Rafael
16 Iran 0.3048 $8 billion DIO, Aerospace Industries Org.
17 Spain 0.3242 $18 billion Navantia, Indra Sistemas
18 Australia 0.3298 $35 billion BAE Australia, EOS Defence
19 Egypt 0.3427 $6 billion AOI (Arab Org. for Ind.)
20 Ukraine 0.3755 $53.7 billion Ukroboronprom, Motor Sich

Why Defense Industry Is Important?

A strong defense industry goes beyond preparing for conflict. It boosts a nation’s independence, drives technological advances, creates jobs, and opens doors for international trade. Without a strong defense industry, it is almost impossible to have enough deterrence against rivals. Defense industry is about resilience and influence on the global stage.

What’s Next?

In our next lesson: Who Builds Weapons? Governments, Companies, or Both? We’ll take a closer look at the defense development process!