Dublin, Jan. 29, 2026 (GLOBE NEWSWIRE) — The “Defense Contracting Service Market Report 2026” has been added to ResearchAndMarkets.com’s offering. The report delivers a comprehensive analysis of the defense contracting service industry, detailing market size, regional shares, competitor landscape, and future opportunities.
North America leads this market, while Asia-Pacific emerges as the fastest-growing region.
The global defense contracting service market is poised for impressive growth, expanding from $705.44 billion in 2025 to $743.39 billion in 2026, achieving a compound annual growth rate (CAGR) of 5.4%. This surge is fueled by initiatives in military modernization, increased demand for outsourced logistics, maintenance services, and reliance on private contractors for advanced simulation and training solutions. Additionally, the burgeoning procurement of aviation, naval, and ground vehicle systems, along with satellite-based services for communication and reconnaissance operations, further drives this market. Also contributing is the heightened complexity of defense supply chains necessitating specialized management services.
Looking ahead, the market is projected to reach $905.51 billion by 2030, at a CAGR of 5.1%. Critical factors include the adoption of advanced digital tools enhancing contractor-led maintenance, the rising demand for integrated multi-domain platforms, expansion in satellite and space-based defense services, and an increased focus on cybersecurity. Additionally, innovations in autonomous and unmanned defense systems present vast contracting opportunities. Key trends indicate a surge in outsourcing of mission-critical logistics, advanced simulation solutions, and integrated lifecycle management services.
Geopolitical tensions are anticipated to significantly impact market growth. As nations face territorial conflicts and diplomatic competition, the demand for advanced military technologies and strategic capabilities to enhance national security intensifies. A notable indicator of this is the 15% increase in global political violence incidents, as reported in 2024, affecting approximately one in seven people worldwide.
Leading industry players are at the forefront of innovation, with companies like Parsons Corporation pioneering advanced tactical directed energy systems. In March 2025, Parsons introduced its next-gen Zeus 4 system, featuring AI-driven targeting on the Joint Light Tactical Vehicle, underscoring a shift towards mobile, scalable directed energy technologies. Additionally, CACI International’s $1.28 billion acquisition of Azure Summit Technology exemplifies strategic moves to expand defense technological capabilities, particularly in the maritime and airborne domains.
Report Scope:
- Markets Covered: Engineering and Technical Services, Logistics and Sustainment, Cybersecurity, among others.
- Contract Types: Fixed-Price, Cost-Reimbursement, and others.
- Application Areas: Aerospace, Land Systems, and IT.
- End-Users: Government Agencies, Military Branches, Defense Contractors, Industry Partners.
Companies Mentioned: Key players include RTX Corporation, The Boeing Company, and Lockheed Martin Corporation, among others.
Geographies Covered: Countries such as the USA, China, and Germany, and regions including Asia-Pacific and North America.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2026-2030 |
| Estimated Market Value (USD) in 2026 | $743.39 Billion |
| Forecasted Market Value (USD) by 2030 | $905.51 Billion |
| Compound Annual Growth Rate | 5.1% |
| Regions Covered | Global |
The companies featured in this Defense Contracting Service market report include:
- Science Applications International Corporation Inc.
- RTX Corporation
- The Boeing Company
- Lockheed Martin Corporation
- Airbus SE
- General Dynamics Corporation
- Northrop Grumman Corporation
- Honeywell International Inc.
- BAE Systems plc
- L3Harris Technologies Inc.
- Leonardo S.p.A.
- Leidos Holdings Inc.
- Textron Inc.
- Amentum Government Services Holdings LLC
- Huntington Ingalls Industries Inc.
- Booz Allen Hamilton Holding Corporation
- Saab AB
- CAE Inc.
- BWX Technologies Inc.
- AeroVironment Inc.
For more information about this report visit https://www.researchandmarkets.com/r/16wg58
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- Defense Contracting Service Market
