SIPRI News & Analysis

Japan's Defense Industry Gains Opportunity as Global Spending Hits $2.89T

Japan is set to benefit from favorable conditions in the global defense market after easing restrictions on arms exports. According to SIPRI, global military spending reached a record $2.89 trillion in 2025, marking the 11th consecutive year of increases. This rise in demand is driven by geopolitical tensions, including military activities from China and continued conflicts such as the Russia-Ukraine war. Opportunities for Japanese firms will likely focus on areas like maritime awareness and air defense, with significant contracts already signed, such as Australia's order for three frigates from Mitsubishi Heavy Industries.