Japan defence budget sees 19.3% CAGR

Despite the current economic downturn fuelled by devaluating yen, Japan’s ministry of defence requested a 17.2% increase in its 2024 defence budget, a significant portion of which is expected to be allocated for the procurement of various defence platforms, including submarines, surface vessels, and multi-role aircraft. Japan’s need to modernise its current inventory to counter any external threats has led the country to sanction an acquisition budget of $18.6 billion in 2024, which grew from $9.2 billion in 2020 at a robust CAGR of 19.3%, according to GlobalData, a data and analytics company. GlobalData’s latest report, “Japan Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2024–29,” reveals that the country’s deteriorating relations with North Korea and China, coupled with its efforts to strengthen claims over the Kuril and Senkaku Islands, will compel Japanese Self Defense Force (JSDF) to modernize its naval and aerial fleet. Akash Pratim Debbarma, Aerospace & Defense Analyst at GlobalData, comments: “Japanese policymakers are ensuring that scheduled procurements of critical assets such as the Taigei-class submarine, Mogami-class frigates, FFM vessels, and F-35A/B aircraft are not impacted due to the current economic turmoil. The slew of ongoing and planned procurements by JSDF highlights the country’s intent to modernize its fleet of defense platforms.” By forging new partnerships with countries such as Italy and the UK in developing the next-generation multirole aircraft under the Global Combat Air Programme (GCAP), Japan is not only keeping development costs down but also strategically enhancing its security cooperation with other allies apart from the United States. Debbarma concludes: “Japan has historically maintained a non-nuclear stance since World War II, focusing on diplomatic and defensive strategies. However, with the growing number of nuke-capable missile tests by North Korea, Japan will stay in the path of improving its deterrence measures and reinforce its missile defense capabilities, which includes the deployment of the US-developed Aegis Combat System on Japanese naval platforms. As North Korean missiles continue to expand their range and disputes with an assertive China continue to persist, Japanese policymakers will likely push for the procurement of weapons systems capable of conducting long-range strikes to prepare themselves in case all deterrence measures fail. These procurements will continue to drive growth in defence spending by the country over the next decade.” For Editorial Inquiries Contact : Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]