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15 Biggest Defense Companies in Asia

In this article, we will discuss the 15 biggest defense companies in Asia. This article will focus on a detailed overview of the global defense spending patterns and the biggest players in the defense industry. If you want to skip our analysis, you can proceed to the section highlighting the 5 Biggest Defense Companies in Asia.

The Defense Industry: A Global & Regional Analysis

According to a report by Research and Markets, the global defense market has experienced rapid growth, increasing from $575.33 billion in 2023 to $616.32 billion in 2024. It is forecasted to further increase to $772.49 billion in 2028, growing at a compound annual growth rate (CAGR) of 5.8% over the projected period.

In 2023, Asia-Pacific was the largest region in the defense market. According to a report by Mordor Intelligence, the Asia-Pacific defense market is forecasted to grow at a compound annual growth rate (CAGR) of 4% over the next five years. Specifically, the Southeast Asia defense market is expected to reach $14.09 billion in 2024, with projections indicating that it will ascend to $19.27 billion by 2029 growing at a CAGR of 6.47%, according to another report by Mordor Intelligence.

The Air Force segment represents the biggest market share in the Asia-Pacific defense market and the region has the biggest fleet of aircraft and rotorcraft. China and India are the biggest defense spenders in Asia, with defense budgets of $293 billion and $76.6 billion, respectively, and are spending a significant amount of budget of their budget on the acquisition of new aircraft, unmanned aerial vehicles (UAVs), as well as missiles, and ammunition. The demand for the air force is also being fueled by military modernization programs as most Asian countries want to replace their outdated fighter aircraft with newer generation aircraft to enhance their aerial combat capabilities. Countries such as China, India, Taiwan, Korea, Singapore, and Japan are expanding their domestic manufacturing capabilities with the help of government initiatives.

Biggest Defense Companies in Asia 

Some of the biggest defense companies in Asia include Hindustan Aeronautics Limited (NSE:HAL), Bharat Electronics Limited (NSE:BEL), and Larsen & Toubro Limited (NSE:LT).

Hindustan Aeronautics Limited (NSE:HAL) is one of the biggest and oldest defense companies in Asia, specializing in the manufacturing and maintenance of aircraft, helicopters, engines, avionics, and defense systems. For the financial year ended on March 31, 2023, Hindustan Aeronautics Limited (NSE:HAL) reported that its revenue increased to $3.22 billion from $2.94 billion in the previous year. Commenting on the financial results Hindustan Aeronautics Limited’s (NSE:HAL) Chairman and Managing Director and Director (Finance) & CFO,  Shri C.B. Ananthakrishnan said:

“In the financial year 2022-23, your Company recorded the highest ever turnover of ₹26,36,056 Lakh, experiencing strong growth of 8% from the previous year’s ₹24,36,166 Lakh. The Profit Before Tax (PBT) saw a growth of 24% from ₹5,23,115 Lakh to ₹6,49,294 Lakh while the Profit After Tax (PAT) increased by 14% from ₹5,08,650 Lakh to ₹5,81,117 Lakh. Our Order Book position stood healthy at ₹81,78,400 Lakh as on 31st March, 2023.”

Hindustan Aeronautics Limited (NSE:HAL) accomplished significant achievements during the period including the inauguration of a helicopter factory in Tumakuru and the Integrated Cryogenic Engine Manufacturing Facility (ICMF) in Bengaluru, which focuses on Hi-thrust Rocket engines. Hindustan Aeronautics Limited (NSE:HAL) has produced 22 new aircraft and helicopters, such as LCA Tejas, Dornier, Do-228, ALH Dhruv, Light Combat Helicopter (LCH), and Light Utility Helicopter (LUH) in addition to 51 new engines and has also overhauled 216 Aircraft / Helicopters and 536 engines.

Bharat Electronics Limited (NSE:BEL) is one of the biggest defense companies in India, specializing in products and solutions including radars, communication systems, electronic warfare equipment, and missile systems. In the financial year 2022/23 Bharat Electronics Limited (NSE:BEL) achieved a revenue of $2.11 billion up about 15% from $1.84 billion in the previous year. The growth was driven by strong performances in both domestic and international markets. The defense sector contributed about 87% to the total revenue and exports increased 45% mainly to countries including France, USA, Spain, Israel, Germany, Mauritius, Switzerland, Vietnam, and Sri Lanka. Some of the major products/systems exported include sound navigation and ranging systems (sonar), coastal radar systems, radar warning receivers, missile approach warning systems, T/R Modules, communication equipment, low band receivers (LRU), cable looms, sonar spares, and software for integration of radar, EOS, and compass. Commenting on the annual results, Bharat Electronics Limited’s (NSE:BEL) Chairman and Managing Director, Bhanu Prakash Srivastava said:

“FY 2022-23 has been an exceptional year for your Company. We grew on all fronts and emerged stronger with all your support, despite the geo-political crisis and global chip shortages. We continued to prioritise R&D, quality, technology and infrastructure modernisation, sustainability and excellence in operations which positions us on a stronger footing. The year also saw us creating value for all stakeholders. I am pleased to share that BEL has achieved a market capitalisation of ₹71,307 Crore as on 31 March 2023. This is a testament to our commitment of adequately rewarding our shareholders. Great progress was also made with regards to extending support to the communities and ensuring sustainable operations.”

On March 14, Bharat Electronics Limited (NSE:BEL) announced the sale of 14 cutting-edge Communication and Electronic Warfare (EW) sensors and systems to Larsen & Toubro Limited (NSE:LT) which will be installed on three cadet training ships for the Indian Navy. The contract is valued at $101.58 million. Earlier on February 13, Bharat Electronics Limited (NSE:BEL) received an order worth $130.93 million to supply LRUs for T-70 & T-90 tanks and communication systems for the Indian Navy. As of March 14, Bharat Electronics Limited (NSE:BEL) has received orders totaling over $3.92 billion, indicating a 15-17% growth for the financial year 2023/24.

Larsen & Toubro Limited (NSE:LT) operates in a diverse range of industries including, defense engineering. Larsen & Toubro Limited (NSE:LT) manufactures land-based weapon launch systems, air defense and artillery systems, naval weapon launch systems with fire control solutions, bridging systems, communication, avionics, C4I, and missile systems. For the financial year 2023, Larsen & Toubro Limited (NSE:LT) reported a revenue of $13.25 billion, up from $12.11 billion in the previous year. On March 28, Larsen & Toubro Limited (NSE:LT) reported that the Royal Fleet Auxiliary (RFA), one of the United Kingdom’s naval fleet, sent RFA Argus and RFA Lyme Bay warships to Larsen & Toubro Limited’s (NSE:LT) shipyard in Mumbai for Assisted Maintenance Period (AMP) and Self Maintenance Period (SMP). Commenting on the occasion Deputy British High Commissioner, Oliver Ballhatchet MBE said:

“This is the first instance that Royal Navy ships are undergoing scheduled maintenance routines in India. This move signifies a step towards India-UK 2030 Roadmap and reflects a shared understanding of the global security challenges in the Indian Ocean Region”.

Larsen & Toubro Limited’s (NSE:LT) Executive Vice President & Head of Defense, A T Ramchandani said:

“The visit of the Royal Fleet Auxiliary ships, after US Navy ships last year, showcases the global recognition of L&T’s unmatched capabilities and facilities to undertake quality shipbuilding & refits.”

The defense market in Asia is experiencing robust growth driven by military modernization and technological advancements by countries such as China and India. Geopolitical tensions, territorial disputes, and terrorism threats are also driving growth in the defense sector. With this context, let’s take a look at the list of the 15 biggest defense companies in Asia.

A skilled machinist inspecting a precision bearing for a aerospace/defense application.

Our Methodology

To make our list of the 15 biggest defense companies in Asia, we went over several sources including industry reports, our own rankings, and multiple similar rankings. We also scanned the Finviz and Yahoo Finance stock screeners. For public companies, we checked each company’s market capitalization, as of April 2, 2024, on Yahoo Finance. The market caps for foreign companies were converted to US dollars based on the exchange rates of the respective country.

To quantify the “value” or “size” of private companies, we selected either the estimated valuation, or the annual revenue available for the most recent fiscal year, or the number of employees, subject to availability of data. The estimated valuation was sourced from major media reports based on the private companies’ latest funding round. The annual revenue or number of employees was sourced from official statements by the company and the company’s website, and Forbes or Fortune in case the company did not disclose its financials. We have ranked the biggest defense companies in Asia in ascending order of their market capitalization, as of April 2, 2024, or alternative metrics for private companies.

15 Biggest Defense Companies in Asia

15. Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK)

Market Cap: $4.87 billion

Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) is one of India’s biggest shipbuilding companies. Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) is recognized for manufacturing defense vessels such as warships, submarines, and stealth frigates for the Indian Navy. Mazagon Dock Shipbuilders Limited’s (NSE:MAZDOCK) market capitalization stands at $4.87 billion, as of April 2.

14. Hanwha Ocean Co., Ltd. (KRX:042660)

Market Cap: $6.58 billion

Hanwha Ocean Co., Ltd. (KRX:042660) is a South Korean company that provides a wide range of products and solutions for both commercial and military applications in the maritime and defense sectors. Hanwha Ocean Co., Ltd. (KRX:042660) has a focus on shipbuilding, offshore engineering, and marine services and plays a crucial role in South Korea’s maritime industry as one of the biggest defense companies in Asia. As of April 2, Hanwha Ocean Co., Ltd. (KRX:042660) is valued at $6.58 billion.

13. AVIC Airborne Systems Co., Ltd. (China Avionics Systems) (SHA:600372)

Market Cap: $7.88 billion

AVIC Airborne Systems Co., Ltd. (SHA:600372) also known as China Avionics Systems Co. Ltd. is a Chinese aerospace company specializing in the design, development, and manufacturing of airborne systems and equipment. AVIC Airborne Systems Co., Ltd. (SHA:600372) has a focus on military applications, including airborne radar systems, avionics, and electronic warfare systems. The market capitalization of AVIC Airborne Systems Co., Ltd. (SHA:600372), as of April 2, is $7.88 billion.

12. HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180)

Market Cap: $8.20 billion

HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180) is a South Korean conglomerate with diverse business interests, including shipbuilding, offshore engineering, and industrial machinery. HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180) is also involved in the design and construction of naval vessels, including submarines, destroyers, and aircraft carriers. HD Hyundai Heavy Industries Co.,Ltd. (KRX:329180) has a market cap of $8.20 billion, as of April 2.

11. AVIC Xi’an Aircraft Industry Group Company Ltd. (SHE:000768)

Market Cap: $8.21 billion

AVIC Xi’an Aircraft Industry Group Company Ltd. (SHE:000768) is a Chinese aerospace company specializing in the design, development, and manufacturing of military, transport, and special mission aircraft. AVIC Xi’an Aircraft Industry Group Company Ltd. (SHE:000768) plays a crucial role in supporting China’s air force and enhancing its aerospace capabilities. As of April 2, AVIC Xi’an Aircraft Industry Group Company Ltd. (SHE:000768) has a market value of $8.21 billion.

10. Singapore Technologies Engineering Ltd (SGX:S63)

Market Cap: $9.34 billion

Singapore Technologies Engineering Ltd (SGX:S63) is the biggest defense, and engineering company in Singapore. Singapore Technologies Engineering Ltd (SGX:S63) has a diverse portfolio of businesses including aerospace, electronics, land systems, and marine sectors, Singapore Technologies Engineering Ltd (SGX:S63) has a market cap of $9.34 billion, as of April 2.

9. HLB Co., Ltd. (KOSDAQ:028300)

Market Cap: $9.57 billion

HLB Co., Ltd. (KOSDAQ:028300) is a South Korean company, which is one the biggest defense companies in Asia. HLB Co., Ltd. (KOSDAQ:028300) provides a wide range of products and services for military applications, including communication systems, surveillance equipment, and electronic warfare systems. HLB Co., Ltd. (KOSDAQ:028300) has a market cap of $9.57 billion, as of April 2.

8. Hanwha Aerospace Co., Ltd. (KRX:012450)

Market Cap: $9.68 billion

Hanwha Aerospace Co., Ltd. (KRX:012450) is a South Korean conglomerate involved in the manufacturing of aircraft components, propulsion systems, and defense electronics. Hanwha Aerospace Co., Ltd. (KRX:012450) contributes significantly to South Korea’s defense industry. As of April 2, Hanwha Aerospace Co., Ltd. (KRX:012450) is valued at $9.68 billion.

7. AECC Aviation Power Co.,Ltd (SHA:600893)

Market Cap: $12.37 billion

AECC Aviation Power Co.,Ltd (SHA:600893) ranks among the biggest aerospace and defense companies in China. AECC Aviation Power Co.,Ltd (SHA:600893) specializes in the manufacturing of engines and gas turbines for military aircraft, commercial airliners, and unmanned aerial vehicles (UAVs). As of April 2, AECC Aviation Power Co.,Ltd (SHA:600893) is valued at $12.37 billion.

6. AVIC Shenyang Aircraft Company Limited (SHA:600760)

Market Cap: $13.59 billion

AVIC Shenyang Aircraft Company Limited (SHA:600760) is one of the biggest aerospace and defense companies based in Shenyang, China, specializing in the design, development, and manufacturing of military aircraft and fighter jets. AVIC Shenyang Aircraft Company Limited (SHA:600760) plays a crucial role in China’s air force and aerospace capabilities. AVIC Shenyang Aircraft Company Limited (SHA:600760) has a market cap of $13.59 billion, as of April 2.

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Disclosure: None. 15 Biggest Defense Companies in Asia was originally published at Insider Monkey.

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