In this study, Frost & Sullivan overviews the US Department of Defense’s missile defense spending between FY2023 and FY2029. The study outlines the department’s funding distribution among military branches, budget activity titles, and a forecast with future spending estimates.
It also highlights the trends, challenges, drivers, and restraints the DoD and industry partners may encounter. Finally, the study highlights some short- and long-term growth opportunities.

Missile acquisition and modernization programs will ensure stable spending from FY2023 to FY2029, fostering strong business ties between the US DoD and the industry. Rising global tensions, particularly advancements by China, Iran, and North Korea in hypersonic and ballistic missile technology, further drive US defense investments to counter these potential threats.

However, US defense budget constraints can delay new system deployments. With much of the DoD’s budget focused on healthcare and payroll, its purchasing power for missile systems is limited. In addition, the missile defense industry depends on semiconductors, a market dominated by China, potentially limiting microelectronics supply for the next 5 years.