Japanese Defence Firms Record Strong Growth: SIPRI
A new report from the Stockholm International Peace Research Institute (SIPRI) shows that Japanese defence manufacturers posted significant revenue growth in 2024. The rise reflects both expanding global demand for military equipment and Japan’s gradual shift toward easing its post-war restrictions on defence exports.
Export Rules Eased After Decades
Japan began relaxing its arms-export controls in 2014, allowing defence companies to participate in limited international projects. In 2025, the government moved further by outlining a comprehensive defence-export strategy aimed at integrating Japanese firms more actively into the global arms market. The policy shift is part of Tokyo’s broader effort to strengthen national security amid rising regional tensions.
Growth Fueled by Indo-Pacific Security Environment
SIPRI noted that Japanese defence companies were among the fastest-growing globally in 2024. The increased demand is linked to heightened geopolitical uncertainty in the Indo-Pacific, prompting countries to seek reliable suppliers. Japan’s firms are increasingly seen as alternatives to traditional exporters in the United States and Europe.
Japan Eyes Bigger Role in Global Arms Supply
Japan is now exploring the export of naval vessels, missile components and advanced defence systems to partner nations. Analysts say the trend signals a major strategic transition, with Japan moving from long-standing restraint to becoming an active player in international defence production.
