Defence and security add £26.7bn to UK economy as exports surge 105% in a decade
September 9, 2025
The value of the United Kingdom’s defence and security industries to the national economy has almost doubled in the past decade, according to new figures released by trade association ADS at the opening of DSEI 2025 in London.
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According to ADS, defence and security added £26.7 billion to the economy in 2024, up 93% compared with 2014. Exports were valued at £25.4 billion, a rise of 105% over the same period.
Turnover across defence and security has reached £60.4 billion, while direct employment now stands at 330,000 people, many in high-value manufacturing roles.
Productivity has also increased, with workers generating around £81,000 of output each year, up by a quarter in ten years.
ADS chief executive Kevin Craven said the numbers highlight how defence contributes to prosperity as well as national security.
“The primary purpose of defence and security is to protect and deter – but in the process, the value we provide to the economy is increasingly critical to innovation and prosperity,” he said. “The significant growth we have observed over the past decade reflects industries that are agile, innovative, and increasingly vital to national prosperity and enabling wider society to prosper. As we gather at DSEI, it’s clear that strategic investment and policy clarity will be key to unlocking even greater potential in the years ahead.”
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UK among the world’s leading arms exporters
The ADS release underscores Britain’s role as one of the top global arms exporters. Government data shows UK defence orders reached £14.5 billion in 2023, representing a 39% increase in real terms over 2022. Between 2019 and 2023, aerospace accounted for 56% of total defence exports, cementing its place as the backbone of the industry.
Europe is the largest export market, taking 34% of orders, followed by the Middle East at 32%, North America at 18%, and the Asia-Pacific at 7%. Latin America and Africa together accounted for just 2%.
The US International Trade Administration describes the UK as the world’s second-largest aerospace and defence sector after the United States, with a sophisticated and export-driven industry base.
The UK and Türkiye have signed a major deal paving the way for Typhoon fighter jet exports. 🇬🇧🤝🇹🇷
— Ministry of Defence 🇬🇧 (@DefenceHQ) July 23, 2025
This key step boosts British industry, supports thousands of jobs, and reinforces NATO’s defence – keeping us safe at home and strong abroad.
🔗: https://t.co/b2bls3MEqN pic.twitter.com/b8DT9lEBQw
Value of UK defence exports up, but share remains flat
While the financial value of Britain’s defence exports is climbing, data from the Stockholm International Peace Research Institute (SIPRI) suggests its share of defence exports has remained steady. This is despite a substantial increase in the value of defence exports.
Using its “trend indicator value” (TIV), which measures the volume of equipment transferred rather than its monetary cost, SIPRI recorded a UK share of 3.6% of world exports between 2020 and 2024 – the same as the previous five-year period.
The volume of TIV declined 1.4% compared with the previous 5-year period. Meanwhile, Russia’s exports collapsed 64%, US exports grew 21% and Italy surged 138%.
This puts the UK behind the US (43%), France (9.6%), Russia (7.8%), China (5.9%), Germany (5.6%), and Italy (4.8%). Aircraft made up 37% of the UK’s total TIV exports.
The United Kingdom’s fighter jet pedigree
Aerospace remains the jewel in Britain’s defence crown. Although the UK does not field a wholly indigenous fighter like the French Rafale, it retains a 33% stake in the Eurofighter Typhoon programme. The production line, idle in recent months, is now preparing for renewed orders, including 40 aircraft for Turkey and a potential follow-on deal with Qatar.
The F-35 fighter jet is an American program, but the UK is the most important international partner and is responsible for producing around 15% of every F-35 flying. BAE Systems is one of the leading contractors on the program, while Martin-Baker produces the ejection seats, and Rolls-Royce’s LiftFan enables the F-35B to land vertically.
Looking to the future, Britain is collaborating with Japan and Italy on the 6th-generation Global Combat Air Programme (GCAP), also known as Tempest, designed with export potential in mind.
With exports doubling in a decade and productivity rising sharply, ADS is keen to stress the defence and security sector’s role as a driver of prosperity as well as security.
As DSEI 2025 opens its doors, showcasing 180 ADS member companies on the floorplate, the UK is positioning itself not only as a buyer of cutting-edge technology but as a supplier to the world.
Follow AGN’s dedicated DSEI page to stay up to date with all the latest news from the show.
