As one of the eight IS-8 priority sectors under the UK Government’s Modern Industrial Strategy, Invest 2035, the Defence sector is a strategic force that shapes innovation, national security, and economic growth. This sector focuses on research, design, manufacturing, and services that support Defence customers both in the UK and internationally.
From advanced combat aircraft to autonomous systems, Defence harnesses technology and innovation to strengthen the UK’s military capabilities and global competitiveness.
What Is the Defence Sector?
The Defence sector encompasses businesses and organisations delivering goods or services specifically for Defence purposes. This includes:
- Weapons and ammunition manufacturing
- Military vehicles and aerospace production
- Research, design, and development of frontier technologies
- Maritime and naval systems
- Drones, autonomous systems, and advanced electronics
Many Defence activities overlap with other sectors, such as Advanced Manufacturing and Digital & Technology, reflecting the complex, interdisciplinary nature of modern Defence capabilities.
Why the Defence Sector Matters to the UK
The UK’s Defence sector is essential for national security, technological advancement, and economic impact. The sector drives:
- Strategic Security: Maintaining military readiness and global defence capabilities.
- Technological Leadership: Advancing AI, quantum technologies, semiconductors, cybersecurity, and engineering biology.
- Economic Growth: Supporting high-value manufacturing, R&D, and skilled employment across the UK.
- International Collaboration: Strengthening Defence exports and partnerships with allied nations.
- Innovation Ecosystems: Promoting frontier technologies that spill over into commercial and civilian applications.
By integrating advanced manufacturing, research, and digital technologies, Defence acts as both a driver of security and a catalyst for innovation across the UK economy.
Frontier Industries in the UK Defence Sector
The Defence sector is structured around core capabilities and enablers that push the boundaries of technology and operational performance. Key frontier industries include:
| Frontier Industry | Why It’s Important |
| Combat Air | Research, design, and production of combat aircraft to maintain air superiority. |
| Complex Weapons | Development of missiles, air defence systems, and high-precision weaponry. |
| Directed Energy Weapons | Cutting-edge research into lasers and other directed energy systems. |
| Drones & Autonomous Systems | Enabling unmanned aerial and ground platforms for operational efficiency. |
| Maritime Capabilities | Military shipbuilding, naval research, and advanced maritime systems. |
SIC Codes for the Defence Sector
The Defence sector spans multiple SIC codes, making classification challenging. Only a few SIC codes are explicitly dedicated to Defence manufacturing:
| SIC Code | Description |
| 303 | Manufacture of air and spacecraft and related machinery |
| 254 | Manufacture of weapons and ammunition |
| 304 | Manufacture of military fighting vehicles |
At DataGardener, we use refined classifications and updated data to provide accurate insights into Defence companies, their capabilities, and frontier technologies.
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Leading UK Defence Companies by Turnover
1. BAE Systems PLC
Incorporated: 1979
Location: London
Latest Turnover: £26.3b
A leading global defence, aerospace, and security company, providing advanced military systems, naval vessels, and technology solutions.
2. BAE Systems (Operations) Limited
Incorporated: 1986
Location: South East
Latest Turnover: £7.1b
Supports Defence operations and manufacturing, delivering integrated systems and services across the UK and international markets.
3. Airbus Operations Limited
Incorporated: 1997
Location: South West
Latest Turnover: £4.6b
Designs and manufactures aircraft and aerospace solutions, contributing to military and commercial aviation innovation.
4. Leonardo UK Ltd
Incorporated: 1989
Location: London
Latest Turnover: £2.34b
Provides defence, security, and aerospace solutions, including helicopters, avionics, and mission systems for global clients.
5. GKN Aerospace Services Limited
Incorporated: 1939
Location: West Midlands
Latest Turnover: £710.0m
Specialises in aerospace components and advanced manufacturing, supporting the Defence and civil aviation sectors.
6. Spirit AeroSystems (Europe) Limited
Incorporated: 2005
Location: London
Latest Turnover: £501.5m
Delivers aerospace structures and systems, focusing on innovation in Defence and commercial aviation manufacturing.
7. Safran Landing Systems UK Ltd
Incorporated: 1998
Location: South West
Latest Turnover: £492.7m
Develops landing gear and aerospace systems, supporting Defence aircraft operations and safety.
8. Goodrich Actuation Systems Limited
Incorporated: 2002
Location: West Midlands
Latest Turnover: £482.6m
Manufactures actuation systems and aerospace components, enhancing performance and reliability in Defence aviation.
9. BAE Systems Global Combat Systems Munitions Limited
Incorporated: 1984
Location: South East
Latest Turnover: £370.0m
Produces advanced munitions and combat systems, providing critical support to military operations globally.
10. ITP Aero UK Limited
Incorporated: 2020
Location: East Midlands
Latest Turnover: £244.9m
Specialises in the design and maintenance of aircraft engines and turbine systems, contributing to Defence aerospace capabilities.
Conclusion
The UK Defence sector is a cornerstone of national security and technological innovation. By combining advanced manufacturing, frontier technologies, and Defence-specific R&D, the sector not only protects the UK but also drives economic growth, global competitiveness, and technological leadership.
With DataGardener, businesses, analysts, and policymakers can gain a clearer view of the Defence landscape, track frontier industries, and leverage insights to navigate this highly strategic sector.