The market valuation of Japan’s major defense companies has risen against a backdrop of increased defense spending prompted by the situation in Ukraine and eased export restrictions following the revision of the Three Principles on Transfer of Defense Equipment and Technology.
While US companies dominate the global defense industry, only a limited number of Japanese companies rank among the world’s top 100. Attention is therefore focused on trends in the market capitalizations and total sales of Japan’s 5 major defense companies, including Mitsubishi Heavy Industries. SIPRI rankings show that Japanese companies account for a small share, and some have pointed out that Japan’s defense spending is relatively small compared with that of the United States.
The market capitalizations of Japan’s 5 major defense companies are shown using the latest available monthly data, while total sales are presented as annual data, with fiscal 2025 figures used for reference. The 5 Japanese companies are Mitsubishi Heavy Industries, Kawasaki Heavy Industries, IHI, Mitsubishi Electric and NEC. These indicators show their positions relative to 5 overseas companies.
Japan’s defense spending has been trending upward since fiscal 2023, and a revision in April 2026 removed export restrictions covering 5 categories under the Three Principles on Transfer of Defense Equipment and Technology. As a result, reports indicate that market valuation of Japan’s major defense companies, as measured by market capitalization, has risen rapidly.
Against this backdrop of changing conditions, some have pointed to a shift in the valuation of Japan’s defense industry, and attention is focusing on future market trends.