Kawasaki Heavy Targets ¥1 Trillion in Defense Sales by the Mid-2030s

Kawasaki Heavy Industries Ltd. plans to increase its defense sales to at least ¥1 trillion ($6.3 billion) by the mid-2030s as Japan steps up spending to strengthen its military capabilities amid growing regional and global security challenges, Kyodo News reported.

Kawasaki Heavy Industries plans to expand its defense business, including the development of unmanned aircraft and underwater vehicles, as Japan strengthens its defense capabilities. [Photo: Kyodo News]

The target is nearly double the approximately ¥510 billion the company expects to generate from defense-related business in the current fiscal year.

It reflects the heavy machinery manufacturer’s growing emphasis on defense technology as Japan prepares for emerging forms of warfare involving drones and artificial intelligence (AI).

Kawasaki Heavy has also raised its defense sales target for fiscal 2030 to between ¥700 billion and ¥800 billion, up from its previous projection of ¥500 billion to ¥700 billion. The company announced the revised targets as part of its business plans.

Japan has been working to strengthen its domestic defense industry, viewing local manufacturing and technological expertise as important to national security.

Russia’s full-scale invasion of Ukraine in 2022, along with the extensive use of drones in modern warfare, has highlighted the need for new military capabilities.

Kawasaki Heavy plans to develop unmanned aerial vehicles (UAVs) capable of operating alongside crewed aircraft, including systems intended for electronic jamming and strike missions.

It is also pursuing unmanned underwater vehicles.

The company’s plans reflect Japan’s broader effort to adapt its defense capabilities to changing military technologies while supporting domestic research, development and manufacturing.