Application of Cluster Analysis to the Global Defense Industry Market

In 2024, Republic of Korea accounts for 2% of global major arms exports, placing the country among the world’s top 10 defense exporters. Recognizing the defense industry as a new national growth engine, the government is actively promoting policies aimed at joining the ranks of the ‘Top 4 Defense-Exporting Countries.’ However, existing domestic studies have largely focused on institutional support and export expansion strategies, with limited quantitive analysis of the characteristics of countries comprising the global defense market. Given that the defense industry market as a politicized market in which governments act as primary demand-side players, a country-based analytical framework is essential for effective market segmentation. This study conducts a k-prototypes cluster analysis on 45 countries with the highest GDP, using diverse national indicators such as economic power, military strength, technological capacity, and diplomatic influence. By identifying key variables that influence cluster formation, the study aims to provide strategic insights f or R epublic o f Korea in f ormulating p olicies to a dvance i ts p osition a s one o f the leading countries in the global defense industry.