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INDUSTRY REPORT

Several factors have enabled the growth of [ U . S .] military expenditure during the past five years , including the willingness of the current administration to boost the production of military equipment
The multi-mission THeMIS UGV ( unmanned ground vehicle ) from Milrem Robotics is used in 12 countries , including several NATO members . annual growth rate ( CAGR ) of 6.8 %. Growth in the market is mainly due to companies rearranging their operations and recovering from the COVID-19 impact , which had earlier led to restrictive containment measures involving social distancing , remote working and the closure of commercial activities that resulted in operational challenges . The defence market is expected to reach US $ 604.82 billion in 2026 at a CAGR of 5.8 %,” commented The Business Research Company , in its ‘ Defense Global Market Report 2022 ’.
“ The adoption of unmanned combat vehicles is one of the major trends in this market . An unmanned combat vehicle is a machine or motorised vehicle that runs without any physical human intervention . Asia Pacific was the largest region in the defence market in 2021 . Western Europe is expected to be the fastest growing region over the forecast period ( up to 2026 ),” continued the analyst .
According to Vantage Market Research , the total global military aerospace & defence lifecycle management market is estimated to reach US $ 12.56 billion by the year 2028 . Its market revenue was valued at US $ 7.82 billion in the year 2021 and it is projected to grow , exhibiting a Compound Annual Growth Rate ( CAGR ) of 8.2 %.
“ The global aerospace and defence MRO ( maintenance , repair and overhaul ) market size was estimated at US $ 44.4 billion in 2020 and is expected to expand at a compound annual growth rate ( CAGR ) of 14.0 % from 2021 to 2028 ,” commented analyst , Grand View Research .
“ However , the market is expected to face a few challenges including geopolitical conflicts , economic volatility and new norms by regulatory bodies amid COVID-19 . The market is facing an increasing threat of
A major new order by Spain expands its frontline fleet with 20 new Eurofighter Typhoons .
Armoured vehicle in military parade ( Ukrainian Army ). Image : Shutterstock . com supply chain disruptions , which is expected to encourage players to adopt digital management ( such as the use of RFID in parts tracing ). However , suppliers and OEMs have limited collaboration , making the MRO process extremely complicated and demanding ,” it added .
The UK ' s defence budget has grown , increasing from US $ 47.1 billion in 2017 to US $ 60.4 billion in 2021 , reflecting a CAGR of 6.39 %. UK defence expenditure is expected to grow because of current government policy to use defence spending as an economic stimulant by investing in the domestic industry . It recently announced more than £ 2 billion of further funding for Dreadnought nuclear deterrent submarines , which are under construction at BAE Systems ’ shipyard in Barrow-in-Furness .
U . S . defence spending
According to the ‘ United States of America ( USA ) Defence Market
- Attractiveness , Competitive Landscape and Forecasts to 2026 ’ report ( ResearchAndMarkets . com ), U . S . defence expenditure recorded a CAGR of 3.8 % during 2017-21 and stood at US $ 703.7 billion in 2021 . Over 2022-26 , it is forecast to register a CAGR of 2.0 % to reach US $ 773.3- billion in 2026 .
“ Several factors have enabled the growth of [ U . S .] military expenditure during the past five years , including the willingness of the current administration to boost the production of military equipment to secure the position of the U . S . in the international order . The militaryindustrial complex , therefore , had an ally in the White House from a budget perspective , and the Biden administration will likely keep pushing for more defence spending , despite the economic slowdown generated by the COVID-19 pandemic ,” stated the report .
“ Drivers of U . S . defence expenditure include China ' s robust advancement and modernisation ; persistent threats by Russia , North Korea , Iran and violent extremist organisations ; and the Pacific Deterrence Initiative ,” it added .
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