INDUSTRY REPORT
Government initiatives ; technology advances ; increasing internal and external security threats ; more advanced military helicopters and growing military modernisation programmes will drive growth
US $ 474.69 billion in 2021 , having grown at a compound annual growth rate ( CAGR ) of 4.0 % since 2016 .
“ The market is expected to grow from US $ 474.69 billion in 2021 to US $ 687.84 billion in 2026 at a rate of 7.7 %. It is then expected to grow at a CAGR of 4.0 % from 2026 and reach US $ 838.03 billion in 2031 ,” said the report .
“ Growth in the historic period resulted from increasing the use of military drones [ UAVs ]; demand for attack and transport helicopters ; low-interest rates ; increased spending on military equipment ; the increasing development of autonomous fighter jets and higher military expenditure . Defence budget reductions in developed nations ; high currency rate fluctuations ; geopolitical tensions ; volatile raw material prices and the coronavirus pandemic are factors that hindered market growth ,” continued the report .
Going forward , believes the analyst , government initiatives ; technology advances ; increasing internal and external security threats ; more advanced military helicopters and growing military modernisation programmes will drive growth . Factors that could hinder market growth in the future include increased cyber attacks , a global recession and stringent regulations .
Air , land and sea
“ The air-based defence equipment market was the largest segment of the defence market segmented by type , accounting for 37.6 % of the total in 2021 . [ Looking ahead ], the air-based defence equipment market is expected to be the fastest growing segment in the defence market segmented by type , at a CAGR of 8.4 % during 2021-2026 ,” added the report .
HMS Prince of Wales ( image : BAE Systems ).
Astute-class submarine ( image : BAE Systems .)
Factory of the Future technologies ( image : BAE Systems .)
The air-based defence equipment market is further segmented by type into fighter aircraft , military helicopters and military gliders and drones [ UAVs ]. The fighter aircraft market was the largest segment of the air-based defence equipment market segmented by type , accounting for 55.3 % of the total in 2021 . Going forward , said the analyst , the military gliders and drones ’ [ UAV } market is expected to be the fastest growing segment in the airbased defence equipment market segmented by type , at a CAGR of 9.6 % during 2021-2026 .
The sea-based defence equipment market is further segmented by type into battle force ships ( aircraft carriers ; frigates ; destroyers ; corvettes ; torpedo boats ; support craft ) and submarines ( including nuclear submarines ). The battle force ships market was the largest segment of the sea-based defence equipment market segmented by type , accounting for 60.3 % of the total in 2021 .
“ The battle force ships ’ market ( aircraft carriers ; frigates ; destroyers ; corvettes ; torpedo boats and support craft ) is expected to be the fastest growing segment in the sea-based defence equipment market segmented by type , at a CAGR of 10.0 % during 2021-2026 ,” commented The Business Research Company .
The land-based defence equipment market is further segmented by type into armoured vehicles , missiles , tanks and small arms and light weapons . The missiles ’ market was the largest segment of the land-based defence equipment market segmented by type , accounting for 52.3 % of the total in 2021 . The analyst expects this market to be the fastest growing segment in the land-based defence equipment market segmented by type , at a CAGR of 8.4 % during 2021-2026 .
Defence equipment and support
The defence equipment maintenance , repair and overhauling services market is further segmented by type into air-based defence equipment MRO services , waterbased defence equipment MRO services and land-based defence equipment MRO
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