INDUSTRY REPORT
Image : Shutterstock
“ Various regions around the world confront distinctive security challenges , including but not limited to territorial disputes , regional rivalries and cross-border conflicts . In response to these concerns and to maintain regional stability , countries commit substantial portions of their financial resources to defence . For instance , in the Asia-Pacific region , the escalating military capabilities of China have compelled neighbouring nations to fortify their defence capabilities ,” said the analyst ’ s report , ‘ Global Defence Industry Outlook – Development and Trends in 2023 / 2024 .’
“ Similarly , the Middle East contends with security threats emanating from terrorism , internal conflicts and external aggression , prompting regional nations to allocate significant financial resources to safeguard their interests . The strategic allocation of defence budgets is also influenced by regional defence cooperation and alliances , as nations strive to bolster collective security and deter potential aggressors . These factors are anticipated to exert a considerable impact on global defence budgeting in the forecast period ,” it added .
U . S . Marines assigned to Marine Aviation Weapons and Tactics Squadron One , attach a High Mobility Multipurpose Wheeled Vehicle to a CH-53E Super Stallion helicopter during Weapons and Tactics Instructor course 1-24 at Auxiliary Airfield II . near Yuma , Arizona ( 3 October 2023 ).
The ‘ Global Defence Industry Outlook ’ study expected the airborne platform segment to lead the budget allocation in 2024 and beyond
Military budget allocations
Image : Lance Cpl . Elizabeth Gallagher / USMC . Image : Neil Martin / Unsplash .
Prince of Wales aircraft carrier ( UK Royal Navy ) in Liverpool .
The ‘ Global Defence Industry Outlook ’ study expected the airborne platform segment to lead the budget allocation in 2024 and beyond .
“ Globally , the airborne platform is seeing new investments along with new programmes and developments . This is due to an increased focus on precision engagement ; rapid global mobility ; agile combat support ; electronic warfare ; strategic mobility and global reach . Due to these investments and factors , the airborne platform is projected to grow from US $ 72 billion in 2023 to US $ 75 billion by 2024 at an annual rate of 2.1 %,” outlined the report .
“ Armies across the globe have seen multiple modernisation initiatives with upgrading future soldier systems ; developing new armoured vehicles ; accuracy and range improvements in artillery and missile systems ; counterinsurgency operations ; urban warfare and logistics post the Russia-Ukraine war . For instance , the Indian Army has ongoing modernization programs with 93 projects worth US $ 18.4 billion . The naval platform has witnessed an increased focus on the acquisition of new naval vessels ; the development of aircraft carriers ; nuclearpowered submarines ; unmanned submersibles and surface vessels , and the improvement of Anti-Access / Area Denial ( A2 / AD ) owing to rising territorial disputes and maritime security ,” added the report .
In the domain allocation segment of the defence budget , the army subsegment is expected to dominate the defence budget analysis and is projected to grow from US $ 621.3 billion in 2023 to US $ 655.1 billion by 2024 , at an annual rate of 2.7 % by the report . The army segment includes personnel ; training ; operations ; equipment procurement ; research and development ; and maintenance expenditures .
“ The North-American region is estimated to account for the largest share in 2024 while the Asia-Pacific region is expected to witness substantial investments in defence industries across countries . North America is also projected to have the largest share in the world defence budget allocation market . The upswing in expenditures on modernisation initiatives in the Asia-Pacific region is driven by several factors , including the growing sophistication of weapon systems , the necessity to replace ageing equipment and the aspiration to maintain a technological edge . Countries such as India ; Japan ; South Korea and Australia are channelling substantial investments into novel weapons systems such as fifth-generation fighters , stealth bombers and missile systems ,” continued the report .
ISMR July / August 2024 | ismr . net | 25