INDUSTRY REPORT
Image : Saikrishna Saketh Yellapragada / Unsplash .
NH 90 helicopter ( Finnish aviation ) at the Helsinki airshow in 2021 .
Defence M109A7 tank ( BAE Systems ).
The U . S . Defence Budget , the largest in the world , continues to enjoy a marked growth phase . It is pegged at US $ 849.8 billion for FY2024 by analyst ResearchandMarkets . com , after registering a modest 2.3 % YoY growth for 2023 .
Market opportunities
Astute class submarine ( BAE Systems ).
According to Research and Markets . com ’ s report entitled ‘ Defence Global Market Opportunities and Strategies to 2033 ’, Asia Pacific was the largest region in the defence market accounting for 31 % or US $ 177.5 billion of the total in 2023 . It was followed by North America , the Middle East and other regions .
“ Going forward , the fastest-growing regions in the defence market will be the Middle East and South America where growth will be at CAGRs of 11 % and 10 %, respectively . These will be followed by Africa and Western Europe where the markets are expected to grow at CAGRs of 8.5 % and 6.7 %, respectively ,” confirmed the report .
“ The top opportunities in the defence market segmented by type will arise in the air-based defence equipment segment , which will gain US $ 87.4 billion of global annual sales by 2028 . The top opportunities in the defence market segmented by operation will arise in the manual segment , which will gain US $ 158.88 billion of global annual sales by 2028 . The top opportunities in the defence market segmented by platform will be in the airborne segment , which will gain US $ 104 billion of global annual sales by 2028 . The defence market size will gain the most in the USA at US $ 26.2 billion ,” added the report .
Market trend-based strategies for the defence market include investing in facilities and staying ahead of competitors , collaborations and sales partnerships to strengthen companies ’ market positions .
The launch of innovative technologies , such as AI ( artificial intelligence ) -enabled systems , investments in next-gen technology and a focus on the launch of innovative platforms , such as edge computing on the battlefield , are also key strategies .
“ Player-adopted strategies in the defence market include a focus on strengthening business operations through securing new contracts ; strategic investments in aligned businesses for future growth ; expanding product portfolios by developing new products and investing in modern warfare and missile technologies ; expanding maritime operations and developing a robust defence infrastructure through investing in modern and advanced defence systems and companies ,” concluded the report . n
26 | ismr . net | ISMR July / August 2024