US Defense Expenditure to Post 5.72% CAGR to 2022, Informs SDI in Its New Topical Report Published at MarketPublishers.com22 Jan 2018 • by Natalie Aster
LONDON – The USA is the biggest defense spender worldwide, with a budget of USD 586.7 billion as of 2017. The country is expected to maintain its dominance over other countries in the offing, with its defense expenditure set to post a 5.72% CAGR to 2022. The growth is driven by incentives to sustain military superiority, equipment modernisation program, disturbances in the Middle East region, surging tension with China, and R&D activities, among others.
Over the analysis period, the overall defense budget, comprising financial backing for overseas contingency operations (OCOs), was comparatively flat, posting a 0.40% CAGR owing to the sequestration measures applied by the government.
During 2013-2017, the USA allocated 34.2% on average of its total military budget to CapEx, mainly to meet the equipment needs of its overseas contingency during the wars in Iraq and Afghanistan. However, with the nations likely to focus more on the replacement of damaged and obsolete military equipment instead of war requirements, the CapEx is projected to average 36.3% in the projected period. Hence, the share of revenue spending is likely to average 63.7% in the offing versus 65.8 over 2013-2017.
Opportunities are likely to occur in IT-software, networking, multirole aircraft MRO, multi-role aircraft, and IT-hardware.
Raytheon, Lockheed Martin, Boeing, Northrop Grumman, General Dynamics, L-3 Technologies, Sikorsky Aircraft, Honeywell International, and Bell Helicopter Textron, among others, are the leading players.
Topical research report “Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” drawn up by SDI offers a granular analysis of the defense industry on a national level during 2018-2022.
The study casts light on the demand drivers and growth propellers for the industry. It also gives a brief review of the country’s spending and modernisation patterns. The report reviews the country’s procurement schedules, categorises the defense budget pertaining to CapEx and revenue expenditure. It gives insights into key challenges faced by domestic market participants. Porter’s five force analysis of the US defense industry is available, too. The research study discusses the key trends in the US imports and exports in the review period; pinpoints the 5 major defense investment opportunities over the next decade. The repot scrutinises the competitive scene in the industry, reviews top market players, limelighting topics such as key alliances, strategic incentives, and an analysis of financials.
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