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2011 Defense Outlook
Frost & Sullivan, Feb 2012, Pages: 109
Opportunity Despite Reduced Budgets
This research service outlines global defense spending and summarizes research, operations, procurement, and services spending. The base year for this study is 2010 with a 2008 to 2016 global defense spending forecast. This study’s intent is to indicate which segments of products and services spending the leading defense markets are emphasizing globally, so firms can invest in these areas of growth. The research segments procurement spending is divided into twelve technology areas and seven geographical regions. Information regarding the leading country in each region is also included in each regional segment. Market drivers and restraints, global regions, country profiles, and technology segments are included.
KEY QUESTIONS THIS STUDY WILL ANSWER
- Is the market growing, how long will it continue to grow and at what rate?
- What segments, technologies, and services make up the market?
- What are the leading market drivers and restraints?
- What are the top technology segments for the defense market?
- What technologies and services will be emphasized?
- What companies are leading the market?
DRIVERS EXPLAINED
Continuing Combat Operations
Wars, insurgencies, border disputes, and/or counter-terrorist activities in every region require governments to allocate significant portions of their budgets to defense establishments and procurement. Many nations are also increasing or modernizing their defense capabilities
because of aggressive foreign policies and weapons of mass destruction development in neighboring countries.
Worn-out Equipment
The last several years of constant large-scale deployments from the United States and from many other nations embodying the largest global share of defense spending (for example, the countries within the United Kingdom, France, and Germany) has necessitated equipment repairs, maintenance, resets, replacements, and upgrades. Furthermore, these nations and other nations that follow their examples of combat success plan to expand their tables of equipment to include more capable platforms and technologies.
Increasing Use of Commercial-Off-The-Shelf (COTS) Technology, Cyberspace as an Operational Domain
Mature commercial technologies have been adopted for use in many military technology segments. Cost savings, faster fielding times, and ease of upgrades are priorities. As commercially-successful computer technologies are adapted and military networks become more dependent on network collaboration, cyber attacks have increased rapidly in both number and sophistication. Technologies and services that ensure reliable network security and information assurance have rapid growth rates.
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