The first annual Global Defence Snapshot by Forecast International indicates continued growth in the worldwide market following relatively flat investment over the course of the 2015-2016 period.
According to the group, an ‘increasingly multi-polar global security environment buffeted by healthy economies and ongoing military modernisation cycles’ contributed to a 3.3 percent year-on-year rise in consolidated worldwide defence spending for 2017.
“The consolidated worldwide defence spending figure combines spending from over 120 nations across the world, capturing 99.92 percent of the estimated figure for total global expenditure. As the market shifts into 2018 and the years ahead, Forecast International anticipates accelerating spending growth as geopolitical pressure points and future threats reinforce government investment in military and security requirements.
While 2017 marked a healthy spike in market growth, topline worldwide spending remained below the 2014 threshold of $1.526 trillion. This latter figure will be surpassed in 2018, with the $1.6 trillion ceiling being broken by 2020. Primary national drivers of future spending growth will come from China, India, Saudi Arabia, Iran, South Korea, Germany, the UAE and the United States, with many smaller markets undergoing their own respective military modernization drives that will spike national spending.”
Forecast International say their figures are derived from topline defence totals country-by-country, excluding pension funding wherever applicable, such as in the UK.
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In their own words, Forecast International is a provider of Market Intelligence and Consulting in the areas of aerospace, defence, power systems and military electronics.