The U.S. Defense Industry Expected to Raise Military Base Expenditure to1.75 Percent by 2019

By CIOReview Team

FREMONT, CA: The U.S. is embarking upon a nuclear defense modernization plan and missile defense program to make its future bright, reports Strategic Defense Intelligence, a provider of information on the defense industry. The report, “Future of the U.S. Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019,” focuses on insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers to gain market share in the U.S. defense industry. It also gives a detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. The U.S. has a defense budget of $607.5 billion in 2014 and the government is expected to sustain a high level of expenditure over the forecast period. Although the allocation for overseas operations is estimated to remain stable at $37.3 billion over the forecast period, the country is expected to increase its base military expenditure at a Compound Annual Growth Rate of 1.75 percent. Significant opportunities are expected to exist in the fields of C4ISR, aircraft, cyber security, missile defense systems and submarines. Foreign defense companies and new entrants have the option to cater to the U.S. defense market through joint development programs, strategic alliances, or acquisition of domestic players. The U.S. government's encouragement of Foreign Direct Investment in the defense sector will also help foreign companies in entering the market. Certain factors pertaining to the security of the U.S. are expected to drive the defense expenditure of the nation in the coming years. These include the country's efforts to retain its military supremacy over other nations and conflicts in Middle East.

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