Market Overview

Strategy Analytics: Accelerated Growth Curve to Push Defense Spending to $2.6 Trillion

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Defense Industry TAM Opportunities to Grow at a 3.5% CAGR through 2027

A number of common drivers recurring within and across the different
regions will underpin an accelerated global defense budgetary outlay.
The Strategy Analytics Advance Defense Systems (ADS) service report, "
Global
Defense Expenditure Outlook 2017-2027
," forecasts these
factors will bolster defense spending, bringing forward previous
projections, and translating to a global budget of $2.58 trillion in
2027.

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Defense Spending Outlook 2017-2027 (Graphic: Business Wire)

Defense Spending Outlook 2017-2027 (Graphic: Business Wire)

This will also translate to the defense industry sector opportunity
continuing its momentum as it is tasked with providing new capabilities,
as well as upgrading existing platforms and systems through
technology-focused investment. The total available market (TAM) for the
defense industry will grow to $827.0 billion by 2027.

Strategy Analytics' 2018 global defense analysis is based on an
assessment of 95 countries that spent a minimum of $500 million on their
annual defense in 2017. Strategy Analytics' outlook for global defense
spending is based on baseline information from SIPRI (Stockholm
International Peace Research Institute); information on the SIPRI data
can be found at http://www.sipri.org/research/armaments/milex/milex_database/milex_database.

This is followed by an individual assessment of each of the countries,
looking at a range of factors including GDP growth, threat perception
and political intent on force modernization and indigenization of the
local defense industry covering a ten-year timeframe. Strategy Analytics
defense spending outlook forecast is based on a range of factors used to
assess global, regional and country-by-country analysis of overall
military spending covering procurement (including R&D), services,
personnel, infrastructure etc. This in turn provides the basis for
forecasting platform, system, subsystem and enabling technology spend
that underpins subsequent forecasts.

"Spending on radar, EW and communications will be some of the priorities
for defense spending along with Command and Control (C2), Computers,
EO-IR (electro-optical and infrared) sensors, navigation and smart
weapons," predicts Asif Anwar, Director of the ADS service.
"While the overall defense spending profile maintains an upwards
trajectory, to successfully capture the underlying opportunities at
countries operating at differing levels of sophistication and defense
spending prioritization, will require the defense industry to understand
the tailoring required for partnerships, capabilities and solutions."

Meet Strategy Analytics analysts for one-to-one defense discussions at
the Defence,
Security and Space (DSS) Forum
during European Microwave Week, Electronic
Warfare GCC 2018
and at MILCOM
2018
to discuss how the combination of Strategy Analytics'
consulting capabilities, coupled with in-depth defense subject matter
expertise, can assist with the industry's future strategic direction.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory
services, consulting and actionable market intelligence for emerging
technology, mobile and wireless, digital consumer and automotive
electronics companies. With offices in North America, Europe and Asia,
Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com

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