US: Market Research Reports has recently announced the addition of ‘Future of the US Defence Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019’ research report to their offering. The Future of the US Defence Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the US defence industry, according to the research company.
The US has a defence budget of USD 607.5 billion (including allocation for Overseas Contingency Operations) 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 USD 37.3 billion over the forecast period, the country is expected to increase its base military expenditure at a CAGR of 1.75%. The expenditure will be triggered by the government's plan to acquire advanced defence equipment coupled with replacement of old and obsolete arms and ammunitions. The looming threat of budget cuts and sequestration is not expected to terminate or affect the existing contracts, but will impact Department of Defense's future contracts and the number of military hardware to be procured under these contracts. Significant opportunities are expected to exist in the fields of C4ISR, aircraft, cyber security, missile defence systems and submarines. Foreign defence companies and new entrants have the option to cater to the US defence market via joint development programmes, strategic alliances, or acquisition of domestic players. The US government's encouragement of foreign direct investment (FDI) in the defence sector will also help foreign companies in entering the market, claims the report.
Source: Marketresearchreports
