The defence industry marketplace
Aerospace and Defence Industry
The global aerospace and defence market is booming. Global military expenditure and the global arms trade form the largest spending in the world at over one trillion dollars in annual expenditure, a figure which has been rising in recent years.
- World military expenditure in 2009 was $1,539 billion, which represents a 15% increase on 2005's spending ($1,328 billion) and a 36% increase since 2000 ($1,048 billion).
- The top 10 defence spenders in 2009 accounted for 75% of the total. The USA was responsible for 43% of the world total, distantly followed by China, France, UK and Russia with 3-6% each.
- The ten biggest defence budgets for 2010 added up to more than $1,100 billion. The United States accounted for 60% of this, spending $693 billion. Saudi Arabia had the highest spending of any country in relation to the size of its economy, spending 10% of their GDP on defence.
- Defence budgets have grown since 2005, but the balance of military power may be shifting. Western countries, many of which are engaged in Afghanistan, now face budget constraints and cuts, while emerging economies such as Brazil and China have increased military spending in line with economic growth.
- Regionally, the highest spenders were the Americas, with an aggregated spending of over $737 billion in 2009. This signifies a 78% growth on their 1999 spending of around $414 billion. The United States were the highest spenders, accounting for nearly 90% of the defence spending within the region.
- In terms of growth since 1999, the Middle East ranks second with an increase of 27%. Saudi Arabia had the largest defence budget in the Middle East in 2009, spending $41 billion, which accounted for 53% of the total spend within the region.
*Source: Stockholm International Peace Research Institute (SIPRI) 2010 Yearbook
- The global aerospace and defence market grew by 9.8% in 2008 to reach a value of $674.6 billion. In 2013, the global aerospace and defence market is forecast to have a value of $910 billion, an increase of 34.9% since 2008.
- The defence EPM segment generates 69.5% of the global aerospace and defence market's value. The Americas' aerospace and defence market accounts for 51.9% of the market's value.
- The Boeing Company is the leading company in the market, with 10.3% of the market's value.
Source: ASDReports "Aerospace and Defense: Global Industry Guide"
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