Global defence spending continues to rise
Protecting territory and keeping its people safe are key priorities for nations across the globe.
Global trends such as shifting balances of power, rising nationalism and the emergence of new digital battlefields are redefining the geopolitical landscape.
This ever-evolving environment creates a stimulus to increase investment in defence and the requirement to spend more effectively as nations look to protect their own interests.
Maintaining this capability drives expenditure and means that those businesses working in the defence industry have a wealth of opportunities to exploit.
Global Defence in 2020
The International Institute for Strategic Studies (IISS) has revealed that Global defence spending reached US$1.83 trillion in 2020, a 3.9% annual uplift.
IISS is an international research institute that provides objective information on military, geopolitical and geo-economic developments that could lead to conflict.
IISS says that last year:
“global defence-spending was resilient with real growth matching the higher rate achieved in 2019…
As a proportion of GDP, global spending sharply increased from an average of 1.85% in 2019 to 2.08% in 2020 as military budgets were maintained, despite severe economic contractions caused by the coronavirus pandemic and the series of lockdowns introduced around the world in response.”
What Countries are spending?
According to IISS US and Chinese defence budgets accounted for almost two-thirds of the total increase in global spending last year.
It has been reported that the US defence budget increased by 6.3% in 2020, while China’s growth hit 5.2%.
Meanwhile in Europe, defence spending grew by 2.0% in 2020. Many European defence markets are set to increase over the coming years. The UK announced in November last year that £16.5bn would be added to the area over the next five years. France and Germany also launched sizeable investment programmes in 2020 to support domestic defence industries.
How to maximise global opportunities
The global marketplace holds a considerable wealth of opportunity for defence suppliers.
DCI customers can maximise these opportunities using our Global Defence Tenders package. Learn more about this marketplace and how you can use DCI’s features to help you engage earlier and win more in the global marketplace.
Get started by booking an appointment with a member of our team today.