30 May 2022

Global Supply Chain: Can We Expect a Boom in the Defence Sector in 2022?

The global supply chain is a complex web of interconnected businesses that provide products and services to meet the needs of consumers all over the world. As our world becomes increasingly globalised, it is more important than ever to have a strong, resilient global supply chain.

In this blog post, we will explore how the global supply chain can help your business prepare for and respond to global conflicts while delving into the defence sector and its expected growth in 2022.

Continue reading to learn more!

Global Defence Sector Is Growing: Reaching $2 Trillion By 2022

The global defence sector reached $2 trillion in 2022, driven by increases in global tensions and military spending.

One of the main drivers of this growth is the Russian invasion of Ukraine. This has led to NATO members increasing their defence spending in order to be better prepared for any potential threats posed by Russia.

As a result of this increased spending, there will be more opportunities for businesses to win defence contracts.

So, if you are a business that provides products or services that are beneficial to the defence sector, now is the time to start preparing your marketing and sales strategies.

In order to win defence contracts, you will need to demonstrate that your products or services can meet the stringent requirements of the defence sector.

You will also need to strengthen your digital and cyber capabilities, as the defence sector is increasingly relying on technology to help them achieve their objectives.

If you can successfully navigate the global supply chain and win defence contracts, your business will be well-positioned for growth in the coming years.

Growth driven by geopolitical instability 

One of the main drivers of defence sector growth is geopolitical instability. As global tensions continue to rise, countries are increasing their defence spending in order to be better prepared for any potential conflicts. This increased spending may drive the global defence market to $12 trillion by 2030.

Some of the key regions that are driving this growth include the Middle East, Asia-Pacific, and Europe.

In the Middle East, countries such as Saudi Arabia and the United Arab Emirates are increasing their defence spending in order to counter the threat of Iran.

In Asia-Pacific, countries such as China and India are increasing their defence spending in order to prepare for any potential conflicts with their neighbours.

And in Europe, countries such as the United Kingdom and France are increasing their defence spending in order to prepare for any potential threats posed by Russia.

Need for advanced security systems: creating stability

With the global defence market expected to grow to $12 trillion by 2030, there will be a need for advanced security systems that can help create stability in regions of conflict.

Some of the key areas that will need addressing include:

  • Improving intelligence capabilities
  • Enhancing surveillance capabilities
  • Strengthening cyber defences
  • Improving communications systems
  • Enhancing weapon systems

If your business provides products or services that can help in these areas, then you will be well-positioned to win defence contracts.

Major players in the defence sector: United States, China, Russia, and France

United States, China, Russia, and France seem to dominate the global defence market.

The United States is expected to account for 36% of the global defence market, followed by China (13%), Russia (11%), and France (6%).These four countries are expected to account for 66% of the global defence market.

Staying ahead of the competition: investing in the defence sectors

If you want to stay ahead of the competition, you need to be investing in the defence sectors of the future.

Some of the key areas that may drive growth in the defence sector include:

  • Artificial intelligence
  • Cyber security
  • Robotics
  • Missile defence
  • Unmanned systems

The future looks bright for the defence sector: new opportunities 

As global tensions continue to rise, we can expect the defence sector to continue to grow.

This growth will create new opportunities for businesses that are able to provide products and services that meet the needs of the defence sector.

So, if you want to take advantage of these opportunities, now is the time to start preparing your marketing and invest in the below opportunities.

Let’s take a look at the roles they play in the global supply chain.

AI and machine learning

Artificial intelligence (AI) and machine learning are playing a major role in the future of the defence sector.

AI and machine learning can be used to:

  • Improve intelligence gathering
  • Enhance surveillance capabilities
  • Strengthen cyber defences
  • Improve communications systems
  • Enhance weapon systems

Cyber Security 

As automation continues to grow in many industries, the threat of cyber-attacks increases.

Back in 2015, Russia’s military intelligence agency (GRU) hacked into the Ukrainian power grid and caused a blackout. Then, in 2016, GRU hackers used a piece of malware called “NotPetya” to infect computers in Ukraine and then spread it to other countries, causing billions of dollars in damage.

These examples show how cyber-attacks can be used to disrupt critical infrastructure and cause economic damage.

As the world becomes more connected, it is important for businesses to invest in cyber security to protect their systems from attack.

Robotics

Robotics is another area that is expected to play a major role in the future of the defence sector.

Robots can be used for:

  • Surveillance
  • Reconnaissance
  • Explosive detection
  • Mine clearing
  • Demining

Missile Defence

Missile defence is a critical part of any country’s defence system. Missile defence systems are used to protect a country from incoming missiles.

There are two types of missile defence systems:

  • Kinetic (interceptors)
  • Non-kinetic (lasers)

Unmanned Aerial Vehicles (UAVs)

Unmanned aerial vehicles (UAVs), also known as drones, are aircraft that operate without a pilot on board.

UAVs can be used for:

  • Surveillance
  • Reconnaissance
  • Target acquisition
  • Weapon delivery

Global supply in the defence sector: get contracts today

If you want to take advantage of global supply in the defence sector, now is the time to start preparing your marketing.

The global defence market is expected to grow in the coming years, and this growth will create new opportunities for businesses that are able to provide products and services that meet the needs of the defence sector.

Are you looking for defence contracts that can provide new-generation military equipment, technological advancements, and strengthen defence capabilities? Request a demo today.