United States Defense Industry Report 2017-2022

DUBLIN, Jan. 17, 2018 /PRNewswire/ --

The "Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to ResearchAndMarkets.com's offering.

The US defense expenditure is expected to grow at a CAGR of over 5.7% during the forecast period to reach around US$798 Billion by 2022

'Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022' offers detailed analysis of the US defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

Being the largest defense spender in the world with a budget of over US$586.7 Billion in 2017, the US is expected to sustain its superiority over other nations in the coming years. During the historic period, the total defense budget, including funding for Overseas Contingency Operations (OCO), was relatively flat, registering a CAGR of around 0.4% due to the sequestration measures imposed by the government.

United States government is expected to direct a substantial part of its budget towards homeland security, which will be driven by measures to check terrorist attacks, secure the nation's borders, enforce and administer immigration laws, safeguard cyberspace, and ensure disaster resilience. Over the forecast period, the country's homeland security budget is projected to increase at a CAGR of around 5.5%, to be valued at around US$87 Billion by 2022.

During 2012-2016, the US emerged as the largest exporter of defense equipment in the world, and is expected to remain the same over the forecast period, primarily due to the increase in defense budgets of a number of US arms importing countries, including allies such as Saudi Arabia, UAE, Turkey, Taiwan, Australia, India, Iraq, South Korea, Singapore, Egypt, the UK, Japan, Qatar, Kuwait and Israel among others. The country possesses a diverse consumer base and historic data shows that Saudi Arabia, UAE and Turkey emerged as the largest consumers of US-manufactured defense goods.

Aircrafts accounted for the largest share of imports during 2012-2016, with Germany, the UK and France being three of the biggest suppliers to the US. The country acquired C-130J Super Hercules Tactical Transport Aircraft, UH-60M Black Hawk Helicopter; Global Hawk unmanned aircraft, 36 Maveric UAS Unmanned Aerial Systems, surface-to-surface long range Army tactical Missile Systems (ATACMS), and Multiple Launch Rocket Systems (MLRS) artillery.

Scope:

• Being the largest defense spender in the world, with a budget of US$586.7 billion in 2017, the US is expected to sustain its superiority over other nations in the coming years. During the historic period, the total defense budget, including funding for Overseas Contingency Operations (OCO), was relatively flat, registering a CAGR of 0.40% due to the sequestration measures imposed by the government.
• Between 2013 and 2017, the US allocated an average of 34.2% of its total defense budget to capital expenditure, primarily to fulfill the equipment needs of its overseas contingency during the Iraq and Afghanistan wars. However, with the country expected to focus on the replacement of damaged and obsolete defense equipment rather than on war needs, the capital expenditure is estimated to average 36.3% over the forecast period. Consequently, the share of revenue expenditure is expected to average 63.7% during the forecast period as compared to 65.8% during 2013-2017.
• Opportunities are expected to emerge in Networking, Multi-role aircraft, IT-software, multirole aircraft MRO andf IT-Hardware.

Key Topics Covered:

1. Introduction
1.1. What is this Report bout?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. US defense expenditure expected to increase at a CAGR of 5.72% over the forecast period
3.2.2. Initiatives to retain military superiority, equipment modernization program, turbulence in the Middle East, rising tension with China and Research and Development activities are expected to drive defense spending
3.2.3. Defense expenditure as a percentage of GDP estimated to decline over the forecast period
3.2.4. Per capita defense spending projected to decline over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Total Department of Defense (DoD) budget forecasted to grow at a CAGR of 5.72%
3.3.2. Share of revenue expenditure expected to increase over the forecast period
3.3.3. US defense capital expenditure expected to increase at a CAGR of 8.53% over the forecast period
3.3.4. Navy to receive the major allocation of the defense budget over the forecast period
3.3.5. Allocation for defense expenditure on army expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. The US homeland security expenditure to reach US$87.6 billion by 2022
3.4.2. Prevention of terrorism, securing and managing borders, safeguarding cyberspace and disaster management to drive homeland security expenditure over the forecast period
3.4.3. The nation is at highly affected category of terrorism
3.4.4. The US faces high level of threats from terrorist organizations
3.4.5. The US has a terrorism index score of 4.9
3.5. Benchmarking with Key Global Markets
3.5.1. The US will dominate global military spending over the forecast period
3.5.2. US defense budget is much higher than other leading spenders
3.5.3. US is one of the top defense spenders in terms of expenditure as a percentage of GDP
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Networking
3.6.2. Multi-role Aircraft
3.6.3. IT Software
3.6.4. Multi Role Aircraft MRO
3.6.5. Hardware

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. US primarily imports defense equipment to build strategic relations
4.1.2. Defense imports expected to increase over the forecast period
4.1.3. The Germany and UK dominated the US defense imports during the historic period
4.1.4. Aircraft account for majority of arms imports
4.2. Export Market Dynamics
4.2.1. US arms exports are driven by political and economic factors
4.2.2. Arms exports expected to increase in the period 2018-2022
4.2.3. US defense exports to increase during the forecast period
4.2.4. Aircraft are the most exported defense equipment
4.2.5. The US maintains controlled defense export policy

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Supplier: Low to Medium
5.1.2. Bargaining power of Buyer: High
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low to high
5.1.5. Threat of Substitution: Low to high

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. The US defense industry is open to FDI
6.1.2. No offset policy exists in the US
6.1.3. US arms trade is heavily regulated
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy & Process
6.2.3. Foreign OEMs enter the market through the acquisition of domestic defense companies
6.2.4. Joint product development programs, an attractive market entry route
6.2.5. Formation of partnerships with domestic defense firms provide good market entry opportunities
6.2.6. Direct sale of defense equipment provides foreign OEMs with an opportunity to enter the market
6.3. Key Challenges
6.3.1. Decreasing economies of scale and defense inflation
6.3.2. Declining profit margins deter growth of domestic defense companies

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Domestic Public Companies
7.3. Domestic Private Companies

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices
8.1.3. Exports of goods and services in local currency
8.1.4. Imports of goods and services in local currency
8.1.5. Gross National Disposable Income (US$ Billion)
8.1.6. Market Capitalization of Listed Companies
8.1.7. Market Capitalization of Listed Companies (% of GDP)
8.1.8. Government Cash Surplus/Deficit as % of GDP
8.1.9. Goods exports as % of GDP
8.1.10. Goods imports as % of GDP
8.1.11. Service Imports as % of GDP
8.1.12. Service Exports as % of GDP
8.1.13. Foreign Direct Investment
8.1.14. Net foreign direct investment as % of GDP
8.1.15. Mining, Manufacturing, Utilities Output

9. Appendix

Companies Mentioned

• Lockheed Martin
• Raytheon
• General Dynamics
• Boeing
• L-3 Technologies Inc.
• Northrop Grumman Corp.
• Science Application International Corp. (SAIC)
• Honeywell International Inc.
• Sikorsky Aircraft
• General Electric (GE) Aviation
• Bell Helicopter Textron, Inc.
• Textron Marine and Land Systems

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