Summary
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. However, 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.

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.

The report "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.

In particular, this report provides an in-depth analysis of the following -

  • The US defense industry market size and drivers: Detailed analysis of the US defense industry during 2018–2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
  • Budget allocation and key challenges: Insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Porter’s Five Force analysis of the US defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the US defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: 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. , and Textron Marine and Land Systems.

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.
  • Oppurtunities are expected to emerge in Networking, Multi-role aircraft, IT-software, multirole aircraft MRO andf IT-Hardware.

Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the US defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the US defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts