The "United Kingdom (UK) Defense Market Outlook Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The UK defense market, which accounted for USD 48.38 billion in 2017, is anticipated to register a CAGR of over 1.4% during the forecast period (2019-2024).
The study covers all aspects and provides insights about the budget allocation and spending in the UK defense market in the past and the present, along with forecasts for the future. Analysis of the UK Homeland Security is also included within the scope of the report.
- Growth in the defense budget to achieve NATO's defense spending target will be a major driver for the market.
- Technological advancement will upsurge the demand for the replacement of aging equipment and the procurement of new products, propelling the market to grow in the coming years.
- Fight against terrorism, externally and internally, is also expected to support the growth of the defense market in the United Kingdom.
Procurement is Expected to be the Highest in the Air Force Segment, during the Forecast Period
The air force segment is expected to experience major growth in the UK defense market during the forecast period, due to the procurement and replacement plans for combat aircraft, airborne ISR equipment, and orders for new unmanned aerial vehicles.
In 2017/2018, the UK Ministry of Defense achieved several significant milestones in the procurement and support of equipment and successfully delivered the plan within the budget. Milestones include the intake of a further 12 F-35 Lightning aircraft. The Air Command plans to spend about USD 43 billion on the Equipment Plan over the next decade.
The Air Command is responsible for three sectors: Air Mobility and Air Enablers, Combat Air, and Command, Control, Intelligence, Surveillance, and Reconnaissance. The investment will include enhancing weapons and radar capabilities of Typhoon program, using emerging synthetic technology to enhance training for frontline crews, and progress on unmanned aerial systems, among others. 17 new F-35B aircraft will be delivered between 2020 and 2022, increasing the number of F-35 aircraft to 35 jets by 2022.
The UK Defense Market is Expected to Experience a Steady Growth
The military spending of Europe accounted for almost 20% of the global military spending in 2017. France, Germany, and the United Kingdom were among the top 10 military spending countries of the world in 2017. The United Kingdom's public sector expenditure on defense as a share of GDP in 2017/18 was 1.9%.
As of 2017, the country was the second-largest global defense exporter and it had won defense orders worth almost USD 11.4 billion. According to the UK MoD, the country's share of the global defense export market was estimated at 12% in 2017. Revenue expenditure forms the largest share of the UK defense budget.
The UK defense market is partly dominated by the local players and partly by the players based in the United States. The market, which is highly competitive, largely depends on product innovation.
The UK MoD nurtures open competition policies that seek the best defense equipment for the best value. The MoD acquires defense equipment from foreign sources when the advantages of performance, cost, and delivery schedule outweigh the benefits of buying the British alternative.
Some of the prominent players based in the United Kingdom are BAE Systems PLC and GKN Aerospace. BAE Systems is one of the prominent tier-1 suppliers for the F-35 program.
The United States is the major supplier of defense imports to the United Kingdom. Several international players have expanded in the UK market by merging or acquiring small or medium-sized local players. The defense companies in the United Kingdom are tapping into potential markets, such as the Middle East and Asia-Pacific, to expand their global presence.
Key Topics Covered
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 PESTLE Analysis
5 MARKET SEGMENTATION
5.1.1 Personnel Training and Protection
184.108.40.206 Training and Simulation
220.127.116.11 Protection Equipment
5.1.2 Communication Systems
5.1.3 Weapons and Ammunition
18.104.22.168 Artillery and Mortar Systems
22.214.171.124 Infantry Weapons
126.96.36.199 Missiles and Missile Defense System
188.8.131.52 Land-based Vehicles
184.108.40.206 Sea-based Vehicles
220.127.116.11 Air-based Vehicles
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations and Agreements
6.2 Vendor Market Share
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Saudi Arabian Military Industries
6.4.2 Advanced Electronics Company Limited
6.4.3 Lockheed Martin Corporation
6.4.4 The Boeing Company
6.4.5 BAE Systems PLC
6.4.6 Raytheon Company
6.4.7 Northrop Grumman Corporation
6.4.8 General Dynamics
6.4.9 Airbus SE
6.4.10 United Technologies Corporation
6.4.11 Leonardo S.p.A.
6.4.12 Thales Group
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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Related Topics: Military Aerospace and Defense