(Governments) look at the defense sector and they see certain things came out of defense spending that were just good for countries from a technological perspective. It drives broader industrial development.”On August 31 Defense News quoted Avascent Principal Aleksandar Jovovic concerning the main drivers of increased defense spending in emerging defense markets.
From the article: “As defense budgets face downward pressure in the US and Europe, emerging markets are poised to spend more than a trillion dollars on defense over the coming decade, creating business opportunities for Western defense firms. A recent Frost & Sullivan analysis of 10 emerging markets concluded that between 2015 and 2025, emerging markets in Southeast Asia, South America, the Middle East and elsewhere would spend more than $1.2 trillion on defense. Over that period, military expenditures in Colombia, Kuwait, Malaysia, Morocco and Singapore are expected to see 3.6 percent compound annual growth rate, while Angola, Azerbaijan, Peru, Qatar and South Korea can anticipate a CAGR of 2.8 percent. Much of that spending will be on personnel, operations and maintenance, leaving relatively modest amounts for new equipment.”
Click here to read the full piece: “Emerging Markets Offer Growth Opportunities.”