DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/65rqv8/future_of_the_us) has announced the addition of the "Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019" report to their offering.
The Future of the US Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the US defense industry.
The 2011 Budget Control Act (BCA) has set a cap on total national defense budget funding, starting with US$546 billion in 2013, to be reduced by US$54.3 billion each subsequent year. BCA required the US Department of Defense (DoD) to take US$487 billion of reductions in its expenditure over the period of 10 years.
What is the current market landscape and what is changing?
The US has a defense budget of US$607.5 billion (including allocation for OCO) in 2014 and the government is expected to sustain a high level of expenditure over the forecast period. Although the allocation for overseas operations is estimated to remain stable at US$37.3 billion over the forecast period, the country is expected to increase its base military expenditure at a CAGR of 1.75%.
The expenditure will be triggered by the government's plan to acquire advanced defense equipment coupled with replacement of old and obsolete arms and ammunitions.
The looming threat of budget cuts and sequestration is not expected to terminate or affect the existing contracts, but will impact DoD's future contracts and the number of military hardware to be procured under these contracts. Significant opportunities are expected to exist in the fields of C4ISR, aircraft, cyber security, missile defense systems and submarines. Foreign defense companies and new entrants have the option to cater to the US defense market via joint development programs, strategic alliances, or acquisition of domestic players. The US government's encouragement of foreign direct investment (FDI) in the defense sector will also help foreign companies in entering the market.
Key Topics Covered:
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
4 Defense Procurement Market Dynamics
5 Industry Dynamics
6 Market Entry Strategy
7 Competitive Landscape and Strategic Insights
8 Business Environment and Country Risk
- General Dynamics
- Honeywell International
- L-3 Communications
- Lockheed Martin
- Northrop Grumman
- Science Application International
- Sikorsky Aircraft
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