LONDON--(BUSINESS WIRE)--According to Technavio’s latest report, the global generator market for military and defense sector is expected to exceed USD 1.4 billion by 2020, growing at a CAGR of over 4% during the forecast period.
Electric power supply using generators is the backbone of every country's armed forces operations, as, without it, modern warfare technology and equipment, such as weapons systems, command, control, communications, intelligence systems, and logistics support systems will become dysfunctional. Backup generators also provide power to electrical and electronic equipment embedded in the tactical vehicles that have become an indispensable part of both peacetime and combat military operations in the present scenario.
According to Anju Ajaykumar, lead research analyst at Technavio for engineering tools, “There is a significant increase in defense spending in almost every major nation of the world. Most countries are focusing on strengthening their military and defense sectors which includes procurement of necessary equipment, including power generators.”
In this report, Technavio covers the present scenario and growth prospects of the Global Generator Market for Military and Defense Sector 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the top six vendors operating in the market. The market is segmented into the following three regions:
Americas: the US military and defense sector is the largest market for generators
The generator market for military and defense sector in the Americas is expected to reach exceed USD 790 million by 2020, growing at a CAGR of over 4%. In the Americas, the US has the largest as well as the strongest defense sector. The US DoD is a significant consumer of electric power, much higher than the defense sectors in some of the other countries.
In 2015, the total US military budget declared was USD 601 billion which surpasses the combined defense budgets of the next seven highest defense spending countries in the world.
About 13% of the total defense funding in the US is spent on overseas contingency operations. The US Army has, on several occasions, carried out tactical military operations on foreign soil, such as the American military intervention in Cameroon (October 2015), and the naval patrolling in the Strait of Hormuz to counter Iran (April 2015).
All these situations lead to a greater demand for power generators, as it is evident that in hostile circumstances, especially in disputed areas, military forces have no access to utility grid power supply.
Therefore, Technavio predicts the market for generators for military and defense sector has a huge potential to grow in the Americas, during the forecast period.
Request a sample report: http://goo.gl/Q3ihBg
EMEA: rise in defense expenditure to boost growth
The generator market for military and defense sector in EMEA is expected to exceed USD 314 million by 2020, growing at a CAGR of almost 4%.
Recent international events have brought Europe’s national security issues to the forefront as a result of which European heads of state have committed to allocating significant amounts on defense expenditure.
Russian defense spending has also been increasing significantly. Its military budget grew by 25% from 2013 to 2014. Saudi Arabia also plans to increase its defense spending by 25% over the next five years to become one of the top significant contributors to global defense spending.
A significant part of these budgets is spent on procuring equipment and accessories necessary for military operations, including backup power generators. Thus, with significant increase in defense spending by major nations in the region, Technavio predicts a positive outlook for the generator market for the military and defense sector.
APAC: fastest growing region for generator market for military and defense
The generator market for military and defense in APAC is expected to exceed USD 304 million by 2020, growing at a CAGR of around 5%. APAC is predicted to be the fastest growing region during the forecast period.
Countries such as China, Japan, and India have some of the most powerful military forces in APAC. In terms of defense spending, these three nations are ranked among the top ten countries in the world. The Chinese Army is ranked as the second largest military force in the world, after the US Army.
The governments of China, Japan and India, have allocated substantial amounts for the defense budget. “As is evident from the defense spending of these major countries, generator manufacturers can expect high demand for their equipment, from the military and defense sector in APAC during the forecast period,” says Anju.
- Fischer Panda
Some of the other prominent vendors listed in the report are: Air Rover, CMCA, DHS Systems, DRS, and Uninterruptible Power Supplies.
Browse Related Reports:
- Global Stationary Generator Market 2015-2019
- Global Industrial Gas Generator Market 2015-2019
- Global Portable Generator Market 2015-2019
Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact email@example.com with your requirements and a link to our subscription platform.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.