DUBLIN--(BUSINESS WIRE)--The "The Japanese Defense Market - Attractiveness, Competitive Landscape and Forecast to 2024" report has been added to ResearchAndMarkets.com's offering.
The Japanese Defense Market - Attractiveness, Competitive Landscape and Forecast to 2024 offers detailed analysis of the Japanese 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 the aftermath of World War II, Japan went on to adopt a pacifistic stance in the international arena; as a result, the Japanese military was primarily relegated to undertaking policing and disaster response functions, while its military operations were primarily self-defense operations.
The country's defense expenditure is expected to be largely driven by efforts to enhance the combat potential of the JSDF in order to counter the threat of North Korea's rising military strength, Chinese intrusion on offshore islands within the country's vicinity, and Russian activities in the disputed Northern territory. The country's capital expenditure allocation, which stood at an average of 55.9% during the historic period, is expected to increase marginally over the forecast period to 56%, primarily due to similar trends in its procurement patterns.
As such, the country increased its budgetary allocations, inclusive of funding for the Special Action Committee on Okinawa (SACO) and US force realignment, from US$42.4 billion in 2015 to US$47.9 billion in 2019, reflecting a growth rate of 3.12%. Similarly, although the projected growth in the Japanese defense budget is expected to flatten and moderate, the country is still expected to maintain sustained growth in terms of its defense budget, with it increasing from US$48.5 billion in 2020 to US$51.3 billion in 2024, reflecting a CAGR of 1.43% over the forecast period.
The Japanese homeland security budget represents the budget of the National Police Agency of Japan, which is anticipated to be driven by the need to clamp down on organized crime and contain drug trafficking. The country's homeland security spending increased form US$2.7 billion in 2015 to US$3.1 billion in 2019, reflecting a growth rate of 4.00% during the historic period; however, over the forecast period, the country's homeland security budget is projected to increase at a CAGR of 3.94% to value US$3.7 billion in 2024. Expenditure is expected to be largely driven by the need to mitigate damages caused by natural disasters, Yakuza operations, the threat of terrorism, and rising instances of information theft.
Aircraft accounted for the largest share of imports during 2014-2018, with the US being the biggest supplier. The country acquired transport and multi-purpose aircraft, RQ-4A Global Hawk UAVs, APY-9 AEW radars, Aegis Ashore ABM systems from the US. Other major imports during the period were engines, sensors, naval weapons, missiles, air defense systems, armored vehicles and artillery systems, which were acquired from countries such as the UK, Sweden, Germany, Australia, and France.
Japanese defense exports are expected to gain momentum over the forecast period, due to an amendment to the existing export ban in 2014. This amendment now allows the country to export defense equipment to the US and European nations. India and New Zealand previously showed interest in acquiring Japanese defense equipment such as ShinMaywa US-2, Kawasaki C-2 and Kawasaki P-1 maritime patrol aircraft, its attempts to sell C-1 and P-1 aircraft to New Zealand were unsuccessful, with the Indian deal to acquire ShinMaywa US-2 amphibious aircraft presently stuck in negotiations.
- During the historic period, the total defense budget, including funding for SACO and US force realignment, witnessed a CAGR of 3.12% to value US$47.9 billion in 2019, compared to US$42.4 billion in 2015. However, the country's defense budget excluding SACO and US force realignment expenditure was valued at US$39.8 billion in 2015, which increased to about US$45.5 billion in 2019. The country's average capital expenditure stood at US$25.7 billion over the period 2015-2019, accounting for an average of about 56% over the historic period.
- The country's defense expenditure is expected to be largely driven by efforts to combat the threat of North Korea's rising military strength, the Chinese intrusion on offshore islands within the vicinity of the country, and Russian activities in the disputed Northern territory. As a percentage of GDP, the country's defense expenditure is expected to average 0.9% over the forecast period.
- Lockheed Martin
- BAE Systems
- Airbus Group
- NEC Corporation
- Toshiba Corporation
- Mitsubishi Heavy Industries
- Kawasaki Heavy Industries
- Mitsubishi Electric Corporation
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