Market Environment

USA

  • USA: the main defense spender worldwide
    (> 700B $ in 2020)
  • Return to growth expected from 2026
  • CAGR 19-25
    ~ -0.5% NA
    ~ +0.7% LA

Asia Pacific

  • China the main spender
  • Significant Defense budgets in South Korea, India and Japan, with annual values> 50B $
  • Australia Defense Budget <30B $
  • In Southeast Asia, defense budgets ranging between $ 5B and $ 11B per year
  • CAGR 19-25
    ~ +4.1

Middle East - Africa

  • Contraction of Defense Budget due to the Covid crisis: from $ 160B in 2020 to $ 150B in 2021, up to $ 140B in 2022.
  • Modest recovery expected starting from 2023
  • Slowdown in defense spending also due raw materials price and Covid-19
  • CAGR 19-25
    ~ -0.9% MENA
    ~ -0.7% S-SA

Europe

  • Germany: Defense Budget increased in 2021 (~ € 47B)
  • France: Defense Budget increased in 2021 (~ € 39B)
  • UK: Defense Budget up +17B £ over the next 4 years
  • Italy: at 25.6B in 21-22 (1.4% GDP, still below NATO target)
  • CAGR 19-25
    ~ +1.7% EUR