Defense industry is expected to grow as high defense budget of China is a cause of worry to other nations. So discuss growth potential of the global defense industry according to key business priorities, business concerns, nation-wise scope for development of the sector and shed light on how the existing players can use such information to capture major share in markets. Additionally, cover major topics, trends and drivers like intelligence strategies, lobbying jugaad, armed mercenaries, warfare profiteering, smart AI propaganda, strategic fear injections, droned community profiling and the primary target – procurement budget.
There was a slowdown seen in global defense industry in terms of budget and investment, but defense industry is / as expected to grow in future. The revenues fell, then some growth afterwards. The increase in profits and returns in defense industry is due to increase in defense budgets of China, US and many others. There is increase in defense spending in some parts of the world but still there are some fall in defense expenditure globally. There are various challenges in survival of defense industry and the most important is how to survive in a declining global market for weapons and how to make the world keep fighting forever!
China’s defense budget is growing very fast which is making other economies restless. Chinese defense budget is a cause of concern for its neighboring countries. There is very high increase in China’s military spending from the last decades almost two digit increase every year. In this era of globalization, such trends give rise to disruptive effects. Due to globalization, we are over with geographical industries which give rise to competition in every sector. Also the developed country which spends a lot in Research and development in this crucial sector for the growth and safety of a nation is growing at a lower rate than the growth in developing or emerging countries. The reason is quite simple. Developing nation can replicate the R&D done by developed nations and can grow faster. Developing nations are paying for benefits of R&D done by developed ones.
Defense is a heavy industry which requires bulk investment with bulk hypes. Domestic companies cannot compete with the global companies or other economies without the support. So, its Government interest in protecting their own country’s defense industry. It’s very painful for domestic companies when there is a cut in national defense budgets as it becomes very difficult to be in horse-race. Since the government defense budgets are shrinking over the years so lobbying necessary to manage expenditures. The customers (basically govt agents with access to public money) whom defense companies come across are low on budgets so companies have to make equipment with minimum costs and there is need for more innovations and technological jugaad in this sector.