This year, the defense industry is more focusing on the Asia-Pacific region. Many nations in the area are re-evaluating their defense abilities, and governments are extending industrial solutions to keep pace with growing economic and safety concerns.
Fremont, CA: The aerospace and defense industry is both potentially lucrative and potentially uncertain. 2020 is turning to be an exceptionally interesting year for the defense industry, with various new challenges on the plate. Multiple factors have played significant roles in the evolution of this industry.
Let us look at some key trends shaping the defense industry:
Focus on the Asia-Pacific Region
This year, the defense industry is more focusing on the Asia-Pacific region. Many nations in the area are re-evaluating their defense abilities, and governments are extending industrial solutions to keep pace with growing economic and safety concerns. Hence, there has been an increase in design, commercial production, research, and other defense manufacturer support networks.
There is a growing demand for more fuel-efficient aircraft in the aerospace and defense industry. This is mostly because of the drive to minimize ownership and acquisition costs. Even though there remain challenges preventing a full move toward All-Electric Aircraft (AEA) technology, including safety and efficiency concerns, those in the defense industry would certainly experience a noticeable drive towards implementing MEA solutions.
Mergers & Acquisitions Would Continue
M&A have been significant drivers in the defense space for many years, and it is expected to be continued in the future. Consolidation would help simplify increasingly complicated scaling and supply chain issues, while also potentially providing avenues to bypass bureaucratic obstacles or obtain access to new technologies.
Military Investment Is Increasing
Governments worldwide are investing more in defense, purchasing new hardware, and upgrading their infrastructure. Current estimates reveal an overall predicted CAGR of roughly 3 percent between 2020-2023, and overall global spending would be nearly $2.1 trillion by the end of that timeframe.
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