Military Security & Defence Market Research News

Research delivers insight into the key trends and future outlook into decreasing defense expenditure

This report examines executives’ opinion on factors influencing the budget cuts during 2017-2021.

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Decreasing Defense Expenditure: Key Trends and Future Outlook is a new market research publication announced by Reportstack. Increasing national debt, reducing the deficit, and emphasize on indigenous manufacturing, are major factors influencing defense budget cuts during 2017-2021.

Moreover, the impact procurement of advanced technologies will remain a key challenge for defense industry manufacturers/suppliers in the aftermath of defense budget cuts. Furthermore, the industry is expected to lose jobs, particularly defense contractors, due to a decrease in the purchase of equipment, supplies, and services in the aftermath of defense budget cuts.

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Brazil and South Africa are expected to exhibit the highest defense budget cuts during 2017-2021, due to economic crisis, political uncertainty, and sharp fall in oil prices. Several defense organizations have increased their expenses towards renewable energy such as wind and solar power, to combat rising oil prices, budget cuts, and climate change policies

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This report highlights key operational areas experiencing budget cuts, major challenges, and its impact on the revenue generated by defense industry suppliers. Additionally, it provides information categorized by region and company type.
What else does this report offer?
- Key operational areas experiencing budget cuts: examines decrease in defense expenditure in various segment over the next four years
- Major Challenges: identifies major challenges that are likely to impact defense companies, aftermath of defense budget cuts
- Impact on suppliers revenue: tracks the expected change in revenue generated by suppliers as a result of defense budget cuts
- Budget allocation: examining budget expectations for defense organizations during 2017-2021, in comparison to 2012-2016
- Demand for new technology: provides information about the demand for new technology equipment, aftermath of defense budget cut


- Over one quarter of executives from medium sized companies plan to reduce their defense expenditure in the areas of air and naval forces
- The highest percentage of respondents highlight new facility acquisition division to witness increased defense budget cuts over the next four years
- During 2017-2021, rising national debt is highlighted as one of the key factors influencing defense budget cuts in Asia-Pacific and the Rest of the World
- Overall, 65% of executives noted that the procurement of advanced technologies will be impacted in Europe, in the aftermath of defense budget cuts
- 35% of industry executives from the Rest of the World state no change in budget cuts in 2017-2021, due to the implementation of clean technology
- One-fourth of executives from large companies expect a 10-25% increase in the demand for new technology equipment over the next five years

Reasons to access

- Helps organizations to take steps to cut down impact (loss) due to defense budget cuts
- Helps to manage cost by providing information about the challenges faced by suppliers aftermath of defense budget cuts
- Provides information about change in demand for new technologies aftermath of defense budget cuts
- Helps to understand the defense divisions that are likely to expect major reduction in budget during 2017-2021

Companies Mentioned

Hindustan Aeronautics Limited Saab and Lockheed Martin


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