The Future of the Israeli Defense Industry to 2024 - Defense Expenditure Anticipated to Be $130.3 Billion, Driven by the Need to Secure Itself Against Potential Threats - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--May 20, 2019--
The “Future of the Israeli Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024” report has been added to ResearchAndMarkets.com’s offering.
This report offers detailed analysis of the Israeli 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.
Select Report Findings
Israel’s gross defense expenditure is anticipated to be US$130.3 billion cumulatively over the forecast period. Driven by the need to secure itself against potential threats from Iran, Saudi Arabia, Syria, and to a certain extent, Egypt, Israel has traditionally focused on developing a robust and aggressive defense posture.
Israel, remains surrounded by enemies and potential rivals and thus the country can ill afford to ignore security risks that have the potential to develop into a major security threat in future. As one of the largest defense markets in the Middle East, Israel allocated a gross budget of US$20.3 billion in 2019 and is likely to continue spending heavily on fortifying its defense and security apparatus.
During the period 2015 to 2019, the Israeli gross defense expenditure increased from US$18.1 billion in 2015 to US$20.3 billion in 2019, reflecting a CAGR of 2.90% over the analysis period. However, the Israeli defense expenditure is anticipated to grow rapidly from US$21.9 billion in 2020 to US$30.5 billion in 2024, registering a CAGR of 8.59% over the forecast period. The growth can be partially attributed to US$19 billion worth of military aid that the country is scheduled to receive from the US between 2019 and 2023, coupled with the country’s plans to boost its investments in missile defense capability by about US$8-10 billion over the next decade.
Over the forecast period, Israeli defense expenditure as a percentage of GDP is anticipated to maintain an average of 4.5%, driven primarily by the Palestine conflict and the threats posed by the increasing influence of Iran and Hezbollah within neighboring Syria. Israel is expected to focus its expenditure on the procurement of fighter aircraft, missiles, corvettes, nuclear capable submarines, border security equipment, and communication systems, among others. These procurement plans are expected to maintain Israel’s capital expenditure allocation at 52.5% even in 2024.
Israel has one of the most advanced defense industries worldwide and the country has consistently ranked among the top 10 defense exporting countries globally. During 2013-2017, Israel was ranked eighth on the list of the highest arms exporting countries, with a share of 2.9% of the global arms market. During the period 2014-2018 India was the single largest customer for Israeli defense equipment, accounting for 46.3% share of the Israeli defense exports. Azerbaijan and Vietnam were ranked as the second and third largest markets for Israeli defense equipment accounting for 17.4% and 8.5% respectively. Asia is the major defense market for Israeli defense equipment and accounts for a 78.7% share of Israeli defense exports during the period 2014-2018.
The Israeli government imported fighter aircraft, naval vessels, missiles, armored vehicles, engines, sensors, and artillery systems during 2014-2018. The US accounted for 50.8% of Israeli defense imports during this period, while India emerged as the single largest customer for Israeli defense goods with a share of 46.3%. The three key Israeli arms export categories were missiles, air defense systems and sensors.
In particular, the report provides an in-depth analysis of the following:
For more information about this report visit https://www.researchandmarkets.com/r/2xink8
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Related Topics:Military Aerospace and Defense
KEYWORD: MIDDLE EAST ISRAEL
INDUSTRY KEYWORD: MANUFACTURING AEROSPACE DEFENSE OTHER DEFENSE
SOURCE: Research and Markets
Copyright Business Wire 2019.
PUB: 05/20/2019 12:53 PM/DISC: 05/20/2019 12:53 PM