European defense market will grow as it emphasizes regional cooperation, minimizes duplication, study saysNews
October 02, 2018
LONDON. The European defense market will see significant growth opportunities as countries reduce duplication of efforts, minimize costs. and maximize operational efficiency, according to a recent Frost & Sullivan analysis, "An Overview of European National Defence Strategies, 2018."
According to the study, the North Atlantic Treaty Organization (NATO), the European Union (EU), and other multinational agencies are building strategic capability -- including joint training, contingency response, and armament cooperation and deployments to address conventional, terrorist, and cyberthreats as well as humanitarian crises -- across multiple domains.
Jaison Deepak, senior industry analyst, defense, at Frost & Sullivan, says that Europe’s security strategy is evolving, with increasing focus on "Europeanizing the defense supply chain. In the future, cutting-edge fighter, unmanned air system, battle tank, artillery, and maritime patrol programs are expected to emerge out of European joint armament cooperation.”
Deepak expects the increased frequency of air policing measures by European air forces, coupled with the need to maintain high availability of the combat aircraft fleet, will result in growth in military aircraft maintenance, repair, and overhaul business in coming years. Additionally, more advanced threats from rival nations will force the larger European countries to invest heavily in innovative air defense equipment and tactical and missile-defense systems.
"Despite increasing defense budgets, affordability is a very important criterion, especially for central European states with limited budgets,” notes Deepak. “These countries need solutions that provide a good balance of capability and cost. Utilizing commercial off-the-shelf (COTS) components and joining with local partners for final assembly, maintenance, and repair would be worthwhile strategies.”
For additional information on the Frost & Sullivan study please visit the company's website.