The global defense spending will increase by 2 percent year-on-year in 2015 and will grow at a CAGR of 3 percent to reach $2.4trillion in 2024, says Strategic Analytics.
According to the Strategy Analytics Advanced Defense Systems (ADS) service report, a range of factors will drive spending but there are a number of common drivers that recur within and across the different regions.
The factors driving spending are maintaining spending levels in line with NATO and other coalition commitments, developing effective strategies to counter China and maritime and border protection.
Additionally, contesting the ambitions of a resurgent Russia and combating the expansion of ISIL (ISIS, IS) and other asymmetric threats also drive spending.
This apart, defense spending will continue to accelerate in the Asia-Pacific region and will grow at the CAGR of 5.6 percent and surpassing North American spend levels by 2020.
“This year’s analysis expanded coverage to eighty-nine countries, looking at a range of factors including GDP growth, threat perception and political intent on force modernization and indigenization of the local defense industry over the short- medium- and long-term,” noted Eric Higham, North American Director for ADS.