Search Results for "Defence Reports"

About the Defence Industry

Global military expenditure exceeded US$1.6 trillion by the end of 2010, increasing from a CAGR of 1.3% from the 2009 figure, and a 50% increase from 2001. According to the Stockholm International Peace Research Institute (SIPRI), this 2010 figure corresponds to approximately 2.6% of the world's GDP, or US$236 for each person on the earth.

The United States is the undoubted leader in terms of military spending, accounting for just under half of the global total with 43%. China is a distant second in this regard, with a 7.3% global share, followed by the UK (3.7%), France (3.6%) and Russia ((3.6%).

The three top defence companies - Lockheed Martin, Northrop Grumman and Boeing - are all United States companies. If amalgamated together, their revenue would amount to around 1% of the United State's US$14 billion GDP.

As shown in the table below, the global financial crisis of 2008 had a delayed effect in curbing military spending in a number of regions, mainly in 2010. The Americas region only increased spending from 2009-2010 by US$22.7 billion after previously increasing spending by US$52 billion between 2008-2009. The European region saw even more drastic steps taken, actually spending less in 2010 (US$376 billion), than in 2009 (US$387 billion).

Source: Stockholm International Peace Research Institute

Global Players in the Defence Market

BAE Systems - 2010 revenue: £22,392Mn

BAE Systems plc (BAE Systems) is a global defense and security company. The Company delivers a range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. The Company has five segments: Electronics, Intelligence & Support, Land & Armaments, Programmes & Support, International and HQ & Other Businesses. The Company operates in Australia, India, the Kingdom of Saudi Arabia, the United Kingdom and the United States. On the 17th January 2012, BAE Systems was awarded a $21.7 million contract to deliver an indefinite quantity of Head Mounted Displays from the U.S. Army Program Executive Office Soldier.

Thales - 2010 revenue: EUR13,125Mn

Thales SA is a France-based electronics company providing services for the aerospace, defense and security markets worldwide. The Company operates in 50 countries through its divisions, including Aerospace, Space, Air Systems, Land and Joint Systems, Naval, and Security Solutions and Services. On the 10th January 2012, Thales was awarded a contract by the French Defence Ministry to support its equipment on board the Rafale aircraft in service with the French Air Force and French Navy.

Lockheed Martin - 2010 revenue: US$45,803Mn

Lockheed Martin Corporation is a global security company engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. It operates in four business segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. On the 11th January 2012, Lockheed Martin announced that it had delivered the first two of its production model F-35B short takeoff/vertical landing (STOVL) aircraft. The fighter jets were delivered to the U.S. Marine Corps.

Northrop Grumman - 2010 revenue: US$34,757Mn

Northrop Grumman Corporation (Northrop Grumman) is an integrated enterprise consisting of businesses that cover the entire security spectrum, from undersea to outer space and into cyberspace. The Company operates in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services. In April 2009, the Company acquired Sonoma Photonics, Inc., as well as assets from Swift Engineering's Killer Bee Unmanned Air Systems product line. On the 4th January 2012, Northrop Grumman, in a joint venture with Lockheed Martin, received a US$181Mn contract from the U.S. Army for AH-64D Apache Block III LONGBOW systems.

Raytheon Company - 2010 revenue: US$25,183Mn

Raytheon Company, together with its subsidiaries, is a technology company and specializes in defense, homeland security and other government markets. The Company provides electronics, mission systems integration and other capabilities in the areas of sensing, effects and command, control, communications and intelligence systems (C3I), as well as a range of mission support services. It serves both domestic and international customers, principally as a prime contractor on a portfolio of defense and related programs for government customers. On 16th January 2012, Raytheon was given a US$51.3Mn contract to upgrade Patriot Advanced Capability-2 missiles to the Guidance Enhanced Missile-Tactical (GEM-T) configuration. Raytheon is said to employ 72,000 people worldwide.