Russian defence market to grow at a CAGR of 18%

The Russian defence market expenditure registered a compound annual growth rate (CAGR) of 10.19% between 2008 and 2012 and has been estimated to hit US $77.9 billion in 2013.

It is forecast to grow at a CAGR of 18% over the forecast period to reach an estimated $151 billion in 2017.

Defence expenditure as a percentage of GDP is expected to increase from 3.1% in 2012 to 4.9% in 2017.

In total, the country is forecast to spend an estimated $556 billion on its armed forces over the forecast period, of which approximately $277 billion will be allocated for capital expenditure.

Russia's homeland security market is forecast to grow at a CAGR of 5.90% through to 2017 to reach an estimated $83.3 billion in 2017.

This spending will primarily focus on equipping personnel with surveillance and early warning systems and on providing satellite images of critical infrastructure for disaster recovery planning.

The Russian defence market is saturated with domestic firms, which cater to the majority of the Russian armed forces' defence needs.

The combined total revenue of the top-20 Russian defence contractors rose to $23.82 billion in 2010, up 37.1% from $17.37 billion the previous year. It is therefore safe to say that the Russian defence market has recovered from the effects of the world economic crisis.

For more information on the Russian defence market, see the latest research: Russian Defence Market Report

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