News Release by GlobalData, 5 March, 2024: Forecasts by GlobalData; The US aims to improve military readiness and strengthen deterrence in an era defined by rising aggression from authoritarian governments and non-state actors. Faced with growing concerns about the stability of the rules-based international order, the US is forecasted to further increase defense spending to $931.6 billion in 2028, up from $818.8 billion in 2023, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “United States (US) Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028”, reveals that the US
defense spending will increase again in 2024 to $841.4 billion. The country’s expenditure on acquisitions is set to grow at a steady compound annual growth rate (CAGR) of 3.0% during 2024–2028. During the same period, total defense expenditure is anticipated to grow at a CAGR of 2.6%.
Fox Walker, Defense Analyst at GlobalData, comments: “In an era of increased competition with large military powers and other national security threats, the US is strengthening its defense posture to operate in a more uncertain geostrategic environment. In addition to a robust 10.7% year-over-year increase in spending in 2023, the forecasted spending will bolster US capabilities in a time of global conflicts. Major investments across the breadth of the defense sector convey America’s strategic aim to be capable of responding to major conflicts on multiple continents and in emerging domains such as space and cyberspace.”
Defense spending in the US is driven primarily by the continued modernization of defense technologies globally and the outbreak of armed conflict in areas critical to American strategic aims. Through 2028, the three largest sectors in terms of total cumulative spending are military simulation and training, military fixed-wing aircraft, and missiles and missile defense systems—including $159 billion on military simulation and training alone. Some of the top ongoing programs in these sectors include Maxar Technologies One World Terrain training software, Lockheed Martin’s F-35, and the Patriot Missile Defense System.
Walker concludes: “Though the US commitment to the rules-based international order hinges on the results of this year’s presidential election, American investments in defense technology are unlikely to decline as tensions with China, Russia, and Iran continue to escalate. No matter the results in November, the defense industry should expect reliable growth of American investment and procurement initiatives.”
ENDS
