Industry Analysis & Industry Trends
Over the past five years, the Global Military Shipbuilding and Submarines industry was greatly impacted by declining defense spending in the United States and Europe. The global economic slowdown stunted industry growth as western governments attempted to deal with widening budget deficits by cutting defense spending, which led to less funding for industry programs. However, despite western military budget cuts, demand remained fairly robust, with industry revenue only expected to increase marginally over the five years to 2016. Over the next five years, continued economic growth and geopolitical tensions in Asia are anticipated to encourage more countries in the region to spend on industry products, bumping revenue higher.
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Industry SWOT Analysis
The Global Military Shipbuilding and Submarines industry is in the mature phase of its economic life cycle. Industry value added (IVA), a measure of the industry's contribution to the global economy, is expected to grow at an annualized rate of 2.9% over the 10 years to 2021. Comparatively, world GDP growth is expected to reach 2.7% per year on average over the same period. In general, the industry is vital to countries' national defense and their ability to protect their interest abroad. Moreover, governments usually protect and support their domestic operators to maintain a technological lead and prevent dependence on foreign nations, which prevents the industry from declining.
Technological innovation is a characteristic of this industry... read more