DUBLIN--(BUSINESS WIRE)--The "Future of the Chinese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.
The Chinese defense budget grew at a CAGR of about 7.3% during 2013-2017, from around US$115 Billion in 2013 to about US$153.9 Billion in 2017.
China is the second largest defense spender globally after the US. The country's large military budget is primarily driven by its robust economic growth and its desire to match-up with the US in terms of military capabilities. Additionally, China shares its borders with 14 countries and is involved in several border disputes which increase the need to invest in the recruitment and maintenance of a large number of troops to prevent infiltration or other hostile acts.
Over the forecast period, the country's defense expenditure is expected to increase from over US$167 Billion in 2018 to around US$226.5 Billion in 2022, reflecting a CAGR of more than 7.8%. The country's focus on military modernization, building technical capabilities, and dealing with territorial conflicts, while at the same time contributing to various peacekeeping operations worldwide, will drive the defense budget over the forecast period.
China is the second largest military spender globally, with a cumulative spending of over US$687 Billion between 2013 and 2017. Disputes over borders and territories, participation in peacekeeping missions, and military modernization are expected to drive the country's future military expenditure, which is expected to grow at a CAGR of around 7.8% during 2018-2022. Meanwhile, the country's defense budget is projected to remain stable at an average of 1.3% of GDP over the forecast period, and per capita defense expenditure will increase from around US$110 in 2017 to more than US$158 by 2022.
Scope
- China is the second largest defense spender globally after the US. The country's large military budget is primarily driven by its robust economic growth and its desire to match-up with the US in terms of military capabilities. Additionally, China shares its borders with 14 countries, and is involved in several border disputes which increase the need to invest in the recruitment and maintenance of a large number of troops to prevent infiltration or other hostile acts. The Chinese defense budget grew at a CAGR of 7.33% during 2013-2017, from US$115.9 billion in 2013 to US$153.9 billion in 2017.
- China's military modernization plans require a huge capital inflow and the government is expected to meet the requirements of these programs over the forecast period. The country's defense capital expenditure increased from US$37.9 billion in 2013 to US$50.4 billion in 2017, growing at a CAGR of 7.37%.
- Initiatives to combat organized crime and increase border security expenditure, and investments in infrastructure development, have driven the homeland security budget between 2013 and 2017. Over the forecast period, these factors are expected to continue to drive the country's defense expenditure.
Companies Mentioned
- Aviation Industry Corporation of China (AVIC)
- China Aerospace Science and Industry Corporation (CASIC)
- China Electronics Technology Group Corporation (CETC)
- China National Electronics Import and Export Corporation (CEIEC)
- China National Nuclear Corporation (CNNC)
- China North Industries Corporation (NORINCO)
- China Nuclear Engineering and Construction Corporation (CNEC)
- China State Shipbuilding Corporation (CSSC)
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