Over the five years to 2017, The US missile manufacturing market is forecast to grow at a compound annual growth rate (CAGR) of 0.4%, to reach a market value of $23.4 billion.
Over this time period demand for industry products will likely slow due to the United States' withdrawal from Iraq, reduced government spending on defence and the after effects of the economic downturn. These factors contributed to an estimated 3.2% drop in revenue in 2012.
Between 2007 and 2012 the US missile manufacturing market was heavily influenced by the US government. As such, US government expenditure on defence and space exploration has generally dictated the success of the industry.
Further key drivers for the industry over the five years to 2012 have included the wars in Iraq and Afghanistan and the performance of world GDP, this led to the industry recording a market value of $22.9 billion.
The wars fought in Iraq and Afghanistan increased demand for missile stockpiles and encouraged spending to replenish stocks. The continued development of the National Missile Defence System (NMDS) also supported demand for missile and missile defence products.
The US continues to dominate the global missiles market, however, countries around the world are ramping up their expenditure on advanced and older missile units. These countries will be investing billions of dollars into missile programmes over the next 10 years and are looking to procure increasingly sophisticated technology or collaborate on new ranges of missiles.
For more information on the US missile manufacturing market, see the latest research: US Missile Manufacturing Market Report
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