According to the report analysis, ‘Future
of the Japanese Defense Industry - Market Attractiveness, Competitive Landscape
and Forecasts to 2023’
states that in the forecasted period, the Japanese defense budget is
anticipated to grow at a CAGR of 2.51% to value USD 53.7 billion by 2023.
Whereas, in the historic period, the total defense budget with the financing of
US force manipulation and SACO, observed a CAGR of 0.5% to value USD 47.3
billion in 2018, as compared to the USD 46.4 billion in 2014. The country’s
defense expenditure is anticipated to be huge, operated by efforts to combat
the threat of North Korea’s growing military potential. In addition, the
intrusion of Chinese on offshore islands within the locality of the country,
and the activities of Russia in the disputed Northern territory.
As a percentage of GDP, the defense
expenditure of this region is anticipated to average 0.9% over the near future
and the japan defense budget without the SACO and US force related expenditure
is anticipated to rise at a CAGR of 2.4% over the near future. For instance,
the North Korea nuclear missile development programs, strategic challenges from
China and a territorial issue with Russia are the major key factors which
operate the Japanese defense industry. Whereas, the ministry of defense is
anticipated to distribute an average of 56.1% of the budget onwards the capital
expenditure over the near future. Moreover, the Japanese Ministry of Defense
devotes huge portion of its budget on operational expenses, salaries,
development and training.
The report also provide the qualitative
analysis related to the Japanese defense industry covering sections which
includes demand driver, key trends and latest industry contracts. Whereas,
there are some key players which are recently functioning in this sector more
actively and playing an effective role in activities of export and imports
includes Lockheed Martin, Raytheon, BAE Systems, Airbus Group, Bell, NEC
Corporation, Toshiba Corporation, Mitsubishi Heavy Industries, Kawasaki Heavy
Industries, Ishikawajima, Mitsubishi Electric Corporation and several others.
Japan introduced the Acquisition Technology
and Logistics Agency (ATLA) under the Japanese Ministry of Defense in October
2015, which assimilating acquisition functions involving its Staff Offices,
Equipment Procurement and Construction Office, Internal Bureau and Technical
Research and Development Institute. ATLA is held responsible for defense
equipment policy and logistics planning, defense industrial policy, procurement
as well as management of research and development institutes, research and
development and research and development policies. As before the introduction
of ATLA, work connected to equipment acquisition in Japanese Ministry of
Defense was divided over the numerous organization and departments.
ATLA encourages defense equipment and
technology cooperation from the standpoint of the contribution to harmony and
international cooperation and security of the country involving managing and
strengthening defense production and technological bases and several others.
Therefore, in the coming years it is anticipated that the future of the
Japanese Defense Industry will grow more effectively over the decades with the
more development in the technology and establishment of effective policies by
the Japanese Ministry of Defense.
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Ankur
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