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02 Jun 11. French domestic defence companies will be challenged by foreign competitors who are trying to penetrate the market to cater to the army’s urgent operational requirements. On another front, there is the challenge of the French economy being likely to recover completely from the downturn only after the short term. The Government still faces a crisis, which is compelling it to curtail the country’s defence budget. The increasing benefits of commercial-off-the-shelf (COTS) products is tempting the Government to reduce the initial funding required to develop a product prototype. In future, companies would have to self-fund to develop prototypes, thus impacting companies with limited budgets. “The cash-strained Government is reluctant to make any initial investment towards developing equipment prototypes,” explains the analyst of the new market study available on ASDReports. “This would definitely be a hindrance to market participants with limited budgets.” The current economic scenario has forced the Government to cut down on its defence spending. The impact of this budget reduction is being felt at all levels across the value chain. The upcoming land defence programmes in France are of significant value and hence, the competition to leverage these
opportunities is expected to be intense. The French defence industry remains secluded and it is difficult for foreign companies to penetrate the market.
“Partnering with domestic defence companies would enable foreign companies to gain access to the French land defence market,” concludes the analyst. “It would also enable them to respond more effectively to urgent operational requirements.” (Source: ASD Network)
06 Jun 11. By 2015, the global aerospace and defense market is to
achieve revenues of $399bn, according to a new report available on companiesandmarkets.com. Increasing air traffic, commercial airline expansion, and expenditure in the military and defense industries are expected to increase revenues in the short and medium term.
Aerospace and Defense Industry: A Global Strategic Business Report
The United States will maintain its position as the largest aerospace and defense market, while the Asia-Pacific region will experience fastest growth during the reporting period, at over 3%. Growth is being triggered by increased air traffic and demand for commercial aeroplanes in countries like India and China. Growth of