The 2017 Global A&D Sector Financial Performance Study is based on an analysis of top 100 A&D companies worldwide that recorded more than $500 million in revenues last year, the company said Thursday.
The report found that A&D companies contributed $15.7 billion in 2016 revenues with U.S. defense and European commercial subsectors as the driving factors behind the revenue growth, while electronics segment and original equipment manufacturers added approximately $3.7 billion and $3.4 billion in revenues.
The global defense subsector's revenues rose by 2.1 percent or $7.2 billion driven by an increase in defense spending.
“Across the globe, and especially in the U.S., we have seen an increase in military spending which has led to another strong year for the defense sector,“ said Robin Lineberger, global A&D leader at Deloitte.
“Contributing to this strong year is the 3.1 percent growth in U.S. defense revenues resulting from the 3.6 percent increase in funding from the U.S. Department of Defense, the subsector's largest customer.“
Lineberger noted that the defense sector is expected to experience continued growth as countries make technological investments to fight terrorist threats.