A Strategy Analytics report predicts global defense spending to hit $2.41 trillion over the next eight years at a compound annual growth rate of 3.7 percent.
Strategy Analytics said Monday its report suggests that the Trump administration’s push to restore U.S. military leadership has reflected in the White House’s proposed budget for fiscal 2019.
The FY 2019 budget request seeks to allocate $686 billion for the Defense Department to support DoD’s investments in ground, space, maritime, aerial and cyber platforms.
Asif Anwar, advanced defense systems director at Strategy Analytics, said he expects U.S. defense spending to reach $789.5 billion by 2026, making it the world’s largest defense market.
Anwar added such a momentum would help sustain growth for defense contractors such as Boeing, Raytheon, Lockheed Martin and General Dynamics as well as for companies in the technology supply chain that include Teledyne, Microsemi, Wolfspeed and Qorvo.