Saab 2015 Annual Report Download - page 10

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MARKET
THE GEOPOLITICAL LANDSCAPE
Security challenges have grown in number, forcing
the majority of European countries to re-evaluate
their military resources. e European defence mar-
ket is, among other things, being aected by Russia’s
military build-up in the region.
is is reversing the trend towards lower defence
budgets. e perceived threat has reinforced the
need to be better prepared, nationally and in co-
operation with others. is can be seen not least in
an increased emphasis on NATO’s mutual defence
clause, which now covers cyber security as well.
e focus is on areas such as situational awareness,
sensors, interoperability, exercises, training and
simulations.
SOCIETY’S ROBUSTNESS BEING CHALLENGED
ere are several global hotspots, and it is hard to
predict how various situations will develop. Euro-
pean societies' robustness are being challenged by
terrorism and the huge wave of refugees in the wake
of the conicts in the Middle East and Afghanistan.
e question of how to handle these refugee streams is
being discussed across countries. EU member states
have also introduced border controls.
Armed conict in Syria and Iraq, among other
countries, with severe humanitarian consequences,
together with the terrorist organisation Daesh’s
emergence, is shaking up an already unstable region
in the Middle East. e conicts and uncertainty
heighten the desire for stability, driving continued
large-scale imports of defence materiel to the region.
GEOPOLITICAL DISPUTES IN SOUTHERN AND
EASTERN ASIA
Years of strong economic growth have aorded
China a huge build-up in its defence forces, which
has been met with mistrust from neighbouring
countries. Maritime disputes in East and South
China Seas have been seen as provocative and led
to military tension.
Continued economic growth, coupled with
growing tension in the region, is driving the rise
in defence spending in Southeast Asia, where the
majority of countries are upgrading materiel,
especially naval resources but also air defence.
China’s consistently strong investment in military
modernisation is creating a sophisticated armed
force, which is being closely watched by the rest
of the world.
Geopolitical concerns in Europe, the Middle East and Asia have
increased, and it is difficult to predict what lies ahead. This explains
why many countries are re-assessing their defence capabilities,
nationally and in co-operation with others.
The need for preparedness and training has
grown in pace with increased geopolitical
instability. Saab offers various types of
training and development simulators, including
for the Gripen combat aircraft system.
6 – SAAB ANNUAL REPORT 2015