Saab 2015 Annual Report Download - page 14

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MARKET
DEFENCE MARKET
The total global market for defence materiel* in 2015 is estimated at USD 294
billion. The market is expecting slight growth in coming years. The US remains
the single largest market, but the biggest growth is seen in Asia.
Just over 60 per cent of Saab’s sales comes from Europe, mainly Sweden.
The region where Saab has grown the fastest in the last ve years, though
from low levels, is Latin America, and with Brazil’s order for 36 Gripen this trend
is expected to continue.
* Total global defence spending amounted to USD 1,627 billion in 2015, which includes
personnel costs. For Saab, the value of the market for defence materiel is more relevant.
Source: IHS Group, September 2015
35%
3%
SHARE OF
GLOBAL MARKET
2016–2020
SHARE OF
GLOBAL MARKET
2016–2020
North America
Market value 2015: USD 106 billion
Annual growth 2016 – 2020: -1 per cent
The US is the world’s largest single market,
but defence spending has decreased since
2010, when the US concluded its combat
missions in Afghanistan and Iraq, and as an
effect of overall budget cutbacks.
Latin America
Market value 2015: USD 10 billion
Annual growth 2016 – 2020: 3 per cent
Brazil accounts for about half of the Latin
American defence market. The country is
planning to modernise its military, including
through a new submarine programme and
Saab’s Gripen combat aircraft. In Latin
America, military systems are also used to
monitor and combat drug trafficking.
Saab has teamed up with Boeing to develop a
Ground Launched Small Diameter Bomb for artillery
launch against complex targets.
The Brazilian government has ordered 36 Gripen NG,
which will be delivered in 2019 –2024.
10 – SAAB ANNUAL REPORT 2015