Expenditure within the French defence market declined at a compound annual growth rate (CAGR) of -0.52% through 2011, and by the end of the year was valued at US $50.36 billion.
Despite expected budget cuts during 2010-2013 to reduce the government's fiscal deficit, over the next five years the French defence market budget is expected to grow.
With more than 300,000 military and civilian personnel, the armed forces of France consume annually a significant defence budget. In 2012 the country is expected to spend almost €32 billion on defence.
French defence market expenditure is being stimulated by a number of factors including the military modernization plans outlined in the French white paper on defence and national security, coupled with perceived terrorist threats and France's status as the United Nations Security Council's second-largest contributor to UN peacekeeping missions.
French homeland security expenditure stood at $22.6 billion in 2008 and grew at a CAGR of 6.76% to reach $23.98 billion in 2010.
French homeland security expenditure is primarily driven by the perceived threat of terrorist attacks. Recent attacks include a false bomb alert at the Eiffel Tower in Paris and the kidnapping of five French workers and two of their African colleagues in Niger.
France imports 30%, of which 20% is procured from other European countries such as Italy and Austria. The country imports advanced technology equipment such as sensors, engines and artillery and engages in technology transfers.
Historically, the US was the largest supplier of arms to France; however the country has recently begun to import from European countries such as Italy, Austria and Germany.
For more information on the French defence market, see the latest research: French Defence Market Report
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