In 2012, the Spanish defence market had a budget valued at US $9.48 billion. Throughout 2008 and 2012 the market declined at a compound annual growth rate (CAGR) of -6.7% due to the budget cuts associated with the effects of the global economic crisis.
During this timeframe, Spain spent an average of 18.7% of its total defence expenditure on the acquisition of military hardware, or capital expenditure, whilst 81.3% was allocated for revenue expenditure.
However, the Spanish defence budget is expected to register a CAGR of 3.2% over the next five years, to reach a total market value $12.08 billion in 2017.
Despite its economic woes Spain is still expected to spend almost $60bn on its armed forces from 2010 and 2015.
Growth within the Spanish defence market is set to be driven by persistent security threats from the Basque separatist group, ETA, a rise in the trade of illicit drugs within the country, and the increased risk of terrorism from international terrorist organisations such as Al-Qaeda.
Spain has a long and recent history of terrorist attacks from Basque separatists and al-Qaeda. Over the period through to 2017, the security threat posed by these groups is expected to increase the demand for perimeter protection systems, internal anti-intrusion control systems and surveillance systems.
For more information on the Spanish defence market, see the latest research: Spanish Defence Market Report
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