In 2012 the Swedish defence market was valued at US $6.7 billion, registering a compound annual growth rate (CAGR) of 1.9% between 2008 and 2012. Looking ahead to 2017 the industry is expected to grow at a CAGR of 2.4% to reach a market value totalling $7.6 billion.
Growth within the Swedish defence market is set to be influenced by tensions with Russia, the procurement of new defence systems and the country's participation in international peacekeeping missions. As a consequence, Sweden is expected to invest $36.5 billion in its armed forces over the next five years.
Despite the economic crisis and the resultant decline in the country's defence imports and exports in 2009, Sweden emerged as the tenth largest global exporter of arms during the past four years.
As a result of Sweden's highly developed domestic defence industry, the country has emerged as a leading arms supplier in the global defence market. Sweden's defence market is a key exporter of aircraft, and during last four years European countries have emerged as the largest consumers of Swedish defence goods.
Between 2013 and 2017 the Swedish population is forecast to increase at an average rate of 0.47% compared to 0.6% registered between 2008 and 2012. This will lead to an increased per capita in defence expenditure from an average of $641 to $760 through to 2017.
Sweden plans to reduce costs through the procurement of reasonably priced foreign defence equipment, a factor which restricts the growth of small and medium sized Swedish defence companies.
For more information on the Swedish defence market, see the latest research: Swedish Defence Market Report
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.