The threats of North Korea’s long-range ballistic missiles and China’s maritime intrusion have prompted Japan to focus on fortifying its own defense capabilities. Although Japan’s defense budget registered a decline of 3.56% over the review period, this trend will change in the coming years, according to the new report – Future of the Japanese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019.
The majority of the defense budget is to be spent on revenue expenditure, which includes personnel salaries, operational expenses, training, and development. Capital expenditure accounted for a 19.4% share of the overall defense budget in 2014, and includes the procurement of military equipment, material expenses, R&D expenses, aircraft acquisition, and shipbuilding.
Key insights include:
Source: ASDReports - Market Research
Date: Mar 18, 2014