Global Defense Sector Landscape
Understand the drivers of defense spending in US and European markets
In our newest landscape report, our analysts highlight key features of the catalysts behind the current defense upcycle. Geopolitical tensions are fueling a new global defense supercycle, with European defense budgets set to grow significantly. Increased defense spending is expected to boost revenues and profitability for US and European companies.
European defense budgets are set to grow 6.8% annually from 2024 to 2035, surpassing US growth rates, after a period of underinvestment. The US will look to align its defense budget with GDP growth. In the midterm, both regions will prioritize munitions and off-the-shelf equipment to meet near-term needs.
The landscape report dives into the future of defense spending, focusing on how technological advancements carry an increased potential for profitability through economies of scale and aftermarket services. Morningstar's defense industry report features companies with strong competitive advantages, driven by intangible assets and high switching costs.
Download the report now to discover more investment opportunities as well as several economic challenges in this shifting global defense sector landscape.
