Aerospace industry. Components and Tooling

Global defence investment rises by 2.6%: an opportunity for industry

22 de July de 2024

In recent years, the defence industry has experienced a remarkable boom worldwide. This growth has been driven by a significant increase in investments, both domestic and international, the expansion of new technologies and the growing demand for security in an increasingly complex global context.

In this article we look at the investment figures, the sectors that benefit most and the direct relationship with the metal industry and its associated technologies.

Increased investment in the defence industry

National and international investments

According to data from the Stockholm International Peace Research Institute (SIPRI), global military spending will reach $2.1 trillion in 2023, representing an increase of 2.6 per cent over the previous year. This growth, attributed to alterations in geopolitical maps, is distributed as follows:

  • United States: With spending of approximately $801 billion, it accounts for 38% of global defence spending.
  • China: With an investment of $293 billion, it has increased its spending by 4.7% annually.
  • Europe: has seen a notable increase in countries such as Germany, which has allocated $64 billion, reflecting an increase of 8.3 per cent.

What is being invested in?

Investments in the defence industry are directed at a number of key areas, which go beyond purely armaments, among them:

  • Drone Technology and Autonomous Systems: The demand for unmanned aerial vehicles (UAVs) and autonomous land and maritime systems (UUVs) has grown exponentially. In particular, the latest model of super-silent UUVs introduced by the US and Australia is a novelty, enabling stealthy, long-range operations without putting human lives at risk.
  • Cybersecurity: With the increase in cyber threats, investments in cybersecurity and IT infrastructure have become crucial to maintain secure environments and ensure the protection of sensitive data and information of both companies and countries.
  • Equipment Modernisation: The armed forces of most countries are making notable efforts in upgrading and maintaining their existing equipment, such as aircraft, tanks and ships, to avoid potential threats in the face of an unstable geopolitical context.

The most benefited industries

The boom in defence industry investment directly and indirectly benefits several sectors, both economically and in terms of employment:

  • Aerospace: The production of combat aircraft, including the FCAS project, the new combat system for Europe, or its US counterpart NGAD, the Next Generation Air Dominance programme, while developments in satellites and space communication systems continue to boom.
  • Electronics and Technology: The need for navigation systems, radar and advanced communication technology drives this industry, especially as developments in AI are so powerful that they can produce virtually undetectable aircraft, ships or tanks.
  • Metal and Manufacturing: The demand for advanced materials and high-precision metal components is on the rise, such as welding and surface treatments, machining or the construction of metal structures.

Direct relation with the metal sector and its associated technologies

The metal industry plays a key role in driving the growth of the defence industry. The manufacture of military equipment requires advanced metallic materials and high-precision production processes. Some of the critical components include:

  • Advanced alloys: Used in the manufacture of aircraft, armoured vehicles and armaments.
  • Additive manufacturing technology: 3D printing of metals enables the fast and precise creation of complex components.
  • Nanotechnology: Improves the properties of materials, providing greater strength and durability. Its impact on technology and industry in general opens up new possibilities in many fields, especially in the field of renewable energies. If you want to know more about these materials, here we talk about nano-scale innovations: transforming the metal industry.

Conclusion

The defence industry boom reflects a global landscape where security and technological innovation are the priority. Growing investments at national and international level are benefiting multiple industries, while at the same time exerting a pull effect on innovation, as new technologies are developed that are then transferable to civilian purposes, as was once the case with satellite or navigation technology.