LONDON–(BUSINESS WIRE)–China, Japan and Australia top the tables for defense industrial
capabilities in Asia Pacific, according to a report on the new Market
Potential Index released today by Jane’s by IHS
Markit (Nasdaq: INFO), a world leader in critical information,
analytics and solutions.
“Multiple factors are driving rapid industrial development across Asia,”
Burton, research director at Jane’s. “In addition to economic growth
and a desire for military self-sufficiency, a complex security
environment characterized by North Korea’s ongoing nuclear program, and
overlapping territorial claims in the East and South China Seas are
leading to rapid growth in indigenous defense production throughout Asia.
“China’s defense industry has made substantial progress over the past
decade towards achieving the advanced capabilities targeted by Beijing,”
Burton said. “Further industrial reforms are required for China to
address remaining capability gaps and attain its goal of at least parity
with the world’s most advanced industrialized states. Beijing continues
to transform its defense industrial base from one that imitates into one
Asia Pacific: Defense industrial capabilities league table
Jane’s newly launched Market Potential Index ranks the industrial
proficiencies of almost 100 defense markets worldwide. Using a unique
methodology, it assesses the technological sophistication and scale of
defense industrial competencies in the land, sea, air and electronics
domains to produce a global ranking.
Land industries score
|Sea industries score||Air industries score||Electronics industries score||Final defence industrial rating|
|Source: Jane’s Market Potential Index, 2017|
“What the countries at the top of this list have in common is strong
government-backed research and development investment, a long-term
approach to the growth of their national defense industries, and an
emphasis on the involvement of domestic companies in national defense
equipment programs,” said Guy
Anderson, associate director at Jane’s.
“Greater government-backed research and development investment in
defense sectors has been a feature of the Asia Pacific as a whole, with
regional investment having climbed 32 percent to $16.7 billion over the
last five years,” Anderson said. “Over the next decade, we expect
defense industrial self-reliance to increase in this part of the world,
and for the defense industries of the Asia Pacific region to make a
larger dent in world export markets.”
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About Jane’s Market Potential Index
The Jane’s Market Potential Index assesses the status and appeal of 93
world defense markets based on factors that include defense investment,
defense industrial capabilities, procurement procedures and protocols,
trade mechanisms, embargo status and political, economic and security
considerations. Each market is ranked against 36 ratings, with scores of
0 (low) to 5 (high) a positive or negative appeal.
National defense industrial capabilities are scored 0 (low) to 5 (high)
on the basis of the existence of manufacturing, design and maintenance
capabilities in land, sea, air and C4 domains and the sophistications of
the capabilities present, based on the assessments of Jane’s analysts.
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