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Defense spending by Angola, Azerbaijan, Peru, Qatar, and South Korea is expected to increase by more than $16 billion over the next decade, say analysts at Frost & Sullivan in their "Rapidly Evolving Defence Markets, Part 2" report, according to Military Embedded Systems http://mil-embedded.com/news/military-spending-to-increase-in-angola-azerbaijan-peru-qatar-and-south-korea/ magazine.

The countries selected for the study are forecasted to increase defense funding from $53.68 billion in 2015 to $70.57 billion in 2025.

“Upon a closer look at these countries’ dynamics, it is found that for most of them, their political intent is stronger than their financial and infrastructure capabilities,” Alix Leboulanger, Frost & Sullivan Aerospace & Defence Industry analyst, noted, pointing out that the given states are still attempting to develop an industrial base to bolster their local footprint and diminish reliance on foreign equipment.

“The lack of skilled personnel and infrastructure, which has impeded ambitious indigenization plans and delayed modernization programs, also needs to be addressed,” he added.

According to the report, other factors that may curb investment include the highly competitive nature of the global defense marketplace, which has left little room for emerging local players. Moreover, weak market prospects beyond local demand, married with the absence of small- and medium-sized enterprises, restrict partnership opportunities and also transfer-of-technology ventures with foreign companies.

While rising regional threats typically impact defense equipment spending and upgrades in a positive way, military capabilities and fleet size do not necessarily follow suit. Financial constraints mean that governments will try to cut back on armed forces and invest in combat-proven platforms, surplus material, and second-hand equipment. Thus, Angola, Azerbaijan, Peru, Qatar and South Korea are expected to spend no more than 30 percent of their total budget, circa $18.95 billion per year, on new equipment, Frost & Sullivan analysts say.

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