US Foreign Military Sales Sector Growth Opportunities

Indigenization of Defense Systems in Allied Nations May Negatively Impact Industry Growth

This analysis provides a snapshot of the Foreign Military Sales (FMS) industry in the United States. It analyzes relevant contracting activities, including multi-year obligations, by the US Department of Defense (DoD) in CY2023. Based on major arms classification, it categorizes the industry into:

1. Fixed-Wing Aircraft (FWA)

2. Rotary-Wing Aircraft (RWA)

3. Missiles

4. Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR)

5. Weapons

6. Ground Vehicles

7. Others

The analysis examines geopolitical discourses, military and security partnerships, and trade relations among the United States and allied nations to determine the general industry drivers, restraints, and emerging growth opportunities. It highlights the leading major arms segments, customer countries, and technological trends. It also briefly analyzes the competitive landscape, identifying the overall and segment-specific leading industry participants and their top defense offerings.

The study emphasizes collaborations among defense companies, academia, and small and medium enterprises to enhance production capabilities and develop cost-effective defense solutions to remain competitive. Budding international defense partnerships should support inter-regional partnerships with defense companies in allied nations and create geographical expansion opportunities for US-based companies.