The military modernisation efforts by France will increase the nation’s defence expenditure in the next five years, says a report by Strategic Defence Intelligence (SDI).
Titled “Future of the French Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2021”, the report states that the French defence expenditure is to grow at a CAGR of 0.38% over the next five years to reach $48bn by 2021 as a result of massive modernisation programmes throughout that period.
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Scorpion is one of such programmes intended to modernise the French Army’s Jaguar combat vehicle, Griffon multi-role carrier, light multi-role vehicle, and battle management system at a hefty budget of €6bn.
The acquisition of 26 Rafale multi-role fighter aircraft, as well as the procurement of transport aircraft, frigates and nuclear submarines as part of the French MoD’s procurement and modernisation plan will also eat up the biggest share of total defence allocations by the French MoD.
The French MoD procures most of the defence equipment from domestic defence industry, but relies on imports from the US, Germany and Norway for sophisticated equipment and systems such as sensors, engines and transport aircraft, states the report.
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By GlobalData
