The potential value of obligations linked to defence offsets and industrial co-operation requirements across the Asia-Pacific region are forecast by Janes to reach about USD143 billion during 2021–30. The figure is based on newly compiled Janes data that links the total value of known market opportunities with the offset protocols of countries in regional markets.
According to the data, the Asia-Pacific region could attract nearly 30% of the USD487 billion in total global offset obligations over the coming decade. Prominent regional country markets will include India (potential obligations worth USD32.9 billion), South Korea (USD24.1 billion), Indonesia (USD18.1 billion), Taiwan (USD15.6 billion), and Australia (USD13.2 billion).
During 2021–30 Europe leads in terms of the value of potential offset obligations, but most requirements in this region are likely to be fulfilled by local industry. (Janes)
In terms of capability segments in the Asia-Pacific region, military aircraft programmes are expected to attract offsets worth nearly USD65 billion, ahead of military ground vehicles (USD14.8 billion), radars (USD12.8 billion), missiles (USD12.8 billion), and military ships (USD11.6 billion).
In India, the potential value of offsets channelled through military aircraft contracts is forecasted by Janes to be nearly USD18 billion, far ahead of segments including military ships, missiles, and radar, all of which are valued at between USD2–USD2.5 billion.
In other regions Janes data suggests that the potential value of offset opportunities in Europe and the Middle East and North Africa (MENA) will continue to be substantial, although it should be noted that many opportunities in Europe – where industrial capability is much higher – are likely be met by local firms. The forecasted value of offset obligations in MENA is USD141 billion, or around 29% of the global share.
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