GLOBAL DEFENSE AND SECURITY
The Contribution to Peace
The best way to maintain peace is to have a strong defense. The global geopolitical instability and Donald Trump’s presidency are major positives for defense spending.
While Trump’s initiatives will spark +10-15% growth on US defense spending, Trump’s election is also having some knock-on effects on US allies, specifically on NATO members.
Even if the US defense budget and most budgets across the world are well balanced between air, sea and land, most of the big dollars over the next few years will be spent on submarines and ships, next-generation aircrafts and unmanned vehicles.
As new projects come online, contractors should benefit from significant revenue upside.
Developments in the civil field from space exploration to biometrics or cyber security are of utter importance given their close links with defense.
No investments are made in companies manufacturing anti-personnel mines and cluster bombs.
An unstable and volatile geopolitical situation: external and internal threats.
Donald Trump’s FY18 budget points to a massive acceleration in defense spending. Supplemental budget requests will feed the momentum.
NATO countries meeting the 2% of GDP target points to $100bn spending upside.
|Source: AtonRâ Partners; Heidelberg Institute - Conflicts in 2016|
Space is not only important for the future of transportation,
it’s important for the future of imagination…
Georges Whitesides, CEO Virgin Galactic
Space exploration is a source of innovations in the fields of healthcare, materials, robotics and transportation systems but also remains important in defense-related fields such as aeronautics and IT & Telecoms (satellites).
Satellites appear as a major actor in the global security value chain, creating the fundamentals for telecommunication technologies.
Biometrics uses facial image, fingerprint, iris, DNA or voice pattern to identify individuals.
The US Department of Defense is working with multi-modal biometrics
(ABIS - Automated Biometric Identification System), a combination
of above mentioned technologies.
All connected devices and systems will be exposed to security threats. Attacks on the IoT
will hit healthcare, financial services, manufacturing. 50% of new business processes
and systems will include an IoT component by 2020 (source: Gartner).
The cyber security market is expected to grow from USD 122 bn in 2016 to USD 202 bn
by 2021, a 10.6% CAGR (Source: Research and Markets).
How to protect against cyber attacks?
Even if the US defense budget and mosts budgets across the world are well balanced. We believe that the focus will be on: next generation aircrafts, submarines and ships.
Drones also a top priority given:
Source: Comptroller.defense.gov; AmericanProgress.org
Source: AtonRa Partners, Sipri, Statista
Innovation at the service of security and public safety:
Technology as a driver of defense capabilities:
AtonRâ Defense & Security certificate does not invest into companies which manufacture anti-personnel mines and cluster bombs. We also avoid companies manufacturing chemical weapons.