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Did you know that the defence market is one of the world's largest and most complex industries? From defence management to procurement, security, counter-terrorism, intelligence and space exploration – the list goes on. In fact, according to Transparency Market Research, the worldwide market for defence industry products is now worth as much as US$850 billion.
The global defence market is a relatively new market and most companies are not aware of what opportunities it has to offer. Like many other markets, the growth of this market depends on advances in technology and is divided into several verticals such as air, land, naval and homeland security markets.
The defence market is also growing at an average rate of 3% per year, which means that there are plenty of opportunities for business owners to get involved in this expanding sector. However, it's not just the size of this market that makes it worth looking into; there are also other reasons why you should consider getting involved. Here are six insights on business selling opportunities in the defence market:
1. It's a lucrative industry
The defence industry is one of the most profitable industries in the world, with companies such as Boeing and Lockheed Martin reporting record profits year after year. This means that any company that wants to expand its portfolio can do so by investing in this sector – and reap huge rewards in return.
2. There are plenty of growth opportunities
The defence sector is growing quickly as governments around the world invest more money into their armed forces and security services. This means that there will be more demand for products and services like military vehicles and weapons systems over time – which means more opportunities for new companies to enter this market!
3. The defence sector is becoming more open to new suppliers
The global defence industry has traditionally been dominated by large established companies, but in recent years it has become more open to new players looking to participate in this lucrative market. Moreover, the increasing number of countries involved in conflicts has increased the demand for combat equipment and services, while the rise of private military companies (PMCs) has opened up opportunities for new entrants in other areas such as logistics and maintenance support services.
4. The defence industry has a high bar for quality and reliability
There are many risks associated with supplying goods or services for use in defence operations due to their critical nature and high level of risk tolerance required by end users.
To minimise these risks, companies need a solid track record for quality and reliability in order to stand out from their competitors who may be offering lesser quality goods or services but at lower prices.
5. Businesses have opportunities to sell products and services to governments
Most governments today have large budgets allocated for defence spending which business owners can tap into through government contracts. Governments often seek bids from companies that provide products or services for their forces, so if you can offer something unique then you may have a chance at winning such contracts. For example, if you are an IT company then you may be able to sell hardware or software solutions that help improve productivity or efficiency within your client’s
6. Opportunities for small businesses to work with large companies on projects within the defence sector
In terms of opportunities for small businesses within this sector, there are many options available – from subcontracting work from larger companies to providing support services such as maintenance and repair work on equipment which has already been purchased by military forces around the world (i.e., maintenance contracts).
To gain more knowledge and direct assistance concerning launching your government market journey, creating an effective capability statement, building significant growth, developing relationships and selling to Government & Defence Organisations, contact us at associate@premiumconcept.be.