26 Feb 2020
Posted in Aerospace, Defense & Security
Fresh investments in Patriot Defense System illustrate deteriorating security environment for US’s allies
Following the news that Raytheon’s Patriot will receive a US$314m investment from global partners, Nicolas Jouan, Defense Analyst at GlobalData, a leading data and analytics company, offers his view on the context of these investments:
“Raytheon’s Patriot investment is excellent news for the US-based company, whose missile systems business was still its highest source of income in 2019 with US$8.7bn of net sales.
“The MIM-104 Patriot is one of the most iconic active surface-to-air missile defense systems in the world and is operated by a diverse array of European, Middle Eastern and Asian countries whose strategy aligns with the US’s interests. The 17-country Patriot partnership decided to invest in developing better cyber resilience and communication system for their existing Patriot batteries.
“GlobalData forecasts that surface-to-air missile sales will reach a cumulated value of US$35bn globally over the next five years, remaining one of the most dynamic segments of the Missile and Missile Defense market. The vitality of the missile defense market comes from increasing tensions in different security hotspots worldwide: Iran in the Middle East, Russia in Eastern Europe, North Korea in Asia.
“Conveniently for Raytheon, several traditional users of the Patriot system are currently bulking up their missile defense in front of immediate threats. Poland, Saudi Arabia, South Korea and Japan are all interested in staying ahead of the missile defense arms race currently happening around the world. For Warsaw, Riyadh, Seoul or Tokyo, improving air defense is a matter of survival more than prestige.”