Russia Arms Market Overview:
As per our recent market research report, Russia accounted for the 25% share of the global arms exports market in 2015. Russia arms market valued USD 32.0 billion in 2016 and is anticipated to grow at a CAGR of 2.5% during the forecast period. In 2016, over 34, 000 units of arms were exported by Russia across the globe.
Russia is one of the biggest exporters in the global arms market. As per Russian Federal Service of Military-Technical Cooperation (RFSMTC), Russian arms market showed tremendous growth in past one decade as Russian arms sales increase by more than 150% in 2015 as compared to 2005. Due to the economic crisis, the Soviet Union has faced stagnation in the growth of the arms market in the past few years. In 2015, Russia arms transfer agreement valued USD 11.1 billion and witnessed a minor decline in the value of global arms-transfer agreements as compared to the value USD 11.2 billion in 2014. In 2014, Russia accounted for the highest military budget as compared to other European countries. Due to the ongoing crisis and reduction in the dollar value, Russia’s military budget valued USD 53.5 billion and witnessed an increase of 0.8% only as compared to 2015.
However, integration and up gradation of existing weapon systems of the country is expected to bring new business prospects for the Russian arms market. Russia is focusing on the expansion of the arms business in developing countries. For instance, in 2016, Russia exported combat aircraft and major battle tanks to emerging economies such as India and China. Russia also supplied arms deals to other developing countries such as Burma, Algeria and Malaysia. In 2015, in developing countries, Russia arms transfer agreement value increased by 7% as compared to 2014.
Market Drivers and Challenges
Russia is focusing on its cold-war legacy business and is trying to enhance its competitive position in arms exports across the globe. With strong government marketing support and improvement in foreign arms sales is likely to fuel the growth of Russia arms market. However, the large customer base of the US and continuous demand for US weaponry in the Middle East region is a major challenge for the growth of Russia arms market. Moreover, China is an emerging and powerful arms supplier and China’s ongoing deals with Pakistan and other Asian, African, and the Middle East countries hindering the expansion of Russia arms business.
Moscow accounted for a 23% share of global arms exports, providing arms to more than 50 countries across the globe. Moscow has recently established arms sales deals with Latin America region as Venezuela is a principal importer of Russian arms. Russia is working on making flexible weapon deals to improve the relationship and services for existing clients and to attract new customers. Russian arms suppliers are targeting developing countries and offering lucrative arms deals. Russia is intensifying efforts to capture business from the Middle East and Asia-Pacific region. In 2017, Russia signed an arms deal of worth USD 3.5 billion with Saudi Arabia. Russia is the biggest supplier of arms to India, where India accounted for 38% share of total Russian arms export in 2016. Moreover, Russia is the leading military arms supplier to countries such as Tehran and Damascus.
In 2014, regardless of the sanctions against Moscow for its interference in eastern Ukraine, Russia sold over USD 13 billion worth of weapons. Russia made major deals which include a sale of S-400 which is a surface-to-air missile to China and other major conventional weapons to countries such as India, Vietnam and Iraq.
Moreover, the Africa region is expected to bring promising business opportunities for Russia arms suppliers. Egypt signed a deal of worth USD 5 billion with Russia for arms includes 50 MiG-29M combat aircraft, Buk-M2E and Antey-2500 long-range air defence systems in 2015. Import of 6 transport helicopters and 6 Mig-29M warplanes to Nigeria and contract of USD 0.74 billion with Uganda for the supply of 44 new T-90S tanks, 6 Su-30MK2, air defence systems and other weapons are likely to expand the Russia arms business in Africa region.
Major Companies Operating in the Russia Arms Market profiled in this report are
- Almaz-Antey Corporation
- Business Strategy
- Product Portfolio
- SWOT Analysis
- United Shipbuilding Corporation
- United Aircraft Corporation
- Tactical Missiles Corporation
- Russian Helicopters
- Vertolety Rossii AO
- United Instrument Manufacturing Corporation (UIMC)
- United Engine Corporation
- High Precision Systems
- Radio-Electronic Technologies Concern (KRET)
- Radio Technical and Informational Systems Concern (RTI)
- Sukhoi Company
- Irkut Corporation
- Salyut Machine-Building Production Association
This research report includes following segmentation for the Russian Arms Market size and forecast until 2024.
- Based on Types of Arms
- Land Based Weapon
- Aerospace Weapon
- Naval Weapon
- Based on Application
- Military Actions
- Law Enforcement
- Hunting & Sports