Home News UKTI’s Defence and Security Organisation publishes detailed set of export figures for 2015

UKTI’s Defence and Security Organisation publishes detailed set of export figures for 2015

by Brian Sims

UK defence export performance data is based on information provided by hundreds of UK companies to the UK Trade and Investment Defence and Security Organisation (UKTI DSO) via a voluntary survey. This is complemented by open source reporting of defence export contracts of other countries. Security sector data is compiled by KMatrix (under contract to UKTI DSO) and includes sales and exports of security equipment and services. All of the information collected is vital to the UK’s understanding of the shape of – and developing trends within – the global export market.

Here’s a brief overview of the UKTI DSO’s figures for 2015, which were published on Tuesday 26 July 2016:

Defence

*The UK won £7.7 billion worth of new business in 2015 (down from £8.5 billion in 2014)

*The UK’s share of the £63 billion global defence export market is estimated at 12%

*The UK is one of the world’s most successful defence exporters, averaging second place in the global rankings on a rolling ten-year basis (making it Europe’s leading defence exporter in the period)

*The UK is the tenth biggest defence importer in the past ten years, having previously been ranked eighth (for the 2005-2014 period)

*The Middle East continued to be the UK’s largest market in 2015, with 63% of exports (by orders/contracts signed in 2015) sent to the region. This was followed by North America (16%), Asia Pacific (13%) and Europe (8%)

*The UK remains heavily dependent upon its air sector, with aerospace accounting for 88% of orders/contracts signed during 2015

Security

*UK security export sales were worth £4.4 billion (up from £3.4 billion in 2014). This represents an increase of 18% in exports between 2014 and 2015, compared with an 11% increase between 2013 and 2014

*Cyber is capturing a growing share of this market and accounted for £1.8 billion of this year’s total figure (standing at around 45%)

*The UK’s share of the global security export market in 2015 was 5%

*The UK was ranked sixth security exporter with £3.6 billion (£4 billion to all countries) in exports during 2015

*Leading UK security export destinations were the USA (21%), China (13%), Japan (7%) and India (6%)

Response from the ADS Group

Paul Everitt of the ADS Group

Paul Everitt of the ADS Group

Following the publication of these export statistics, Paul Everitt (CEO of Trade Association the ADS Group) commented: “The UKTI DSO figures show that the UK’s security industry continues to grow at a significantly faster pace than that of the wider economy. It demonstrates that UK firms are well-placed to deliver the solutions required at home and by international customers in response to the challenging and rapidly evolving threat environment. Through greater collaboration with Government, there’s scope for the security industry to increase still further its share of the international market.”

Everitt continued: “Although the figures for defence exports are reported to be down on last year, on a ten-year rolling basis the UK continues to be Europe’s leading defence exporter and second on the global stage.”

In conclusion, Everitt stated: “The defence and security industries make a direct and valuable contribution towards our national security and prosperity. The Defence Growth Partnership is supporting close collaboration between industry and Government. This is encouraging increased investment in skills, technology and innovation, in turn helping to give UK businesses an advantage in what are now highly competitive global markets.”

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