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The United States defense market is the largest and most sophisticated in the world, with an estimated value of over $740.4 billion in 2023. The United States Armed Forces (USAF) are the world's most powerful military force, playing a key role in global security operations.
The US government is the primary driver of defense spending in the world. In 2023, the defense budget reached $740.4 billion, representing 3.5% of GDP. The government's procurement priorities are focused on maintaining and enhancing the USAF's technological edge, with particular attention to cyber security, artificial intelligence (AI), and space technologies.
The US government procures a wide range of defense products and services, including:
Platforms: Aircraft, ships, submarines, land vehicles, and weapons systems
Electronic warfare systems: Radar, sonar, and communications systems
Cybersecurity solutions: Software, hardware, and services to protect against cyberattacks
Unmanned aerial vehicles (UAVs): Drones for surveillance and reconnaissance
Logistics and support services: Maintenance, training, and supply chain management
The key government agencies responsible for defense procurement in the US include:
Department of Defense (DoD): The lead agency for defense policy and procurement
Defense Acquisition University (DAU): Provides training and education for defense acquisition professionals
Defense Contract Management Agency (DCMA): Oversees the execution of defense contracts
Major US and international companies are involved in supplying defense products and services to the US government, including:
Boeing: Aerospace and defense company
Lockheed Martin: Aerospace and defense company
Raytheon Technologies: Aerospace and defense company
General Dynamics: Aerospace and defense company
Northrop Grumman: Aerospace and defense company
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