The Netherlands’ annual defence expenditure is forecast to grow from $9.4bn in 2018 to $10.7bn by 2022, at a compound annual growth rate (CAGR) of 3.38%, according to a report by Strategic Defence Intelligence (SDI).

Titled ‘Future of the Netherlands’ Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report provides in-depth analysis of the Netherland’s defence spending patterns.

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The allocation for capital expenditure is expected to account for 17.5% of the total budget from 2018 to 2022, whereas the revenue expenditure over the same period is anticipated to be 82.5%.

"Modernisation programmes, coupled with the NATO guideline to spend a minimum of 2% of GDP on defence, are expected to drive the nation’s defence spending."

Over the forecast period, the army is expected to receive the highest budget allocation of 14.2%, followed by the navy and air force with average shares of 8.6% and 8.0%, respectively.

Modernisation programmes, coupled with the NATO guideline to spend a minimum of 2% of GDP on defence, are expected to drive the nation’s defence spending, according to the report.

The major acquisition programmes being implemented by the Netherlands Ministry of Defence include F-35 Joint Strike Fighter (JSF) aircraft, the VOSS Improved Operational Soldier System, aerial refuelling tankers, Amarok DC light vehicles, cyber-security and surveillance radar systems, C4ISR platforms, and unmanned aerial vehicles (UAVs).