The latest Defence Industry Outlook report from ADS Group, the trade association advancing the aerospace, defence, security and space industries in the UK, reveals optimism about business growth prospects.

The report offers an in-depth look at the sector’s employment, investment, export and growth trends, incorporating data provided by the Centre for Economics and Business Research and a comprehensive survey of defence industry leaders. It follows the defence export figures recently released by UK Trade & Investment’s Defence & Security Organisation (UKTI DSO), which reveal a significant increase in the UK’s share of the global defence export market, rising to 22% in 2013.

The ADS report shows that while defence spending in traditional markets is down, two-thirds (67%) of firms plan to continue pursuing growth through export trade over the coming year. Currently, 70% of UK defence industry revenue is generated through domestic trade. However, as the industry pursues growth, more companies are turning their attention to opportunities overseas. In 2013, defence exports contributed almost £10 billion to the UK economy, a year-on-year increase of 11%.

ADS Chief Executive Paul Everitt said: “The UK defence industry has a global reputation for the development of high-value, advanced technology, equipment and services.

“UK government and industry recognise the importance of safeguarding this world-leading industry for the long term and are working together through the Defence Growth Partnership to develop a plan to make the most of new opportunities. Buoyed by the progress of this innovative collaboration, it is encouraging to see so many companies across the sector successfully securing growth through new opportunities in new markets, significantly outpacing their international counterparts.”