The belligerent acts of nations around the world are helping to stimulate demand for surface-to-air missiles. In Europe, Moscow's invasion of Crimea is forcing a number of countries to reconsider their defense policies. Russia took control of Crimea on March 1, 2014. Prior to this event, many European nations were pursuing dovish defense strategies. Now, this is no longer the case. Poland was first to announce the acceleration of its air defense modernization program, which could be worth more than $2 billion. In the Middle East, Iran is threatening to attack its neighbors with ballistic missiles. Saudi Arabia, Kuwait, and the United Arab Emirates have already ordered new air defense systems, and more contracts from Gulf States are anticipated. Also, Palestinian and Lebanese rocket attacks on Israel have many countries paying more attention to these short- and medium-range threats, including the United States. In Asia, the antics of North Korea are fueling regional demand for ballistic missiles defenses. South Korea and Japan are investing more in air and missile defense systems, while China's threats have Taiwan pursuing a similar course. Meanwhile, the rivalry between India and Pakistan has both countries looking to acquire new air defense systems. Together, this situation will help to spur sales of air defense missiles - $38.9 billion in production revenues are anticipated through 2023. Annual revenues will increase even as the number of missiles produced during the next 10 years declines. Annual revenues from systems specifically designed to engage cruise and ballistic missiles may exceed $13 billion. In the future, all surface-to-air missiles will be required to engage all types of strike weapons.
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