Paul Thomen
Showing posts with label Defense Market. Show all posts
Showing posts with label Defense Market. Show all posts

Friday, 24 May 2013

Future of the Spanish Defense Industry 2018

RnRMarketResearch.com adds “Future of the Spanish Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018” new report on its database.

Synopsis
This report is the result of SDI’s extensive market and company research covering the Spanish defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.

Introduction and Landscape

Why was the report written?
The Future of the Spanish Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Spanish defense industry.

What is the current market landscape and what is changing?
Spanish defense expenditure decreased at a CAGR of -9.79% during the review period and valued US$7.58 billion in 2013. The focus of the Spanish government will be on the modernization of its armed forces, participation in peacekeeping operations, and counter terrorism activities and disputes with neighboring countries.

What are the key drivers behind recent market changes?
Territorial dispute with Morocco and security threats pose by terrorist organizations are the major drivers of the Spanish defense industry.

What makes this report unique and essential to read?
The Future of the Spanish Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.


Key Features and Benefits
- The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on the Spanish defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- The report helps the reader to understand the competitive landscape of the defense industry in Spain. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Key Market Issues
- In 2013, the Spanish defense budget decreased by 6.7% from that of 2011 to US$7.58 billion. While Spanish defense expenditure recorded negative growth of 9.79% during the review period, it is expected to record a CAGR of 1.95% during the forecast period. Furthermore, the share of capital expenditure in the total defense budget is also expected to decrease from an average of 14.8% during the review period to 11.9% during the forecast period. As this is expected to reduce market opportunities, investments are expected to fall, which will hinder the growth of the Spanish defense industry.
- The growth of the Spanish defense industry is additionally hindered by the project delays associated with the global financial crisis, which lead to project cancellations and rising costs. In particular, the implementation of a European defense industry has caused several project delays, as often member countries are unable to agree unanimously over issues such as specifications.


Key Highlights

- The Spanish government encourages its domestic defense industry to collaborate with foreign defense organizations from countries such as France and Germany to enhance Spain’s technological capabilities. Furthermore, to encourage RandD within the country, the Spanish government has built technology centers with a combined workforce of over 2,000 people, including military personnel and civilians. Spain collaborated with France and Germany to undertake a risk reduction study for a joint advanced unmanned aerial vehicle (AUAV) in 2007. The fifteen-month study, awarded to EADS, was completed in 2009 and the main objective of the research was to develop a long-wing, high-altitude UAV with extended loiter time. The delivery of the first UAV is expected in 2015. Although the number of systems required by the Spanish Armed Forces has not been finalized, the country is expected to procure these defense systems during the forecast period.
- During 2008-2012, Germany emerged as the largest arms supplier to Spain, with 55% of imports, followed by the US with 24%. Percentage shares of US, Israel and France are expected to grow over the forecast period, as a result of procurement programs from these countries in areas such as armored vehicles, ammunitions, fighter aircraft, and reconnaissance helicopters.
- During 2008-2012, the sale of warships to Norway and Venezuela gave a substantial boost to Spanish defense exports, thereby making Norway the largest consumer of Spanish defense goods, with a share of 32%. The second and third largest importers of Spanish military equipment were Australia and Venezuela, accounting for 12% and 8% of total exports respectively. With the European defense industry undergoing a consolidation phase, Spain seeks to undertake joint developments with foreign defense OEM’s based in countries such as Germany and France, which will increase Spanish arms exports during the forecast period. An example of one such alliance is the joint development of France and Spain for the Scorpene submarine, which led to the successful export of 14 Scorpene submarines to Brazil, Chile, India and Malaysia. Other deal is between Navantia and the Russian agency Rosoboronexport for patrol ships.

For more details contact Mr. Priyank Tiwari: sales@rnrmarketresearch.com / +18883915441
Website: http://www.rnrmarketresearch.com

Wednesday, 24 April 2013

Saudi Arabian Defense Industry Excepted to Grow at CAGR 7.92 Percent by 2018

The Saudi Arabian defense industry is valued at US$52.9 billion in 2013 and is one of the largest defense markets globally. During the review period (2009-13), the country’s defense expenditure grew at a CAGR of 10.87%, and is expected to record a CAGR of 7.92% over the forecast period (2014-18), to value US$77.3 billion by 2018. The key factors driving the growth include increases in cross-border insurgency, domestic unease with the ruling regime, the rising number of Al-Qaeda training camps in the country, an increasing focus on oil infrastructure security, regional rivalry with Iran and the desire to emerge as the most influential nation in the Middle East. Saudi Arabia’s substantial defense budget, coupled with the limited capabilities of domestic defense firms, is attracting foreign OEMs into the market.  Saudi Arabia’s robust economy enables it to invest large amounts of money in the procurement of defense equipment and, over the forecast period, the nation is expected to increase its defense expenditure to an average of 8.8% of Gross Domestic Product (GDP).

Rising tensions with Iran forced the country to purchase American weapons at record levels in recent times. Since the nation does not share a border with Iran, its arms purchases focused on expensive warplanes and complex missile defense systems. The US$60 billion agreement with Saudi Arabia that was formalized in 2012 included the purchase of 84 advanced F-15 fighters, more than 100 helicopters, a variety of ammunition, missiles and logistics support, and upgrades of 70 F-15 already in service. In addition to upgrading its air force, the government is also entering into deals to strengthen its ground forces.


Saudi Arabia is one of the world’s largest importers of military hardware and the limited capacity of its emerging domestic defense industry means that the country is heavily dependent on foreign arms. However, the government tried to improve the situation by introducing an Economic Offset Program, a tool to encourage foreign companies to establish joint ventures (JVs) with Saudi Arabia’s domestic organizations. The country is likely to become one of the five largest importers in the forecast period due to major outstanding orders such as the F-15 combat aircraft from the US and the Typhoon combat aircraft from the UK. With the US, Canada, and France already supplying armored vehicles to Saudi Arabia, Germany is also expected to do so during the forecast period.


Over the forecast period it is expected that key opportunities will emerge within missile defense systems, helicopters, infantry fighting vehicles, tanks, fighter planes, and unmanned aerial vehicles (UAVs).


Reasons to buy

- Understand the historical performance of the defense industry in this key Middle Eastern market, alongside future industry projections.
- Gain insight into the key challenges and opportunities identified by influential suppliers and buyers involved in Saudi Arabia, enabling industry stakeholders to understand the business sentiment prevailing in the industry.
- Promote your capacity for growth by aligning your capabilities and business practices with the changing needs of the Saudi Arabian market.
- Predict how the Saudi national defense industry will grow, consolidate, and where it will stagnate.
- Gain access to primary survey research conducted by Strategic Defence Intelligence across its B2B panels comprised of senior purchase decision makers and leading supplier organizations.

Malaysian Defense Industry Market Entry Strategies, Analyses 2017

Malaysia has a small defense industry, so it strives for major foreign investment in the country, which is why the country has adopted technology transfer as a key strategy to invite foreign players in the country. Key technology transfer programs signed by the Malaysian government include a short-range missile technology program with China, a space program with Russia, and a MRCA program for which Boeing, Dassault, Saab, and Eurofighter are competing. The country also focuses on the development of partnerships with foreign companies; it encourages local companies to participate in global partnership and joint development programs in order to enhance the domestic defense industry.

Excessive corruption within the government‘s procurement process hampers the entry of foreign investors into the country‘s defense market as some foreign investors have resorted to paying bribes in order to win a contract, which has discouraged foreign OEMs from entering the market. Furthermore, the lack of a transparent procurement process has made the evaluation of contracts and deals difficult, with a number of factors like hiding the information and price of equipment restricting the scrutiny of defense acquisition programs.



The Malaysian annual defense budget stands at US$4.96 billion in 2013, which is expected to grow at an estimated CAGR of 3.27% over the forecast period (2013-2018), to reach US$5.68 billion in 2018. This significant increase in defense expenditure can be attributed to the modernization of its armed forces and the procurement programs that are to be executed over the forecast period; in addition, participation in a number of UN peacekeeping operations and rising territorial disputes are also expected to fuel the Malaysian defense expenditure. As a percentage of GDP, the country‘s defense expenditure stands at 1.46% in 2013 and is expected to decrease to 1.14% in 2018; the primary reason for this decrease in GDP percentage is the deficit reduction efforts of the Malaysian Government.


Key Features and Benefits

- The report provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on the Malaysian defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- The report helps the reader to understand the competitive landscape of the defense industry in Malaysia. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Monday, 25 March 2013

Japanese Defense Industry Market Competitive Landscape to 2018

Product Synopsis
This report is the result of SDI’s extensive market and company research covering the Japanese defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.

Introduction and Landscape
Why was the report written?
The Future of the Japanese Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2017 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Japanese defense industry.

What is the current market landscape and what is changing?
The Japanese defense expenditure increased at a CAGR of 3.90% during the review period and valued US$58.6 billion in 2013. The focus of the Japanese government will be the modernization of equipment, procurement, and the training and development of personnel.

What are the key drivers behind recent market changes?
Japanese defense expenditure is mainly driven by threats from North Korea’s long-range ballistic missiles and China’s maritime expansion. Intrusion in coastal areas, organized crime, natural disasters will drive the Japanese Homeland Security expenditure

What makes this report unique and essential to read?
The Future of the Japanese Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.


 Key Features and Benefits
- The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on the Japanese defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- The report helps the reader to understand the competitive landscape of the defense industry in Japan. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Key Market Issues
- The ban on exports imposed by the Japanese government severely affected the Japanese defense industry. The ban restricted Japanese companies from the joint production of equipment and technology with other technologically advanced countries. Japan is not able to achieve economies of scale and related benefits, thereby making domestic production cost extremely high. Although, Japan is technologically advanced, developing state-of-the-art defense equipment is expensive, leading the country to buy expensive overseas equipment.]
- The ban imposed by the Japanese government on arms exports made it difficult for defense companies in Japan to maintain profitability. Despite the relaxation of the ban, Japanese defense companies still have limitations in terms of arms exports and are still subject to government approval; most importantly, companies will still be prevented from selling equipment to other countries.

Key Highlights
 - Japanese defense companies are highly advanced and sophisticated in terms of defense equipment manufacturing, yet Japanese defense industries restrict themselves to tanks, warplanes, helicopters, and warship. This creates the strong need to enter joint development programs with other technological advanced countries. To procure other important defense equipment such as missile defense systems and aircraft, Japanese companies purchase license from foreign firms. These acquisitions of developed and tested technologies account for the majority of Japan’s defense imports. As part of the procurement program, Japan signed a contract with the US based Lockheed Martin for the procurement of F-35 Lightning II fighter aircraft. Japan has spent US$756.5 million in this contract. Japan began its F-35 acquisition from 2011, and this will run throughout the forecast period. Furthermore, Japan will acquire the last chunk of 30 aircraft from 2016 onwards.
- Japan recently ended the ban on exports due to pressures from domestic defense companies. Despite the highly competitive market, the domestic defense industry has found it difficult to operate due to the low quantity of procurements. This also discourages them from investing in new research and development, as the absence of potential foreign customers limit the sales of a product. The policy revision is expected to allow Japanese defense companies to participate in joint development programs with other countries.
- The obtainment of F-35 fighter aircraft will be the key procurement of Japan’s import over the forecast period. The Japanese MoD signed the procurement contract with Lockheed Martin, US, which runs from 2011 to 2016, and possibly beyond. The estimated cost of this contract is US$756.5 million. This contract consists of the procurement of 42 conventional takeoff-and-landing aircraft, which makes it the key import for Japan during the forecast period


Table of Content

1 Introduction
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
4 Defense Procurement Market Dynamics
5 Industry Dynamics
7 Competitive Landscape and Strategic Insights
8 Business Environment and Country Risk
9 Appendix