Singapore has the largest defense expenditure in the South East Asian region, and the country’s defense spending is expected to increase substantially by 2016. The country’s defense expenditure is primarily driven by the threat of terrorist organizations such as Jemaah Islamiah, and the country’s focus on the protection of important trade routes, such as the Strait of Singapore and the Strait of Malacca, from the threat of piracy. Singapore’s army is relatively small, resulting in the country using technology as a force multiplier, another factor which increases its defense expenditure.

Key features and benefits:

• Provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

• Includes trend analysis of imports and exports, together with its implications and impact on the Singapore defense industry.

• Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.

• 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.

• Helps the reader to understand the competitive landscape of the defense industry in Singapore. 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.

• Looks at historical performance as well as future industry projections using the in-house model. The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

• Assists marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.

Due to Ukraine’s severe financial constraints, the country’s military forces have only modest capital expenditure, resulting in an export-oriented defense industry. From 2005 to 2010 (the review period), Ukraine’s was the world’s eleventh largest defense exporter, although, as it doesn’t possess the capability to produce advanced defense equipment, its exports are still based on Soviet-era designs and, consequently, its main export partners are developing countries in Africa and the Middle East. During the forecast period, Ukraine is expected to invest in a variety of defense and homeland security equipment, this investment is expected to be driven by military modernization plans, the growing tension between Russia and Ukraine, and the growing threat from the illegal drugs trade, cybercrime and human trafficking.

Key features and benefits:

• Provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

• Includes trend analysis of imports and exports, together with its implications and impact on the Ukrainian defense industry.

• Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.

• 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.

• Helps the reader to understand the competitive landscape of the defense industry in Ukraine. 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.

• Looks at historical performance as well as future industry projections using the in-house model. The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

• Assists marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.

In the wake of security threats, regional rivalry and the protection of its critical security infrastructure, the country’s defense expenditure is projected to grow over the forecast period. During the review period, Saudi Arabia’s capital expenditure allocation stood at 30% of the total defense budget, and is expected to be stable at 30% over the forecast period. Consequently, the share of revenue expenditure of the country’s total defense budget is expected to remain at 70% during the review period and increase to an average of 82% over the forecast period. The defense budget, which stood at 10.1% of GDP in 2010, is expected to decrease to 8.5% by 2016, as the country’s GDP growth rate is expected to outpace its defense expenditure growth rate.

Key Features and Benefits

• Provides detailed analysis of the current industry size and growth expectations from 2011–2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

• Includes trend analysis of imports and exports, together with its implications and impact on the Saudi Arabian defense industry.

• Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.

• 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.

• Helps the reader to understand the competitive landscape of the defense industry in Saudi Arabia. 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.

• Looks at historical performance as well as future industry projections using the in-house model. The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

• Assists marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.

Overall, 55% of respondents from defense contractor organizations and other service provider companies expect an increase in the number of collaborative projects, anticipating that they will either ‘increase considerably’ or ‘increase slightly’. The key drivers behind such collaboration are revenue increases, decreased costs, the need for expertise and the optimum utilization of resources.

Uncertain economic conditions, extensive competition, opportunistic expansions, a lack of liquidity and the need to reduce costs are key reasons for an increase in M&A activity. Large companies, which expect to venture into high-demand segments, find it easy to acquire smaller companies with the relevant expertise during challenging economic times, as smaller companies are often stuck in liquidity crisis.

Reasons to buy

• Predicts the future outlook and growth expectations and also provides an insight into the changes in business structure and M&A activity, helping the companies to understand how the industry will grow, consolidate and where it will stagnate.

• Drive revenues by understanding future product investment areas and key regions that are expected to provide the highest growth for the industry.

• Secure stronger customer relationships by understanding the leading business concerns and changing strategies of industry buyers.

• Benchmark your sales and marketing spend with industry peers to effectively determine strategy.

• Better promote your business by aligning your capabilities and business practices with your customer’s changing needs during these times of market uncertainty.

• Helps marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customer’s changing needs, while it also helps suppliers to benchmark their efforts with that of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.

• Based on primary survey research conducted by ICD Research accessing its premium B2B panels comprised of senior marketing decision makers and leading supplier organizations.

The US has the largest defense market in the world. Due to its high levels of military spending, a large number of opportunities are available to companies keen to supply the nation with defense equipment. However, the US defense budget, which grew at a CAGR of 4.19% during the review period, is expected to record a CAGR of 0.63% over the forecast period, largely due to the financial constraints caused by the global financial crisis. With the nation aiming to reduce its fiscal deficit, military spending as a percentage of GDP is also expected to decline from an average of 4.6% during the review period to 4.0% over the forecast period.

Key Features and Benefits

• Detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

• Includes trend analysis of imports and exports, together with its implications and impact on the US defense industry.

• Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.

• 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.

• Understand the competitive landscape of the defense industry in the US. 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.

• Looks at historical performance as well as future industry projections using the in-house model. The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

• Helps marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.

As the budget allocation for the defense expenditure is directly proportional to the GDP, the global financial crisis of 2008–2009 has affected the defense expenditure trend.  Due to this the government has reduced spending on some segments and is focusing on specific segments like the Air Force and space related defense capabilities.  The capabilities of the Air Force are expected to be modernized by the implementation of the Future Strategic Tanker Aircraft (FSTA) project. The country is also expected to invest in advanced satellite-based communication systems.

Key features and benefits

• Offers insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEM’s) to gain a market share in the UK defense industry.

• Includes an analysis of the current industry size and growth expectations, trend analysis of imports and exports, analysis of possible ways to enter the market, the competitive landscape of the defense industry in the UK and a range of drivers at country level which assess the business environment and country risk.

• Detailed category coverage is provided, covering Army, Navy, Air Force and Homeland Security expenditure pattern and forecast.

• Analysis of the UK defense market and in depth insights into the market opportunities and entry strategies that can be adopted by new entrants.

• Unique proprietary data that sizes the UK defense market and tracks the impact of governmental policies and spending behaviour on the country’s defense market.

• Gives an in depth analysis of market entry strategies that can be employed by the companies targeting the UK defense market and also provides an overview of the competitive landscape in the current market.

The US’s average defense expenditure as a percentage of GDP was 4.6% during the review period.

However, the country’s military spending as a percentage of GDP is expected to decline to an average of 4.0% over the forecast period due to government efforts reduce its fiscal deficit from the 2010 value.

The US has the largest defense market in the world. Due to its high levels of military spending, a large number of opportunities are available to companies keen to supply the nation with defense equipment. However, the US defense budget, which grew at a CAGR of 4.19% during the review period, is expected to record a CAGR of 0.63% over the forecast period, largely due to the financial constraints caused by the global financial crisis. With the nation aiming to reduce its fiscal deficit, military spending as a percentage of GDP is also expected to decline from an average of 4.6% during the review period to 4.0% over the forecast period.

By 2016, the US is expected to invest in the modernization of its existing weapons systems and acquire advanced defense systems capable of enhancing interoperability among the armed forces. Furthermore, although homeland security expenditure is expected to decline at a CAGR of 0.36% over the forecast period, the country is expected to invest in homeland security products such as biosensors, explosive detection machines and surveillance equipment.

The US encourages foreign direct investment (FDI) in its defense sector. However, investments thought to pose a risk to national security are barred using the Exon-Florio provision, which consists of three steps for reviewing proposed, or pending, foreign mergers, acquisitions or takeovers. According to this provision, the Committee on Foreign Investment in the United States (CFIUS) conducts and submits a review on the foreign investment to the president. The president is then authorized to approve or ban the investment depending on whether it is determined to be a risk to national security.

The ongoing global economic slowdown has had a significant impact on many US defense companies. As a result, defense firms such as Lockheed Martin and Northrop Grumman are keen to sell off certain non-profitable units or have them acquired by foreign companies.

The US is keen to modernize its existing weapon systems, but the rising unit cost of defense systems conflict with the country’s plans to decrease its procurement budget. Indeed, the cost of military hardware is increasing due to the rising cost of R&D and skilled labor shortages, particularly in the design, engineering and manufacturing sectors.

Although the US’s total defense spending is likely to decrease, factors such as the potential nuclear threats posed by North Korea and Iran, modernization initiatives, ongoing military operations and strategies to maintain military supremacy and protect its allies will continue to drive the US defense budget.

During 2005–2010, the US emerged as the largest exporter of defense equipment in the world. Moreover, the nation is expected to dominate the global arms export market over the forecast period, due to the increasing defense budgets of a number of its allies, such as South Korea, Israel and Australia. The country possesses a diverse consumer base and, during the review period, South Korea emerged as the largest consumer of US-manufactured defense goods.

Many countries, such as Spain, Israel, Poland, France and Italy, possess well-developed domestic defense industries, however, these countries continue to rely on US defense equipment for advanced military hardware such as missiles and fighter aircraft, as the US has the most advanced defense industry in the world.

About ICD Research

ICD Research is a full-service global market research agency and premium business information brand specializing in industry analysis in a wide set of B2B and B2C markets.  ICD Research has access to over 400 in-house analysts and journalists and a global media presence in over 30 professional markets enabling us to conduct unique and insightful research via our trusted business communities.  Through its unique B2B and B2C research panels and access to key industry bodies, ICD Research delivers insightful and actionable analysis.  The ICD Research survey capabilities grant readers access to the opinions and strategies of key business decision makers, industry experts and competitors as well as examining their actions surrounding business priorities.

The US has the largest defense market in the world. Due to its high levels of military spending, a large number of opportunities are available to companies keen to supply the nation with defense equipment.

However, the US defense budget, which grew at a CAGR of 4.19% during the review period, is expected to record a CAGR of 0.63% over the forecast period, largely due to the financial constraints caused by the global financial crisis. With the nation aiming to reduce its fiscal deficit, military spending as a percentage of GDP is also expected to decline from an average of 4.6% during the review period to 4.0% over the forecast period.

Key Features and Benefits

• Detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

• Includes trend analysis of imports and exports, together with its implications and impact on the US defense industry.

• Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.

• 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.

• Understand the competitive landscape of the defense industry in the US. 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.

• Looks at historical performance as well as future industry projections using the in-house model. The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

• Helps marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

• Uncovers the business outlook, key challenges and opportunities identified by suppliers and buyers, enabling industry stakeholders to understand the business sentiment prevailing in the industry.