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The French Defense Sector – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015

  • ID: 1445513
  • November 2010
  • Region: France
  • 192 Pages
  • iCD Research


  • Cassidian
  • Dassault Aviation
  • DCNS
  • Eurocopter
  • EuroTorp
  • MBDA
  • MORE

This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the French defense industry. In particular, it offers in-depth analysis of the following:

- Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2010–2015, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
- Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the French defense industry.
- Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
- Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
- Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry READ MORE >

Note: Product cover images may vary from those shown


  • Cassidian
  • Dassault Aviation
  • DCNS
  • Eurocopter
  • EuroTorp
  • MBDA
  • MORE

1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Intelligence Terrorism Index
1.5 About ICD Research Defense Intelligence Center
1.6 About Strategic Defence Intelligence

2 Executive Summary
Imports expected to reduce due to defense budget reductions while exports expected to increase 15

3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size and Forecast
3.1.1 French annual defense expenditure to reach US$60.6 billion by 2015
3.1.2 Modernization of armed forces, terrorist threats and contributions to peacekeeping operations stimulate defense expenditure
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation expected to increase during the forecast period
3.2.2 Capital expenditure expected to grow at a CAGR of 2.57% during the forecast period
3.2.3 Budget allocation to common services the highest since 2006
3.2.4 Army expenditure expected to increase at a CAGR of 2.64% throughout the forecast period
3.2.5 Air force expenditure expected to reach US$5.38 billion by 2015
3.2.6 Naval expenditure estimated to total US$27.8 billion during the forecast period
3.2.7 Common services capital expenditure allocation expected to be 78% during the forecast period
3.2.8 Defense expenditure expected to reach 2% of GDP by 2015
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security expenditure expected to reach US$26 billion by 2015
3.3.2 France expected to invest in emergency advance warning and information systems, and other surveillance and monitoring systems
3.4 Benchmarking with Key Global Markets
3.4.1 French defense expenditure is the third largest in the world
3.4.2 France expected to have fifth largest global defense expenditure by 2015
3.4.3 France invests 2.3% of GDP in defense, the eighth largest allocation globally
3.4.4 France ranked fourth among top global arms exporters during 2005-09
3.4.5 France faces moderate risk of terror attacks
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 France to invest in armored vehicles, infantry combat kits and long range rockets
3.5.2 France to invest in mistral class amphibious ships and nuclear attack submarines
3.5.3 France expected to improve aerial capabilities through investment in UAVs and fighter aircraft
3.5.4 Demand for command, control and communication systems is expected to increase

4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 The company acquires the majority of defense equipment from domestic companies
4.1.2 Increased demand for improved early warning system boosts advanced sensors and engines imports
4.1.3 Imports increasing from European nations such as Italy and Germany
4.2 Export Market Dynamics
4.2.1 France is the fourth largest global exporter of defense goods
4.2.2 French export market expanding in Southeast Asian countries
4.2.3 Ships and aircraft constitute the majority of French defense exports

5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low
5.1.2 Bargaining power of buyer: medium to high
5.1.3 Barrier to entry: high
5.1.4 Intensity of rivalry: medium
5.1.5 Threat of substitution: medium

6 Market Entry Strategy
6.1 Market Regulation
6.1.1 France has no offset obligations for defense imports
6.1.2 Foreign direct investment in the defense sector is subject to prior official approval
6.2 Market Entry Route
6.2.1 Foreign military or direct commercial sales with technology transfers are preferred entry route
6.2.2 International product collaborations favored by the French government
6.3 Key Challenges
6.3.1 Government defense budget reductions have a negative impact on defense companies
6.3.2 Restrictive foreign policies coupled with support for domestic companies poses a challenge for the entry of non-European companies in the French defense market

7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Domestic Companies
7.2.1 Dassault Aviation: overview
7.2.2 Dassault Aviation: defense products
7.2.3 Dassault Aviation: recent announcements and strategic initiatives
7.2.4 Dassault Aviation: alliances
7.2.5 Dassault Aviation: recent contract wins
7.2.6 Dassault Aviation: financial analysis
7.2.7 Thales: overview
7.2.8 Thales: defense products
7.2.9 Thales: recent announcements and strategic initiatives
7.2.10 Thales: alliances
7.2.11 Thales: recent contract wins
7.2.12 Thales: financial analysis
7.2.13 Constructions Mécaniques de Normandie (CMN): overview
7.2.14 Constructions Mécaniques de Normandie (CMN): defense products
7.2.15 Constructions Mécaniques de Normandie (CMN): recent announcements and strategic initiatives
7.2.16 Constructions Mécaniques de Normandie (CMN): alliances
7.2.17 Constructions Mécaniques de Normandie (CMN): recent contract wins
7.2.18 Constructions Mécaniques de Normandie (CMN): financial analysis
7.2.19 EuroTorp: overview
7.2.20 EuroTorp: defense products
7.2.21 EuroTorp: recent announcements and strategic initiatives
7.2.22 EuroTorp: alliances
7.2.23 EuroTorp: recent contract wins
7.2.24 EuroTorp: financial analysis
7.2.25 Cassidian: overview
7.2.26 Cassidian: defense products
7.2.27 Cassidian: recent announcements and strategic initiatives
7.2.28 Cassidian: alliances
7.2.29 Cassidian: recent contract wins
7.2.30 Cassidian: financial analysis
7.2.31 Safran Group: overview
7.2.32 Safran Group: defense products
7.2.33 Safran Group: recent announcements and strategic initiatives
7.2.34 Safran Group: alliances
7.2.35 Safran Group: recent contract wins
7.2.36 Safran Group: financial analysis
7.2.37 Snecma: overview
7.2.38 Snecma: defense products
7.2.39 Snecma: recent announcements and strategic initiatives
7.2.40 Snecma: alliances
7.2.41 Snecma: recent contract wins
7.2.42 Snecma: financial analysis
7.2.43 Nexter Systems: overview
7.2.44 Nexter Systems: defense products
7.2.45 Nexter Systems: recent announcements and strategic initiatives
7.2.46 Nexter Systems: alliances
7.2.47 Nexter: recent contract wins
7.2.48 Nexter: financial analysis
7.2.49 MBDA: overview
7.2.50 MBDA: defense products
7.2.51 MBDA: recent announcements and strategic initiatives
7.2.52 MBDA: alliances
7.2.53 MBDA: recent contract wins
7.2.54 MBDA: financial analysis
7.2.55 Eurocopter: overview
7.2.56 Eurocopter: defense products
7.2.57 Eurocopter: recent announcements and strategic initiatives
7.2.58 Eurocopter: alliances
7.2.59 Eurocopter: recent contract wins
7.2.60 Eurocopter: financial analysis
7.2.61 DCNS: overview
7.2.62 DCNS: defense products
7.2.63 DCNS: recent announcements and strategic initiatives
7.2.64 DCNS: alliances
7.2.65 DCNS: recent contract wins
7.2.66 DCNS: financial analysis
7.2.67 Renault Truck Defense: overview
7.2.68 Renault Truck Defense: defense products
7.2.69 Renault Truck Defense: recent announcements and strategic initiatives
7.2.70 Renault Truck Defense: alliances
7.2.71 Renault Truck Defense: recent contract wins
7.2.72 Renault Truck Defense: financial analysis

8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 Business Climate Indicator
8.1.2 Market Capitalization Trend - The Paris Stock Exchange France
8.1.3 FDI Inflows by Sector
8.1.4 Deployment of Credit
8.2 Economic Performance
8.2.1 GDP at constant prices
8.2.2 GDP per capita at constant prices
8.2.3 GDP at current prices
8.2.4 GDP per capita at current prices
8.2.5 GDP split by key segments
8.2.6 Agriculture net output at current prices (EURO)
8.2.7 Agriculture net output at current prices (US Dollar)
8.2.8 Agriculture net output at current prices as a percentage of GDP
8.2.9 Manufacturing net output at current prices (EURO)
8.2.10 Manufacturing net output at current prices (US Dollar)
8.2.11 Manufacturing net output at current prices as a percentage of GDP
8.2.12 Mining, manufacturing and utilities net output at current prices (EURO)
8.2.13 Mining, manufacturing and utilities at current prices (US Dollars)
8.2.14 Mining, manufacturing and utilities at current prices, as a percentage of GDP
8.2.15 Construction net output at current prices (EURO)
8.2.16 Construction net output at current prices (US Dollar)
8.2.17 Construction output at current prices as a percentage of GDP
8.2.18 Crude steel production
8.2.19 Crude oil consumption
8.2.20 Inflation rate
8.2.21 Trade balance as a percentage of GDP
8.2.22 Exports as a percentage of GDP
8.2.23 Imports as a percentage of GDP
8.2.24 Exports growth
8.2.25 Imports growth
8.2.26 Fiscal balance as a percentage of GDP
8.2.27 Annual average exchange rate US$–EUR
8.2.28 End of period exchange rate US$–EUR
8.3 Infrastructure Quality and Availability
8.3.1 Total airports and ports
8.3.2 Railways and highways
8.3.3 Passenger vehicle production volume
8.3.4 Commercial vehicle production volume
8.3.5 Automotive components export trend
8.3.6 Automotive products import trend
8.3.7 Passenger car penetration
8.3.8 Total installed capacity for electricity generation
8.3.9 Installed capacity for the generation of conventional thermal electricity
8.3.10 Electricity production
8.3.11 Electricity Consumption
8.3.12 Installed capacity for the generation of hydro-electricity
8.3.13 Installed capacity for renewable electricity generation
8.3.14 Electricity exports
8.3.15 Electricity imports
8.3.16 Healthcare expenditure
8.3.17 Healthcare expenditure as a percentage of GDP
8.3.18 Healthcare expenditure per capita
8.3.19 Research and development expenditure as a percentage of GDP
8.3.20 Total internet subscriptions
8.3.21 Broadband internet subscriptions
8.3.22 Personal computer penetration
8.3.23 Mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Annual per capita consumer expenditure on food
8.5.5 Urban and rural population
8.5.6 Female percentage of population
8.5.7 Male percentage of population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age Distribution - Total Population
8.5.12 Age Distribution - Male Population
8.5.13 Age Distribution - Female Population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political stability
8.6.2 Terrorism index
8.6.3 Transparency index

9 Appendix
9.1 Contact Us
9.2 About ICD Research
9.3 Disclaimer

List of Tables
Table 1: Top Twenty Global Arms Exporters*, 2005–09
Table 1: ICD Research Terrorism Index
Table 3: French Participation in International Defense Equipment Development Collaborations
Table 4: Dassault Aviation - Alliances
Table 5: Dassault Aviation – Recent Contract Wins
Table 6: Thales - Alliances
Table 7: Thales - Recent Contract Wins
Table 8: Constructions Mécaniques de Normandie (CMN) – Alliances
Table 9: Constructions Mécaniques de Normandie (CMN) – Recent Contract Wins
Table 10: EuroTorp - Alliances
Table 11: EuroTorp – Recent Contract Wins
Table 12: Cassidian - Alliances
Table 13: Cassidian - Recent Contract Wins
Table 14: Safran Group - Alliances
Table 15: Safran Group - Recent Contract Wins
Table 16: Snecma - Alliances
Table 17: Snecma - Recent Contract Wins
Table 18: Nexter - Alliances
Table 19: Nexter - Recent Contract Wins
Table 20: MBDA - Alliances
Table 21: MBDA - Recent Contract Wins
Table 22: Eurocopter - Alliances
Table 23: Eurocopter - Recent Contract Wins
Table 24: DCNS - Alliances
Table 25: DCNS - Recent Contract Wins

Note: Product cover images may vary from those shown

- Dassault Aviation
- Thales
- Constructions Mécaniques de Normandie (CMN)
- EuroTorp
- Cassidian
- Safran Group
- Snecma
- Nexter Systems
- Eurocopter
- Renault Truck Defense

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown


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