The Danish Defense Industry – Market Opportunities and Entry Strategies Analyses and Forecasts to 2015

Synopsis:

- Top level overview of the Danish defense industry
- A breakdown of the Danish defense industry by spend pattern valued from 2006 through 2010 and forecasted from 2011 through 2015
- A breakdown of the markets by segment valued from 2006 through 2010 and forecasted from 2011 through 2015
- Details of top companies active across the Danish defense industry
- Emerging trends and opportunities in the Danish defense industry in the last 12 months

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 Danish 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 2011–2015, 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 Danish 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 in Denmark. 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.
- Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.

Scope of the report:

- Analysis of the defense industry market size from 2006 through 2010 and forecasts till 2015
- Analysis of defense budget allocation
- Benchmarking with key global markets
- Market opportunities
- Defense procurement dynamics
- Industry dynamics
- Market entry strategy
- Competitive landscape and strategic insights
- Business environment and country risk

Reasons to Buy:

- Gain insight into the Danish defense industry with current, historic and forecast market values
- Get insight on market opportunity and attractiveness
- Get insight on industry procurement dynamics
- Gain insight on industry structure
- Gain insight into the regulations governing the Danish defense industry and the potential market entry strategies with an expert analysis of the competitive structure
- Identify top companies of the Danish defense industry along with profiles of all those companies

Key Highlights:

During the review period Danish defense expenditure registered a CARC of -0.45%, and in 2010 was valued at US$4.1 billion. Active participation in NATO and United Nations peacekeeping missions, counter-piracy operations and measures against potential terrorist threats stimulated expenditure during the review period. Such factors are expected to continue to drive defense expenditure throughout the forecast period, with spending likely to increase at a CAGR of 0.10% to reach US$4.18 billion by 2015. The Danish defense budget stood at 1.3% of GDP in 2010, and is expected to decline to 1.2% of GDP by 2015 as the country’s GDP grows at a faster rate than its defense budget.

The capital expenditure allocation of the defense budget, which stood at an average of 24.0% during the review period, is estimated to increase to an average of 25.0% during the forecast period as a result of Denmark’s ministry of defense’s (MoD) armed forces modernization plans. Personnel expenditure accounted for the highest revenue budget allocation, with an average of 68.0% of the total revenue budget during the review period and it is expected to continue to constitute, on average, 69% of the revenue budget during the forecast period. Personnel expenditure consists primarily of remuneration for military forces.

Key opportunities for the country are expected in areas such as Guided Multiple Launch Rocket System (GMLRS), armored vehicles, ship-based helicopters and advanced communication systems. The Danish Navy plans to acquire twelve MH-60R multi-mission helicopters and associated parts, equipment and logistical support from the US for an estimated US$2.0 billion, which is likely to improve country's anti-submarine and surface warfare capability and provide improved search and rescue and anti-ship surveillance capability. SHOW LESS READ MORE >

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

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1Defense Market Size and Forecast
3.1.1Danish defense expenditure expected to register higher growth during the forecast period
3.1.2Peacekeeping, counter-piracy and counter-terrorism operations drive defense spending
3.2Analysis of Defense Budget Allocation
3.2.1Majority of defense budget allocated for revenue expenditure
3.2.2Defense expenditure as a percentage of GDP to be at 1.2% in the forecast period
3.2.3Per capita defense spend to decline during the forecast period
3.2.4Equipment expenditure to increase marginally during the forecast period
3.2.5Increase in equipment expenditure is likely during the forecast period
3.2.6Budget allocation for other capital expenditure to fall during the forecast period
3.2.7Share of personnel expenditure to improve during the forecast period
3.2.8Personnel expenditure to improve and register a CAGR of 0.10% during the forecast period
3.2.9Operations and other expenditure to register a CAGR of 0.10% during the forecast period
3.3Homeland Security Market Size and Forecast
3.3.1Homeland security budget to increase during the forecast period
3.3.2Extremism, espionage, drug trafficking and cyber security to drive the homeland security market
3.3.3Denmark experienced low terror activity during the review period
3.4Benchmarking with Key Global Markets
3.4.1Danish defense budget to marginally improve during the forecast period
3.4.2Danish military expenditure is limited compared with leading global defense spenders
3.4.3The country allocates a lower percentage of GDP to defense than other NATO members
3.5Market Opportunities: Key Trends and Growth Stimulators
3.5.1Increasing demand for Guided Multiple Launch Rocket System (GMLRS) expected
3.5.2Increased demand for armored vehicles expected
3.5.3Ship-based helicopters open new market opportunities
3.5.4Advanced communication systems will provide attractive market opportunities

4. Defense Procurement Market Dynamics
4.1Import Market Dynamics
4.1.1Defense imports expected to register moderate growth during 2011-15
4.1.2The majority of defense imports were from the US and Sweden
4.1.3Armored vehicles, aircrafts and missiles constitute majority of Danish arms imports
4.2Export Market Dynamics
4.2.1Defense exports grew significantly during the review period
4.2.2Lithuania and Singapore are the largest importers of Danish arms
4.2.3Sensors and ships account for majority of exports

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

6. Market Entry Strategy
6.1Market Regulation
6.1.1Offset policy aids the development of the domestic defense industry
6.1.2Denmark permits 100% foreign direct investment in defense sector
6.2Market Entry Route
6.2.1Forming subsidiaries or acquiring Danish companies are good market entry opportunities
6.2.2Forming consortiums and product development agreements open new market entry strategy choices
6.2.3Joint weapon development programs are a viable market entry opportunity
6.3Key Challenges
6.3.1Low defense budget and limited technological capability hinder market entry by foreign companies
6.3.2Preference to procurement from US and Nordic companies challenging for other suppliers

7. Competitive Landscape and Strategic Insights
7.1Competitive Landscape Overview
7.2Key Domestic Companies
7.2.1Systematic A/S: overview
7.2.2Systematic A/S: products and services
7.2.3Systematic A/S: recent announcements and strategic initiatives
7.2.4Systematic A/S: alliances
7.2.5Systematic A/S: recent contract wins
7.2.6Systematic: financial analysis
7.2.7Terma A/S: overview
7.2.8Terma A/S: products and services
7.2.9Terma A/S: recent announcements and strategic initiatives
7.2.10Terma A/S: alliances
7.2.11Terma A/S: recent contract wins
7.2.12Terma A/S: financial analysis
7.2.13AP Services A/S: overview
7.2.14AP Services A/S: products and services
7.2.15AP Services A/S: recent announcements and strategic initiatives
7.2.16AP Services A/S: alliances
7.2.17AP Services A/S: recent contract wins
7.2.18AP Services A/S: financial analysis
7.2.19Arenalogic ApS: overview
7.2.20Arenalogic ApS: products and services
7.2.21Arenalogic ApS: recent announcements and strategic initiatives
7.2.22Arenalogic ApS: alliances
7.2.23Arenalogic ApS: recent contract wins
7.2.24Arenalogic ApS: financial analysis
7.2.25Copenhagen Sensor Technology ApS: overview
7.2.26Copenhagen Sensor Technology ApS: products and services
7.2.27Copenhagen Sensor Technology ApS: recent announcements and strategic initiatives
7.2.28Copenhagen Sensor Technology ApS: alliances
7.2.29Copenhagen Sensor Technology ApS: recent contract wins
7.2.30Copenhagen Sensor Technology ApS: financial analysis
7.2.31Danish Aerotech A/S: overview
7.2.32Danish Aerotech A/S: products and services
7.2.33Danish Aerotech A/S: recent announcements and strategic initiatives
7.2.34Danish Aerotech A/S: alliances
7.2.35Danish Aerotech A/S: recent contract wins
7.2.36Danish Aerotech A/S: financial analysis
7.2.37Falck Schmidt Defence Systems A/S: overview
7.2.38Falck Schmidt Defence Systems A/S: products and services
7.2.39Falck Schmidt Defence Systems: recent announcements and strategic initiatives
7.2.40Falck Schmidt Defence Systems: alliances
7.2.41Falck Schmidt Defence Systems: recent contract wins
7.2.42Falck Schmidt Defence Systems: financial analysis
7.2.43IFAD TS A/S: overview
7.2.44IFAD TS A/S: products and services
7.2.45IFAD TS A/S: recent announcements and strategic initiatives
7.2.46IFAD TS A/S: alliances
7.2.47IFAD TS A/S: recent contract wins
7.2.48IFAD TS A/S: financial analysis
7.3Key Foreign Companies
7.3.1Alcatel-Lucent Denmark A/S: overview
7.3.2Alcatel-Lucent Denmark: products and services
7.3.3Alcatel-Lucent Denmark: recent announcements and strategic initiatives
7.3.4Alcatel-Lucent Denmark: alliances
7.3.5Alcatel-Lucent Denmark: recent contract wins
7.3.6Alcatel-Lucent Denmark: financial analysis
7.3.7Cobham Surveillance (Spectronic Products): overview
7.3.8Cobham Surveillance (Spectronic Products): products and services
7.3.9Cobham Surveillance (Spectronic Products): recent announcements and strategic initiatives
7.3.10Cobham Surveillance (Spectronic Products): alliances
7.3.11Cobham Surveillance (Spectronic Products): recent contract wins
7.3.12Cobham Surveillance (Spectronic Products): financial analysis
7.3.13Lockheed Martin Denmark: overview
7.3.14Lockheed Martin Denmark: products and services
7.3.15Lockheed Martin Denmark: recent announcements and strategic initiatives
7.3.16Lockheed Martin Denmark: alliances
7.3.17Lockheed Martin Denmark: recent contract wins
7.3.18Lockheed Martin Denmark: financial analysis
7.3.19TenCate Advanced Armour Denmark A/S: overview
7.3.20TenCate Advanced Armour Denmark A/S: defense products
7.3.21TenCate Advanced Armour Denmark A/S: recent announcements and strategic initiatives
7.3.22TenCate Advanced Armour Denmark A/S: alliances
7.3.23TenCate Advanced Armour Denmark A/S: recent contract wins
7.3.24TenCate Advanced Armour Denmark A/S: financial analysis

8. Business Environment and Country Risk
8.1Business Confidence
8.1.1Market capitalization trend: NASDAQ OMX Nordic Exchange
8.1.2FDI inflows by sector
8.2Economic Performance
8.2.1GDP at constant prices (US dollars)
8.2.2GDP per capita at constant prices (US dollars)
8.2.3GDP at current prices (US dollars)
8.2.4GDP per capita at current prices (US dollars)
8.2.5GDP split by key segments
8.2.6Agriculture net output at current prices (Danish kroner)
8.2.7Agriculture net output at current prices (US dollars)
8.2.8Agriculture net output at current prices as percentage of GDP
8.2.9Manufacturing net output at current prices (Danish kroner)
8.2.10Manufacturing net output at current prices (US dollars)
8.2.11Manufacturing net output at current prices as percentage of GDP
8.2.12Mining, manufacturing and utilities net output at current prices (Danish kroner)
8.2.13Mining, manufacturing and utilities at current prices (US dollars)
8.2.14Mining, manufacturing and utilities at current prices as percentage of GDP
8.2.15Construction net output at current prices (Danish kroner)
8.2.16Construction net output at current prices (US dollars)
8.2.17Construction net output at current prices as a percentage of GDP
8.2.18Crude steel production
8.2.19Crude oil consumption
8.2.20Inflation rate
8.2.21Current account balance as a percentage of GDP
8.2.22Exports as a percentage of GDP
8.2.23Imports as a percentage of GDP
8.2.24Exports growth
8.2.25Imports growth
8.2.26External debt as a percentage of GDP
8.2.27Annual average exchange rate US$–DKK
8.2.28End of the period exchange rate US$–DKK
8.3Infrastructure Quality and Availability
8.3.1Total airports and sea ports
8.3.2Railways and roadways
8.3.3Automotive components export trend
8.3.4Automotive components import trend
8.3.5Passenger car penetration
8.3.6Total installed capacity for electricity generation
8.3.7Installed capacity for the generation of conventional thermal electricity
8.3.8Electricity production
8.3.9Electricity consumption
8.3.10Installed capacity for the generation of hydro–electricity
8.3.11Installed capacity for renewable electricity generation
8.3.12Electricity exports
8.3.13Electricity imports
8.3.14Healthcare expenditure
8.3.15Healthcare expenditure as a percentage of GDP
8.3.16Healthcare expenditure per capita
8.3.17R&D expenditure as a percentage of GDP
8.3.18Total internet subscribers
8.3.19Broadband internet subscribers
8.3.20Mobile phone penetration rate
8.4Labor Force
8.4.1Labor force
8.4.2Unemployment rate
8.5Demographics
8.5.1Annual disposable income
8.5.2Annual per capita disposable income
8.5.3Annual consumer expenditure on food
8.5.4Annual per capita consumer expenditure on food
8.5.5Total population
8.5.6Urban and rural population
8.5.7Female percentage of population
8.5.8Male percentage of population
8.5.9Mean age of population
8.5.10Median age of population
8.5.11Population density
8.5.12Age distribution of the total population
8.5.13Age distribution of the male population
8.5.14Age distribution of the female population
8.5.15Number of households
8.6Political and Social Risk
8.6.1Political stability
8.6.2Terrorism index
8.6.3Transparency index

9. Appendix
9.1Contact Us
9.2About ICD Research
9.3Disclaimer

List of Tables
Table 1: ICD Research Intelligence Terrorism Index, 2010
Table 2: Offset Regulations in Denmark
Table 3: Systematic: Alliances
Table 4: Systematic: Recent Contract Wins
Table 5: Terma: Alliances
Table 6: Terma: Recent Contract Wins
Table 7: AP Services A/S: Recent Contract Wins
Table 8: Arenalogic: Alliances
Table 9: CST: Alliances
Table 10: CST: Recent Contract Wins
Table 11: Danish Aerotech: Recent Contract Wins
Table 12: Falck Schmidt Defence Systems: Alliances
Table 13: Falck Schmidt Defence Systems: Recent contract wins
Table 14: IFAD TS A/S: Alliances
Table 15: IFAD TS A/S: Recent Contract Wins
Table 16: Alcatel-Lucent Denmark: Recent Contract Wins
Table 17: Cobham Surveillance (Spectronic Products): Alliances
Table 18: Lockheed Martin Denmark: Alliances
Table 19: Lockheed Martin Denmark: Recent Contract Wins
Table 20: TenCate Advanced Armour Denmark: Alliances
Table 21: TenCate Advanced Armour Denmark: Recent Contract Wins

List of Figures
Figure 1: Danish Defense Market Size and Forecast (US$ Billion), 2006–15
Figure 2: Danish Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2006–15
Figure 3: Danish Defense Expenditure as a Percentage of GDP (US$ Billion), 2006–15
Figure 4: Danish Per Capita Defense Spend (US$), 2006–15

- Systematic A/S
- Terma A/S
- AP Services A/S
- Arenalogic ApS
- Copenhagen Sensor Technology (CST)
- Danish Aerotech A/S
- Falck Schmidt Defence Systems (FSDS) A/S
- IFAD TS A/S
- Alcatel-Lucent Denmark A/S
- Cobham Surveillance
- Lockheed Martin Denmark
- TenCate Advanced Armour Denmark (TenCate) A/S