Future of the Czech Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
- Language: English
- 122 Pages
- Published: July 2013
- Region: Czech Republic
This report is the result of SDI/ICD Research’s extensive market and company research covering the Irish defense industry. It 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 Irish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) in order to gain market share in the Irish defense industry.
What is the current market landscape and what is changing?
The Irish defense market, which registered significant decline during the review period, is expected to continue declining, but with a small CAGR of -0.25% during forecast period. The Irish government plans to introduce more cuts and increase savings in the defense department during the forecast period. Due to anticipated budget cuts, defense expenditure as a percentage of GDP is also projected to decrease further, and drop to 0.46% by 2016.
What are the key drivers behind recent market changes?
Factors such as international peacekeeping missions and crisis management operations are expected to stimulate defense expenditure during the forecast period. While striving to come out of sovereign debt crisis, the National Recovery Plan 2011-2014 would introduce further cuts in defense expenditure with a target of EUR109 million savings by 2014. This would result in the postponing of weapons and equipment procurement for armed forces by the defense department.
What makes this report unique and essential to read?
The Irish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 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 of the defense market.
Key Features and Benefits
The report 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.
The report includes trend analysis of imports and exports, together with its implications and impact on the Irish 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 Ireland. 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 2011 Ireland had a defense budget of US$1.3 billion and invests just 0.6% of its GDP in defense. This is small in comparison with the UK and France, which spend 2.3% and 2.1%, respectively, of their GDP on defense. In addition, Ireland’s defense budget is expected to decline further in the forecast period. In the Irish defense industry, with small companies with little specialization in weapon categories, foreign weapon suppliers face infrastructure challenges in entering the market.
Ireland is a member of the EDA, which was formed to improve European defense capabilities and to create a single defense equipment market. Consequently, the Irish government gives preference to European countries for the import of defense equipment. The EU issued a directive in 2009 which simplified the terms and conditions of transfers of defense products within the EU and coordinated procedures for the award of defense contracts. This acts as a barrier for non-EU companies trying to enter into the Irish defense market.
Irish defense expenditure is estimated to be US$1.23 billion during 2012. During the forecast period, it is expected to record a CAGR of -0.25% and reach US$1.22 billion by 2016. Over the next five years, the country’s defense expenditure will continue to be driven by overseas peace support, crisis management, and humanitarian operations.
The high rate of cyber-attacks puts emphasis on cyber security to improve corporate and national defense. Many firms are attracted to Ireland due to its beneficial environment for technology. In 2012, Total Defense Internet Security Ireland Limited announced the establishment of the European Operations Hub, and Georgia Tech Research Institute (GTRI) is planning to open a European threat center against cyber-attacks. SHOW LESS READ MORE >
1.1. What is this Report About?
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Irish defense expenditure expected to register negative growth during the forecast period
3.1.2. Peacekeeping and Crisis management operations are expected to drive military spending
3.1.3. Defense expenditure as percentage of GDP is expected to decrease during the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of capital expenditure in the overall defense budget is expected to decrease
3.2.2. Per capita defense expenditure expected to decline during the forecast period
3.2.3. Pay, allowances and pensions account for the majority of the Irish defense budget
3.2.4. Budget allocation for army declined during the review period
3.2.5. Defense budget allocation for the navy expected to rise during the forecast period
3.2.6. Defense budget allocation for the Air Corps expected to decline
3.2.7. Expenditure on pay, allowances and pensions to decline in the forecast period
3.2.8. Administration expenditure to register a CAGR ofXX% in the forecast period
3.2.9. Other expenses expected to decrease during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security expenditure will is expected to continue declining at a CAGR of XX%
3.3.2. Cybercrime, drug trafficking and organized crime to drive homeland security spending
3.3.3. Ireland faces some threat from foreign terrorist organizations
3.4. Benchmarking with Key Global Markets
3.4.1. Irish defense expenditure expected to decline during the forecast period
3.4.2. Irish defense expenditure is minute compared to largest defense spenders on global scale
3.4.3. Ireland allocates a low percentage of GDP for defense expenditure
3.4.4. Ireland has a moderate per-capita defense expenditure
3.4.5. Ireland faces some threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Ireland’s beneficial environment for technology will drive cyber security market
3.5.2. Increased demand for light tactical armored vehicles expected
3.5.3. Offshore patrol vessels will provide attractive market opportunities
3.5.4. Demand for tactical radar systems to increase
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities drives the country’s defense imports
4.1.2. Defense imports are expected to increase during the forecast period
4.1.3. Italy and Switzerland account for the majority of Ireland’s defense imports
4.1.4. Aircraft, armored vehicles and sensors are most imported military hardware
4.2. Export Market Dynamics
4.2.1. The country has been unable to access the global defense market
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to high
5.1.2. Bargaining power of buyer: high
5.1.3. Barriers to entry: medium
5.1.4. Intensity of rivalry: low to high
5.1.5. Threat of substitution: low to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Ireland does not disclose any offset obligations
6.1.2. Ireland allows 100% FDI in defense industry
6.2. Market Entry Route
6.2.1. Subsidiaries and branch offices provide attractive market entry routes
6.2.2. Direct selling is the preferred market entry route for foreign OEMs
6.3. Key Challenges
6.3.1. Small defense budget and limited technological capability limits the market entry of foreign companies
6.3.2. Preference for EU companies poses a challenge for non-EU companies
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Timoney Technology Ltd.: overview
7.2.2. Timoney Technology Ltd.: products and services
7.2.3. Timoney Technology Ltd.: alliances
7.2.4. Timoney Technology Ltd: recent contract wins
7.2.5. Western Avionics Ltd.: overview
7.2.6. Western Avionics Ltd: products and services
7.2.7. Western Avionics Ltd.: recent announcements and strategic initiatives
7.2.8. Western Avionics Ltd.: recent contract wins
7.3. Key Foreign Companies
7.3.1. L-3 Communications ESSCO Collins Limited (ECL): overview
7.3.2. L-3 Communications ESSCO Collins Limited (ECL): products
7.3.3. L-3 Communications ESSCO Collins Limited (ECL): recent announcements and strategic initiatives
7.3.4. L-3 Communications ESSCO Collins Limited (ECL): alliances
7.3.5. L-3 Communications ESSCO Collins Limited (ECL): recent contract awards
7.3.6. DDC Ireland Ltd.: overview
7.3.7. DDC Ireland Ltd: products
7.3.8. DDC Ireland Ltd.: recent announcements and strategic initiatives
7.3.9. DDC Ireland Ltd: recent contract awards
8 Business Environment and Country Risk
8.1. Demographics & Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Construction Output, Current Prices, Local Currency
8.2.2. Construction Output, Current Prices, US Dollars
8.2.3. Current Account Balance as Percentage of GDP
8.2.4. Exports of goods and services, current prices
8.2.5. Exports of Services
8.2.6. Fiscal Balance as a percentage of GDP
8.2.7. Foreign Direct Investment
8.2.8. GDP at Purchasing Power Parity
8.2.9. GDP, Constant Prices (Local Currency)
8.2.10. GDP, Constant Prices (US$)
8.2.11. GDP, Current Prices (Local Currency)
8.2.12. GDP, Current Prices (US$)
8.2.13. General Government Final Consumption Expenditure
8.2.14. Gross Fixed Capital Formation, Current Prices
8.2.15. Imports of goods and services
8.2.16. Imports of Services
8.2.17. Inflation, average consumer prices
8.2.18. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.19. Manufacturing Output, Current Prices (US$ Billions)
8.2.20. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Exports
8.3.3. Electricity Imports
8.3.4. Electricity Installed Capacity
8.3.5. Fossil Fuels Proved natural gas reserves
8.3.6. Hydroelectricity Installed Capacity
8.3.7. Natural Gas Consumption
8.3.8. Natural Gas Imports
8.3.9. Natural Gas Production
8.3.10. Net Conventional Thermal Electricity Generation
8.3.11. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.12. Net Hydroelectric Power Generation
8.3.13. Petroleum, Consumption
8.3.14. Petroleum, Production
8.4. Labour Force
8.4.1. People Employed in R & D
8.5.1. Coal Consumption
8.6. Social & Political Risk
8.6.1. Political Stability Index
8.6.2. Transparency Index
8.7.1. Fixed line calling cost local
8.7.2. Fixed line calling cost National
9.1. Contact Us
9.2. About SDI
Timoney Technology Ltd.Western Avionics Ltd.L-3 Communications ESSCO Collins Limited (ECL)DDC Ireland Ltd.