Future of the France Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

  • ID: 4342145
  • Report
  • Region: France
  • 166 Pages
  • Strategic Defence Intelligence
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FEATURED COMPANIES

  • Airbus Helicopters
  • Dassault Aviation
  • DCNS
  • EuroTorp
  • MBDA
  • Nexter Systems
  • MORE

Summary

French military expenditure, which stands at US$44 Billion in 2017, declined at a CAGR of -4.04% during the historic period, attributed mainly to the erosion in Euro- Dollar exchange rates. It is however anticipated to register a CAGR of 3.03% during the forecast period to value US$51 Billion in 2022.The country, being a permanent member of the UN Security Council and NATO, is one of the highest contributors and therefore this active participation in international affairs requires higher spending on the defense sector.

French domestic defense industry, in spite of being highly advanced and satisfying the majority of its military requirement, relies on foreign imports for advanced technology equipment such as sensors, engines, and transport aircraft. In addition, the French defense industry also takes part in technology transfer programs with countries like the US and Italy. Even though the US remains the largest supplier of arms to France, the country has recently begun to import from other European countries such as Germany and Sweden. Furthermore, France’s commitment to the European Union encourages a policy of giving priority to European manufactured equipment and this policy is expected to result in a shift in focus from the US to other European countries during the forecast period.

French homeland security expenditure stands at US$20.8 Billion in 2017, and is estimated to reach US$22.3 Billion by 2022, registering a CAGR of 1.55% during 2018–2022. This expenditure is primarily driven by efforts to combat the rise in the number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend borders.

French exports to Egypt accounts for nearly 19.4% of overall defense exports, followed by China and UAE accounting to 11% and 9.1% of overall defense exports respectively, largely involving military aircraft. These exports are expected to improve as a result of growing contracts and increasing defense expenditure in the Middle East and Asia-Pacific region.

The report “Future of the France Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of French defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -

  • French defense industry market size and drivers: Detailed analysis of French defense industry during 2018–2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
  • Budget allocation and key challenges: Insights into procurement schedules formulated within the country and a breakdown of the defense budget. It also details the key challenges faced by defense market participants within the country.
  • Porter’s Five Force analysis of French defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of French defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Dassault Aviation, Thales, Constructions Mécaniques de Normandie (CNM), EuroTorp, Airbus Defence and Space GmbH , Safran Group, Nexter Systems, MBDA, Airbus Helicopters, DCNS, and Renault Truck Defense (RTD).

Scope

  • French military expenditure, which stands at US$44 billion in 2017, declined at a CAGR of -4.04% during the historic period, attributed mainly to the erosion in Euro- Dollar exchange rates.The country, being a permanent member of the UN Security Council and NATO, is one of the highest contributors and therefore this active participation in international affairs requires higher spending on the defense sector. This, coupled with the country’s efforts in replacing aging military equipment, along with modernizing defense forces with advanced technology equipment, is expected to drive the defense expenditure over the forecast period. As a percentage of GDP, the country’s defense expenditure is expected to average 1.8% over the forecast period.
  • The French MoD allocated an average of 41.9% for capital expenditure out of the total defense expenditure during the historic period, which is expected to increase marginally over the forecast period to an average of 42.1%. The major procurements initiated by the country include the acquisition of the FELIN system for soldier modernization, the Rafale fighter program, A400M transport aircraft, Barracuda submarines, MK II drones, Iveco PPT trucks, reconnaissance helicopters, naval vessels, frigates, and infantry fighting vehicles. The French MoD allocated an average of 58.1% of revenue expenditure during the historic period which is expected to decline marginally over the forecast period to an average of 57.9% of the total defense spending. This decline is mainly due to the reduction in troop size and military personnel.
  • The French MoD is expected to invest in military-IT networking, transport aircraft, nuclear attack submarines, and infrastructure construction.

Reasons to Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of French defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of French defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Airbus Helicopters
  • Dassault Aviation
  • DCNS
  • EuroTorp
  • MBDA
  • Nexter Systems
  • MORE

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.4.1 Ongoing procurement programs
3.1.4.2 Future procurement programs
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. French total defense expenditure including pensions, to grow at an estimated CAGR of 3.03% during 2018-2022
3.2.2. French defense budget excluding pensions to grow at an estimated CAGR of 2.89% during 2018-2022
3.2.3. International peacekeeping operations contribution and the armed forces modernization drives the French defense industry
3.2.4. Defense budget as a percentage of GDP will remain at an average of 1.70% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure is expected to increase during the forecast period
3.3.2. Capital expenditure is anticipated to record a CAGR of 3.13% during the forecast period
3.3.3. Army accounted for the largest percentage share of the overall French defense budget
3.3.4. Army defense budget allocation is estimated to reach US$28.3 billion in 2022
3.3.5. Air force defense expenditure expected to grow at a CAGR of 2.96% during 2018-2022
3.3.6. Naval expenditure is estimated to register a CAGR of 3.03%over the forecast period
3.3.7. French Per-capita defense expenditure to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland Security market in France is expected to grow at a CAGR of 1.55% during the forecast period
3.4.2. Counter terrorism activities, cyber security, police modernization, and gendarmerie drives the Homeland security expenditure of France
3.4.3. France falls under “highly affected” category in the terrorism index
3.4.4. France faces threats from terrorist organizations
3.4.5. France has a terrorism index score of 5.6
3.5. Benchmarking with Key Global Markets
3.5.1. France ranks among major Global Defense Markets
3.5.2. France is expected to remain among top 10 defense spending countries in the world
3.5.3. French defense budget as a percentage of GDP is expected to decline over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Military IT - Networking
3.6.2. Transport Aircraft
3.6.3. Nuclear attack submarines
3.6.4. Infrastructure Construction

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Domestic companies are key supplier of equipment to French Ministry of Defense
4.1.2. US, Spain, and the Netherlands are the major suppliers for France
4.1.3. Aircraft and missiles accounted for a total share 60.3% in French defense imports
4.2. Export Market Dynamics
4.2.1. France ranked fifth among the countries with the highest volume of defense exports
4.2.2. Asian countries are the major prospects for French defense exports
4.2.3. Aircraft accounted for the majority of French defense exports during 2011-2015

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Supplier: Low
5.1.2. Bargaining power of Buyer: Medium
5.1.3. Barrier to entry: High
5.1.4. Intensity of rivalry: Medium to High
5.1.5. Threat of Substitution: Medium

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. No formal offset policy in France
6.1.2. Foreign direct investment in the defense sector and transfer of defense-related products are subject to prior authorization
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign military sales (FMS) to France
6.2.4. Collaborations provide market entry opportunities
6.2.5. Joint equipment programs favored by the French government
6.3. Key Challenges
6.3.1. Increased preference for domestic and European defense companies impede the entry of non-European firms
6.3.2. Increased cost overruns and delay in product delivery

7. Competitive landscape and Strategic Insights
7.1. Competitive landscape Overview
7.2. Key Public Sector Companies
7.2.1. Dassault Aviation: Overview
7.2.2. Dassault Aviation: Major 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: Major Products and Services
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): Major Products and Services
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. EuroTorp: Overview
7.2.19. EuroTorp: Major products
7.2.20. EuroTorp: recent announcements and strategic initiatives
7.2.21. EuroTorp: Alliances
7.2.22. EuroTorp: Recent Contract Wins
7.2.23. Airbus Defense and Space: Overview
7.2.24. Airbus Defense and Space: Major Products and Services
7.2.25. Airbus Defense and Space: Recent Announcements and Strategic Initiatives.
7.2.26. Airbus Defense and Space: Alliances
7.2.27. Airbus Defense and Space: Recent Contract Wins
7.2.28. Safran Group: Overview
7.2.29. Safran Group: Major Products and Services
7.2.30. Safran Group: Recent Announcements and Strategic Initiatives
7.2.31. Safran Group: Alliances
7.2.32. Safran Group: Recent Contract Wins
7.2.33. Safran Group: Financial Analysis
7.2.34. Nexter Systems: Overview
7.2.35. Nexter Systems: Major Products
7.2.36. Nexter Systems: Recent Announcements and Strategic Initiatives
7.2.37. Nexter Systems: Alliances
7.2.38. Nexter Systems: Recent Contract Wins
7.2.39. MBDA: Overview
7.2.40. MBDA: Major Products
7.2.41. MBDA: Recent Announcements and Strategic Initiatives
7.2.42. MBDA: Alliances
7.2.43. MBDA: Recent Contract Wins
7.2.44. Airbus Helicopters: overview
7.2.45. Airbus Helicopters: products and services
7.2.46. Airbus Helicopters: recent announcements and strategic initiatives
7.2.47. Airbus Helicopters: alliances
7.2.48. Airbus Helicopters: recent contract wins
7.2.49. DCNS: Overview
7.2.50. DCNS: Major Products and Services
7.2.51. DCNS: Recent Announcements and Strategic Initiatives
7.2.52. DCNS: Alliances
7.2.53. DCNS: Recent Contract Wins
7.2.54. DCNS: Financial Analysis
7.2.55. Renault Truck Defense: Overview
7.2.56. Renault Truck Defense: Major Products and Services
7.2.57. Renault Truck Defense: Recent Announcements and Strategic Initiatives
7.2.58. Renault Truck Defense: Alliances
7.2.59. Renault Truck Defense: Recent Contract Wins

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per capita at constant prices (US$)
8.1.2. GDP at current prices (US$)
8.1.3. Exports of goods and services (LCU)
8.1.4. Imports of goods and services (LCU)
8.1.5. Gross national disposable income (US$ billion)
8.1.6. LCU per US$ (period average)
8.1.7. Market capitalization of listed companies (US$ billion)
8.1.8. Market capitalization of listed companies (% of GDP)
8.1.9. Government cash surplus/deficit as a percentage of GDP (LCU)
8.1.10. Goods exports and imports as a percentage of GDP
8.1.11. Services imports and exports as a percentage of GDP
8.1.12. Foreign direct investment, net (BoP, current US$ billions)
8.1.13. Net foreign direct investment as a percentage of GDP
8.1.14. Mining, Manufacturing, Utilities Output (US$ billion)

9. Appendix
9.1. About
9.2. Disclaimer

List of Tables

Table 1: The French Army Strength
Table 2: French Navy Strength
Table 3: French Air Force Strength
Table 4: French - Ongoing Development and Procurement Programs
Table 5: French - Future Procurement Programs
Table 6: France Defense Expenditure (EUR billion & US$ billion), 2013-2022
Table 7: France Defense Budget Allocations Excluding Pensions (EUR billion & US$ billion), 2013-2022
Table 8: France GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2022
Table 9: France Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Table 10: France Defense Capital Expenditure (EUR billion & US$ billion), 2013-2022
Table 11: French Defense Budget Split Between Army, Navy, Air Force and Common Services, 2013-2022
Table 12: French Defense Expenditure for Army (EUR billion & US$ billion), 2013-2022
Table 13: French Defense Expenditure for Air Force (EUR billion & US$ billion), 2013-2022
Table 14: French Defense Expenditure for Navy (EUR billion & US$ billion), 2013-2022
Table 15: French Per Capita Defense Expenditure (US$), 2013-2022
Table 16: France Homeland Security Expenditure (EUR billion& US$ billion), 2013-2022
Table 17: Terrorism Index, 2017
Table 18: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 19: French Budget Formation Timetable
Table 20: FMS deals to France
Table 21: French Participation in International Defense Equipment Development Collaborations
Table 22: Competitive Landscape of the French Defense Industry
Table23: Dassault Aviation - Product focus
Table 24: Dassault Aviation - Alliances
Table 25: Dassault Aviation - Recent Contract Wins
Table 26: Thales - Major Products & Services
Table 27: Thales - Alliances
Table 28: Thales - Recent Contract Wins
Table29: Dassault Aviation - Product focus
Table 30: Constructions Mécaniques de Normandie (CMN) - Alliances
Table 31: Constructions Mécaniques de Normandie (CMN) - Recent Contract Wins
Table 32: EuroTorp - Alliances
Table 33: EuroTorp - Recent Contract Wins
Table 34: Airbus Defense and Space - Major Products & Services
Table 35: Airbus Defense and Space - Alliances
Table 36: Airbus Defense and Space - Recent Contract Wins
Table 37: Safran Technologies - Products
Table 38: Safran Group - Alliances
Table 39: Safran Group - Recent Contract Wins
Table 40: Nexter Systems - Major Products
Table 41: Nexter Systems - Alliances
Table 42: Nexter Systems - Recent Contract Wins
Table 43: MBDA - Major Products
Table 44: MBDA - Alliances
Table 45: MBDA - Recent Contract Wins
Table46:Airbus Helicopters- Product focus
Table47:Airbus Helicopters - Alliances
Table48:Airbus Helicopters - Recent Contract Wins
Table 49: DCNS - Major Products & Services
Table 50: DCNS - Alliances
Table 51: DCNS - Recent Contract Wins
Table 52: Renault Truck Defense - Major Products
Table 53: Renault Truck Defense - Alliances
Table 54: Renault Truck Defense - Recent Contract Wins

List of Figures

Figure 1: France Defense Expenditure (EUR billion), 2013-2022
Figure 2: France Defense Expenditure (US$ Billion), 2013-2022
Figure 3: France Defense Budget Allocations Excluding Pensions (EUR billion), 2013-2022
Figure 4: France Defense Budget Allocations Excluding Pensions (US$ Billion), 2013-2022
Figure 5: France GDP Growth and Defense Expenditure as Percentage of GDP Growth,2013-2022
Figure 6: France Defense Budget Split Between Capital and Revenue Expenditure (%),2013-2022
Figure 7: France Defense Capital Expenditure (EUR billion), 2013-2022
Figure 8: France Defense Capital Expenditure (US$ Billion), 2013-2022
Figure 9: French Defense budget Split Between Army, Navy, Air Force and Common Services, 2013-2022
Figure 10: French Army Expenditure (EUR billion), 2013-2022
Figure 11: French Defense Expenditure for Army (US$ billion), 2013-2022
Figure 12: French Defense Expenditure for Air Force (EUR billion), 2013-2022
Figure 13: French Defense Expenditure for Air Force (US$ billion), 2013-2022
Figure 14: French Defense Expenditure for Navy (EUR billion), 2013-2022
Figure 15: French Defense Expenditure for Navy (US$ Billion), 2013-2022
Figure 16: French Per Capita Defense Expenditure (US$), 2013-2022
Figure 17: French Homeland Security Expenditure (EUR billion), 2013-2022
Figure 18: French Homeland Security Expenditure (US$ billion), 2013-2022
Figure 19: Terrorism Heat Map, 2017
Figure 20: Terrorism Index, 2017
Figure 21: Benchmarking with Key Markets, 2013-2017 vs. 2018-2022
Figure 22: Defense Expenditure of the World’s Largest Military Spenders (US$ billion),2017 and 2022
Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 24: Military IT-Networking Market Size (US$ Million), 2017-2027
Figure 25: Transport Aircraft Market Size (US$ Million), 2017-2027
Figure 26: Submarine-Nuclear Attack Market Size (US$ Million), 2017-2027
Figure 27: Infrastructure Construction Market Size (US$ Million), 2017-2027
Figure 28: French Defense Import Trend (US$ Million), 2012-2016 (TIV values*)
Figure 29: French Defense Imports by Country (%), 2012-2016
Figure 30: French Defense Imports by Category (%), 2012-2016
Figure 31: French Defense Export Trend (US$ Million), 2012-2016 (TIV values)
Figure 32: French Defense Exports by Country (%), 2012-2016
Figure 33: : French Defense Exports by Category (%), 2012-2016
Figure 34: Industry Dynamics - Porter’s Five Forces Analysis
Figure 35: Dassault Aviation - Revenue Trend Analysis (EUR Billion), 2012-2016
Figure 36: Dassault Aviation - Operating Profit Trend Analysis (EUR Million), 2012-2016
Figure 37: Dassault Aviation - Net income Trend Analysis (EUR Million), 2012-2016
Figure 38: Thales - Revenue Trend Analysis (EUR Billion), 2012-2016
Figure 39: Thales - Operating Profit Trend Analysis (EUR Million), 2012-2016
Figure 40: Thales - Net Profit Trend Analysis (EUR Million), 2012-2016
Figure 41: Safran Group - Revenue Trend Analysis (EUR Billion), 2012-2016
Figure 42: Safran Group - Operating Profit Trend Analysis (EUR Million), 2012-2016
Figure 43: Safran Group - Net Profit Trend Analysis(EUR Million), 2012-2016
Figure 44: DCNS - Revenue Trend Analysis (EUR Billion), 2011-2015
Figure 45: DCNS - Operating Profit Trend Analysis (EUR million), 2011-2015
Figure 46: DCNS - Net Profit Trend Analysis (EUR million), 2011-2015
Figure 47: French GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 48: France GDP at Current Prices (US$ Billion), 2015-2025
Figure 49: French Exports of goods and services (LCU), 2005-2014
Figure 50: French Imports of goods and services (US$), 2005-2014
Figure 51: French Gross national disposable income (US$ billion), 2005-2013
Figure 52: French LCU per US$, 2015-2024
Figure 53: French market capitalization of listed companies (US$ billion), 2005-2012
Figure 54: French market capitalization of listed companies (% of GDP), 2005-2012
Figure 55: French Government cash surplus/deficit as % of GDP (LCU), 2005-2012
Figure 56: France- Goods exports and imports as a % of GDP (%), 2005-2014
Figure 57: French Services imports and exports as a % of GDP (%), 2005-2014
Figure 58: French Foreign direct investment, net (BoP, current US$ billion), 2005-2014
Figure 59: French Net foreign direct investment as % of GDP, 2005-2014
Figure 60: French Mining, Manufacturing, Utilities Output (US$ billion), 2005-2014

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  • Airbus Defence and Space GmbH
  • Airbus Helicopters
  • Constructions Mécaniques de Normandie (CNM)
  • DCNS
  • Dassault Aviation
  • EuroTorp
  • MBDA
  • Nexter Systems
  • Renault Truck Defense
  • Safran Group
  • Thales
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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