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

  • ID: 4434500
  • Report
  • Region: Portugal
  • 113 pages
  • Strategic Defence Intelligence
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Portuguese Homeland Security Expenditure is Anticipated to Reach US$2.4 Billion by 202

FEATURED COMPANIES

  • Arsenal Alfeite
  • Critical Software
  • Edisoft
  • EID
  • EMPORDEF TI
  • Fabrequipa
  • MORE

Portuguese military expenditure declined at a CAGR of -3.49% to value US$12.2 Billion cumulatively during the historic period. This was primarily due to the debt crisis, which has severely affected the Portuguese economy, requiring the country to adopt tough austerity measures, such as reducing wages and raising tax rates. However, the Portuguese government undertook anti-austerity measures between 2016 and 2017, and is planning to completely withdraw austerity reforms during the forecast period, which is expected to boost the country’s economy.

Portuguese homeland security expenditure is anticipated to reach US$2.4 Billion by 2022, registering a CAGR of 1.59% during 2018-2022. This expenditure is primarily driven by Portugal’s focus on enhancing its defense capabilities to counter the increasing rate of cyber-attacks and securing the country’s maritime borders.

Portugal’s defense imports declined after 2012 due to budget cuts. The country sourced the majority of its defense equipment from the US, accounting for 39.5% of total imports during 2012-2016. Italy, Austria, Denmark, Finland and Israel are other major countries from which Portugal has imported military equipment. Over the period 2017-2022, Portugal’s defense imports are expected to increase slightly as Portugal is in the process of purchasing six KC-390 military airlifters from Embraer. The country is also willing to acquire a landing platform dock (LPD) and new replenishment ship post-2020.

The report “Future of Portuguese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Portuguese 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, this report provides the following 

  • The Portuguese defense industry market size and drivers: Detailed analysis of the Portuguese 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 with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
  • Porter’s Five Force analysis of the Portuguese 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 the Portuguese 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: OGMA, EID, Edisoft, EMPORDEF TI, Indra Sistemas, Leonardo, Arsenal Alfeite, Fabrequipa, Critical Software

Scope

In 2017, the Portuguese MoD allocated US$2.4 billion to its total defense budget, registering a CAGR of -3.49% during 2013-2017. However, Portugal’s defense budget is expected to grow at a CAGR of 1.08% to value US$12.2 billion cumulatively over the forecast period.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Portuguese 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 the Portuguese 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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FEATURED COMPANIES

  • Arsenal Alfeite
  • Critical Software
  • Edisoft
  • EID
  • EMPORDEF TI
  • Fabrequipa
  • MORE

1. Introduction - Future of the Portuguese Defense Industry
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defense Intelligence

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
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Portuguese defense budget is expected to record a CAGR of 1.08% during the forecast
3.2.2. International peacekeeping operations expected to drive defense expenditure over the forecast period
3.2.3. Portuguese defense expenditure as a percentage of GDP is expected to decline over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure expected to remain constant over the forecast period
3.3.2. Capital expenditure is anticipated to record a CAGR of 1.44% during the forecast period
3.3.3. Navy is expected to receive the highest allocation over the forecast period
3.3.4. Army expenditure to decline over the forecast period
3.3.5. Per capita defense expenditure is projected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Portuguese homeland security budget anticipated to record a CAGR of 1.59% during the forecast period
3.4.2. Cyber-attacks and maritime security set to drive homeland security expenditure over the forecast period
3.4.3. Portugal falls under “some risk” of terrorism
3.4.4. Portugal faces little threat from terrorist organizations
3.4.5. Portugal has a terrorism index score of 0.1
3.5. Benchmarking with Key Global Markets
3.5.1. Portuguese defense budget expected to remain low compared to the leading spenders
3.5.2. Portuguese defense expenditure to remain low compared to major spenders in Europe
3.5.3. Portugal allocates lower share of GDP to defense compared to the US and other European countries
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Corvette MRO
3.6.2. Frigate MRO

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase marginally over 2018-2022
4.1.2. Portugal sourced the majority of its arms imports from the US
4.1.3. Aircraft and armored vehicles accounted for the majority of military imports
4.2. Export Market Dynamics
4.2.1. Defense exports expected to rise during the forecast period
4.2.2. Romania accounted for 87% of Portuguese defense exports
4.2.3. Aircraft are the main exported defense products

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

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry and research activities
6.1.2. Offset policy aids development of domestic defense industry and research activities
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. Setting up subsidiaries offers a market entry opportunity
6.2.4. Technology transfer, sub-contracts, and long-term supply contracts open new market entry strategy choices
6.3. Key Challenges
6.3.1. Domestic defense companies facing challenges from foreign companies
6.3.2. Budget cuts due to austerity measures challenging defense companies
6.3.3. Corrupt practices in the Portuguese government challenges the industry

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. OGMA - Indústria Aeronáutica de Portugal SA: Overview
7.2.2. OGMA - Indústria Aeronáutica de Portugal SA: Products
7.2.3. OGMA - Indústria Aeronáutica de Portugal SA: Recent Announcements and Strategic Initiatives
7.2.4. OGMA - Indústria Aeronáutica de Portugal SA: Alliances
7.2.5. OGMA - Indústria Aeronáutica de Portugal SA: Recent Contract Wins
7.2.6. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Overview
7.2.7. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Products
7.2.8. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Recent Announcements and Strategic Initiatives
7.2.9. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Alliances
7.2.10. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Recent Contract Wins
7.2.11. Edisoft: Overview
7.2.12. Edisoft: Products
7.2.13. Edisoft: Recent Announcements and Strategic Initiatives
7.2.14. Edisoft: Alliances
7.2.15. Edisoft: Recent Contract Wins
7.2.16. EMPORDEF TI Inc.: Overview
7.2.17. EMPORDEF TI Inc.: Products
7.2.18. EMPORDEF TI Inc.: Recent Announcements and Strategic Initiatives
7.2.19. EMPORDEF TI Inc.: Alliances
7.2.20. EMPORDEF TI Inc.: Recent Contract Wins
7.2.21. Indra Sistemas Portugal: Overview
7.2.22. Indra Sistemas Portugal: Products and Services
7.2.23. Indra Sistemas Portugal: Recent Announcements and Strategic Initiatives
7.2.24. Indra Sistemas Portugal: Alliances
7.2.25. Indra Sistemas Portugal: Recent Contract Wins
7.2.26. Leonardo - Società per azioni: Overview
7.2.27. Leonardo - Società per azioni: Products
7.2.28. Leonardo - Società per azioni: Recent Announcements and Strategic Initiatives
7.2.29. Leonardo - Società per azioni: Alliances
7.2.30. Leonardo - Società per azioni: Recent Contract Wins
7.2.31. Arsenal Alfeite: Overview
7.2.32. Arsenal Alfeite: Products
7.2.33. Arsenal Alfeite: Recent Announcements and Strategic Initiatives
7.2.34. Arsenal Alfeite: Recent Contract Wins
7.2.35. Fabrequipa: Overview
7.2.36. Fabrequipa: Products
7.2.37. Fabrequipa: Recent Announcements and Strategic Initiatives
7.2.38. Fabrequipa: Alliances
7.2.39. Fabrequipa: Recent Contract Wins
7.2.40. Critical Software: Overview
7.2.41. Critical Software: Products
7.2.42. Critical Software: Recent Announcements and Strategic Initiatives
7.2.43. Critical Software: Alliances
7.2.44. Critical Software: Recent Contract Wins

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. Gross Domestic per Capita (US$)
8.1.2. Gross Domestic Product, current US$
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a % of GDP
8.1.9. Government Cash Surplus/Deficit
8.1.10. Goods Imports as a % of GDP
8.1.11. Goods Exports as a % of GDP
8.1.12. Services Imports as a % of GDP
8.1.13. Services Exports as a % of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net FDI as a % of GDP
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix
9.1. About the Author
9.2. Disclaimer

List of Tables
Table 1: Portugal Ground Forces Strength
Table 2: Portugal Navy Strength
Table 3: Portugal Air Force Strength
Table 4: Portugal - Ongoing Development and Procurement Programs
Table 5: Portugal - Future Procurement Programs
Table 6: Portuguese Defense Expenditure (EUR Billion & US$ Billion), 2013-2022
Table 7: Portuguese GDP Growth and Defense Expenditure as a Percentage of GDP, 2013-2022
Table 8: Portuguese Defense Budget Split Between Capital and Revenue Expenditure (%),
Table 9: Portuguese Defense Capital Expenditure (EUR Million & US$ Million), 2013-2022
Table 10: Portuguese Defense Budget Share (%) Split by Services (Army, Navy, Air Force and Other), 2013-2022
Table 11: Portuguese Defense Budget Allocations in EUR Million - Breakdown by Services (Army, Air Force, Navy and Others) 2013-2022
Table 12: Portuguese Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Table 13: Portuguese Per Capita Defense Expenditure (US$), 2013-2022
Table 14: Portuguese Defense Expenditure for Homeland Security (EUR Billion & US$ Billion), 2013-2022
Table 15: Terrorism Index, 2017
Table 16: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 17: Offset Regulations in Portugal
Table 18: Portugal Budget Formation Timetable
Table 19: Competitive Landscape of the Portuguese Defense Industry
Table 20: OGMA - Indústria Aeronáutica de Portugal SA - Product Focus
Table 21: OGMA - Indústria Aeronáutica de Portugal SA - Alliances
Table 22: OGMA - Indústria Aeronáutica de Portugal SA - Recent Contract Wins
Table 23: EID - Empresa de Investigação e Desenvolvimento de Electrónica SA - Product Focus
Table 24: EID - Empresa de Investigação e Desenvolvimento de Electrónica SA - Alliances
Table 25: EID - Empresa de Investigação e Desenvolvimento de Electrónica SA - Contracts
Table 26: Edisoft - Product Focus
Table 27: Edisoft - Alliances
Table 28: Edisoft - Recent Contract Wins
Table 29: EMPORDEF TI Inc - Product Focus
Table 30: EMPORDEF TI Inc. - Alliances
Table 31: EMPORDEF TI Inc. - Recent Contract Wins
Table 32: Indra Sistemas Portugal - Product Focus
Table 33: Indra Sistemas Portugal - Alliances
Table 34: Indra Sistemas Portugal - Recent Contract Wins
Table 35: AgustaWestland - Product Focus
Table 36: AgustaWestland Portugal - Alliances
Table 37: AgustaWestland Portugal - Recent Contract Wins
Table 38: Arsenal Alfeite - Product Focus
Table 39: Arsenal Alfeite - Recent Contract Wins
Table 40: Fabrequipa - Product Focus
Table 41: Fabrequipa - Alliances
Table 42: Fabrequipa - Recent Contract Wins
Table 43: Critical Software - Product Focus
Table 44: Critical Software - Alliances
Table 45: Critical Software - Recent Contract Wins

List of Figures
Figure 1: Portuguese Defense Expenditure (EUR Billion), 2013-2022
Figure 2: Portuguese Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Portuguese GDP Growth and Defense Expenditure as a Percentage of GDP, 2013-2022
Figure 4: Portuguese Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Figure 5: Portuguese Defense Capital Expenditure (EUR Million), 2013-2022
Figure 6: Portuguese Defense Capital Expenditure (US$ Million), 2013-2022
Figure 7: Portuguese Defense Expenditure Split Between Army, Navy, Air Force and Others (%), 2013-2022
Figure 8: Portuguese Defense Expenditure in (EUR Million), - Breakdown by Services (Army, Air Force, Navy and Others) 2013-2022
Figure 9: Portuguese Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Figure 10: Portuguese Per Capita Defense Expenditure (US$), 2013-2022
Figure 11: Portuguese Homeland Security Budget (EUR Billion), 2013-2022
Figure 12: Portuguese Homeland Security Budget (US$ Billion), 2013-2022
Figure 13: Terrorism Heat Map, 2017
Figure 14: Terrorism Index, 2017
Figure 15: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2013-2017 vs. 2018-2022
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 18: Corvette MRO Market Size (US$ Million), 2017-2027
Figure 19: Frigate MRO Market Size (US$ Million), 2017-2027
Figure 20: Portuguese Defense Import Trend, 2012-2016 (TIV values)
Figure 21: Portuguese Defense Imports by Country (%), 2012-2016
Figure 22: Portuguese Defense Imports by Category (%),2012-2016
Figure 23: Portuguese Defense Export Trend, 2012-2016 (TIV values)
Figure 24: Portuguese Defense Exports by Country (%), 2012-2016
Figure 25: Industry Dynamics Porter’s Five Forces Analysis
Figure 26: Portuguese GDP per Capita (US$), 2015-2025
Figure 27: Portuguese Gross Domestic Product (current US$ Billion), 2015-2025
Figure 28: Portuguese Exports of Goods and Services (LCU Billion), 2005-2014
Figure 29: Portuguese Imports of Goods and Services (LCU Billion), 2005-2014
Figure 30: Portuguese Gross National Disposable Income (US$ Billion), 2005- 2014
Figure 31: Portuguese LCU per US$, 2015-2024
Figure 32: Portuguese Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 33: Portuguese Market Capitalization of Listed Companies as a % of GDP, 2005-2012
Figure 34: Portuguese Government Cash Surplus/Deficit as a % of GDP, 2005-2012
Figure 35: Portuguese Goods Imports as a % of GDP, 2005-2014
Figure 36: Portuguese Goods Exports as a % of GDP, 2005-2014
Figure 37: Portuguese Services Imports as a % of GDP, 2005-2014
Figure 38: Portuguese Services Exports as a % of GDP, 2005-2014
Figure 39: Portuguese Net Foreign Direct Investment (current US$ Billion), 2005-2014
Figure 40: Portuguese Net FDI as a % of GDP, 2005-2014
Figure 41: Portuguese Mining, Manufacturing, Utilities Output(US$ Billion), 2005-2014

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  • Arsenal Alfeite
  • Critical Software
  • EID
  • EMPORDEF TI
  • Edisoft
  • Fabrequipa
  • Indra Sistemas
  • Leonardo
  • OGMA
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