Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

  • ID: 4461216
  • Report
  • Region: Morocco
  • 71 Pages
  • Strategic Defence Intelligence
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Moroccan Homeland Security Expenditure Increased from around US$2.4 Billion in 2014 to about US$2.7 Billion in 2018, Registering a CAGR of Over 2.4%

Summary:

Morocco is enhancing its military capabilities in response to the recent developments in the Middle East and North Africa (MENA) region. The country has seen a steady increase in its defense budget over the historic period due to its military modernization plans. In addition, the country also faces insurgency in the Western Sahara region as the local insurgent outfit, Polisario Front, recently issued a threat to restart an armed struggle over its occupation of the area.

Moroccan homeland security (HLS) expenditure increased from around US$2.4 Billion in 2014 to about US$2.7 Billion in 2018, registering a CAGR of over 2.4%. The need to protect the country from internal disturbances, and growing threats from human and drug traffickers, are expected to drive HLS expenditure over the forecast period. In order to counter these threats, the country is expected to invest in surveillance and intelligence technologies such as electronic identification documents, automated border crossing systems, and CCTV (closed circuit television) systems.

Morocco’s defense sector is plagued by wide-spread corruption across all bureaucratic levels which act as a roadblock for foreign defense companies interested in entering into arms contracts with the nation. Dishonest procurement proceedings and unethical workings lead to the misappropriation of public funds, aggravating the risk of internal conflicts. The preeminence of US and French firms within the Moroccan industry, due to the strong business ties between the countries, also makes it difficult for firms from other countries to enter the market.

The report offers detailed analysis of the Moroccon 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.

This Report Provides the Following:

  • The Morocco defense industry market size and drivers: Detailed analysis of the Morocco defense industry during 2019-2023, 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
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: List of the top ten defense investment opportunities over the next 5 years
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the Moroccan defense industry

Scope:

  • Moroccan defense expenditure increased steadily during 2015-2017, in the wake of the current security situation in the MENA region, along with its efforts to modernize its army in order to match the military strength of its neighboring rival, Algeria.
  • A dip in the budget in 2015 was attributable to the lower exchange rate in the same year. Between 2014 and 2018, Morocco’s defense expenditure decreased from US$3.8 billion in 2014 to US$3.7 billion in 2018, at a CAGR of -0.66%

Reasons to Buy:

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Moroccan 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 Moroccoi defense industry covering sections including demand drivers, Key Trends , and latest industry contracts
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1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Military Fleet Size
3.1.2. Procurement Programs
3.1.3. Key Drivers and Challenges
3.2. Defense Market Size Historical and Forecast
3.2.1. Moroccan defense budget is expected to register a CAGR of 2.12% over the forecast period
3.2.2. Counter-terrorism, border security, and the need to modernize outdated defense equipment are expected to drive Morocco’s defense expenditure
3.2.3. Defense expenditure as a percentage of GDP is expected to average 3% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure’s share expected to increase over the forecast period
3.3.2. Capital expenditure expected to grow at a CAGR of 2.10% over the forecast period
3.3.3. Per capita defense expenditure expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Moroccan homeland security expenditure expected to increase at a CAGR of 7.32%
3.4.2. Human trafficking, drug smuggling, and cybercrime form the major components of homeland security expenditure
3.4.3. Morocco is at some risk from external and internal threats
3.4.4. Morocco faces some level of threat from foreign terrorist organizations
3.4.5. Morocco has a terrorism index score of 0.1
3.5. Benchmarking with Key Global Markets
3.5.1. Morocco is the fourth largest defense spender in the North African region
3.5.2. Morocco’s military expenditure is low when compared to the largest defense spenders, but on par in comparison to other African countries
3.5.3. Morocco allocates a moderate percentage of its GDP to defense
3.6. Market Opportunities: Key Trends
3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2018-2023

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports to be driven by modernization initiatives over the forecast period
4.1.2. Morocco imports the majority of its arms from Europe
4.1.3. Ships accounted for the majority of defense imports during 2012-2016
4.2. Export Market Dynamics
4.2.1. Morocco does not export arms due to its under-developed domestic arms industry

5. Industry Dynamics
5.1. Market Regulation
5.1.1. Morocco does not disclose any offset obligations imposed by the country
5.1.2. Foreign direct investment (FDI) is determined on a case-by-case basis
5.2. Market Entry Route
5.2.1. Budgeting Process
5.2.2. Procurement Policy and Process
5.2.3. Government-to-government agreements are the preferred market entry route for foreign OEMs
5.2.4. Joint venture and license manufacturing agreements provide an attractive market entry route

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP Per Capita
7.1.2. GDP, Current Prices
7.1.3. Exports of Goods and Services (current LCU Billion)
7.1.4. Imports of Goods and Services (current LCU Billion)
7.1.5. Gross National Disposable Income (US$ Billion)
7.1.6. Local Currency Unit per US Dollar
7.1.7. Market Capitalization of Listed Companies (US$ Billion)
7.1.8. Market Capitalization of Listed Companies (% of GDP)
7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
7.1.10. Goods Exports as a Percentage of GDP
7.1.11. Goods Imports as a Percentage of GDP
7.1.12. Services Imports as a Percentage of GDP
7.1.13. Service Exports as a Percentage of GDP
7.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
7.1.15. Net Foreign Direct Investment as a Percentage of GDP
7.1.16. Mining, Manufacturing, Utilities Output LCU Billion

8. Appendix
8.2. Disclaimer

List of Tables
Table 1: Moroccan Army Strength
Table 2: Moroccan Navy Strength
Table 3: Moroccan Air Force Strength
Table 4: Moroccan Ongoing Procurement Programs
Table 5: Moroccan Future Procurement Programs
Table 6: Moroccan Defense Expenditure (MAD Billion & US$ Billion), 2014-2023
Table 7: Moroccan GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 8: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Moroccan Defense Capital Expenditure (MAD Billion & US$ Billion), 2014-2023
Table 10: Moroccan Per Capita Defense Expenditure (US$), 2014-2023
Table 11: Moroccan Homeland Security Expenditure (MAD Billion & US$ Billion), 2014-2023
Table 12: Terrorism Index, 2018
Table 13: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 14: Top 10 Morocco Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 15: Moroccan Budget Formation Timetable
Table 16: Competitive Landscape of the Morocco Defense Industry

List of Figures
Figure 1: Moroccan Defense Expenditure (MAD billion), 2014-2023
Figure 2: Moroccan Defense Expenditure (US$ billion), 2014-2023
Figure 3: Moroccan GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023
Figure 4: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Moroccan Capital Budget Allocation (MAD Billion), 2014-2023
Figure 6: Moroccan Capital Budget Allocation (US$ Billion), 2014-2023
Figure 7: Moroccan Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Moroccan Homeland Security Expenditure (MAD Billion), 2014-2023
Figure 9: Moroccan Homeland Security Budget (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Moroccan Defense Import Trend (US$ million), 2012-2016 (TIV values)
Figure 16: Moroccan Defense Imports by Country (%), 2012-2016
Figure 17: Moroccan Defense Imports by Category (%), 2012-2016
Figure 18: Moroccan GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 19: Moroccan GDP, Current Prices (US$ Billion), 2015-2025
Figure 20: Moroccan Exports of Goods and Services (current LCU Billion), 2005-2014
Figure 21: Moroccan Imports of Goods and Services (current LCU Billion), 2005-2014
Figure 22: Moroccan Gross National Disposable Income (US$ Billion), 2007-2014
Figure 23: Local Currency per USD, 2015-2024
Figure 24: Moroccan Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 25: Moroccan Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 26: Moroccan Government Cash Surplus/Deficit as a % of GDP (LCU), 2005-2012
Figure 27: Moroccan Goods Exports as a % of GDP, 2005-2013
Figure 28: Moroccan Goods imports as a % of GDP, 2005-2013
Figure 29: Moroccan Services Imports as a % of GDP, 2005-2013
Figure 30: Moroccan Service Exports as a % of GDP, 2005-2013
Figure 31: Moroccan Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2013
Figure 32: Moroccan Net Foreign Direct Investment as a % of GDP, 2005-2013
Figure 33: Moroccan Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

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