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

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

Summary

Romania’s ongoing modernization of the country’s armed forces to meet NATO standards, along with its participation in international peacekeeping missions, drove Romania’s defense expenditure during the historic period. With this trend expected to continue over the forecast period, the country’s defense expenditure is anticipated to cumulatively value close to US$30 billion during 2019-2023. The defense budget as a percentage of GDP is expected to increase slightly in the forecast period.

Romania’s capital expenditure allocation is expected to significantly increase during 2019-2023, primarily due to the procurement of additional F-16 multirole aircraft, multirole aircraft MRO, a HIMARS rocket artillery system, a Patriot missile defense system, corvettes, 8X8 armored vehicles, and submarines. The government’s focus on its modernization plans, which require the procurement of more advanced military equipment with improved technology, is expected to drive capital expenditure over the forecast period. Revenue expenditure is also projected to increase over the forecast period at a CAGR of over 8.8%, which will be directed towards additional recruitment, training, and development programs for military personnel.

Aircraft accounted for the majority of Romania’s imports during 2012-2016, with Portugal being the largest supplier. The country acquired C-27J tactical transport aircraft and F-16 AM/BM Fighting Falcons. Sensors, armored vehicles, engines, and missiles were the other imports during 2012-2016, with Italy, the US, Switzerland and France being the other significant suppliers. However, the forecast period is not expected to witness any significant increase in the country’s imports. Instead, Romania will boost defense procurements steadily over the forecast period.

This report "Future of the Romanian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" offers detailed analysis of the Romanian 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 -

• The Romanian defense industry market size and drivers: detailed analysis of the Romanian 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. It also details the key challenges faced by defense market participants within the country
  
• Porter’s Five Force analysis of the Romanian 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 Romanian 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 - CN Romarm SA, S.C. Uzina Mecanica Cugir SA, Aerostar SA, IAR SA Brasov, Turbomecanica SA, Electromagnetica SA, Avioane Craiova SA, Elprof SA, IOR SA, Simultec SRL,Lockheed Martin Corporation (Lockheed Martin), General Dynamics European Land Systems (GDELS), Iveco, Intelcan Technosystems, Inc and Airbus Helicopters Romania

Scope

• The Romanian defense budget is valued at US$4.8 billion in 2018 and registered a CAGR of 23.57% during the historic period. The ongoing modernization of the country’s armed forces to meet NATO standards, along with its participation in international peacekeeping missions, drove Romania’s defense expenditure during the historic period.
  
• With this trend expected to continue over the forecast period, the country’s defense expenditure is anticipated to cumulatively value US$31.3 billion during 2019-2023. The defense budget as a percentage of GDP is expected to increase slightly, from an average of 1.5% during the historic period to 2.2% during 2019-2023.
  
• The Romanian Ministry of Defence (MoD) allocated an average of 32.6% to capital expenditure during 2014-2018, and this is expected to increase over the forecast period to reach 41.7%. Currently, due to the austerity measures, the government is focusing on the acquisition of high-quality second-hand equipment to save costs.
  
• Its military modernization programs include the procurement of 12 second hand ex-Portuguese F-16 fighters, Piranha V armored vehicles, air defense radars, and surface to air missile systems, among others. Furthermore, under the soldier modernization program, “Warrior 2020”, the army plans to procure communications, automatic mortars, C4I subsystems, lightweight superior ballistic protection, and smart munitions systems to create a mobile force.
  
• The MoD is expected to invest in Land-based C4ISR, Military IT-Networking and Maritime Surveillance and Detection.
  

Reasons to buy

• This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Romanian 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 Romanian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts