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

  • ID: 4590897
  • Report
  • Region: Burma, Myanmar
  • 62 pages
  • Strategic Defence Intelligence
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FEATURED COMPANIES

  • Bharat Dynamics Limited
  • Larsen & Tubro
  • Yakolev
  • MORE

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

Summary

Myanmar is currently in the midst of a political transformation as historically, Myanmar was ruled by the army, but is now being run by a civilian government. The country is therefore focusing on developing the country’s economy and is in the process of cutting down on military expenditure, registering a CAGR of -20.43% during the historic period. However, over the forecast period, the country’s defense expenditure is expected to stabilize and is anticipated to exhibit a growing trend over the forecast period.

Myanmar’s defense budget is mainly driven by the country’s involvement in the longest running civil war, ethnic conflicts and insurgencies, along with its increasing capital expenditure on the modernization of its navy and air force. The country’s strained relationship with Bangladesh over the control of an abundance of oil and gas reserves is the reason behind the county’s naval modernization plan. In addition, capital expenditure is expected to register a CAGR of 5.90% during the forecast period to reach US$574 million in 2023.

Key opportunities relating to the procurement of defense equipment in Myanmar are expected to be in the areas of submarines, multirole aircraft, and corvettes, among others. Consequently, the remaining budgets will be allocated to revenue expenditure, which constitutes personnel salaries, development programs for military personnel, and training and development.

The report "Future of the Myanmarese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" offers detailed analysis of the 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 Myanmar's defense industry market size and drivers: detailed analysis of the Myanmarese 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 Myanmarese 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 Myanmarese 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 - Myanmar Defense Industries (DI), Chengdu Aircraft Industry Group, Pakistan Aeronautical Complex (PAC), Bharat Dynamics Limited, Larsen & Tubro, Bharat Electronics Limited and Yakolev

Scope

  • The Myanmar defense budget is valued at US$975 million in 2018 and registered a CAGR of -20.43% during the historic period. The country is currently in the midst of a political transformation as historically, Myanmar was ruled by the army, but is now being run by a civilian government. The country is therefore focusing on developing the country’s economy and is in the process of cutting down on military expenditure.
  • The country’s capital expenditure allocation, which stood at an average of 42.4% during the historic period, is anticipated to increase significantly to an average of 45% during the forecast period. This increase is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country’s indigenous defense industry.
  • The MoD expected to invets in submarines, multi-role aircraft, maritime surveillance and detection and corvettes, among others

Reasons to buy

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

  • Bharat Dynamics Limited
  • Larsen & Tubro
  • Yakolev
  • 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. Military Fleet Size
3.1.2. Procurement Programs
3.1.3. The growth in insurgency movements will spur growth in defense spending over the forecast period
3.1.4. Limited defense budget restricts procurement volumes and, as a result, market participants
3.2. Defense Market Size Historical and Forecast
3.2.1. Myanmar defense expenditure is expected to grow at CAGR of 5.36% over 2019-2023
3.2.2. Modernization of Myanmar Navy, ongoing insurgencies, and ethnic conflicts expected to drive defense expenditure over the forecast period
3.2.3. Myanmar’s defense expenditure as a percentage of GDP expected to decrease marginally over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital and revenue expenditure’s share are anticipated to remain steady over forecast period
3.3.2. Capital expenditure expected to increase at CAGR of 5.90% over the forecast period
3.3.3. Per capita defense expenditure set to increase over the forecast period
3.3.4. Myanmar faces significant risk from insurgent groups and ethnic conflicts
3.3.5. Myanmar falls under the “highly affected” terrorism category
3.3.6. Myanmar has a terrorism index score of “5.0”
3.4. Benchmarking with Key Global Markets
3.4.1. Myanmar’s defense budget expected to grow at a slower rate than its neighbors over the forecast period
3.4.2. Myanmar’s defense expenditure is low compared to other Asian countries
3.4.3. Myanmar allocates a lower share of its GDP to defense compared to other Asian countries
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. 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 are expected to recover over the forecast period
4.1.2. China and Russia emerged as the largest suppliers of arms
4.1.3. Armored vehicles and aircraft dominate military hardware imports
4.2. Export Market Dynamics
4.2.1. Myanmar’s domestic defense manufacturing is still in a nascent stage

5. Industry Dynamics
5.1. Market Regulation
5.1.1. Myanmar currently does not permit investments in its defense industry
5.2. Market Entry Route
5.2.1. Budget Process
5.2.2. Procurement Policy and Process
5.2.3. Government-to-government contracts are the preferred market entry route for equipment manufacturers
5.2.4. Closer military co-operation provides opportunities to enter the defense market
6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.2. Key Domestic Company

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. Gross National Disposable Income (US$ Billion)
7.1.4. Local Currency Unit per US Dollar
7.1.5. Goods Exports as a Percentage of GDP
7.1.6. Goods Imports as a Percentage of GDP
7.1.7. Service Imports as a Percentage of GDP
7.1.8. Service Exports as a Percentage of GDP
7.1.9. Net Foreign Direct Investment (BoP, current US$ Bn)
7.1.10. Net Foreign Direct Investment as a Percentage of GDP
7.1.11. Mining, Manufacturing, Utilities Output (LCU Billion)

8. Appendix
8.1. About the Author
8.2. Disclaimer

List of Tables
Table 1: Myanmar Land Forces Strength
Table 2: Myanmar Navy Strength
Table 3: Myanmar Air Force Strength
Table 4: Myanmar Ongoing Procurement Programs
Table 5: Myanmar Future Procurement Programs
Table 6: Myanmar Defense Expenditure (MMK Billion & US$ Billion), 2014-2023
Table 7: Myanmar GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 8: Myanmar Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Myanmar Defense Capital Expenditure (MMK Billion & US$ Billion), 2014-2023
Table 10: Myanmar Per Capita Defense Expenditure (US$), 2014-2023
Table 11: Terrorism Index, 2018
Table 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 13: Top Myanmar’s Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 14: State/Region Budget Preparation Process
Table 15: Parliament Budget Reviewing Process
Table 16: Competitive Landscape of the Myanmar Defense Industry

List of Figures
Figure 1: Myanmar Defense Expenditure (MMK Billion), 2014-2023
Figure 2: Myanmar Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Myanmar GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4: Myanmar Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Myanmar Defense Capital Expenditure (MMK Billion), 2014-2023
Figure 6: Myanmar Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Myanmar Per Capita Expenditure (US$), 2014-2023
Figure 8: Terrorism Heat Map, 2018
Figure 9: Terrorism Index, 2018
Figure 10: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 11: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 12: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 13: Myanmar Defense Imports (US$ Million), 2013-2017
Figure 14: Myanmar Defense Imports by Country (%), 2013-2017
Figure 15: Myanmar Defense Imports by Weapon Category (%), 2013-2017
Figure 16: Myanmar GDP Per Capita, 2015-2025
Figure 17: Myanmar GDP, Current Prices (in US$ Billion), 2015-2025
Figure 18: Myanmar Gross National Disposable Income (US$ Billion), 2005-2013
Figure 19: Local Currency Unit per US$ - Exchange Rate , 2015-2024
Figure 20: Myanmar Goods Exports as a Percentage of GDP, 2005-2013
Figure 21: Myanmar Goods Imports as a Percentage of GDP, 2005-2013
Figure 22: Myanmar Service Imports as a Percentage of GDP, 2005-2013
Figure 23: Myanmar Service Exports as a Percentage of GDP, 2005-2013
Figure 24: Myanmar Foreign Direct Investment, Net (current US$ Billion), 2005-2013
Figure 25: Myanmar Net Foreign Direct Investment as a Percentage of GDP, 2005-2013
Figure 26: Myanmar Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

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  • Bharat Dynamics Limited
  • Bharat Electronics Limited
  • Chengdu Aircraft Industry Group
  • Larsen & Tubro
  • Myanmar Defense Industries (DI)
  • Pakistan Aeronautical Complex (PAC)
  • Yakolev
Note: Product cover images may vary from those shown
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