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

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

Summary

Greece’s strained relationship with Turkey over the long standing territorial dispute in Cyprus, along with sovereignty rights issue in the Gulf of Aegean and military modernization initiatives is expected to drive the Greek defense expenditure. As a percentage of GDP, the country’s defense budget is expected to average 1.6% over the forecast period.

Greek military expenditure, values US$3.6 billion in 2018, and registered a CAGR of -4.16% during the historic period. However, over the forecast period, the Greek defense expenditure is projected to increase at a CAGR of 2.82% to value US$4.2 billion in 2023. During the same time, the capital expenditure allocation, is projected to increase to an average of 17.5% over 2019-2023.

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. Various procurements that are expected to fuel the growth of capital spending over the forecast period include frigates, corvettes, and multi-role aircraft modernization and MRO services. The country’s lack of domestic defense capabilities juxtaposed to the extensive capabilities of its rival Turkish military, have forced Greece to procure sophisticated defense systems from foreign OEMs in order to strengthen the country’s strategic assets and protect critical infrastructure.

The country’s domestic defense sector is still in its nascent stage, and is currently developing an expertise in electronic defense systems in the area of military communication, in order to export such systems in the future.

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

- Defense Industry Market Size and Drivers: detailed analysis of the Greek 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 Greek defense industry.

Companies Mentioned: Hellenic Aerospace Industry, Hellenic Defence Systems S.A, ISI Hellas, Hellenic Shipyards S.A, SSMART S.A, Signaal Hellas, Theon Sensors, Ordtech Military Industries, Intracom Defense Electronics, Hellenic Vehicle Industry S.A, IDE (INTRACOM Defense Electronics)

Scope

Greek military expenditure, values US$3.6 billion in 2018, and registered a CAGR of -4.16% during the historic period. However, over the forecast period, the Greek defense expenditure is projected to increase at a CAGR of 2.82% to value US$4.2 billion in 2023.

The country’s strained relationship with Turkey over the long standing territorial dispute in Cyprus, along with sovereignty rights issue in the Gulf of Aegean and military modernization initiatives is expected to drive the Greek defense expenditure over the forecast period.

As a percentage of GDP, the country’s defense budget is expected to average 1.6% over the forecast period, compared to an average of 1.8% recorded during 2014-2018.

Reasons to buy

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

Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector

A deep qualitative analysis of the Greek defense industry covering sections including demand drivers, Key Trends, and latest industry contracts

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
3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.6. Social, Political and Economic Environment and Support for Defense Projects
3.1.7. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Greek total defense expenditure including pension is anticipated to grow at a CAGR of 2.64% over the forecast period
3.2.2. Greek base defense budget, excluding pensions is anticipated to grow at a CAGR of 2.82% over the forecast period
3.2.3. Conflict with Turkey and military modernization will drive Greek defense expenditure over the forecast period
3.2.4. Defense expenditure as a percentage of GDP is anticipated to decline over the forecast period
3.3. Analysis of Defense Budget Allocations
3.3.1. Capital expenditure allocation expected to increase over the forecast period
3.3.2. Capital expenditure expected to increase over the forecast period
3.3.3. The Army accounted for the largest share of the overall defense budget during the historic period
3.3.4. Other segment to account for the highest share of Greece’s defense budget
3.3.5. Per-capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security market expected to grow at a CAGR of 3.88% over the forecast period
3.4.2. Illegal migration predicted to drive homeland security procurement
3.4.3. Greece is considered at ‘high risk’ of a terrorist attack
3.4.4. Greece experienced moderate terror activity during the historic period
3.4.5. Greece has a terrorism index score of 4.
3.5. Benchmarking with Key Global Markets
3.5.1. Greek defense budget expected to register consistent growth over the forecast period
3.5.2. Greek military expenditure is expected to remain low compared to other leading spenders
3.5.3. Defense budget as a percentage of GDP expected to remain moderate on a global scale
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
3.6.2. Land-based C4ISR
3.6.3. Military IT, Data and Computing- Networking
3.6.4. Frigates MRO

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics
4.1.1. Defense imports maintained high volumes during the historic period
4.1.2. Germany accounts for most of Greece’s defense imports
4.1.3. Naval vessels, aircraft, and missiles are the main categories of imported military hardware
4.2. Export Market Dynamics
4.2.1. Naval vessels are the main exported defense products

5. Industry Dynamics

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

6. Market Entry Strategy

6.1. Market Regulation
6.1.1. Offset obligations are attached to all defense deals
6.1.2. European Defense Agency promotes defense procurements within the EU
6.2. Market Entry Route
6.2.1. Budgeting process
6.2.2. Procurement policy and process
6.3. Key Challenges
6.3.1. Economic crisis will affect current and future procurements
6.3.2. IMF and EU regulations on Greek defense expenditure will limit Greece’s flexibility in military maintenance

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Hellenic Aerospace Industry: overview
7.2.2. Hellenic Aerospace Industry: product focus
7.2.3. Hellenic Aerospace Industry: recent announcements and strategic initiatives
7.2.4. Hellenic Aerospace Industry: alliances
7.2.5. Hellenic Aerospace Industry: recent contract wins
7.2.6. Hellenic Defence Systems S.A: overview
7.2.7. Hellenic Defence Systems S.A: product focus
7.2.8. Hellenic Defence Systems S.A: recent announcements and strategic initiatives
7.2.9. Hellenic Defence Systems S.A.: alliances
7.2.10. Hellenic Defence Systems S.A: recent contract wins
7.3. Key Private Sector Companies
7.3.1. ISI Hellas: overview
7.3.2. ISI Hellas: product focus
7.3.3. ISI Hellas: recent announcements and strategic initiatives
7.3.4. ISI Hellas: Alliances
7.3.5. ISI Hellas: recent contract wins
7.3.6. Hellenic Shipyards S.A: overview
7.3.7. Hellenic Shipyards S.A: product focus
7.3.8. Hellenic Shipyards S.A: recent announcements and strategic initiatives
7.3.9. Hellenic Shipyards S.A: recent contract wins
7.3.10. SSMART S.A: overview
7.3.11. SSMART S.A: product focus
7.3.12. SSMART S.A: alliances
7.3.13. Signaal Hellas: overview
7.3.14. Signaal Hellas: product focus
7.3.15. Signaal Hellas: alliances
7.3.16. Theon Sensors: overview
7.3.17. Theon Sensors: product focus
7.3.18. Theon Sensors: recent announcements and strategic initiatives
7.3.19. Theon Sensors: recent contract wins
7.3.20. Ordtech Military Industries: overview
7.3.21. Ordtech Military Industries: product focus
7.3.22. Intracom Defense Electronics: overview
7.3.23. Intracom Defense Electronics: product focus
7.3.24. Intracom Defense Electronics: recent announcements and strategic initiatives
7.3.25. Intracom Defense Electronics: recent announcements and strategic initiatives
7.3.26. Intracom Defense Electronics: recent contract wins
7.3.27. Hellenic Vehicle Industry S.A.: overview
7.3.28. Hellenic Vehicle Industry S.A: product focus
7.3.29. Hellenic Vehicle Industry S.A: recent announcements and strategic initiatives
7.3.30. Hellenic Vehicle Industry S.A: recent contract wins
7.3.31. IDE (INTRACOM Defense Electronics): overview
7.3.32. IDE (INTRACOM Defense Electronics): product focus
7.3.33. IDE (INTRACOM Defense Electronics): recent announcements and strategic initiatives
7.3.34. IDE (INTRACOM Defense Electronics): recent contract wins

8. Business Environment and Country Risk

8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices, US$ Billion
8.1.3. Local Currency Unit per US$
8.1.4. Market Capitalization of Listed Companies
8.1.5. Market Capitalization of Listed Companies (% of GDP)
8.1.6. Exports of Goods and Services (LCU Billion)
8.1.7. Imports of Goods and Services (LCU Billion)
8.1.8. Goods Exports as percentage of GDP
8.1.9. Goods Imports as a Percentage of GDP
8.1.10. Gross National Disposable Income (US$ Billion)
8.1.11. Service Imports as a Percentage of GDP
8.1.12. Service Exports as a Percentage of GDP
8.1.13. Foreign Direct Investment
8.1.14. Net Foreign Direct Investment as a Percentage of GDP
8.1.15. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix

9.1. About Us
9.2. Disclaimer

List of Tables

Table 1: Greek Army Strength
Table 2:Greek Navy Strength
Table 3: Greek Air Force Strength
Table 4: Greek - Ongoing Development and Procurement Programs
Table 5: Greece - Future Procurement Programs
Table 6: Greek - Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Greek Defense Expenditure Including Pension (EUR Billion & US$ Billion), 2014-2023
Table 8: Greek Base Defense Budget (EUR Billion & US$ Billion), 2014-2023
Table 9: Greek GDP Growth and Defense Expenditure as a Percentage of GDP, 2014-2023
Table 10: Greek Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 11: Greek Defense Capital Expenditure (EUR Million and US$ Million), 2014-2023
Table 12: Greek Defense Budget Split Between Military Services (Army, Air Force, Navy and Others) (%), 2014-2023
Table 13: Greek - Defense Budget Breakdown by Service (EUR Million), 2014-2023
Table 14: Greek - Defense Budget Breakdown by Service (US$ Billion), 2014-2023
Table 15:Greek Per-Capita Defense Expenditure (US$), 2014-2023
Table 16: Greek Homeland Security Expenditure (EUR Billion and US$ Billion), 2014-2023
Table 17: Terrorism Index, 2018
Table 18: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 19: Greek - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
Table 20: Greece - Offset Guidelines and Agreements
Table 21: Greece - Budget Formation Timetable, (January-December)
Table 22: Greece - Ongoing Foreign Military Sales Deals
Table 23: Greek - Top Defense Suppliers by Value (US$ Million),2018-2023
Table 24: Greek - Competitive Landscape, 2018
Table 25: Hellenic Aerospace Industry - Product Focus
Table 26: Hellenic Aerospace Industry - Alliances
Table 27: Hellenic Aerospace Industry - Recent Contract Wins
Table 28: Hellenic Defence Systems S.A - Product Focus
Table 29: Hellenic Aerospace Industry - Alliances
Table 30: Hellenic Defence Systems S.A - Recent Contract Wins
Table 31: ISI Hellas - product focus
Table 32: Hellenic Aerospace Industry - Alliances
Table 33: ISI Hellas - Recent Contract Wins
Table 34: Hellenic Shipyards S.A - Product Focus
Table 35: Hellenic Defence Systems S.A - Recent Contract Wins
Table 36: SSMART S.A - Product Focus
Table 37: SSMART S.A - Alliances
Table 38: Signaal Hellas - product focus
Table 39: Signaal Hellas - Alliances
Table 40: Theon Sensors - product focus
Table 41: Theon Sensors - Recent Contract Wins
Table 42: Ordtech Military Industries- Product Focus
Table 43: Intracom Defense Electronics - Product Focus
Table 44: Intracom Defense Electronics - Alliances
Table 45: Intracom Defense Electronics - Recent Contract Wins
Table 46: Hellenic Vehicle Industry S.A - Product Focus
Table 47: Hellenic Vehicle Industry S.A - Recent Contract Wins
Table 48: IDE (INTRACOM Defense Electronics): - Product Focus
Table 49: Hellenic Vehicle Industry S.A - Recent Contract Wins

List of Figures

Figure 1: Greece Defense Expenditure Including Pension (EUR Billion), 2014-2023
Figure 2: Greece Defense Expenditure Including Pension (US$ Billion), 2014-2023
Figure 3: Greece Defense Expenditure (EUR Billion), 2014-2023
Figure 4: Greece Defense Expenditure (US$ Billion), 2014-2023
Figure 5: Greek GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Figure 6: Greek Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2014-2023
Figure 7: Greek Defense Capital Expenditure (EUR Million), 2014-2023
Figure 8: Greek Defense Capital Expenditure (US$ Million), 2014-2023
Figure 9: Greek Defense Budget Split Between Army, Air Force, Navy and Others, 2014-2023
Figure 10: Greek - Defense Budget Breakdown by Service (EUR Million), 2014-2023
Figure 11: Greek - Defense Budget Breakdown by Service (US$ Billion), 2014-2023
Figure 12: Greek Per-Capita Defense Expenditure (US$), 2014-2023
Figure 13: Greek Homeland Security Budget (EUR Billion), 2014-2023
Figure 14: Greek Homeland Security Budget (US$ Billion), 2014-2023
Figure 15: Terrorism Heat Map, 2018
Figure 16: Terrorism Index, 2018
Figure 17: Benchmarking with Key Global Markets: 2014-2018 vs. 2019-2023
Figure 18: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 20: Land-based C4ISR Market Size (US$ Million), 2018-2023
Figure 21: Military IT, Data and Computing - Networking Market Size (US$ Million), 2018-2023
Figure 22: Frigates MRO Market Size (US$ Million), 2018-2023
Figure 23: Greece - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 24: Greek Defense Imports (US$ Million), 2013-2017
Figure 25: Greek Defense Imports by Country (%), 2013-2017
Figure 26: Greek Defense Imports by Category(%), 2013-2017
Figure 27: Industry Dynamics - Porter’s Five Forces Analysis
Figure 28: Greek GDP Per Capita, 2015-2025
Figure 29: Greek GDP, Current Prices, US$ Billion, 2015-2025
Figure 30: Greek LCU per US$, 2015-2024
Figure 31: Greek Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 32: Greek Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 33: Greek Exports of Goods and Services (LCU Billion), 2005-2014
Figure 34: Greek Imports of Goods and Services (LCU Billion), 2005-2014
Figure 35: Greek Goods Exports as a Percentage of GDP, 2005-2014
Figure 36: Greek Goods Imports as a Percentage of GDP, 2005-2014
Figure 37: Greek Gross National Disposable Income (US$ Billion), 2005-2014
Figure 38: Greek Service Imports as a Percentage of GDP, 2005-2014
Figure 39: Greek Service Exports as a Percentage of GDP, 2005-2014
Figure 40: Greek Foreign Direct Investment (US$ Billion), 2005-2014
Figure 41: Greek Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 42: Greek Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2008-2012
Figure 43: Greek Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014