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

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  • 86 Pages
  • January 2019
  • Region: Hungary
  • GlobalData
  • ID: 4726803
Future of the Hungarian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023


"Future of the Hungarian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

This report offers detailed analysis of the Hungary 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 Hungary defense industry market size and drivers: detailed analysis of the Hungary 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 Hungary defense industry.

  • The Hungarian defense budget stands at US$1.7 billion in 2018 and registered a CAGR of 8.11% during 2014¬-2018.

  • The ongoing modernization of the country’s armed forces to meet NATO standards, along with its participation in international peacekeeping missions, drove Hungary’s defense expenditure during the historic period.

Reasons to Buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Hungarian 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 Hungarian defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.

Table of Contents

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About
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 and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Hungarian defense budget to record a CAGR of 16.31% over the forecast period
3.2.2. The country’s modernization efforts, to meet NATO standards, and its participation in peacekeeping missions will support defense expenditure
3.2.3. The defense budget as a percentage of GDP is expected to increase during the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Procurement of advanced equipment to drive capital expenditure allocation during the forecast period
3.3.2. Hungarian Defense Capital expenditure is expected to grow at a CAGR of 20.44% 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. Investment in the protection of infrastructure and cyber security are expected to drive the Hungarian homeland security market
3.4.2. Hungary falls under “some risk” category on the Terrorism Index
3.4.3. Hungary faces “some risk” by acts of terrorism
3.4.4. Hungary has a terrorism index score of 0.8
3.5. Benchmarking with Key Global Markets
3.5.1. Hungarian defense budget expected to register rapid growth over the period 2019-2023
3.5.2. Hungarian defense expenditure is relatively small when compared to the leading defense spenders
3.5.3. Hungary spent about 1.1% of its GDP on defense in 2018
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023
3.6.2. Multi-role aircraft
3.6.3. Airborne C4ISR
3.6.4. Combat Aircraft Engines
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limitations of the domestic defense industry to encourage arms imports
4.1.2. Defense imports are forecast to grow during the forecast period
4.1.3. Sweden continues to be the major arms supplier to Hungary
4.1.4. Aircraft and Missiles dominates Hungarian defense imports
4.2. Export Market Dynamics
4.2.1. Defense exports are forecast to grow during the forecast period
4.2.2. Hungary supplies most of its defense equipment to Ethiopia
4.2.3. Arms exports likely to increase over the forecast period
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: Medium to High
5.1.4. Intensity of rivalry: Medium to High
5.1.5. Threat of substitution: Low to Medium
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy mandates suppliers invest a minimum of 100% of the contract value into the Hungarian economy
6.1.2. Hungary allows 100% foreign direct investment with the exception of designated 'strategic' holdings in some defense-related industries.
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign OEMs enter the market through the Government to Government deals
6.2.4. EDA promotes defense procurements within the EU
6.3. Key Challenges
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Danube Aircraft Company: Overview
7.2.2. Danube Aircraft Company: Services
7.2.3. Danube Aircraft Company: Recent Contract Wins
7.3. Key Foreign Companies
7.3.1. SAAB- Overview
7.3.2. SAAB- Major Products and Services
7.3.3. SAAB - recent announcements and strategic initiatives
7.3.4. SAAB - alliances
7.3.5. SAAB - recent contract wins
7.3.6. SAAB: Financial Analysis
7.3.7. MBDA- overview
7.3.8. MBDA - Product Focus
7.3.9. MBDA - recent announcements and strategic initiatives
7.3.10. MBDA - Alliances
7.3.11. MBDA: Recent Contract Wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per Capita
8.1.2. Gross Domestic Product
8.1.3. Exports of Goods and Services (LCU Billion)
8.1.4. Imports of Goods and Services (LCU Billion)
8.1.5. Gross National Disposable Income (US$ Billion)
8.1.6. LCU per USD (period average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of listed companies as a % GDP
8.1.9. Foreign direct investment, net (BoP, current US$ Billion)
8.1.10. Net foreign direct investment as % of GDP
8.1.11. Mining, Manufacturing, Utilities Output (LCU Billion)
9. Appendix
9.1. About
9.2. Disclaimer
List of Tables
Table 1: Hungarian Army Strength
Table 2: Hungarian Air Force Strength
Table 3: Hungarian - Ongoing Development and Procurement Programs
Table 4: Hungarian - Future Procurement Programs
Table 5: The Hungarian Top Defense Procurement Programs by Value (US$ Million),2018-2023
Table 6: Hungarian Defense Expenditure (HUF Billion& US$ Billion), 2014-2023
Table 7: HungarianGDP Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2023
Table 8: Hungarian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Hungarian Defense Capital Expenditure (HUF Billion & US$ Million), 2014-2023
Table 10: Hungarian Per Capita Expenditure (US$), 2014-2023
Table 11:Terrorism Index, 2018
Table 12:Benchmarking with Key Markets, 2014-2018 vs. 2019-2023
Table 13: Top HungarianDefense Sectors by Value (US$ Million), 2018-2023
Table 14: Offset Regulations in Hungary
Table 15: Hungarian Budget Formation Timetable
Table 16: Competitive Landscape of the Hungarian Defense Industry
Table 17: Top Defense Suppliers in the Hungarian Defense Industry - By Value (US$ Million) 2018-2023
Table 18: Danube Aircraft Company - Services
Table 19: Danube Aircraft Company. - Recent Contract Wins
Table 20: SAAB - Major Products and Services
Table 21: SAAB - Alliances
Table 22: SAAB - Recent Contract Wins
Table 23: MBDA - Product Focus
Table 24: MBDA - Alliances
Table 25: MBDA - Recent Contract Wins
List of Figures
Figure 1: Hungarian Defense Expenditure (in HUF Billion), 2014-2023
Figure 2: Hungarian Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Hungarian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure4: Hungarian Defense Expenditure Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Hungarian Defense Capital Expenditure (HUFBillion), 2014-2023
Figure 6: Hungarian Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Hungarian 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:Multi-role AircraftMarket Size (US$ Million), 2018-2023
Figure 14: Airborne C4ISR Market Size (US$ Million), 2018-2023
Figure 15: Combat Aircraft Engines Market Size (US$ Million), 2018-2023
Figure 16: Top Hungarian Defense Procurements in Terms of Their Supplier Relationships
Figure 17: Hungarian Defense Imports (US$ million), 2013-2017
Figure 18: Hungarian Defense Imports by Country (%), 2013-2017
Figure 19: Hungarian Defense Imports by Category, 2013-2017
Figure 20: Hungarian Defense Exports (US$ million), 2013-2017
Figure 21: Industry Dynamics Porter’s Five Forces Analysis
Figure 22: SAAB - Revenue Trend Analysis (SEKBillion), 2013-2017
Figure 23: SAAB - Operating Profit Trend Analysis (SEKMillion), 2013-2017
Figure 24: SAAB - Net Profit Trend Analysis (SEKMillion), 2013-2017
Figure 25: Hungarian GDP Per Capita (US$), 2015-2025
Figure 26: Hungarian GDP at Current Prices (US$ Billion), 2015-2025
Figure 27: Hungarian Exports of goods and services (LCU Billion), 2005-2014
Figure 28: Hungarian Imports of goods and services (LCU Billion), 2005-2014
Figure 29: Hungarian Gross National Disposable Income (US$ Billion), 2005-2013
Figure 30: LCU per USD (US$), 2015-2024
Figure 31: HungarianMarket Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 32: Hungarian Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 33: Hungarian Net Foreign Direct Investment (BoP, Current US$ Billion) 2005-2014
Figure 34: Hungarian Net Foreign Direct Investment as a % of GDP 2005-2014
Figure 35: HungarianMining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

Companies Mentioned

A selection of companies mentioned in this report includes:

  • SAAB

  • MBDA

  • Danube Aircraft Company