Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

  • ID: 4761038
  • Report
  • Region: Denmark
  • 120 pages
  • GlobalData
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FEATURED COMPANIES

  • Danish Aerotech A/S
  • IFAD TS A/S
  • Systematic A/S
  • Terma A/S
  • MORE
Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Russia's annexation of Crimea in 2014 and the country's increasing assertive behavior in Eastern Europe has led to Denmark paying more attention to deterrence in the Baltic region by adapting to NATO's new priorities with regards to the reinforcement of collective defense and deterrence. Also, growing instability in the Sahel-region, North Africa and the Middle East provides a breeding ground for Islamic militants that create the foundation for terrorism and illegal migration threating Denmark's sovereignty and security.

Denmark's military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019. Over the forecast period, the country's defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%. The country's defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.

The country's homeland security (HLS) expenditure decreased from US$90.3 million in 2015 to US$66.9 million in 2019, at a CAGR of -7.23%. Over the forecast period, expenditure on HLS is projected to decrease further, from US$66.9 million in 2020 to US$64.9 million in 2024, at a CAGR of -0.78%. The decrease in HLS spending is a result of the country's increasing focus on military modernization and defense procurements. However, the HLS spending will be primarily driven by efforts to combat the rising number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend the country's borders.

While Denmark is majorly dependent on the US for its defense equipment, there was a considerable increase in the country's defense exports during 2014-2018. In 2012, the Danish government formulated the “Open to Business” initiative, under which the country aimed to boost its exports of military goods and services. The initiative also tasked the Ministry of Defense (MoD) with helping its domestic manufacturers to gain access to advanced technology through its offset programs.

The report "Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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.

In particular, it provides an in-depth analysis of the following -
  • The defense industry market size and drivers: detailed analysis of the Danish defense industry during 2020-2024, 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
  • Porter's Five Force analysis of the Danish 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
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Danish 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: Systematic A/S, Terma A/S, Copenhagen Sensor Technology ApS, Danish Aerotech A/S, Falck Schmidt Defense Systems A/S, IFAD TS A/S

Scope
  • Denmark's military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019.
  • Over the forecast period, the country's defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%.
  • The country's defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Danish 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 Danish defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.
Note: Product cover images may vary from those shown
2 of 4

FEATURED COMPANIES

  • Danish Aerotech A/S
  • IFAD TS A/S
  • Systematic A/S
  • Terma A/S
  • 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. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Procurement Programs
3.1.4. Ongoing procurement programs
3.1.5. Future procurement programs
3.1.6. Top Procurement Programs By Value (US$ Million), 2019-2024
3.1.7. Geopolitical, Social and Economic Scenario
3.1.8. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Danish defense expenditure expected to register a CAGR of 1.61% over the forecast period
3.2.2. Growing Russian assertiveness, participation in NATO peacekeeping operations and increase in cyberattacks are expected to drive defense expenditure over the forecast period
3.2.3. Denmark’s defense expenditure as a percentage of GDP expected to remain stable
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure is expected to account for 36.8% of the defense budget over 2020-2024
3.3.2. Capital expenditure is expected to record a CAGR of 2.99% over the forecast period
3.3.3. Per-capita defense expenditure set to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Danish homeland security expenditure expected to exhibit a negative CAGR of 0.78% during 2020-2024
3.4.2. Cyber security and counter terrorism are the country’s main homeland security concerns
3.5. Benchmarking with Key Global Markets
3.5.1. Denmark defense budget expected to increase at a higher rate than other European countries over the forecast period
3.5.2. Danish defense budget expected to remain low compared to other European countries
3.5.3. Denmark allocates a low share of GDP to defense compared to most European countries
3.6. Market Opportunities: Key Trends
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
3.6.2. Multirole Aircraft
3.6.3. Vehicular-based Tactical Communication Systems
3.6.4. Land-based C4ISR

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase over the forecast period
4.1.2. Denmark sourced most of its arms imports from the US
4.1.3. Sensors and aircraft dominate military hardware imports
4.2. Export Market Dynamics
4.2.1. Arms exports to recover over the forecast period
4.2.2. Portugal, Malaysia, Finland, Algeria, and Oman are the main purchasers of Danish arms
4.2.3. Sensors and ships together accounted for the majority of 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: High
5.1.3. Barrier to Entry: Low
5.1.4. Intensity of Rivalry: Medium to High
5.1.5. Threat of Substitution: High

6. Market Entry Strategy
6.1. Budgeting Process
6.2. Procurement Policy and Process
6.3. Market Regulation
6.3.1. Offset policy aids development of domestic defense industry
6.3.2. Denmark permits 100% foreign direct investment in the defense sector
6.4. Market Entry Route
6.4.1. Forming subsidiaries or acquiring Danish companies are preeminent market entry opportunities
6.4.2. Forming consortiums and product development agreements open new market entry strategy choices
6.4.3. Joint weapon development programs are a viable market entry opportunity
6.5. Key Challenges
6.5.1. Low defense budget and limited technological capability hinder the Danish defense market
6.5.2. Preference given to procurements from US and Nordic countries

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Danish defense sector is dominated by domestic competitors
7.1.2. Denmark Market Share Analysis, 2019-2024
7.2. Key Domestic Companies
7.2.1. Systematic A/S: Overview
7.2.2. Systematic A/S: Products and Services
7.2.3. Systematic A/S: Recent Announcements and Strategic Initiatives
7.2.4. Systematic A/S: Alliances
7.2.5. Systematic A/S: Recent Contract Wins
7.2.6. Terma A/S: Overview
7.2.7. Terma A/S: Products
7.2.8. Terma A/S: Recent Announcements and Strategic Initiatives
7.2.9. Terma A/S: Alliances
7.2.10. Terma A/S: Recent Contract Wins
7.2.11. Copenhagen Sensor Technology ApS: Overview
7.2.12. Copenhagen Sensor Technology ApS: Products
7.2.13. Copenhagen Sensor Technology ApS: Recent Announcements and Strategic Initiatives
7.2.14. Copenhagen Sensor Technology ApS: Alliances
7.2.15. Copenhagen Sensor Technology ApS: Recent Contract Wins
7.2.16. Danish Aerotech A/S: Overview
7.2.17. Danish Aerotech A/S: Products
7.2.18. Danish Aerotech A/S: Recent Announcements and Strategic Initiatives
7.2.19. Danish Aerotech A/S: Alliances
7.2.20. Danish Aerotech A/S: Recent Contract Wins
7.2.21. Falck Schmidt Defense Systems A/S: Overview
7.2.22. Falck Schmidt Defense Systems A/S: Products
7.2.23. Falck Schmidt Defense Systems A/S: Recent Announcements and Strategic Initiatives
7.2.24. Falck Schmidt Defense Systems A/S: Alliances
7.2.25. Falck Schmidt Defense Systems A/S: Recent Contract Wins
7.2.26. IFAD TS A/S: Overview
7.2.27. IFAD TS A/S: Products
7.2.28. IFAD TS A/S: Recent Announcements and Strategic Initiatives
7.2.29. IFAD TS A/S: Alliances
7.2.30. IFAD TS A/S: Recent Contract Wins
7.3. Key Foreign Companies
7.3.1. Lockheed Martin Denmark: Overview
7.3.2. Lockheed Martin Denmark: Products and Services
7.3.3. Lockheed Martin Denmark: Recent Announcements and Strategic Initiatives
7.3.4. Lockheed Martin Denmark: Alliances
7.3.5. Lockheed Martin Denmark: Recent Contract Wins
7.3.6. Lockheed Martin: Financial Analysis
7.3.7. TenCate Advanced Armour Denmark A/S: Overview
7.3.8. TenCate Advanced Armour Denmark A/S: Products
7.3.9. TenCate Advanced Armour Denmark A/S: Recent Announcements and Strategic Initiatives
7.3.10. TenCate Advanced Armour Denmark A/S: Alliances
7.3.11. TenCate Advanced Armour Denmark A/S: Recent Contract Wins

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per Capita
8.1.2. GDP, current US$ Billion
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per US$, Period Average
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Government Cash Surplus/Deficit (% of GDP) (LCU)
8.1.10. Goods Exports (% of GDP)
8.1.11. Goods Imports (% of GDP)
8.1.12. Services Imports (% of GDP)
8.1.13. Services Exports (% of GDP)
8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
8.1.15. Net FDI (% of GDP)
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix
9.1. About the Publisher
9.2. Disclaimer

List of Tables
Table 1: Danish Ongoing Procurement Programs
Table 2: Danish Future Procurement Programs
Table 3: Top Five Danish Defense Programs by Value (US$ Million), 2019-2024
Table 4: Danish Defense Cooperation
Table 5: Danish Military Training Exercises
Table 6: Danish Defense Expenditure (DKK Billion and US$ Billion), 2015-2024
Table 7: Danish GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
Table 8: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 9: Danish Defense Capital Expenditure (DKK Billion and US$ Million), 2015-2024
Table 10: Danish Per-Capita Defense Expenditure (US$), 2015-2024
Table 11: Danish Homeland Security Expenditure (DKK Million & US$ Million), 2015-2024
Table 12: Benchmarking with Key Markets - 2015-2019 vs. 2020-2024
Table 13: Top 10 Danish Defense Sectors by Value (US$ Million) - 2019-2024
Table 14: Offset Regulations in Denmark
Table 15: Top 10 Defense Suppliers in Danish Defense Industry by Value (US$ Million), 2019-2024
Table 16: Competitive Landscape of the Danish Defense Industry
Table 17: Systematic A/S - Products and Services
Table 18: Systematic A/S - Alliances
Table 19: Systematic A/S - Recent Contract Wins
Table 20: Terma A/S - Products
Table 21: Terma A/S - Alliances
Table 22: Terma A/S - Recent Contract Wins
Table 23: Copenhagen Sensor Technology ApS - Products
Table 24: Copenhagen Sensor Technology ApS - Alliances
Table 25: Copenhagen Sensor Technology ApS - Recent Contract Wins
Table 26: Danish Aerotech A/S - Products
Table 27: Danish Aerotech A/S - Alliances
Table 28: Danish Aerotech A/S - Recent Contract Wins
Table 29: Falck Schmidt Defense Systems A/S - Products
Table 30: Falck Schmidt Defense Systems - Alliances
Table 31: Falck Schmidt Defense Systems - Recent Contract Wins
Table 32: IFAD TS A/S - Products
Table 33: IFAD TS A/S - Alliances
Table 34: IFAD TS A/S - Recent Contract Wins
Table 35: Lockheed Martin Denmark - Products and Services
Table 36: Lockheed Martin Denmark - Alliances
Table 37: Lockheed Martin Denmark - Recent Contract Wins
Table 38: TenCate Advanced Armour Denmark A/S - Products
Table 39: TenCate Advanced Armour Denmark A/S - Alliances
Table 40: TenCate Advanced Armour Denmark A/S - Recent Contract Wins

List of Figures
Figure 1: Denmark Defense Budget, 2020 and 2024
Figure 2: Denmark Defense Imports and Exports
Figure 3: Denmark’s Top Five Prospective Procurements/Developments
Figure 4: Denmark’s National Security Threats
Figure 5: Denmark’s Partner Countries for Defense Cooperation and Military Training
Figure 6: Danish Defense Expenditure (DKK Billion), 2015-2024
Figure 7: Danish Defense Expenditure (US$ Billion), 2015-2024
Figure 8: Danish GDP Growth vs Defense Expenditures Percentage of GDP Growth, 2015-2024
Figure 9: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Figure 10: Danish Defense Capital Expenditure (DKK Billion), 2015-2024
Figure 11: Danish Defense Capital Expenditure (US$ billion), 2015-2024
Figure 12: Danish Per-Capita Defense Expenditure (US$), 2015-2024
Figure 13: Danish Homeland Security Budget (DKK Million), 2015-2024
Figure 14: Danish Homeland Security Budget (US$ Million), 2015-2024
Figure 15: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Figure 16: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
Figure 17: Benchmarking with Large Defense Spenders as a Percentage of GDP - 2019
Figure 18: Danish Multirole Aircraft Market Size (US$ Million), 2019-2024
Figure 19: Danish Vehicular-based Tactical Communication Systems Market Size (US$ Million), 2019-2024
Figure 20: Danish Land-based C4ISR Market Size (US$ Million), 2019-2024
Figure 21: Danish Defense Procurements In Terms Of Their Supplier Relationships
Figure 22: Denmark Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
Figure 23: Denmark Defense Imports by Country (%), 2014-2018
Figure 24: Denmark Defense Imports by Category (%), 2014-2018
Figure 25: Denmark Defense Exports by Value (US$ Million), 2014-2018 (TIV Values)
Figure 26: Denmark Defense Exports by Country (%), 2014-2018
Figure 27: Denmark Defense exports by Category (%), 2014-2018
Figure 28: Industry Dynamics - Porter’s Five Forces Analysis
Figure 29: Denmark Budgeting Process
Figure 30: Key Challenges in Denmark’s Defense Market
Figure 31: Denmark Market Share Analysis, 2019-2024
Figure 32: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2014-2018
Figure 33: Lockheed Martin - Operating Profit Trend Analysis (US$ Billion), 2014-2018
Figure 34: Lockheed Martin - Net Profit Trend Analysis (US$ Billion), 2014-2018
Figure 35: Denmark’s GDP Per Capita (US$), 2015-2025
Figure 36: Denmark’s GDP (current US$ Billion), 2015-2025
Figure 37: Denmark’s Exports of Goods and Services (current LCU Billion), 2005-2014
Figure 38: Denmark’s Imports of Goods and Services (current LCU Billion), 2005-2014
Figure 39: Denmark’s Gross National Disposable Income (US$ Billion), 2005-2014
Figure 40: Denmark’s DKK per US$, 2015-2024
Figure 41: Denmark’s Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 42: Denmark’s Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 43: Denmark’s Government Cash Surplus/Deficit (% of GDP), 2005-2012
Figure 44: Denmark’s Goods Exports (% of GDP), 2005-2014
Figure 45: Denmark’s Goods Imports (% of GDP), 2005-2014
Figure 46: Denmark’s Services Imports (% of GDP), 2005-2014
Figure 47: Denmark’s Services Exports (% of GDP), 2005-2014
Figure 48: Denmark’s FDI, net (BoP, Current US$ Billion), 2005-2014
Figure 49: Denmark’s Net FDI (% of GDP), 2005-2014
Figure 50: Denmark’s Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
Note: Product cover images may vary from those shown
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  • Systematic A/S
  • Terma A/S
  • Copenhagen Sensor Technology ApS
  • Danish Aerotech A/S
  • Falck Schmidt Defense Systems A/S
  • IFAD TS A/S
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown
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