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The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024

  • ID: 4770199
  • Report
  • Region: Netherlands, Holland
  • 119 pages
  • GlobalData
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FEATURED COMPANIES

  • ARTEC GmbH
  • Elbit Systems
  • Leidos Inc
  • Raytheon Missile Systems
  • Saab
  • Terma
  • MORE
The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024

Summary

The Netherlands defense budget is expected to reach US$17.9 billion in 2024, growing at a CAGR of 7.93%over the forecast period. The Netherlands has the 18th largest economy in the world and the sixth-largest in the European Union. During the historic period, the Netherlands military expenditure, which stands at US$12.4 billion in 2019, is anticipated to grow from US$13.2 billion in 2020 to value US$17.9 billion in 2024, registering a CAGR of 7.93%, over the forecast period. The growth will primarily be driven by the country’s military contributions to NATO operations.

The Netherlands is an active participant in joint operations with the European Union (EU) and peacekeeping operations with NATO and the United Nations (UN), and as such, seeks higher spending in terms of its defense sector. Although, military expenditure will be driven by modernization programs and the NATO mandate to spend a minimum of 2% of GDP on defense, the Netherlands is anticipated to allocate an average of 1.4% of GDP to defense over the forecast period. The country’s per capita defense expenditure is expected to increase from US$766.1 in 2020 to US$1,027.7 in 2024.

Over the forecast period, the country’s capital expenditure allocation is expected to average 25.2% of total expenditure, and revenue expenditure is expected to average 74.8%. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.83%, from US$3.2 billion in 2020 to US$4.5 billion in 2024, due to the significant uptick in weapon procurement plans, and the procurement of defense equipment to replace outdated ones. Opportunities related to the procurement of defense equipment in Netherlands are expected to be in areas such as reconnaissance vehicles, M-Class Naval Vessels, multi-role Tanker-Transport, Wheeled Vehicle Replacement Program (DVOW), submarine replacement program.

The army accounted for the highest budget allocation during the historic period, with an average share of 14%. Over the forecast period, the army’s share is projected to remain unchanged. Navy expenditure - which represented an average share of 8.3% of defense expenditure during the historic period - is anticipated to decrease to an average share of 8.2% over the forecast period. The air force, which accounted for an average share of 7.8% during the historic period, is expected to account for a share of 7.7% of the defense budget over the forecast period.

After valuing US$11 million in 2014, defense imports recovered in between 2015-2018 and are set to increase over the forecast period due to the procurement of F-35s, armored vehicles, and modernization programs for naval vessels. During 2014-2018, Germany was the country’s main arms supplier, followed by the US, Italy. Aircraft, armored vehicles and missiles, occupy the majority of the market share of imports. Defense exports declined during 2014-2016, before rising in 2017, due to a reduction in procurements by Portugal, Greece, and Italy as a consequence of the weak economic climate. Over the forecast period, exports will recover, driven by procurements beyond Europe, including Jordan, Indonesia, the US, Canada, UAE, Mexico among others.

The report "The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024", offers detailed analysis of the Netherlands 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.

Companies mentioned: Boeing, Raytheon Missile Systems, Lockheed Martin, Leidos Inc, Honeywell International Inc, ARTEC GmbH, GKN Aerospace, Elbit Systems, Terma, SABCA, Krauss-Maffei Wegmann (KMW), Saab, Damen Schelde Naval Shipbuilding (DSNS), TNO Defense, Thales Nederlands, RH Marine Group

Scope

The report provides an in-depth analysis of the following -
  • The defense industry market size and drivers: detailed analysis of the Netherlands 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 Netherlands 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 The Netherlands defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Reasons to Buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Netherlands 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 Netherlands 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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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • ARTEC GmbH
  • Elbit Systems
  • Leidos Inc
  • Raytheon Missile Systems
  • Saab
  • Terma
  • 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 & Strategy
3.1.3. Procurement Programs
3.1.4. Top Procurement Programs By Value (US$ Million) 2019-2024
3.1.5. Geopolitical and Economic Scenario
3.1.6. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Netherland defense budget to increase at a CAGR of 7.93% over the forecast period
3.2.2. Military modernization, and commitment levels to NATO, UN and EU stipulations
3.2.3. The Netherlands defense expenditure as a percentage of GDP expected to increase
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of Capital Expenditure expected to average 25.2% over forecast period
3.3.2. Capital expenditure expected to increase at a CAGR of 8.83% over the forecast period
3.3.3. The Others segment accounted for the largest percentage share
3.3.4. Army will account for the second highest share in the Netherlands defense budget
3.3.5. Per capita defense expenditure set to increase
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security market is expected to register a CAGR of 2.97% over the forecast period
3.4.2. Counter measures for drug trafficking and terrorism to drive homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. Netherlands defense budget expected to marginally increase over the forecast period
3.5.2. Netherlands military budget is limited compared to other countries
3.5.3. The Netherlands is expected to spend an average of 1.2% of GDP on defense over the forecast period
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2019-2024
3.6.2. Land-Based C4ISR
3.6.3. Multi-role aircraft
3.6.4. Tactical Truck

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase slightly over the forecast period
4.1.2. Germany was the leading supplier of arms to Netherlands during 2014-2018
4.1.3. Armored vehicles 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. Netherlands arms exports expected to increase
4.2.3. Sensors and ships are the main exported defense products

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: medium
5.1.2. Bargaining power of buyer: medium
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: medium to high

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry and research activities
6.1.2. FDI in defense sector is unrestricted without review
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy & Process
6.2.3. Acquisition of domestic companies is an effective market entry route for foreign firms
6.2.4. Collaborations provide market entry opportunities
6.2.5. Joint ventures, partnerships and subcontracting offer alternative entry strategies
6.2.6. Joint R&D programs provide an effective strategy to gain market access
6.3. Key Challenges
6.3.1. Preference for EU companies poses a challenge for other companies
6.3.2. Inadequate government support for defense industry

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. The Netherlands Market Share Analysis, 2018
7.2. Key Domestic Companies
7.2.1. Damen Schelde Naval Shipbuilding: overview
7.2.2. Damen Schelde Naval Shipbuilding: products
7.2.3. Damen Schelde Naval Shipbuilding: recent announcements and strategic initiatives
7.2.4. Damen Schelde Naval Shipbuilding: alliances
7.2.5. Damen Schelde Naval Shipbuilding: recent contract wins
7.2.6. TNO Defense: overview
7.2.7. TNO Defense: products and services
7.2.8. TNO Defense: recent announcements and strategic initiatives
7.2.9. TNO Defense: alliances
7.2.10. TNO Defense: recent contract wins
7.2.11. Thales Nederland: overview
7.2.12. Thales Nederland: products and services
7.2.13. Thales Nederland: recent announcements and strategic initiatives
7.2.14. Thales Nederland: alliances
7.2.15. Thales Nederland: recent contract wins
7.2.16. RH Marine Group: overview
7.2.17. RH Marine Group: products
7.2.18. RH Marine Group: recent announcements and strategic initiatives
7.2.19. RH Marine Group: alliances
7.2.20. RH Marine Group: recent contract wins
7.2.21. Lockheed Martin: overview
7.2.22. Lockheed Martin: products
7.2.23. Lockheed Martin: recent announcements and strategic initiatives
7.2.24. Lockheed Martin: alliances
7.2.25. Lockheed Martin: recent contract wins
7.2.26. Lockheed Martin Corp.: financial analysis

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

9. Appendix
9.1. About the Publisher
9.2. Disclaimer

List of Tables
  • Table 1: The Deployment of the Netherlands Armed Forces vs Defense Tasks
  • Table 2: The Netherlands - Ongoing Procurement Programs
  • Table 3: The Netherlands - Future Procurement Programs
  • Table 4: The Netherlands top 10 Defense Procurement Programs by Value (US$ Million) 2019-2024
  • Table 5: The Netherlands Defense Expenditure (EUR Billion and US$ Billion), 2015-2024
  • Table 6: The Netherlands - GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
  • Table 7: The Netherlands - Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Table 8: The Netherlands - Defense Capital Expenditure (EUR Billion and US$ Billion), 2015-2024
  • Table 9: The Netherlands - Defense Expenditure Breakdown (%), 2015-2024
  • Table 10: The Netherlands Defense Budget Allocations in EUR Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2015-2024
  • Table 11: The Netherlands Defense Budget Allocations in US$ Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2015-2024
  • Table 12: The Netherlands - Per Capita Defense Expenditure (US$), 2015-2024
  • Table 13: The Netherlands - Homeland Security Expenditure (EUR Billion and US$ Billion), 2015-2024
  • Table 14: The Netherlands- Threat Level
  • Table 15: The Netherlands - Benchmarking with Key Markets, 2015-2019 vs 2020-2024
  • Table 16: Top 10 Sectors of the Netherlands Defense Market by Value (US$ Million) - 2019-2024
  • Table 17: Offset Regulations in the Netherlands
  • Table 18: Top 10 Defense Suppliers in The Netherlands Defense Industry - By Value (US$ Million) 2019-2024
  • Table 19: The Netherlands - Competitive Landscape of the Defense Industry
  • Table 20: Damen Schelde Naval Shipbuilding- Product focus
  • Table 21: Damen Schelde Naval Shipbuilding- Alliances
  • Table 22: Damen Schelde Naval Shipbuilding - Contracts
  • Table 23: TNO Defense- Product focus
  • Table 24: TNO Defense- Alliances
  • Table 25: TNO Defense- Recent Contract Wins
  • Table 26: Thales Nederland- Product focus
  • Table 27: Thales Nederland - Alliances
  • Table 28: Thales Nederland- Recent Contract Wins
  • Table 29: RH Marine Group - Product focus
  • Table 30: RH Marine Group - Alliances
  • Table 31: RH Marine Group - Recent Contract Wins
  • Table 32: Lockheed Martin- Product focus
  • Table 33: Lockheed Martin- Alliances
  • Table 34: Lockheed Martin- Recent Contract Wins
List of Figures
  • Figure 1 : The Netherlands Defense Budget: 2020 and 2024
  • Figure 2 : The Netherlands Defense Imports/Exports: 2014 and 2018
  • Figure 3: The Netherlands Top Prospective Procurements/Developments
  • Figure 4: The Netherlands National Security Threats
  • Figure 5: The Netherlands Partner Countries for Defense Cooperation and Military Training
  • Figure 6: The Netherlands - Defense Expenditure (EUR Billion), 2015-2024
  • Figure 7: The Netherlands - Defense Expenditure (US$ Billion), 2015- 2024
  • Figure 8: The Netherlands - GDP Growth vs. Defense Expenditures as Percentage of GDP Growth, 2015-2024
  • Figure 9: The Netherlands - Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Figure 10: The Netherlands - Defense Capital Expenditure (EUR Billion), 2015-2024
  • Figure 11: The Netherlands - Defense Capital Expenditure (US$ Billion), 2015-2024
  • Figure 12: The Netherlands - Defense Expenditure Breakdown (%), 2015-2024
  • Figure 13: The Netherlands Defense Budget in EUR Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2015-2024
  • Figure 14: The Netherlands Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force, Support Commands and Others) 2015-2024
  • Figure 15: The Netherlands - Per Capita Defense Expenditure (US$), 2015-2024
  • Figure 16: The Netherlands - Homeland Security Budget (EUR Billion), 2015-2024
  • Figure 17: The Netherlands - Homeland Security Budget (US$ Billion), 2015-2024
  • Figure 18: The Netherlands - Benchmarking with Key Markets, 2015-2019 vs 2020-2024
  • Figure 19: The Netherlands - Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
  • Figure 20: The Netherlands - Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
  • Figure 21: The Netherlands - Land-Based C4ISR Market Size (US$ Million), 2019-2024
  • Figure 22: The Netherlands - Multi-Role Aircraft Market Size (US$ Million), 2019-2024
  • Figure 23: The Netherlands - Tactical Truck Market Size (US$ Million), 2019-2024
  • Figure 24: The Netherlands Defense Procurements In Terms Of Their Supplier Relationships
  • Figure 25: The Netherlands - Defense Import Trends, 2014-2018 (TIV Values US$ Million)
  • Figure 26: The Netherlands - Defense Imports by Country (%), 2014-2018
  • Figure 27: The Netherlands - Defense Imports by Category (%), 2014-2018
  • Figure 28: The Netherlands - Defense Export Trends, 2014-2018 (TIV Values US$ Million)
  • Figure 29: The Netherlands Defense exports by Country (%), 2014-2018
  • Figure 30: The Netherlands Defense Exports by Category (%), 2014-2018
  • Figure 31: Industry Dynamics - Porter’s Five Forces Analysis
  • Figure 32: The Netherlands Budgeting Process
  • Figure 33: Key Challenges in the Netherlands Defense Market
  • Figure 34: The Netherlands Market Share Analysis, 2018
  • Figure 35: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2014-2018
  • Figure 36: Lockheed Martin - Operating Profit Trend Analysis (US$ Billion), 2014-2018
  • Figure 37: Lockheed Martin - Net Profit Trend Analysis (US$ Billion), 2014-2018
  • Figure 38: The Netherlands GDP Per Capita US$, 2015-2025
  • Figure 39: The Netherlands Gross Domestic Product (current US$ Billion), 2015-2025
  • Figure 40: The Netherlands Imports of goods and services (LCU Billion), 2005-2014
  • Figure 41: The Netherlands Exports of goods and services (LCU Billion), 2005-2014
  • Figure 42: The Netherlands gross national disposable income (US$ Billion), 2005-2013
  • Figure 43: Netherlands LCU per US$, 2015-2024
  • Figure 44: Netherlands Market Capitalization of listed Companies (US$ Billion), 2005-2012
  • Figure 45: The Netherlands Market Capitalization of listed companies as a % of GDP, 2005-2012
  • Figure 46: The Netherlands Government cash Surplus/deficit as a % of GDP, 2005-2012
  • Figure 47: The Netherlands Goods Imports as a % of GDP, 2005-2014
  • Figure 48: The Netherlands Goods Exports as a % of GDP, 2005-2014
  • Figure 49: The Netherlands Services Imports as a % of GDP, 2005-2014
  • Figure 50: The Netherlands Services Exports as a % of GDP, 2005-2014
  • Figure 51: The Netherlands Net Foreign Direct Investment (current US$ Billion), 2005-2014
  • Figure 52: The Netherlands Net FDI as a % of GDP, 2005-2014
  • Figure 53: The Netherlands Mining, Manufacturing, Utilities Output (US$ Billion), 2005-2014
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  • Boeing
  • Raytheon Missile Systems
  • Lockheed Martin
  • Leidos Inc
  • Honeywell International Inc
  • ARTEC GmbH
  • GKN Aerospace
  • Elbit Systems
  • Terma
  • SABCA
  • Krauss-Maffei Wegmann (KMW)
  • Saab
  • Damen Schelde Naval Shipbuilding (DSNS)
  • TNO Defense
  • Thales Nederlands
  • RH Marine Group
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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