The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
The Czech Republic is projected to spend US$17.7 billion on its armed forces over the next five years. The country enjoys a relatively stable security environment due to its strong counter terrorism capabilities, membership of NATO, and comparatively low international profile.
However, the threats posed by right-wing extremists, the migrant crisis, and the Islamic State in most European cities have forced the country to modernize and upgrade its military arsenal. The Czech Republic’s defense budget values US$2.9 billion in 2019 and registered a CAGR of 13.58% during the historic period. Over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 5.88% to value US$4.0 billion in 2024 due to its plan to increase its defense budget to 2% of GDP, participation in peacekeeping operations, and counter terrorism measures.
The Czech Armed Forces, similar to the militaries of other Central European countries, are mostly equipped with Soviet-era weapons systems that need to be replaced by NATO-capable hardware. The capital expenditure allocation which averaged 11.4% during the historic period is expected to average 12.5% over the forecast period. Key opportunities for suppliers are expected to be in sectors such as C4ISR, multi-role aircraft, multi-mission helicopters, reconnaissance drones and infantry fighting vehicles.
The homeland security expenditure is expected to witness a major boost due to the procurement of state-of-the-art surveillance and reconnaissance equipment and platforms to prevent terrorism, organized crime, human trafficking, illegal immigration, enhance security, and safeguard and secure cyber space. The Czech Republic’s homeland security expenditure stands at US$3.6 billion in 2019 and registered a CAGR of 8.90% during the historic period. Over the forecast period, the country’s homeland security expenditure is expected to increase from US$3.8 billion in 2020 to US$4.6 billion in 2024, reflecting a CAGR of 5.24%.
The domestic defense industry in the Czech Republic is moderately developed which helps the country to maintain a decent rank in the global arms suppliers list. During 2014-2018, Iraq was the largest importer of Czech defense equipment, accounting for 39.9% of the Czech Republic’s total defense exports. Over 2014-2018, aircraft accounted for the highest share of total defense exports with 53.2%, followed by armored vehicles with 25.6%, sensors with 14.8%, and artillery with 6.0%. The Czech Republic defense exports are expected to show steady growth over the forecast period due to rapidly deteriorating security situations around the world, especially in Middle East and Europe.
The report "The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024", offers detailed analysis of the Czech 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 -
Companies mentioned: Aero Vodochody A.S, Lom Praha s.p, VOP CZ, Omnipol a s, Aura s. r. o.
Scope
Reasons to buy
Summary
The Czech Republic is projected to spend US$17.7 billion on its armed forces over the next five years. The country enjoys a relatively stable security environment due to its strong counter terrorism capabilities, membership of NATO, and comparatively low international profile.
However, the threats posed by right-wing extremists, the migrant crisis, and the Islamic State in most European cities have forced the country to modernize and upgrade its military arsenal. The Czech Republic’s defense budget values US$2.9 billion in 2019 and registered a CAGR of 13.58% during the historic period. Over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 5.88% to value US$4.0 billion in 2024 due to its plan to increase its defense budget to 2% of GDP, participation in peacekeeping operations, and counter terrorism measures.
The Czech Armed Forces, similar to the militaries of other Central European countries, are mostly equipped with Soviet-era weapons systems that need to be replaced by NATO-capable hardware. The capital expenditure allocation which averaged 11.4% during the historic period is expected to average 12.5% over the forecast period. Key opportunities for suppliers are expected to be in sectors such as C4ISR, multi-role aircraft, multi-mission helicopters, reconnaissance drones and infantry fighting vehicles.
The homeland security expenditure is expected to witness a major boost due to the procurement of state-of-the-art surveillance and reconnaissance equipment and platforms to prevent terrorism, organized crime, human trafficking, illegal immigration, enhance security, and safeguard and secure cyber space. The Czech Republic’s homeland security expenditure stands at US$3.6 billion in 2019 and registered a CAGR of 8.90% during the historic period. Over the forecast period, the country’s homeland security expenditure is expected to increase from US$3.8 billion in 2020 to US$4.6 billion in 2024, reflecting a CAGR of 5.24%.
The domestic defense industry in the Czech Republic is moderately developed which helps the country to maintain a decent rank in the global arms suppliers list. During 2014-2018, Iraq was the largest importer of Czech defense equipment, accounting for 39.9% of the Czech Republic’s total defense exports. Over 2014-2018, aircraft accounted for the highest share of total defense exports with 53.2%, followed by armored vehicles with 25.6%, sensors with 14.8%, and artillery with 6.0%. The Czech Republic defense exports are expected to show steady growth over the forecast period due to rapidly deteriorating security situations around the world, especially in Middle East and Europe.
The report "The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024", offers detailed analysis of the Czech 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 defense industry market size and drivers: detailed analysis of the Czech 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 Czech 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 Czech 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: Aero Vodochody A.S, Lom Praha s.p, VOP CZ, Omnipol a s, Aura s. r. o.
Scope
- The country enjoys a relatively stable security environment due to its strong counterterrorism capabilities, membership of NATO, and comparatively low international profile. However, the threats posed by right-wing extremists, the migrant crisis, and the Islamic State in most European cities have forced the country to modernize and upgrade its military arsenal.
- The Czech Republic’s defense budget values US$2.9 billion in 2019 and registered a CAGR of 13.58% during the historic period. Over the forecast period, the Czech Republic's defense expenditure is anticipated to register a CAGR of 5.88% to value US$4.0 billion in 2024 due to its plan to increase its defense budget to 2% of GDP, participation in peacekeeping operations and counter terrorism measures.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the The Czech 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 The Czech defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Table of Contents
1. Introduction
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
9. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aero Vodochody A.S
- Lom Praha s.p
- VOP CZ
- Omnipol a s
- Aura s. r. o.
