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Kuwaiti Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

  • ID: 4829048
  • Report
  • Region: Kuwait
  • 116 pages
  • GlobalData
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FEATURED COMPANIES

  • Airbus Helicopters
  • Boeing
  • Eurofighter Jagdflugzeug
  • General Dynamics
  • Leonardo
  • Lockheed Martin
  • MORE
Kuwaiti Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Kuwait maintains one of the highest military spending ratios per capita in the world driven by the country’s desire to have an important role to play in international affairs and bilateral relations. Kuwait consistently increased its military and security expenditure over 2015-2019 - following a dip in the year 2014 - aided by revenue generated from oil exports. The Gulf Cooperation Council (GCC) member states together are forecast to spend over US$100 billion on their defense capabilities for the first time during 2019.

Kuwaiti military and security expenditure, which stood at US$6.6 billion in 2019, registered a CAGR of 9.88% during the historical period. However, it is anticipated to grow at a CAGR of 3.69% over the forecast period to reach US$7.7 billion by 2024. The capital expenditure allocation, which stood at an average of 19.2% during the historical period, is projected to increase at an average of 20.7% during 2020-2024, primarily due to the procurement of missile defense systems, military aircraft, and naval ships. Moreover, the protection of vital infrastructure, territorial disputes with Iraq, and ongoing domestic defense industry building initiatives are expected to drive the country’s future defense expenditure.

The combination of post-war economic growth and a strong demand for US products yields many business opportunities for foreign firms in both commercial and defense sectors. Kuwait has no domestic defense production firms and the MoD relies on many foreign firms to meet its defense needs. Air defense systems accounted for the largest share of imports during 2014-2018, for which the US was the biggest supplier. The country also acquired F-18 Hornet fighters, M1A2 main battle tank (MBT), ADVS Desert Chameleon armored personnel carriers (APC), PAC-3 Patriot anti-missiles, and 10 Mark V patrol boats.

Other significant partners include Russia, France, the UAE, and the UK. The country is poised to procure Eurofighter Typhoon combat jets, along with 24 fixed-wing H225m Caracal helicopters and light armored vehicles, in a deal worth US$2.8 billion. Due to these factors, Kuwait’s defense imports are expected to increase over the forecast period.

The report "Kuwaiti Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024", offers detailed analysis of the Kuwaiti 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 Kuwaiti defense industry market size and drivers: detailed analysis of the Kuwaiti 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
  • 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 Kuwaiti defense industry
Companies mentioned: Lockheed Martin, Raytheon, Abu Dhabi Ship Building PJSC, Boeing, Eurofighter Jagdflugzeug, Airbus Helicopters, Leonardo, General Dynamics

Scope
  • Kuwait consistently increased its military and security expenditure over 2015-2019 - following a dip in the year 2014 - aided by revenue generated from oil exports. The Gulf Cooperation Council (GCC) member states together are forecast to spend over US$100 billion on their defense capabilities for the first time during 2019.
  • The country’s defense budget is expected to expand with increases in spending primarily focused on modernizing military force structure and improving readiness in response to continuing regional instability in the Gulf Area. Kuwaiti military and security expenditure, which stood at US$6.6 billion in 2019, registered a CAGR of 9.88% during the historical period.
Reasons to Buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Kuwaiti 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 Kuwaiti defense industry covering sections including demand drivers, key trends and latest industry contracts.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Airbus Helicopters
  • Boeing
  • Eurofighter Jagdflugzeug
  • General Dynamics
  • Leonardo
  • Lockheed Martin
  • MORE
  • LIST OF FIGURES
  • LIST OF TABLES
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Author

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Procurement Programs
3.1.4. Geopolitical, Social and Economic Scenario
3.1.5. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Defense and security expenditure to cumulatively value US$35.8 billion over the forecast period
3.2.2. The border dispute with Iraq, coupled with its military modernization program, will be key factors in driving defense expenditure
3.2.3. Defense budget as a percentage of GDP to average 4.1% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure allocation to increase over the forecast period
3.3.2. Capital expenditure is expected to grow at a CAGR of 3.61% over the forecast period
3.3.3. Per capita defense expenditure to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Kuwait’s homeland security budget is set to increase at a CAGR of 0.84% over the forecast period
3.4.2. Cyber threats, drug trade, and human trafficking will be the key factors to drive homeland security
3.5. Benchmarking with Key Global Markets
3.5.1. Kuwaiti defense expenditure is expected to increase over the forecast period
3.5.2. The country has a relatively low defense budget compared to other Middle Eastern nations
3.5.3. Kuwaiti defense expenditure as a percentage of GDP is expected to decrease
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
3.6.2. Naval Vessels MRO - Corvettes
3.6.3. Airborne C4ISR
3.6.4. Armored Vehicles and MBTs

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Kuwaiti defense industry is import driven
4.1.2. Kuwait imports the majority of its military equipment from the US
4.1.3. Air defense systems, aircraft and missiles to dominate Kuwaiti defense imports
4.2. Export Market Dynamics
4.2.1. Kuwait’s defense export market is negligible

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

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. The Kuwaiti Government does not disclose FDI in the defense industry
6.1.2. Offset policy aids the transfer of advanced technologies and integration into the local economy
6.2. Market Entry Route
6.2.1. Budgeting process
6.2.2. Procurement policy and process
6.2.3. Foreign military sales (FMS) is the preferred entry route
6.2.4. Gulf Co-operation Council (GCC) to form joint Military Command, which could be an alternative entry route for foreign OEMs
6.3. Key Challenges
6.3.1. The US dominates the Kuwaiti market, posing challenges to other foreign firms
6.3.2. Scarcity of skilled labor

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Kuwait Market Share Analysis, 2018
7.1.2. The Kuwaiti defense sector is dominated by foreign competitors
7.2. Key Foreign Companies
7.2.1. Lockheed Martin: Overview
7.2.2. Lockheed Martin: Products and services
7.2.3. Lockheed Martin: Recent announcements and strategic initiatives
7.2.4. Lockheed Martin: Alliances
7.2.5. Lockheed Martin: Recent contract wins
7.2.6. Lockheed Martin: Financial analysis
7.2.7. Raytheon: Overview
7.2.8. Raytheon: Major products
7.2.9. Raytheon: Recent announcements and strategic initiatives
7.2.10. Raytheon: Alliances
7.2.11. Raytheon: Contracts
7.2.12. Raytheon: Financial analysis
7.2.13. Abu Dhabi Ship Building PJSC: Overview
7.2.14. Abu Dhabi Ship Building PJSC: Recent announcements and strategic initiatives
7.2.15. Abu Dhabi Ship Building PJSC: Contracts
7.2.16. Boeing: Overview
7.2.17. Boeing: Products
7.2.18. Boeing: Recent announcements and strategic initiatives
7.2.19. Boeing: Alliances
7.2.20. Boeing: Contracts
7.2.21. Eurofighter Jagdflugzeug: Overview
7.2.22. Eurofighter Jagdflugzeug: Products
7.2.23. Eurofighter Jagdflugzeug: Recent announcements and strategic initiatives
7.2.24. Eurofighter Jagdflugzeug: Recent contract wins
7.2.25. Airbus Helicopters: Overview
7.2.26. Airbus Helicopters: Products and services
7.2.27. Airbus Helicopters: Recent announcements and strategic initiatives
7.2.28. Airbus Helicopters: Alliances
7.2.29. Airbus Helicopters: Recent contract wins
7.2.30. General Dynamics: Overview
7.2.31. General Dynamics: Products
7.2.32. General Dynamics: Recent announcements and strategic initiatives
7.2.33. General Dynamics: Alliances
7.2.34. General Dynamics: Recent contract wins
7.2.35. General Dynamics: financial analysis
7.2.36. Leonardo: Overview
7.2.37. Leonardo: Products and Services
7.2.38. Leonardo-: Recent announcements and strategic initiatives
7.2.39. Leonardo: Recent contract wins
7.2.40. Leonardo: Financial Analysis

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
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income (US$ Billion)
8.1.6. LCU per US$ (Period Average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a Percentage GDP
8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP
8.1.10. Goods Exports as a Percentage of GDP
8.1.11. Goods Imports as a Percentage of GDP
8.1.12. Services Imports as a Percentage of GDP
8.1.13. Services Exports as a Percentage of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net Foreign Direct Investment as a Percentage of GDP
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix
9.1. About the Author
9.2. Disclaimer

List of Tables
Table 1: Kuwaiti - Ongoing Development and Procurement Programs, 2019
Table 2: Kuwait - Future Procurement Programs, 2019
Table 3: Kuwaiti - Top Defense Procurement Programs by Value (US$ Million), 2019-2024
Table 4: Kuwaiti Defense and Security Expenditure (KWD Billion and US$ Billion), 2015-2024
Table 5: Kuwaiti GDP Growth vs Defense Expenditure as a Percentage of GDP Growth, 2015-2024
Table 6: Kuwaiti Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 7: Kuwaiti Defense Capital Expenditure (KWD Million and US$ Billion), 2015-2024
Table 8: Kuwaiti Per Capita Defense Expenditure (US$), 2015-2024
Table 9: Kuwait’s Defense Homeland Security Expenditure, 2015-2024
Table 10: Benchmarking with Key Markets, 2015-2019 vs 2020-2024
Table 11: Top Kuwaiti Defense Sectors by Value (US$ Million), 2019-2024
Table 12: Offset Regulations in Kuwait
Table 13: Competitive Landscape of the Kuwaiti Defense Industry
Table 14: Top Defense Suppliers in the Kuwaiti Defense Industry by Value (US$ Million), 2019-2024
Table 15: Lockheed Martin - Product Focus
Table 16: Lockheed Martin - Alliances
Table 17: Lockheed Martin - Recent Contract Wins
Table 18: Raytheon - Major Products
Table 19: Raytheon - Alliances
Table 20: Raytheon - Contracts
Table 21: Abu Dhabi Ship Building PJSC - Contracts
Table 22: Boeing - Product Focus
Table 23: Boeing - Alliances
Table 24: Boeing - Contracts
Table 25: Eurofighter Jagdflugzeug - Products
Table 26: Eurofighter Jagdflugzeug - Recent Contract Wins
Table 27: Airbus Helicopters - Products and Services
Table 28: Airbus Helicopters - Alliances
Table 29: Airbus Helicopters - Contract wins
Table 30: General Dynamics - Product Focus
Table 31: General Dynamics - Alliances
Table 32: General Dynamics - Recent contract wins
Table 33: Leonardo - Product Focus
Table 34: SME: Leonardo - Recent Contract Wins

List of Figures
Figure 1 : Kuwaiti Defense Budget: 2020 and 2024
Figure 2: Kuwaiti Defense Imports/Exports: 2014 and 2018
Figure 3 : Kuwait’s Top Five Prospective Procurements/Developments
Figure 4: Kuwait National Security Threats
Figure 5: Kuwait’s Partnering Countries for Defense Cooperation and Military Training
Figure 6: Kuwaiti Defense and Security Expenditure (KWD Billion), 2015-2024
Figure 7: Kuwaiti Defense and Security Expenditure (US$ Billion), 2015-2024
Figure 8: Kuwaiti GDP Growth vs Defense Expenditure as a Percentage of GDP Growth, 2015-2024
Figure 9: Kuwaiti Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Figure 10: Kuwaiti Defense Capital Expenditure (KWD Million), 2015-2024
Figure 11: Kuwaiti Defense Capital Expenditure (US$ Billion), 2015-2024
Figure 12: Kuwaiti Per Capita Defense Expenditure (US$), 2015-2024
Figure 13: Kuwait’s Defense Homeland Security Expenditure (KWD Billion), 2015-2024
Figure 14: Kuwait’s Defense Homeland Security Expenditure (US$ Billion), 2015-2024
Figure 15: Benchmarking with Key Markets, 2015-2019 vs 2020-2024
Figure 16: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2018 and 2024
Figure 17: Benchmarking with Large Defense Spenders as a Percentage of GDP, 2019
Figure 18: Naval Vessels MRO-Corvettes Market Size (US$ Million), 2019-2024
Figure 19: Airborne C4ISR Market Size (US$ Million), 2019-2024
Figure 20: Armored Vehicles and MBT Market Size (US$ Million), 2019-2024
Figure 21: Top Kuwaiti Defense Procurements in Terms of Supplier Relationships
Figure 22: Kuwaiti Defense Import Trend, 2014-2018 (TIV values)
Figure 23: Kuwaiti Defense Imports by Country (%), 2014-2018
Figure 24: Kuwaiti Defense Imports by Weapon Category (%), 2014-2018
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
Figure 26: Key Challenges in Kuwaiti Defense Market
Figure 27: Kuwait Market Share Analysis, 2018
Figure 28: Lockheed Martin - Revenue Trend Analysis (US$ billion), 2014-2018
Figure 29: Lockheed Martin - Operating Profit Trend Analysis (US$ billion), 2014-2018
Figure 30: Lockheed Martin - Net Profit Trend Analysis (US$ billion), 2014-2018
Figure 31: Raytheon - Revenue Trend Analysis (US$ billion), 2014-2018
Figure 32: Raytheon - Operating Profit Trend Analysis (US$ billion), 2014-2018
Figure 33: Raytheon - Net Profit Trend Analysis (US$ billion), 2014-2018
Figure 34: General Dynamics - Revenue Trend Analysis (US$ Billion), 2014-2018
Figure 35: General Dynamics - Operating Profit Trend Analysis (US$ Billion), 2014-2018
Figure 36: General Dynamics - Net Profit Trend Analysis (US$ Billion), 2014-2018
Figure 37: Leonardo - Revenue Trend Analysis (EUR Billion), 2014-2018
Figure 38: Leonardo - Operating Profit Trend Analysis (EUR Billion), 2014-2018
Figure 39: Leonardo - Net Profit Trend Analysis (EUR Million), 2014-2018
Figure 40: Kuwaiti GDP per Capita (US$), 2015-2025
Figure 41: Kuwaiti GDP (current US$ bn), 2015-2025
Figure 42: Kuwaiti Exports of Goods and Services (Current LCU Bn), 2005-2014
Figure 43: Kuwaiti Imports of Goods and Services (Current LCU Bn), 2005-2014
Figure 44: Kuwaiti Gross National Disposable Income (US$ Bn), 2005-2013
Figure 45: Kuwaiti LCU per US$, 2015-2024
Figure 46: Kuwaiti Market Capitalization of Listed Companies (US$ Bn), 2005-2012
Figure 47: Kuwaiti Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 48: Kuwaiti Total Government Cash Surplus/Deficit as a Percentage of GDP, 2005-2012
Figure 49: Kuwaiti Goods Exports as a Percentage of GDP, 2005-2014
Figure 50: Kuwaiti Goods Imports as a Percentage of GDP, 2005-2014
Figure 51: Kuwaiti Services Imports as a Percentage of GDP, 2005-2014
Figure 52: Kuwaiti Services Exports as a Percentage of GDP, 2005-2014
Figure 53: Kuwaiti Net Foreign Direct Investment (US$ Bn), 2005-2014
Figure 54: Kuwaiti Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 55: Mining, Manufacturing, Utilities Output (in LCU Billions), 2005-2014
Note: Product cover images may vary from those shown
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  • Lockheed Martin
  • Raytheon
  • Abu Dhabi Ship Building PJSC
  • Boeing
  • Eurofighter Jagdflugzeug
  • Airbus Helicopters
  • Leonardo
  • General Dynamics
Note: Product cover images may vary from those shown
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