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

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

Summary

Romania's defense expenditure is projected to register a CAGR of 0.43% during the forecast period to value US$7.0 billion in 2024. Romania's military expenditure stands at US$7.8 billion in 2019, registering at CAGR of 43.73% and is projected to register a CAGR of 0.43% over the forecast period. Romania is modernizing its land, air and naval forces through international partnerships to meet NATO standards that mandate an allocation of 2% of GDP for defense until 2026.

Romanian capital expenditure allocation, which stood at an average of US$1.3 billion during the historic period, is projected to increase to an average of US$1.9 billion during 2020-2024. The country's defense expenditure is expected to cumulatively value US$34.2 billion during 2020-2024. The defense budget as a percentage of GDP is expected to increase slightly, from an average of 2.3% during the historic period to 2.6% during 2020-2024. Key opportunities for equipment suppliers are expected in areas such as F-16 multirole aircraft, multirole aircraft MRO, a HIMARS rocket artillery system, a Patriot missile defense system, Piranha V armored vehicles, air defense radars, surface to air missile systems, corvettes, and submarines.

Romania's homeland security (HLS) expenditure stands at US$4.9 billion in 2019 with a CAGR of 18.05% during the historic period, and is projected to stand at US$4.8 billion in 2024 with a CAGR of 2.58% during the forecast period. This expenditure is primarily driven by the country's focus on enhancing its defense capabilities to counter the increasing rate of cyber-attacks, modernize its border control and security infrastructure, and increase efforts by the government to control organized crimes such as drug trafficking.

Although defense imports peaked in 2016, they are expected to remain low over the forecast period. Romania's Air Force acquired F-16 fighters and C-27J aircraft, from Portugal which were the major contributor to the country's imports. Armored vehicles, sensors, engines, and missiles were the other major imports to Romania during 2014-2018. Italy, the US, Switzerland and France were the other significant suppliers to Romania. Romania did not export any arms to foreign countries as its defense industry is largely underdeveloped. However, the country is anticipated to increase its defense exports during the forecast period, primarily in the area of naval vessels and related maintenance, repair, and overhaul (MRO).

The report “Romanian 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 Romanian defense industry market size and drivers: detailed analysis of the Romanian 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 Romanian defense industry

Companies mentioned: Lockheed Martin, General Dynamics European Land Systems, Iveco, Raytheon Missile Systems, EuroSpike GmbH, BAE Systems

Scope

• Romania's military expenditure, which stands at US$7.8 billion in 2019, is anticipated to grow from US$6.9 billion in 2020 to value US$7 billion in 2024, registering a CAGR of 0.43% over the forecast period, primarily fueled by the ongoing military modernization plans.
• Military expenditure, on a cumulative basis, is anticipated to be US$34.2 billion, which is higher than the US$23.5 billion spent during the historic period. Romania is an active participant in joint operations with the European Union (EU) and peacekeeping operations with NATO and the United Nations (UN).
• The defense budget as a percentage of GDP is expected to increase on an average from 2.3% during 2015-2019 to 2.6% over 2020-2024. The country's per capita defense expenditure is expected to increase from US$404 in 2019 to US$371.5 in 2024.

Reasons to Buy

• This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Romanian 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 Romanian defense industry covering sections including demand drivers, key trends and latest industry contracts.