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New Zealand Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

  • ID: 4850417
  • Report
  • Region: New Zealand
  • 82 pages
  • GlobalData
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FEATURED COMPANIES

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  • Harris Defence Australia
  • Hyundai Heavy Industries
  • IAI Elta
  • MBDA
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  • MORE
New Zealand Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

New Zealand’s isolated geographic location has benefited the country strategically and the country has traditionally maintained a basic defense posture with specific emphasis on surveillance and reconnaissance. This is demonstrated by the fact that the country’s air force lacks aerial combat capabilities and the New Zealand Air Force does not possess any fighter aircraft within its inventory. As a member of the Australia, New Zealand, United States Security Treaty (ANZUS or ANZUS Treaty), the country’s security is guaranteed by its security alliance with Australia. However, over the years the treaty has increasingly adopted a global posture and thus has come to relate to global conflicts spread across the world. As per the provisions of the treaty, an attack on any of the three participant countries is considered an attack on all members, and as such each of the countries will take action to counter the common threat.

As a part of the New Zealand Defense Capability Plan, the country is anticipated to invest a cumulative total of NZ$20 billion (~US$13.24 billion), through 2030, in modernizing the country’s defense capability. The country’s total defense expenditure for 2019 stands at US$2.86 billion in 2019 and is forecasted to increase from US$2.88 billion in 2020, to US$3.90 billion in 2024, reflecting a CAGR of 7.88%.

Although New Zealand has historically been well insulated from terrorist threats, the country is increasingly being forced to deal with rising instances of radicalism and terrorist incidences. The 2019 Christchurch mosque shooting exposed the presence of deep-seated animosity and prejudice against certain communities. The country is wary of intentional acts of sabotage to its communication and ICT infrastructure, and is likely to increase investments in policing and cyber security to safeguard its strategic interests. Against this backdrop, New Zealand’s homeland security (police) spending is valued at US$1.3 billion in 2019, and is anticipated to increase from US$1.4 billion in 2020 to US$1.7 billion by 2024, reflecting a CAGR of 5.74%.

New Zealand’s defense imports are fairly low, and between 2014-2018 the country’s cumulative defense imports were valued at just US$181 million. The US emerged as the single largest defense supplier to the country and accounted for a 78.5% share of New Zealand’s defense market. The country also acquired defense equipment from other countries such as Australia, France, Canada, and Israel.

The report “The Future of the New Zealand's 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 New Zealand's defense industry market size and drivers - detailed analysis of the New Zealand's 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 the army, navy, and air force. It also details the key challenges faced by defense market participants within the country
  • Porter’s Five Force analysis of the New Zealand's 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 over the next 10 years
  • Competitive landscape and strategic insights - analysis of the competitive landscape of the New Zealand's defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Scope
  • As an Island nation, it is prudent for New Zealand to ensure free-sea lanes of communication and New Zealand’s navy is expected to cooperate closely with the US to secure its maritime boundaries and safeguard its strategic interests. As a part of the New Zealand Defense Capability Plan, the country is anticipated to invest a cumulative total of NZ$20 billion (~US$13.24 billion), through 2030, in modernizing the country’s defense capability. Some of the high priority acquisition projects include the Maritime Helicopter Replacement program
  • On a cumulative basis, the country is expected to invest US$16.9 billion for defense purposes, of which US$5.2 billion is earmarked for capital expenditure to fund defense procurements. The government’s well-defined military modernization plans are expected to stimulate the expenditure over the next few years
  • The MoD is expected to invest in transport aircraft, maritime patrol aircraft, C4ISR-Network and auxillary vessels among others.
Reasons to Buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the New Zealand's 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 New Zealand's 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
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FEATURED COMPANIES

  • Beechcraft.
  • Harris Defence Australia
  • Hyundai Heavy Industries
  • IAI Elta
  • MBDA
  • Pilatus Aircraft Ltd.
  • MORE
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. Current Market Scenario
3.1.1. Procurement Programs
3.1.2. Key Drivers and Challenges
3.2. Defense Market Size Historical and Forecast
3.2.1. New Zealand’s total defense expenditure to reach US$3.9 billion by 2024
3.2.2. Modernization and acquisition of military equipment and counterterrorism to drive New Zealand’s defense expenditure
3.2.3. New Zealand’s spending on defense services to reach US$2.2 billion by 2024
3.2.4. The country’s defense expenditure as a percentage of GDP is expected to average 1.32% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure’s share of total expenditure to increase considerably over the forecast period
3.3.2. Capital expenditure budget is expected to increase over the forecast period
3.3.3. The army accounted for the largest percentage share of the overall New Zealand appropriations for defense forces
3.3.4. Army will account for the highest share of the New Zealand defense forces spending
3.3.5. Per capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. New Zealand’s homeland security (HLS) budget is projected to increase at a CAGR of 5.74% over the forecast period
3.4.2. Organized crime forms the major component of homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. New Zealand’s defense expenditure is expected to increase at a CAGR of 7.88% over the forecast period
3.5.2. New Zealand’s military expenditure is low compared to countries with the largest defense expenditure
3.5.3. New Zealand allocates a low percentage of GDP to defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. The country’s current need to modernize its armed forces will drive defense imports
4.1.2. The US was the leading supplier of arms to New Zealand during the historic period; a trend that is expected to continue over the forecast period
4.1.3. Aircraft accounted for the majority of defense imports during 2014-2018
4.2. Export Market Dynamics
4.2.1. New Zealand does not export a large volume of arms due to its under-developed domestic industry
4.2.2. Peru was the leading market for New Zealand defense exports during the historic period
4.2.3. Aircraft accounted for the majority of defense exports during 2014-2018

5. Industry Dynamics
5.1. Market Regulation
5.1.1. New Zealand does not have a defense offset policy and is unlikely to implement one in the near future
5.1.2. New Zealand has a fair and liberal Foreign Direct Investment (FDI) policy with respect to defense
5.2. Market Entry Route
5.2.1. Budgeting process
5.2.2. Government-to-government agreements are the preferred market entry route for foreign OEMs

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.1.1. Foreign suppliers manufacture defense systems overseas and deliver them to New Zealand
6.1.2. New Zealand Market Share Analysis, 2019

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP Per Capita
7.1.2. GDP, Current Prices
7.1.3. Exports of Goods and Services (LCU Million)
7.1.4. Imports of Goods and Services (LCU Billion)
7.1.5. Gross National Disposable Income (US$ Billion)
7.1.6. Local Currency Unit per US$
7.1.7. Market Capitalization of Listed Companies (US$ Billion)
7.1.8. Market Capitalization of Listed Companies (% of GDP)
7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP
7.1.10. Goods Exports as a Percentage of GDP
7.1.11. Goods Imports as a Percentage of GDP
7.1.12. Services Imports as a Percentage of GDP
7.1.13. Service Exports as a Percentage of GDP
7.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
7.1.15. Net Foreign Direct Investment as a Percentage of GDP
7.1.16. Mining, Manufacturing, Utilities Output

8. Appendix
8.1. About the Author
8.2. Disclaimer

List of Tables
Table 1: New Zealand - Ongoing Development and Procurement Programs (US$)
Table 2: New Zealand - Future Procurement Programs
Table 3: New Zealand Defense Expenditure (NZ$ Billion and US$ Billion), 2015-2024
Table 4: New Zealand’s Spending on Defense Services (NZ$ Billion and US$ Billion), 2015-2024
Table 5: New Zealand GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2015-2024
Table 6: New Zealand Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 7: New Zealand Defense Capital Expenditure (NZ$ Million & US$ Million), 2015-2024
Table 8: New Zealand Defense Budget Share - (%) Split by Services (Army, Navy, and Air Force), 2015-2024
Table 9: New Zealand Spending on Defense Forces in NZ$ Million - Breakdown by Services (Army, Navy, and Air Force) 2015-2024
Table 10: New Zealand Spending on Defense Services in US$ Million - Breakdown by Services (Army, Navy, and Air Force) 2015-2024
Table 11: New Zealand Per Capita Defense Expenditure (US$), 2015-2024
Table 12: New Zealand Homeland Security Expenditure (NZ$ Million and US$ Million), 2015-2024
Table 13: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Table 14: Top 10 New Zealand Defense Market Sectors by Value (US$ Million), 2019-2024
Table 15: Phases in Formation of the New Zealand Budget
Table 16: New Zealand Budget Formation Time Table
Table 17: Competitive Landscape of the New Zealand Defense Industry

List of Figures
Figure 1: New Zealand Defense Budget, 2020 and 2024
Figure 2: New Zealand Defense Imports/Exports, 2014 and 2018
Figure 3: New Zealand’s Top Three Prospective Procurements/Developments
Figure 4: New Zealand Total Defense Expenditure (NZ$ Billion), 2015-2024
Figure 5: New Zealand Total Defense Expenditure (US$ Billion), 2015-2024
Figure 6: New Zealand’s Expenditure on Defense Services (NZ$ Billion), 2015-2024
Figure 7: New Zealand’s Expenditure on Defense Services (US$ Billion), 2015-2024
Figure 8: New Zealand GDP Growth vs Defense Expenditure as a Percentage of GDP Growth, 2015-2024
Figure 9: New Zealand Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Figure 10: New Zealand Capital Budget Expenditure (NZ$ Million), 2015-2024
Figure 11: New Zealand Capital Budget Allocation (US$ million), 2015-2024
Figure 12: New Zealand Defense Services Spending Share - (%) Split by Services (Army, Navy, and Air Force), 2015-2024
Figure 13: New Zealand Spending on Defense Forces in NZ$ Million - Breakdown by Services (Army, Navy, and Air Force) 2015-2024
Figure 14: New Zealand Spending on Defense Services in US$ Billion - Breakdown by Services (Army, Navy, and Air Force) 2015-2024
Figure 15: New Zealand Per Capita Defense Expenditure (US$), 2015-2024
Figure 16: New Zealand Homeland Security Budget (NZ$ Billion), 2015-2024
Figure 17: New Zealand Homeland Security Budget (US$ Billion), 2015-2024
Figure 18: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Figure 19: Defense Expenditure of the World’s Largest Military Spenders (US$ Million), 2019 and 2024
Figure 20: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
Figure 21: New Zealand Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
Figure 22: New Zealand Defense Imports by Country (%), 2014-2018
Figure 23: New Zealand Defense Imports by Category (%), 2014-2018
Figure 24: New Zealand Defense Export Trend (US$ Million), 2014-2018 (TIV Values)
Figure 25: New Zealand Defense Exports by Country (%), 2014-2018
Figure 26: New Zealand Defense Exports by Category (%), 2014-2018
Figure 27: New Zealand Market Share Analysis, 2019
Figure 28: New Zealand GDP Per Capita (US$), 2015-2025
Figure 29: New Zealand GDP, Current Prices (US$ Billion), 2015-2025
Figure 30: New Zealand Exports of Goods and Services (LCU Billion), 2005-2011
Figure 31: New Zealand Imports of Goods and Services (LCU Billion), 2005-2014
Figure 32: Gross National Disposable Income (US$ Billion) 2015-2024
Figure 33: Local Currency per US$, 2015-2024
Figure 34: New Zealand Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 35: New Zealand Market capitalization of Listed Companies (% of GDP), 2005-2012
Figure 36: The New Zealand Government Cash Surplus/Deficit as a Percentage of GDP, 2005-2012
Figure 37: New Zealand Goods Exports as a Percentage of GDP, 2005-2014
Figure 38: New Zealand Goods Imports as a Percentage of GDP, 2005-2014
Figure 39: New Zealand Services Imports as a Percentage of GDP, 2005-2014
Figure 40: New Zealand Service Exports as a Percentage of GDP, 2005-2014
Figure 41: New Zealand Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
Figure 42: New Zealand Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 43: New Zealand Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
Note: Product cover images may vary from those shown
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  • IAI Elta
  • Hyundai Heavy Industries
  • Harris Defence Australia
  • MBDA
  • Pilatus Aircraft Ltd.
  • Beechcraft.
Note: Product cover images may vary from those shown
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