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FEATURED COMPANIES
- ELTA Systems Ltd
- Leonardo
- Raytheon
- Remington Arms Company
1h Free Analyst Time
Speak directly to the analyst to clarify any post sales queries you may have.
Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
Defense budget of the Philippines is set to register a forecast-period CAGR of 8.98%, to reach US$5.3 billion in 2024. The Philippines’ defense expenditure recorded a CAGR of 14.25% over the historic-period and stood at US$3.6 billion in 2019. Over the forecast-period, it is anticipated to register a CAGR of 8.98% to value US$5.3 billion in 2024.
Capital expenditure allocation, which stood at an average of 19.2% during the historic period, will decrease to an average of 15.4% over the forecast period due to the procurement of fighter aircraft, corvettes, Multipurpose Attack Craft (MPAC), and infrastructure construction projects. The share of revenue expenditure increased from 80.8% during the historic period to 84.6% over the forecast period. Population growth will inflate the per capita defense expenditure from US$33.6 in 2020 to US$45.4 in 2024, at a CAGR of 7.27%. Homeland security expenditure is valued at US$3.35 billion in 2019 and grow to US$4.8 billion in 2024, registering a CAGR of 11.33%. Expenditure will primarily be driven by efforts to counter terrorism, human trafficking and the illicit drug trade.
Air and Naval forces modernization is expected to be key objective of the Philippines Horizon II program. In Response to the perceived internal weakness and regional strategic challenges Philippines department of defense has embarked air force and naval transformation process to enhance their capabilities under Horizon II program. The Air force accounts for highest share of 46.60% and has been allocated US$2.61 billion followed by navy which holds 25% share and has allocated close to US$1.44 billion; as compared to air force and navy army accounts for relatively less share of 15.89% and has allocated US$890 million for modernization under horizon phase II.
The US, Indonesia and South Korea are the major suppliers for The Philippines. During 2014-2018, South Korea emerged as the largest supplier of military hardware to The Philippines with a 28.8% share of defense imports, followed by Indonesia and the US with respective shares of 25.8% and 24.5%. South Korea, Indonesia and US has mainly supplied aircraft and naval vessels, a trend anticipated to continue over the forecast period due to the country’s dependence on these three countries as a defense supplier.
The report “Philippine Defense 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. This report offers detailed analysis of the Philippines 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 the report “Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” provides an in-depth analysis of the following -
Companies Mentioned: Raytheon, United Defense Manufacturing Corporation, Leonardo, Remington Arms Company, ELTA Systems Ltd.
Scope
Reasons to buy
Summary
Defense budget of the Philippines is set to register a forecast-period CAGR of 8.98%, to reach US$5.3 billion in 2024. The Philippines’ defense expenditure recorded a CAGR of 14.25% over the historic-period and stood at US$3.6 billion in 2019. Over the forecast-period, it is anticipated to register a CAGR of 8.98% to value US$5.3 billion in 2024.
Capital expenditure allocation, which stood at an average of 19.2% during the historic period, will decrease to an average of 15.4% over the forecast period due to the procurement of fighter aircraft, corvettes, Multipurpose Attack Craft (MPAC), and infrastructure construction projects. The share of revenue expenditure increased from 80.8% during the historic period to 84.6% over the forecast period. Population growth will inflate the per capita defense expenditure from US$33.6 in 2020 to US$45.4 in 2024, at a CAGR of 7.27%. Homeland security expenditure is valued at US$3.35 billion in 2019 and grow to US$4.8 billion in 2024, registering a CAGR of 11.33%. Expenditure will primarily be driven by efforts to counter terrorism, human trafficking and the illicit drug trade.
Air and Naval forces modernization is expected to be key objective of the Philippines Horizon II program. In Response to the perceived internal weakness and regional strategic challenges Philippines department of defense has embarked air force and naval transformation process to enhance their capabilities under Horizon II program. The Air force accounts for highest share of 46.60% and has been allocated US$2.61 billion followed by navy which holds 25% share and has allocated close to US$1.44 billion; as compared to air force and navy army accounts for relatively less share of 15.89% and has allocated US$890 million for modernization under horizon phase II.
The US, Indonesia and South Korea are the major suppliers for The Philippines. During 2014-2018, South Korea emerged as the largest supplier of military hardware to The Philippines with a 28.8% share of defense imports, followed by Indonesia and the US with respective shares of 25.8% and 24.5%. South Korea, Indonesia and US has mainly supplied aircraft and naval vessels, a trend anticipated to continue over the forecast period due to the country’s dependence on these three countries as a defense supplier.
The report “Philippine Defense 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. This report offers detailed analysis of the Philippines 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 the report “Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” provides an in-depth analysis of the following -
- The defense industry market size and drivers: detailed analysis of the Philippines 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 Philippines 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 Philippines 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: Raytheon, United Defense Manufacturing Corporation, Leonardo, Remington Arms Company, ELTA Systems Ltd.
Scope
- The Philippines’ defense expenditure recorded a CAGR of 14.25% over the historic-period and stood at US$3.6 billion in 2019. The growing strength and assertiveness of the Chinese Navy with regards to territorial claims in the South China Sea has spurred the government to enhance its military capabilities
- Capital expenditure allocation, which stood at an average of 19.2% during the historic period, will decrease to an average of 15.4%
- Over the forecast period due to the procurement of fighter aircraft, corvettes, Multipurpose Attack Craft (MPAC), and infrastructure construction projects.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Philippines 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 Philippines 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
FEATURED COMPANIES
- ELTA Systems Ltd
- Leonardo
- Raytheon
- Remington Arms Company
1. Introduction
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Competitive landscape and Strategic Insights
7. Business Environment and Country Risk
8. Appendix
List of Tables
List of Figures
Note: Product cover images may vary from those shown
A selection of companies mentioned in this report includes:
- Raytheon
- United Defense Manufacturing Corporation
- Leonardo
- Remington Arms Company
- ELTA Systems Ltd
Note: Product cover images may vary from those shown
