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The Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

  • ID: 5011790
  • Report
  • March 2020
  • Region: Philippines
  • 100 pages
  • GlobalData
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FEATURED COMPANIES

  • ELTA Systems Ltd
  • Leonardo
  • Raytheon
  • MORE
The Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

Summary

The Philippine Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.

The Philippines’ defense expenditure recorded a CAGR of 8.21% over the historic-period and stood at US$3.8 billion in 2020.Territorial claims in the South China Sea and the increasing strength and assertiveness of the Chinese armed forces have spurred the Philippine government to enhance its military capabilities. In order to achieve this, the Philippine government has approved the Horizon II program under which the Philippines Department of National Defense is expected to spend US$5.6 billion during 2018-2022 on the procurement of military hardware and the modernization of armed forces of the country.

Internal and external threats to the Philippines include the rise of terrorism, tensions in the South China Sea, and the illicit drug trade. Due to these factors, the Philippines is expected to increase its military and homeland security expenditure over the forecast period.

Defence Startup's, Original Equipment Manufacturers (OEMs), Defence Planners, Aerospace and Defence Integrators, Venture Capital Firms, Government Agencies, Head of Marketing, Head of Sales, CEOs and Senior Executives.

The concerned stakeholders can utilize the report to identify high growth segments and customize their offerings to match the project requirements.

The Venture Capital Firms can utilize the project details, growth rate, and market size to identify and fund high potential startups.

This report offers detailed analysis of the Philippine defense market 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 Philippine defense industry market size and drivers: detailed analysis of the India's defense industry during 2021-2025, 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 Philippine defense industry.
Scope
  • The Philippinesan defense market is expected to grow at a CAGR of 9.41% over the forecast period.
  • The Philippine defense market has three major sectors: Infrastructure Construction, Airborne C4ISR, Multi-role Aircraft.
  • Air and Naval forces modernization is expected to be key objective of the Philippines Horizon II program.
Reasons to Buy
  • Determine prospective investment areas based on a detailed trend analysis of the Philippine defense market over the next five years
  • Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Philippine market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
  • Identify the major threats that are driving the Philippine defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
  • Channelize resources by focusing on the ongoing programs that are being undertaken by the Philippine government
  • Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • ELTA Systems Ltd
  • Leonardo
  • Raytheon
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military doctrine and strategy
3.1.3. Procurement Programs
3.1.4. Top Procurement Programs by Value (US$ Million) 2020-2025
3.1.6. Geopolitical, Social and Economic Scenario
3.1.7. Political and strategic alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. The Philippines’ defense budget to grow at a forecast-period CAGR of 9.41%
3.2.2. Tensions in the South China Sea andmodernization initiatives to drive thedefense industry
3.2.3. Defense budget as a percentage of GDP to increase to1.0% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure willslightly decreaseover the forecast period
3.3.2. Capital expenditure is anticipated to record a forecast-period CAGR of 8.80%
3.3.3. The army accounted for the largest percentage share of the overall the Philippines’ defense budget
3.3.4. Army defense expenditure to reach US$2.94 billion in 2025
3.3.5. Percapita defense expenditure to rise over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. The homeland security market will record a forecast-period CAGR of 9.45%
3.4.2. Illicit drug trade and internal armed insurgencies drives homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. The Philippinesdefense budget expected to increase over theforecast period
3.5.2. The Philippines’ defense expenditure is lower than other Asia countries
3.5.3. The defense budget as a percentage of GDP will increase over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Infrastructure Construction
3.6.2. Airborne C4ISR
3.6.3. Multi-role aircraft

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities to drive the country’s defense imports
4.1.2. South Korea,Indonesia, and US are the major suppliers for The Philippines
4.1.3. Aircraft and naval vessels accounted for 80.1% of defense imports
4.2. Export Market Dynamics
4.2.1. The Philippines does not export any defense equipment

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of suppliers: High
5.1.2. Bargaining power of buyers: medium
5.1.3. Barrier to entry: low to medium
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: high
5.2. Market Regulation
5.2.1. Countertrade/offset policy aids the development of the domestic defense industry
5.2.2. Government unveils new procurement rules
5.3. Market Entry Route
5.3.1. Budgeting process
5.3.2. Procurement Policy and Process
5.3.3. Government to Government (G2G)
5.3.4. Collaborations provide market entry opportunities
5.4. Key Challenges
5.4.1. Increase in corruption and lack of transparency impedes industry growth
5.4.2. Erosion in the value of the Philippine Peso will adversely impact defense imports
5.4.3. Low defense capital expenditure may discourage several potential defense suppliers
5.4.4. Impact of COVID-19 outbreak in the Philippines on defense sector

6. Competitive landscape and Strategic Insights
6.1. Competitive landscape Overview
6.1.1. The Philippine Market Share Analysis, 2020
6.2. Key Companies
6.2.1. Raytheon: overview
6.2.2. Raytheon: products
6.2.3. Raytheon: Recent announcements and strategic initiatives
6.2.4. Raytheon: Recent Contract Wins
6.2.5. United Defense Manufacturing Corporation: overview
6.2.6. United Defense Manufacturing Corporation: key products
6.2.7. United Defense Manufacturing Corporation: recent announcements and strategic initiatives
6.2.8. Leonardo: overview
6.2.9. Leonardo: products and services
6.2.10. Leonardo: recent announcements and strategic initiatives
6.2.11. Leonardo: recent contract wins
6.2.12. Remington Arms Company, LLC: overview
6.2.13. Remington Arms Company, LLC: key products and services
6.2.14. Remington: recent announcements and strategic initiatives
6.2.15. Remington Arms Company, LLC: Recent Contract Wins
6.2.16. ELTA Systems Ltd: overview
6.2.17. ELTA Systems Ltd: key products and services
6.2.18. ELTA Systems Ltd: recent announcements and strategic initiatives
6.2.19. ELTA Systems Ltd: Recent Contract Wins

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP per capita at constant prices (US$)
7.1.2. GDP at current prices (US$)
7.1.3. Exports of goods and services
7.1.4. Imports of goods and services
7.1.5. Gross national disposable income (US$ billions)
7.1.6. LCU per US$ (period average)
7.1.7. Market capitalization of listed companies (US$ billions)
7.1.8. Market capitalization of listed companies(percentage of GDP)
7.1.9. Government cash surplus/deficit as a percentage of GDP (LCU)
7.1.10. Goods exports as a percentage of GDP
7.1.11. Goods imports as a percentage of GDP
7.1.12. Service imports as a percentage of GDP
7.1.13. Services exports as a percentage of GDP
7.1.14. Foreign direct investment (FDI), net (BoP, current US$ billions)
7.1.15. Net FDI as a percentage of GDP
7.1.16. Mining, manufacturing, utilities output (PHPtrillion)

8. Appendix
8.1. About the publisher
8.2. Disclaimer

List of Tables
Table 1: The Philippines - Ongoing Development and Procurement Programs (US$ Million)
Table 2: The Philippines - Future Procurement Programs
Table 3: Horizon Phase II Procurements - Army
Table 4: Horizon Phase II planned Procurements - Navy
Table 5: Horizon Phase II planned Procurements - Airforce
Table 6: Philippines- Top Defense Procurement Programs by Value (US$ Million),2020-2025
Table 7: PhilippinesDefense Cooperation
Table 8: Philippines Military Training Exercises
Table 9: The Philippines - Defense Expenditure (PHP Billion and US$ Billion), 2016-2025
Table 10: The Philippines - Naval Procurement programs, 2016-2025
Table 11: The Philippines- GDP Growth and Defense Expenditure as Percentage of GDP Growth (%), 2016-2025
Table 12: The Philippines- Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Table 13: The Philippines- Defense Capital Expenditure (PHPBillion & US$ Billion), 2016-2025
Table 14: The Philippines- Defense Budget Split by Army, Navy, Air Force, and Other Expenditure (%), 2016-2025
Table 15: Philippines Defense Budget in PHP Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2016-2025
Table 16:Philippines Defense Budget in US$Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2016-2025
Table 17: The Philippines- Per Capita Defense Expenditure (US$), 2016-2025
Table 18: The Philippines - Homeland Security Expenditure (PHPBillion and US$ Billion), 2016-2025
Table 19: Benchmarking with Key Markets - 2016-2020 vs. 2021-2025
Table 20: Top Philippines Defense Sectors by Value (US$ Million), 2020-2025
Table 21: The Philippines- Countertrade/Offset Regulations
Table 22: PhilippinesBudget Formation Timetable
Table 23: FMS deals to Philippines
Table 24: Top Defense Suppliers in the Philippines Defense Industry - By Value (US$ Million) 2020-2025
Table 25: Competitive Landscape of The Philippines Defense Industry
Table 26: Raytheon - Key Products
Table 27: Raytheon - Recent Contract Wins
Table 28: United Defense Manufacturing Corporation - Key Products
Table 29: Leonardo - Key Products
Table 30: Leonardo-Finmeccanica - Recent Contract Wins
Table 31: Remington Arms Company, LLC: Key Products
Table 32: Remington Arms Company, LLC. - Recent Contract Wins
Table 33: ELTA Systems Ltd: Key Products
Table 34: ELTA Systems Ltd - Recent Contract Wins

List of Figures
Figure 1: Philippines Defense Budget, 2021 and 2025
Figure 2: PhilippinesDefense Imports, 2015 and 2019
Figure 3 : Philippines’s Top Prospective Procurements/Developments
Figure 4: Philippines National Security Threats
Figure 5: Philippines’s Partner Countries for Defense Cooperation and Military Training
Figure 6: The Philippines- Defense Expenditure (PHP Billion), 2016-2025
Figure 7: The Philippines Defense Expenditure (US$ Billion), 2016-2025
Figure 8: The Philippines GDP Growth and Defense Expenditure as Percentage of GDP Growth (%),2016-2025
Figure 9: The Philippines- Defense Budget Split Between Capital and Revenue Expenditure (%),2016-2025
Figure 10: The Philippines - Defense Capital Expenditure (PHP Billion), 2016-2025
Figure 11: The Philippines- Defense Capital Expenditure (US$ Billion), 2016-2025
Figure 12: The Philippines- Defense Budget Split, Army, Navy, Air Force and Other Expenditure, 2016-2025
Figure 13: The Philippines- Defense Budget, by Service (PHPBillion), 2016-2025
Figure 14: The Philippines- Defense Budget by Service (US$ Billion), 2016-2025
Figure 15: The Philippines- Per Capita Defense Expenditure (US$), 2016-2025
Figure 16: The Philippines- Homeland Security Expenditure (PHPBillion), 2016-2025
Figure 17: The Philippines - Homeland Security Expenditure (US$ Billion), 2016-2025
Figure 18: The Philippines - BenchmarkedAgainst Key Markets (%),2016-2020vs. 2021-2025
Figure 19: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion),2020 and 2025
Figure 20: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2020
Figure 21: The Philippines- Multi-Role Aircraft Market Size (US$ Million), 2020-2025
Figure 22: The Philippines- Airborne C4ISR Market Size (US$ Million), 2020-2025
Figure 23: The Philippines- Multi-Role Aircraft Market Size (US$ Million), 2020-2025
Figure 24: The Philippines- Defense Imports (US$ Million), 2015-2019 (TIV values*)
Figure 25: The Philippines- Defense Imports by Country (%),2015-2019
Figure 26: The Philippines- Defense Imports by Category (%), 2015-2019
Figure 27: Industry Dynamics Porter’s Five Forces Analysis
Figure 28: Key Challenges
Figure 29: The Philippine Defense Market Share Analysis, 2020
Figure 30: The Philippines- GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 31: The Philippines- GDP at Current Prices (US$ Billion), 2015-2025
Figure 32: The Philippines- Exports of Goods and Services (LCU Billion), 2005-2014
Figure 33: The Philippines- Imports of Goods and Services (US$), 2005-2014
Figure 34: The Philippines- Gross National Disposable Income (US$ Billion), 2009-2012
Figure 35: The Philippines- LCU per US$, 2016-2025
Figure 36: The Philippines- Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 37: The Philippines- Market Capitalization of Listed Companies (Percentage of GDP), 2005-2012
Figure 38: The Philippines- Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2005-2012
Figure 39: The Philippines - Goods Exportsas a Percentage of GDP (%), 2005-2014
Figure 40: The Philippines - Goods Imports as a Percentage of GDP (%), 2005-2014
Figure 41: The Philippines- Services Imports as a Percentage of GDP (%), 2005-2014
Figure 42: The Philippines- Services Exports as a Percentage of GDP (%), 2005-2014
Figure 43: The Philippines- FDI, Net (BoP, Current US$ Billion), 2005-2014
Figure 44: The Philippines- Net FDI as a Percentage of GDP, 2005-2014
Figure 45: The Philippines- Mining, Manufacturing, Utilities Output (PHP Trillion), 2005-2014
Note: Product cover images may vary from those shown
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  • Raytheon
  • United Defense Manufacturing Corporation
  • Leonardo
  • Remington Arms Company LLC
  • ELTA Systems Ltd
Note: Product cover images may vary from those shown
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