+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Algerian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

  • ID: 5019167
  • Report
  • April 2020
  • Region: Algeria
  • 97 pages
  • GlobalData
1h Free Analyst Time

Speak directly to the analyst to clarify any post sales queries you may have.

1 of 3

FEATURED COMPANIES

  • JSC Rosoboronexport
  • NIMR-Algerie
  • MORE
Algerian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

Summary

The Algerian 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.

Algeria continues to grapple with terrorism, due to spillover from Libya and the presence of radical fundamentalists within the country. On February 10th 2020, an Islamic State (IS) suicide bomber targeted Algerian military barracks in Southern Algeria. The attack killed an Algerian soldier. The country faces an ever present threat of radicalism and terrorism spilling over from neighboring Libya and Mali. Regional instability and tensions across the Sahel, as well as economic, social, and political instability due to ongoing anti-regime protests, have forced the government to prioritize defense and security. The country is anticipated to implement a slew of reforms to overhaul its corrupt political-administrative apparatus, and the current administration could yield to public demand andcurtail the Army’s role in the political process.

Algeria is currently the largest military spender in the African region, with a defense budget of US$10.3 billion in 2020. The country’s increasing military expenditure is driven by the ongoing modernization drive due to security challenges and the arms race witnessed in the North African region. The country’s ongoing rivalry with Morocco is likely to fuel an arms race, and Tunisia is also investing militarily. The threat of terrorism from the Al-Qaeda in the Islamic Maghreb (AQIM) and the Islamic State operating in North Africa are the major factors driving military and security expenditure.

Algeria is expected to procure and invest in segments such as air defense systems, High Altitude Long Endurance (HALE) UAVs, transport aircraft, multirole fighters, armored vehicles and patrol craft.

This report offers detailed analysis of the Algerian 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 Algerian defense industry market size and drivers: detailed analysis of the Algeria'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 Algerian defense industry.
Scope
  • Algerian defense expenditure is expected to grow at a CAGR of 3.41% over the forecast period to reach US$12.1 billion in 2025.
  • The Algerian defense market has three major sectors: Multirole aircraft, Land Based C4ISR and Airborne C4ISR, .
  • In September 2019, the Algerian Ministry of National Defense (MoND), signed a US$1.8-2.0 billion deal to acquire additional Su-30MKA and MiG-29M/M2 multirole combat aircraft, from its close defense partner Russia.
  • While the country was previously negotiating for the sale of Su-34 strike aircraft, the deal seems to have fallen through and instead the country opted to expand its existing fleet of 58 Su-30MKA multirole aircraft by ordering an additional 16 units.
  • As part of the deal Algeria is likely to receive 14 MiG-29M/M2 multirole combat aircraft, augmenting the fleet of 30 MiG-29 family aircraft currently in service with the Algerian Air Force.
Reasons to Buy
  • Determine prospective investment areas based on a detailed trend analysis of the Algerian 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 Algerian 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 Algerian 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 Algerian 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

  • JSC Rosoboronexport
  • NIMR-Algerie
  • 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
3.1.5. Geopolitical, Social, and Economic Scenario
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size: Historical and Forecast
3.2.1. Algeria’s defense budget to grow at a CAGR of 3.41% over the forecast period
3.2.2. Rising threat of terrorism and military competition with Morocco to drive Algeria’s defense expenditure
3.2.3. The defense budget as a percentage of GDP will remain at an average of 6.3% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure’s share of the budget is expected to marginally increase over the forecast period
3.3.2. Capital expenditure is expected to record a CAGR of 3.41% over the forecast period
3.3.3. Algerian per-capita defense expenditure is expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. The homeland security market in Algeria is expected to grow at a CAGR of 2.24% over the forecast period
3.4.2. Human trafficking and drug trafficking are the main drivers of homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. Algerian defense expenditure is expected to remain low compared to leading spenders
3.5.2. Algeria will continue to dominate the arms market in the Africa region
3.5.3. Defense budget as a percentage of GDP is expected to remain high compared to other countries over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Market Categories by Value (US$ Million), 2020-2025
3.6.2. Multirole Aircraft
3.6.3. Land Based C4ISR
3.6.4. Airborne C4ISR

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports increased during 2015−2019
4.1.2. Russia, China, Germany, and Italy are Algeria’s major defense equipment suppliers
4.1.3. Aircraft, naval vessels and armored vehicles accounted for 78.6% of the Algerian defense imports
4.2. Export Market Dynamics
4.2.1. Algeria does not export arms due to an undeveloped domestic arms industry

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Low to Medium
5.1.2. Bargaining Power of Buyer: Medium
5.1.3. Barriers to Entry: High
5.1.4. Intensity of Rivalry: Low to Medium
5.1.5. Threat of Substitution: Low to Medium

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Formal offset policy to be drafted to ensure growth of the country’s domestic defense manufacturing industry
6.1.2. Foreign direct investment and joint ventures in terms of defense
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Defense Procurement Process
6.2.3. Collaborations provide market entry opportunities
6.2.4. Government-to-government agreements are the preferred market entry route for foreign OEMs
6.3. Key Challenges
6.3.1. Corruption and lack of transparency pose an obstacle for market entry
6.3.2. Lack of relevant defense procurement policy
6.3.3. Volatility in global oil prices could impact Algerian defense expenditure
6.3.4. Steep rise in COVID-19 Infections in Algeria may jeopardize defense spending

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Foreign suppliers manufacture defense systems overseas to deliver to Algeria
7.2. Algerian Market Share Analysis, 2020-2025
7.2.1. Rosoboronexport: Overview
7.2.2. Rosoboronexport: Products
7.2.3. Rosoboronexport: Recent Announcements and Strategic Initiatives
7.2.4. Rosoboronexport: Alliances
7.2.5. Rosoboronexport: Recent Contract Wins
7.3. Key Domestic Companies
7.3.1. Entreprise Nationale des Véhicules Industriels: Overview
7.3.2. Entreprise Nationale des Véhicules Industriels: Products and Services
7.3.3. Entreprise Nationale des Véhicules Industriels: Recent Announcements and Strategic Initiatives
7.3.4. Entreprise Nationale des Véhicules Industriels: Alliances
7.3.5. NIMR-Algeria Joint Stock Company: Overview
7.3.6. NIMR-Algeria Joint Stock Company: Products
7.3.7. Khenchela Mechanical Constructions Establishment (ECMK): Overview
7.3.8. Khenchela Mechanical Constructions Establishment: Products
7.3.9. Khenchela Mechanical Constructions Establishment: Recent Announcements and Strategic Initiatives
7.3.10. Khenchela Mechanical Constructions Establishment: Alliances
7.3.11. Seriana Company of Industrial Achievements (ERIS): Overview
7.3.12. Seriana Company of Industrial Achievements: Products
7.3.13. National Office of Explosive Substances, EPE (ONEX): Overview
7.3.14. National Office of Explosive Substances: Products

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per-Capita at Constant Prices (US$)
8.1.2. GDP at Current Prices (US$ Billion)
8.1.3. Exports of Goods and Services,LocalCurrencyUnit (LCU Billion)
8.1.4. Imports of Goods and Services, Local Currency Unit (LCU Billion)
8.1.5. Gross national Disposable Income (US$ Billion)
8.1.6. Local Currency Unit (LCU) per US$ (Period Average)
8.1.7. Government Cash Surplus/Deficit asa Percentage of GDP, Local Currency Unit (LCU)
8.1.8. Goods Exports as a Percentage of GDP
8.1.9. Goods Imports as a Percentage of GDP
8.1.10. Services Imports as a Percentage of GDP
8.1.11. Services Exports as a Percentage of GDP
8.1.12. Foreign Direct Investment, Net (Balance of Payments or BoP, Current US$ Billion)
8.1.13. Net Foreign Direct Investment as a Percentage of GDP
8.1.14. Mining, Manufacturing, Utilities Output (Local Currency Units or LCU, Billion)

9. Appendix
9.1. About the Publisher
9.2. Disclaimer

List of Tables
Table 1: Algeria - Ongoing Development and Procurement Programs
Table 2: Algerian - Future Procurement Programs
Table 3: Algerian Top Defense Procurement Programs by Value (US$ Million),2020-2025
Table 4: Algerian Defense Expenditure (DZD Billion and US$ Billion), 2016-2025
Table 5: Algerian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2016-2025
Table 6: Algerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Table 7: Algerian Defense Capital Expenditure (DZD Billion and US$ Billion), 2016-2025
Table 8: Algerian Per Capita Defense Expenditure (US$), 2016-2025
Table 9: Algerian Homeland Security Expenditure (DZDBillion& US$ Billion), 2016-2025
Table 10: Benchmarking with Key Markets, 2016-2020 v/s 2021-2025
Table 11: Algerian 10 Leading Defense Market Categories by Value (US$ Million),2020-2025
Table 12: Competitive Landscape of the Algerian Defense Industry
Table 13: Algeria - Top 10 Defense Suppliers by Value (US$ Million),2020-2025
Table 14: Rosoboronexport-Products
Table 15: Rosoboronexport - Alliances
Table 16: Rosoboronexport - Recent Contract Wins
Table 17: Entreprise Nationale des Véhicules Industriels - Products and Services
Table 18: Entreprise Nationale des Véhicules Industriels - Alliances
Table 19: NIMR-Algeria- Products
Table 20: Khenchela Mechanical Constructions Establishment - Products
Table 21: Khenchela Mechanical Constructions Establishment (ECMK)- Alliances
Table 22: Seriana Company of Industrial Achievements -Products
Table 23: National Office of Explosive Substances - Products

List of Figures
Figure 1: Algerian Defense Budget,2020 and 2025
Figure 2: Algerian Defense Imports/Exports, 2015 and 2019
Figure 3: Algerian Top Prospective Procurements/Developments
Figure 4: Algerian National Security Threats
Figure 5: Algeria’s Partner Countries for Defense Cooperation and Military Training
Figure 6: Algerian Defense Expenditure (DZD Billion), 2016-2025
Figure 7: Algerian Defense Expenditure (US$ Billion), 2016-2025
Figure 8: Algeria’s GDP Growth and Defense Expenditure as a Percentage of GDP Growth,2016-2025
Figure 9: Algerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Figure 10: Algerian Defense Capital Expenditure (DZD Billion), 2016-2025
Figure 11: Algerian Defense Capital Expenditure (US$ Billion), 2016-2025
Figure 12: Algerian Per Capita Defense Expenditure (US$), 2016-2025
Figure 13: Algerian Homeland Security Expenditure (DZD Billion), 2016-2025
Figure 14: Algerian Homeland Security Expenditure (US$ Billion), 2016-2025
Figure 15: Benchmarking with Key Markets, 2016-2020 v/s 2021-2025
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2020 and 2025
Figure 17: Defense Expenditure as a Percentage of GDP of the Largest Military Spenders (%), 2020
Figure 18: Multirole Aircraft Market Size (US$ Million), 2020-2025
Figure 19: Land Based C4ISR Market Size (US$ Million), 2020-2025
Figure 20: Airborne C4ISR Market Size(US$ Million), 2020-2025
Figure 21: Algeria Defense Import Trend (US$ Million), 2015-2019 (TIV Values*)
Figure 22: Algerian Defense Imports by Country (%), 2015-2019
Figure 23: Algerian Defense Imports by Category (%), 2015-2019
Figure 24: Industry Dynamics - Porter’s Five Forces Analysis
Figure 25: Algerian Budgeting Process
Figure 26: Key Challenges
Figure 27: Algerian Market Share Analysis, 2020-2025
Figure 28: Algeria’s GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 29: Algeria’s GDP at Current Prices (US$ Billion), 2015-2025
Figure 30: Algeria’s Exports of Goods and Services (LCU Billion), 2005-2014
Figure 31: Algeria’sImports of Goods and Services (LCU Billion), 2005-2014
Figure 32: Algeria’s Gross National Disposable Income (US$ Billion), 2005-2014
Figure 33: Algeria’s LCU per US$, 2015-2024
Figure 34: Algeria’s Government Cash Surplus/Deficit as a Percentageof GDP (LCU), 2005-2011
Figure 35: Algeria’s Goods Exportsas a Percentage of GDP (%), 2005-2014
Figure 36: Algeria’s Goods Exportsas a Percentage of GDP (%), 2005-2014
Figure 37: Algeria’s Services Imports as a Percentage of GDP (%), 2005-2013
Figure 38: Algeria’s Services Exports as a Percentage of GDP (%), 2005-2013
Figure 39: Algeria’s Foreign Direct Investment, net (BoP, Current US$ Billion), 2005-2013
Figure 40: Algeria’s Net Foreign Direct Investment as a Percentage of GDP, 2005-2013
Figure 41: Algeria’s Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
Note: Product cover images may vary from those shown
3 of 3

Loading
LOADING...

4 of 3
  • JSC Rosoboronexport
  • Entreprise Nationale des Véhicules Industriels
  • NIMR-Algerie
  • Khenchela Mechanical Constructions Establishment (ECMK)
  • Seriana Company of Industrial Achievements (ERIS)
Note: Product cover images may vary from those shown
Adroll
adroll