The Danish Defense Industry to 2024 - The Defense Budget is Expected to Reach $4.3 Billion in 2024 - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Apr 10, 2019--The “Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024” report has been added to ResearchAndMarkets.com’s offering.
The report 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.
Russia’s annexation of Crimea in 2014 and the country’s increasing assertive behavior in Eastern Europe has led to Denmark paying more attention to deterrence in the Baltic region by adapting to NATO’s new priorities with regards to the reinforcement of collective defense and deterrence. Also, growing instability in the Sahel-region, North Africa and the Middle East provides a breeding ground for Islamic militants that create the foundation for terrorism and illegal migration threatening Denmark’s sovereignty and security.
Denmark’s military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019. Over the forecast period, the country’s defense budget is expected to increase from US$4 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%. The country’s defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
The country’s homeland security (HLS) expenditure decreased from US$90.3 million in 2015 to US$66.9 million in 2019, at a CAGR of -7.23%. Over the forecast period, expenditure on HLS is projected to decrease further, from US$66.9 million in 2020 to US$64.9 million in 2024, at a CAGR of -0.78%. The decrease in HLS spending is a result of the country’s increasing focus on military modernization and defense procurements. However, the HLS spending will be primarily driven by efforts to combat the rising number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend the country’s borders.
While Denmark is majorly dependent on the US for its defense equipment, there was a considerable increase in the country’s defense exports during 2014-2018. In 2012, the Danish government formulated the Open to Business initiative, under which the country aimed to boost its exports of military goods and services. The initiative also tasked the Ministry of Defense (MoD) with helping its domestic manufacturers to gain access to advanced technology through its offset programs.
- Denmark’s military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019.
- Over the forecast period, the country’s defense budget is expected to increase from US$4 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%.
- The country’s defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
Reasons to Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Danish defense industry market trends for the coming five years.
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.
- A deep qualitative analysis of the Danish defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.
Key Topics Covered
1.1. What is this Report About?
1.3. Summary Methodology
1.4. About the Publisher
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Procurement Programs
3.1.4. Ongoing procurement programs
3.1.5. Future procurement programs
3.1.6. Top Procurement Programs By Value (US$ Million), 2019-2024
3.1.7. Geopolitical, Social and Economic Scenario
3.1.8. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Danish defense expenditure expected to register a CAGR of 1.61% over the forecast period
3.2.2. Growing Russian assertiveness, participation in NATO peacekeeping operations and increase in cyberattacks are expected to drive defense expenditure over the forecast period
3.2.3. Denmark’s defense expenditure as a percentage of GDP expected to remain stable
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure is expected to account for 36.8% of the defense budget over 2020-2024
3.3.2. Capital expenditure is expected to record a CAGR of 2.99% over the forecast period
3.3.3. Per-capita defense expenditure set to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Danish homeland security expenditure expected to exhibit a negative CAGR of 0.78% during 2020-2024
3.4.2. Cyber security and counter terrorism are the country’s main homeland security concerns
3.5. Benchmarking with Key Global Markets
3.5.1. Denmark defense budget expected to increase at a higher rate than other European countries over the forecast period
3.5.2. Danish defense budget expected to remain low compared to other European countries
3.5.3. Denmark allocates a low share of GDP to defense compared to most European countries
3.6. Market Opportunities: Key Trends
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
3.6.2. Multirole Aircraft
3.6.3. Vehicular-based Tactical Communication Systems
3.6.4. Land-based C4ISR
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase over the forecast period
4.1.2. Denmark sourced most of its arms imports from the US
4.1.3. Sensors and aircraft dominate military hardware imports
4.2. Export Market Dynamics
4.2.1. Arms exports to recover over the forecast period
4.2.2. Portugal, Malaysia, Finland, Algeria, and Oman are the main purchasers of Danish arms
4.2.3. Sensors and ships together accounted for the majority of exported defense products
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: High
5.1.3. Barrier to Entry: Low
5.1.4. Intensity of Rivalry: Medium to High
5.1.5. Threat of Substitution: High
6. Market Entry Strategy
6.1. Budgeting Process
6.2. Procurement Policy and Process
6.3. Market Regulation
6.3.1. Offset policy aids development of domestic defense industry
6.3.2. Denmark permits 100% foreign direct investment in the defense sector
6.4. Market Entry Route
6.4.1. Forming subsidiaries or acquiring Danish companies are preeminent market entry opportunities
6.4.2. Forming consortiums and product development agreements open new market entry strategy choices
6.4.3. Joint weapon development programs are a viable market entry opportunity
6.5. Key Challenges
6.5.1. Low defense budget and limited technological capability hinder the Danish defense market
6.5.2. Preference given to procurements from US and Nordic countries
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Danish defense sector is dominated by domestic competitors
7.1.2. Denmark Market Share Analysis, 2019-2024
7.2. Key Domestic Companies
7.2.1. Systematic A/S
7.2.2. Terma A/S
7.2.3. Copenhagen Sensor Technology ApS
7.2.4. Danish Aerotech A/S
7.2.5. Falck Schmidt Defense Systems A/S
7.2.6. IFAD TS A/S
7.3. Key Foreign Companies
7.3.1. Lockheed Martin Denmark
7.3.2. TenCate Advanced Armour Denmark A/S
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per Capita
8.1.2. GDP, current US$ Billion
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per US$, Period Average
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Government Cash Surplus/Deficit (% of GDP) (LCU)
8.1.10. Goods Exports (% of GDP)
8.1.11. Goods Imports (% of GDP)
8.1.12. Services Imports (% of GDP)
8.1.13. Services Exports (% of GDP)
8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
8.1.15. Net FDI (% of GDP)
8.1.16. Mining, Manufacturing, Utilities Output
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Related Topics:Military Aerospace and Defense
KEYWORD: EUROPE DENMARK
INDUSTRY KEYWORD: DEFENSE OTHER DEFENSE
SOURCE: Research and Markets
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PUB: 04/10/2019 11:50 AM/DISC: 04/10/2019 11:50 AM