Naperville, IL -- (SBWIRE) -- 10/02/2013 -- Reportstack, provider of premium market research reports announces the addition of Future of the Swedish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 market report to its offering
This report is the result of SDI's extensive market and company research covering the Swedish defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Swedish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Swedish defense industry.
What is the current market landscape and what is changing?
Sweden, the fifth-largest country in Europe, is expected to invest US$36.5 billion in strengthening its armed forces over the forecast period. Defense expenditure, which registered a CAGR of 8.77% during the review period, is anticipated to increase at a CAGR of 0.66% over the forecast period. The forecast military expenditure is influenced by the procurement of new defense systems, Sweden's participation in international peacekeeping missions and international relief action, and border issues. Despite a marginal increase in the country's total defense budget, military expenditure as a percentage of GDP is predicted to decrease from an average of 1.2% during the review period to an average of 1.1% over the forecast period, as the country's defense expenditure is not expected to grow at the same pace as economic growth.
What are the key drivers behind recent market changes?
During the forecast period, Sweden is expected to invest US$36.5 billion in fulfilling its defense requirements. The increase is motivated primarily by reform programs, particularly the military's transition to a rapid-deployment force with a modular structure, Sweden's involvement in peacekeeping missions, and border issues.
What makes this report unique and essential to read?
The Future of the Swedish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with their implications and impact on the Swedish defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Sweden. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
During the review period, the Swedish defense budget grew at a CAGR of 8.77%, and throughout the forecast period it is anticipated to grow at a CAGR of 0.66%. Accordingly, the actual defense budget is expected to increase from US$7.0 billion in 2013 to US$7.4 billion in 2018. However, the budget is not large enough to fulfill all defense requirements, which has led to the cancellation of some projects. For example, the country's SEP (Spitterskyddad Enhets Platform) land vehicle design project, which was jointly undertaken with BAE Systems, was cancelled due to budget constraints. Low budget and the potential cancellation of projects means foreign investors are wary of entering the market.
Offsets are mandatory in Sweden for all defense procurements exceeding US$13.9 million. However, the nation has no provision for multipliers, which discourages foreign suppliers from doing business with Sweden. Countries generally use offset multipliers as a tool to attract investments into industry sectors they consider to be critical or underfunded. Foreign suppliers have shown reluctance while transferring crucial defense technology to Sweden because it is not incentivized by way of offset multipliers. As opposed to Sweden, a significant number of European countries such as the UK, Poland, and Turkey offer multipliers in order to encourage investment in areas such as defense related RandD and transfer of critical technology. As such, the presence of foreign defense firms in European countries which offer multipliers is higher than in Sweden. The absence of multipliers limits the share of foreign defense firms within the Swedish military industry to an estimated 10%.
Modernization initiatives: The Swedish armed forces have announced their aim to procure modern defense equipment to enhance military capabilities. Despite limited increases predicted in the country's defense budget, Sweden is expected to modernize defense equipment through the allocation of a greater percentage of the defense budget for capital expenditure. With the government abolishing conscription services in 2010, the number of defense personnel is expected to decline by an estimated 15%. As a result, the country will be able to allocate a higher portion of the total defense budget to capital expenditure. Sweden intends to improve the mobility and the sophistication of its armed forces, to increase their focus on missions. Due to this, Sweden is anticipated to procure defense equipment such as modified minesweepers, submarines, command and control systems, tactical helicopters, new-generation submarines, mobile artillery-hunting radar systems and armored vehicles, and next-generation Gripen aircraft. Pressure to increase the defense budget to effectively transform the Swedish forces from a conscription army to a voluntary force, is expected to drive the defense budget.
Historically, Sweden was a peaceful country with a low crime rate; however, in recent years criminal activity within the country has increased. In 2011, nearly 20,096 cars were stolen, most of which were not recovered having been moved out of the country to the Baltic States for resale or dismantle. Additionally, robberies have gone up from 8,468 in 2010 to 9,192 in 2011, showing a jump of 8.5%.Sweden has also witnessed an increased rate of burglaries and residential break-ins in the last two years. In an effort to combat the increasing organized crime, police plan to create nine nationally-led taskforces designed to reduce the amount of criminal gangs, drug smugglers, and other gang-related criminals operating within the country. As such, the demand for advanced communication and wireless systems is expected to increase, and Sweden is predicted to procure surveillance systems such as CCTV.
Swedish defense exports registered a sharp decline of 25% in 2012 over 2011, amidst a decline in expenditure on military materials and the prevailing economic crisis in Europe. While the weak export performance in 2012 was mainly due to a general reduction in the number of new orders for the Swedish defense companies, another factor that contributed to a general decline in exports was above average exports in 2011 when several major contracts that were focused on system sales to India, Pakistan, and Thailand, were completed. However, in 2012, there was a significant increase in exports to markets in Asia-Pacific and the Middle East.
SAAB, BAE Systems AB, Kockums AB, Nammo AS, CybAero, Dynasafe AB, Scanjack AB, kers Krutbruk Protection AB, Logica, Niscayah
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