Naperville, IL -- (SBWIRE) -- 10/22/2013 -- Reportstack, provider of premium market research reports announces the addition of Future of the Swiss 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 Swiss 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 Swiss 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 Swiss defense industry.
What is the current market landscape and what is changing?
The Swiss defense budget, which is projected to be US$5.3 billion in 2014, is expected to increase at a CAGR of 2.6% during the forecast period, reaching US$5.8 billion by 2018. Defense expenditure amounted to 0.8% of overall GDP in 2013, and is expected to remain at that level over next five years despite a steady increase in budget expenditure. The upward movement in expenditure is primarily due to the government's steps to procure new defense systems, as well as the country's participation in international peacekeeping missions. Per-capita defense spending is expected to grow during the forecast period. The capital expenditure budget, which stood at an average of 34.9% in the review period, is expected to increase to 36.1% in the forecast period, due to the government's modernization plans. The country's budget for homeland security is projected to increase over the coming couple of years, driven by increasing threats to cyber security, terrorist financing activities and internal security. Demand for equipment is mainly expected to revolve around fighter aircraft, procurement of new generation armored vehicles and the purchase of spare parts, over the forecast period..
What are the key drivers behind recent market changes?
Switzerland will primarily focus its defense expenditure on the procurement of new advanced equipment, as well as towards international cooperation operations. In the upcoming years, the government is looking forwards to investing in the acquisition of technologically superior arms and ammunitions, which will strengthen the armed forces and make them better equipped to combat both internal and external attacks.
What makes this report unique and essential to read?
The Future of the Swiss 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 2014to 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 Swiss 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 Switzerland. 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
As a peace-loving country, Switzerland promotes armed neutrality, which implies that the country does not ally with any side in the event of war, but trains its armed forces for self-defense and internal protection. In line with this principle, Switzerland cannot form military alliances unless the nation faces attack from an external force. The country is also prevented from giving consent for the transit for foreign forces. In such a scenario, the defense expenditure of the country is likely be impacted, and the government will direct their budget towards the development of banking, timepiece and tourism industries, in order to boost growth, the employment rate and overall economic prosperity. This is likely to be a disappointment for foreign defense companies, which will see Switzerland as a less attractive destination for defense related investments, affecting the transfer of technological knowledge and other offset programs.
The after-effects of the global economic crisis, combined with low threat levels from external sources, have restricted the Swiss government from spending significantly upon defense purposes. The Eurozone crisis and the subsequent stagnation in economic growth have pressurized the government to reconsider their defense expenditure. Furthermore, the country now faces a low, but growing risk of refugees flowing over its borders, as a result of the advent of civil unrest in Europe. These factors are expected to limit defense expenditure of the country, with investment in the coming years concentrated on the procurement of Gripen aircraft with the already allocated funds. This will result in an increase in the country's capital expenditure over the next couple of years, but at a decreasing rate.
Most of the equipment currently maintained by the Swiss armed forces', including arms and ammunitions, is old and nearing obsolescence, approaching the end of a useful service life. Utilization of this equipment is anticipated to increase the maintenance and repair expenses. As a result, the Swiss government is on track to boost its expenditure on the acquisition of high-end and more advanced military systems. This equipment is expected to enhance the fighting strength of the country's armed forces. In 2011, the government decided to retire its obsolete F-5 Tiger fighter jets under the Tiger-Partial Replacement TTE program. They will be replaced with the purchase of 22 Gripen jet fighters planes from Sweden'sSaab AB, over the next 10 years, with the first delivery expected to come in late 2018. In this regard, the Swiss defense department has assigned a fund of US$342.0 million in the budget of 2013. Additionally, the government intends to add military trucks, vans, 1-axle trailers, and armored personnel cars to its fleet of vehicles. Switzerland also intends to incur expenditure on the design, testing and procurement of superior armor material.
Once considered to be one of the safest countries in Europe, more recently Switzerland has succumbed to a growth in street violence, thefts and assaults. In 2011, the country witnessed an increase in residential and vehicle break-ins, whilst incidents of pick-pocketing are frequently reported in downtown areas of Geneva, and on the country's rail network.In 2013, offences under the Criminal Code increased by 9%and thefts were 11% higher than the previous year. There was also a 15% rise in criminal activities recorded under the Foreign Nationals Act; a study of the eight cantonal police services in 2012, recorded criminal cases involving North Africans to have increased during 2009-2012. Regionally, Zurich, Geneva, Vaud and Bern record the highest rates of crime, with Geneva and Vaud being highly exposed to cross-border illegal activities due to their locations. In order to tackle illegal acts, the Swiss government aims to invest in surveillance and intelligence technologies, such as electronic identification documents, e-passports, automated border crossing systems, and closed circuit television (CCTV) systems.
Switzerland's domestic defense equipment production includes aircraft, air defense systems, sensors and armored vehicles. The country stood as one of Europe's largest exporters of arms and ammunitions before restrictive export laws were introduced in 2008. These have worked as a disadvantage to the domestic manufacturers, compared to other European nations. Under the present scenario, the export of military supplies involving arms, munitions and equipment requires the approval of the State Secretariat for Economic Affairs (SECO), while the Federal Department of Foreign Affairs (FDFA) reviews every application for export licenses to ensure that compliance with international law, and the principles of Swiss foreign policy.
Pilatus Group, RUAG Defence, Thales, General Dynamics European Land Systems, Rheinmetall Air Defence AG, Atos AG, Meteolabor AG ,
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