Naperville, IL -- (SBWIRE) -- 06/26/2012 -- This report is the result of SDI/ICD Research’s extensive market and company research covering the Irish defense industry. It 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 Irish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) in order to gain market share in the Irish defense industry.
What is the current market landscape and what is changing?
The Irish defense market, which registered significant decline during the review period, is expected to continue declining, but with a small CAGR of -0.25% during forecast period. The Irish government plans to introduce more cuts and increase savings in the defense department during the forecast period. Due to anticipated budget cuts, defense expenditure as a percentage of GDP is also projected to decrease further, and drop to 0.46% by 2016.
What are the key drivers behind recent market changes?
Factors such as international peacekeeping missions and crisis management operations are expected to stimulate defense expenditure during the forecast period. While striving to come out of sovereign debt crisis, the National Recovery Plan 2011-2014 would introduce further cuts in defense expenditure with a target of EUR109 million savings by 2014. This would result in the postponing of weapons and equipment procurement for armed forces by the defense department.
What makes this report unique and essential to read?
The Irish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas of the defense market.
Key Features and Benefits
The report provides detailed analysis of the current Irish defense industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with its implications and impact on the Irish 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 Ireland. 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
In 2011 Ireland had a defense budget of US$1.3 billion and invests just 0.6% of its GDP in defense. This is small in comparison with the UK and France, which spend 2.3% and 2.1%, respectively, of their GDP on defense. In addition, Ireland’s defense budget is expected to decline further in the forecast period. In the Irish defense industry, with small companies with little specialization in weapon categories, foreign weapon suppliers face infrastructure challenges in entering the market.
Ireland is a member of the EDA, which was formed to improve European defense capabilities and to create a single defense equipment market. Consequently, the Irish government gives preference to European countries for the import of defense equipment. The EU issued a directive in 2009 which simplified the terms and conditions of transfers of defense products within the EU and coordinated procedures for the award of defense contracts. This acts as a barrier for non-EU companies trying to enter into the Irish defense market.
Key Highlights
Irish defense expenditure is estimated to be US$1.23 billion during 2012. During the forecast period, it is expected to record a CAGR of -0.25% and reach US$1.22 billion by 2016. Over the next five years, the country’s defense expenditure will continue to be driven by overseas peace support, crisis management, and humanitarian operations.
The high rate of cyber-attacks puts emphasis on cyber security to improve corporate and national defense. Many firms are attracted to Ireland due to its beneficial environment for technology. In 2012, Total Defense Internet Security Ireland Limited announced the establishment of the European Operations Hub, and Georgia Tech Research Institute (GTRI) is planning to open a European threat center against cyber-attacks.
Companies Mentioned
Timoney Technology Ltd.Western Avionics Ltd.L-3 Communications ESSCO Collins Limited (ECL)DDC Ireland Ltd.