Description
Product Synopsis
This report is the result of ICD Research / Strategic Defence Intelligence's extensive market and company research covering the Swedish 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 Swedish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 offers the reader insights 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 during the forecast period. Defense expenditure, which registered a CAGR of 1.9% during the review period, is anticipated to increase at a CAGR of 2.4% throughout the forecast period. The forecast military expenditure is influenced by tensions with Russia, the procurement of new defense systems and Sweden's participation in international peacekeeping missions. Despite a marginal increase in the country's total defense budget, military expenditure as a percentage of GDP is predicted to decrease during 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?
Swedish defense expenditure is primarily driven by reform programs, particularly the military's transition to a rapid-deployment force with a modular structure, Sweden's involvement in peacekeeping missions, its strained relationship with Russia, and its new acquisition of military hardware systems.
What makes this report unique and essential to read?
The Swedish defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, 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
Market opportunity and attractiveness
The report provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, 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.
Procurement dynamics
The report includes trend analysis of imports and exports, together with their implications and impact on the Swedish defense industry.
Industry structure
The report covers five forces analysis to identify various power centers in the industry and how these are forecast to develop in the future.
Market entry strategy
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.
Competitive landscape and strategic insights
The report helps the reader to understand the competitive landscape of the defense industry in Sweden. It provides an overview of key defense companies, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
Cancellation of projects due to low defense budget deters investors from entering the market
Despite the marginal increase expected for the country's total defense budget during the forecast period, the actual defense budget is expected to increase from US$6.73 billion in 2012 to US$7.62 billion in 2017. 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 to enter the market.
The absence of multipliers in the offset policy discourages foreign suppliers
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 while 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 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%.
Imports accounts for only 10% of the demand
Sweden possesses a well-developed domestic defense capability, and is able to produce advanced defense systems such as fighter aircrafts, submarines and naval vessels from domestic defense companies. However, defense products manufactured in the country are highly sophisticated, which increases training requirements, and are also expensive. As a result, the country procures military equipment from foreign defense firms through competitive bidding in order to reduce costs. As such, imports account for the remaining 10% of demand for defense equipment. During the forecast period Swedish defense imports are not anticipated to increase significantly, as a result of the country's attempts to reduce total defense expenditure.
Key Highlights
Swedish defense expenditure expected to register a CAGR of 2.4% during the forecast period
Swedish defense expenditure, valuing US$6.7 billion in 2012, registered a CAGR of 1.9% during the review period. During the forecast period it is expected to grow at a CAGR of 2.4% to reach US$7.6 billion in 2017. On a cumulative basis, Sweden is expected to invest US$36.5 billion in its armed forces during the forecast period, a figure primarily stimulated by factors such as international peacekeeping missions, government modernization initiatives, and new security threats posed by Russia.
Capital expenditure allocation expected to increase during the forecast period
Throughout the review period, the average capital expenditure allocation of the total Swedish defense budget was 45%; however, in 2012 it is expected to be 46.8%. Despite the minimal increase in the country's total defense budget, the capital expenditure allocation is expected to increase to an average of 48% during the forecast period, as a consequence of a reduction in the troop size of the Swedish Armed Forces and armed forces modernization initiative.
Defense expenditure as a percentage of GDP is expected to decline during the forecast period
During the review period, the country allocated an average of 1.23% of its GDP to military expenditure, although this is expected to decrease to an average of 1.1% during the forecast period. Since 2005, Swedish defense expenditure as a percentage of GDP has registered constant declines, as the country's defense expenditure has not increased in accordance with overall economic growth.
Per capita defense expenditure expected to increase over the forecast period
Due to the expected increase in defense expenditure over the forecast period and marginal growth in the birth rate in the country, average per capita defense expenditure is projected to witness an increase during the forecast period. The population is forecast to increase between 2013 and 2017 at an average rate of 0.47% compared to 0.6% registered during the review period. This will result in an increased per capita in defense expenditure from an average of US$641 in the review period to US$760 in the forecast period.
Table of Contents
1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Swedish defense expenditure expected to register a CAGR of XX% during the forecast period
3.1.2. Peacekeeping missions, tensions with Russia and modernization initiatives expected to fuel Swedish defense expenditure
3.2. Analysis of Defense Budget Allocation
3.2.1. Capital expenditure allocation expected to increase during the forecast period
3.2.2. Defense expenditure as a percentage of GDP is expected to decline during the forecast period
3.2.3. Per capita defense expenditure expected to increase over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Swedish police budget expected to increase during the forecast period
3.3.2. Homeland security expenditure to be driven by Sweden's efforts to counter organized crime
3.3.3. Sweden falls under "Low risk" of terrorism category
3.4. Benchmarking with Key Global Markets
3.4.1. Swedish defense expenditure is expected to remain modest during the forecast period
3.4.2. The country's defense budget is moderate compared to other leading spenders
3.4.3. Sweden allocates a lower share of GDP for defense compared to countries with significant global defense expenditure
3.4.4. Sweden faces negligible threat from foreign terrorist organizations
3.4.5. Sweden emerged as XX-largest global arms exporter during 2007-2011
3.5. Market Opportunities: Key Trends and Drivers
3.5.1. Demand for land defense systems expected to increase
3.5.2. Defense communication systems predicted to experience rapid increase in demand
3.5.3. Demand for unmanned aerial vehicles is expected to increase
3.5.4. Air Force modernization to drive demand over the forecast period
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports registered growth during 2007-2011
4.1.2. Sweden aims to diversify arms imports
4.1.3. Missiles accounted for the majority of defense imports in 2011
4.2. Export Market Dynamics
4.2.1. Swedish defense exports increased in 2011
4.2.2. Sweden aims to enter non-European defense markets
4.2.3. Aircraft account for the majority of Swedish defense exports
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: high
5.1.5. Threat of Substitution: high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Swedish government encourages offsets in order to form defense partnerships with different countries
6.1.2. Swedish defense industry is open to foreign direct investment
6.2. Market Entry Route
6.2.1. Acquisition of a domestic defense company is preferred entry route
6.2.2. Foreign OEMs gain industry access through joint research and development programs
6.2.3. Foreign investors enter the market through direct sales
6.3. Key Challenges
6.3.1. Cancellation of projects due to low defense budget deters investors from entering the market
6.3.2. The absence of multipliers in the offset policy discourages foreign suppliers
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Public Sector Companies
7.2.1. SAAB - Overview
7.2.2. SAAB - Major Products and Services
7.2.3. SAAB - Recent Announcements and Strategic Initiatives
7.2.4. SAAB - Alliances
7.2.5. SAAB - Recent Contract Wins
7.2.6. SAAB - Financial Analysis
7.3. Key Private Sector Companies
7.3.1. BAE Systems AB - Overview
7.3.2. BAE Systems AB - Major Products and Services
7.3.3. BAE Systems AB - Recent Announcements and Strategic Initiatives
7.3.4. BAE Systems AB - Alliances
7.3.5. BAE Systems AB - Recent Contract Wins
7.3.6. Kockums AB - Overview
7.3.7. Kockums AB - Major Products and Services
7.3.8. Kockums AB - Recent Announcements and Strategic Initiatives
7.3.9. Kockums AB - Alliances
7.3.10. Kockums AB - Recent Contract Wins
7.3.11. Nammo AS - Overview
7.3.12. Nammo AS - Major Products and Services
7.3.13. Nammo AS - Recent Announcements and Strategic Initiatives
7.3.14. Nammo AS - Alliances
7.3.15. CybAero - Overview
7.3.16. CybAero - Major Products and Services
7.3.17. CybAero - Recent Announcements and Strategic Initiatives
7.3.18. CybAero - Alliances
7.3.19. CybAero - Recent Contract Wins
7.3.20. Dynasafe AB - Overview
7.3.21. Dynasafe AB - Major Products and Services
7.3.22. Dynasafe AB - Recent Announcements and Strategic Initiatives
7.3.23. Dynasafe AB - Recent Contract Wins
7.3.24. Patria Helicopter AB - Overview
7.3.25. Patria Helicopter AB - Major Products and Services
7.3.26. Patria Helicopter AB - Recent Announcements and Strategic Initiatives
7.3.27. Patria Helicopter AB - Alliances
7.3.28. Patria Helicopter AB - Recent Contract Wins
7.3.29. Volvo Aero - Overview
7.3.30. Volvo Aero - Major Products and Services
7.3.31. Volvo Aero - Recent Announcements and Strategic Initiatives
7.3.32. Volvo Aero - Alliances
7.3.33. Volvo Aero - Recent Contract Wins
7.3.34. Scanjack AB - Overview
7.3.35. Scanjack AB - Major Products and Services
7.3.36. Scanjack AB - Recent Announcements and Strategic Initiatives
7.3.37. Scanjack AB - Recent Contract Wins
7.3.38. Akers Krutbruk Protection AB - Overview
7.3.39. Akers Krutbruk Protection AB - Major Products and Services
7.3.40. Akers Krutbruk Protection AB - Recent Announcements and Strategic Initiatives
7.3.41. Akers Krutbruk Protection AB - Alliances
7.3.42. Akers Krutbruk Protection AB - Recent Contract Wins
7.3.43. Logica - Overview
7.3.44. Logica - Major Products and Services
7.3.45. Logica - Alliances
7.3.46. Logica - Recent Contract Wins
7.3.47. Niscayah - Overview
7.3.48. Niscayah - Major Products and Services
7.3.49. Niscayah - Recent Announcements and Strategic Initiatives
7.3.50. Niscayah - Alliances
7.3.51. Niscayah - Recent Contract Wins
8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Construction Output, Current Prices, Local Currency
8.2.2. Construction Output, Current Prices, US Dollars
8.2.3. Current Account Balance as Percentage of GDP
8.2.4. Exports of goods and services, current prices
8.2.5. Exports of services, (Local currency billion)
8.2.6. Foreign Direct Investment
8.2.7. GDP at Purchasing Power Parity
8.2.8. GDP, Constant Prices (Local Currency)
8.2.9. GDP, Constant Prices (US$)
8.2.10. GDP, Current Prices (Local Currency)
8.2.11. GDP, Current Prices (US$ billions)
8.2.12. General Government Final Consumption Expenditure
8.2.13. Gross Fixed Capital Formation, Current Prices
8.2.14. Imports of goods and services
8.2.15. Import of and services
8.2.16. Inflation, average consumer prices
8.2.17. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.18. Manufacturing Output, Current Prices (US$ Billions)
8.2.19. US$- Exchange Rate (Annual Average)
8.2.20. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity exports
8.3.3. Electricity imports
8.3.4. Electricity Installed Capacity
8.3.5. Hydroelectricity installed capacity
8.3.6. Natural Gas Consumption
8.3.7. Natural Gas Imports
8.3.8. Net Conventional Thermal Electricity Generation
8.3.9. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.10. Net Hydroelectric Power Generation
8.3.11. Nuclear Electricity Net Generation
8.3.12. Petroleum, Consumption
8.3.13. Petroleum, Production
8.4. Minerals
8.4.1. Coal Consumption
8.5. Social and Political Risk
8.5.1. Political Stability Index
8.5.2. Transparency Index
8.6. Technology
8.6.1. Patents Granted
8.6.2. Software patents
9 Appendix
9.1. Contact Us
9.2. About SDI
9.3. Disclaimer
List of Tables
- Table 1: Swedish Defense Expenditure, 2008-2012
- Table 2: Swedish Defense Expenditure, 2013-2017
- Table 3: Swedish Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
- Table 4: Swedish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
- Table 5: Swedish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
- Table 6: Swedish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013-2017
- Table 7: Swedish Per Capita Defense Expenditure (US$), 2008-2012
- Table 8: Swedish Per Capita Defense Expenditure (US$), 2013-2017
- Table 9: Benchmarking with Key Markets, 2007-2011 vs. 2012-2016
- Table 10: SDI Terrorism Index
- Table 11: Top Country Ranking by Arms Exports, 2007-2011*
- Table 12: Swedish Defense Budget Allocation, 2008-2012
- Table 13: SAAB - Major Products and Services
- Table 14: SAAB - Alliances
- Table 15: SAAB - Recent Contract Wins
- Table 16: BAE Systems AB - Major Products and Services
- Table 17: BAE Systems AB - Alliances
- Table 18: BAE Systems AB - Recent Contract Wins
- Table 19: Kockums AB - Major Products and Services
- Table 20: Kockums AB - Alliances
- Table 21: Kockums AB - Recent Contract Wins
- Table 22: Nammo AS - Major Products and Services
- Table 23: Nammo AS - Alliances
- Table 24: CybAero - Main Products
- Table 25: CybAero - Alliances
- Table 26: CybAero - Recent Contract Wins
- Table 27: Dynasafe AB - Main Products and Services
- Table 28: Dynasafe AB - Recent Contract Wins
- Table 29: Patria Helicopter AB - Main Products and Services
- Table 30: Patria Helicopter AB - Alliances
- Table 31: Patria Helicopter AB - Recent Contract Wins
- Table 32: Volvo Aero - Main Products and Services
- Table 33: Volvo Aero - Alliances
- Table 34: Volvo Aero - Recent Contract Wins
- Table 35: Scanjack AB - Major Products and Services
- Table 36: Scanjack AB - Recent Contract Wins
- Table 37: Akers Krutbruk Protection AB - Major Products and Services
- Table 38: Akers Krutbruk Protection AB - Alliances
- Table 39: Akers Krutbruk Protection AB - Recent Contract Wins
- Table 40: Logica - Major Products and Services
- Table 41: Logica - Alliances
- Table 42: Logica - Recent Contract Wins
- Table 43: Niscayah - Major Products and Services
- Table 44: Niscayah - Alliances
- Table 45: Niscayah - Recent Contract Wins
List of Figures
- Figure 1: Swedish Defense Expenditure, 2008-2012
- Figure 2: Swedish Defense Expenditure, 2013-2017
- Figure 3: Swedish Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
- Figure 4: Swedish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
- Figure 5: Swedish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
- Figure 6: Swedish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013-2017
- Figure 7: Swedish Per Capita Defense Expenditure (US$), 2008-2012
- Figure 8: Swedish Per Capita Defense Expenditure (US$), 2013-2017
- Figure 9: SDI Terrorism Heat Map, 2011
- Figure 10: SDI Terrorism Index, 2011
- Figure 11: Benchmarking with Key Markets, 2007-2011 vs. 2012-2016
- Figure 12: Benchmarking with World's Largest Defense Spenders (US$ Billion), 2011 and 2016
- Figure 13: Benchmarking with Large Defense Spenders as % of GDP - 2011
- Figure 14: Swedish Defense Import Trend (US$ Million), 2007-2011 (TIV values)
- Figure 15: Swedish Defense Imports by Country (%), 2007-2011 (TIV values)
- Figure 16: Swedish Defense Imports by Weapon Category (%), 2007-2011
- Figure 17: Swedish Defense Export Trend (US$ Million), 2007-2011 (TIV values)
- Figure 18: Swedish Defense Export Trend by Country (%), 2007-2011 (TIV values)
- Figure 19: Swedish Defense Export Trend by Weapon Category (%), 2007-2011 (TIV values)
- Figure 20: Industry Dynamics - Porter's Five Forces Analysis
- Figure 21: SAAB - Revenue Trend Analysis (SEK Million), 2007-2011
- Figure 22: SAAB - Operating Profit Trend Analysis (SEK million), 2007-2011
- Figure 23: SAAB - Net Profit Trend Analysis (SEK Million), 2007-2011
- Figure 24: Swedish Population - Female (In Millions), 2008-2017
- Figure 25: Swedish Population - Male (In Millions), 2008-2017
- Figure 26: Swedish Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
- Figure 27: Swedish Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
- Figure 28: Swedish Current Account Balance as Percentage of GDP, 2008-2017
- Figure 29: Swedish Exports of Goods and Services, Current Prices (US$ Billion), 2001-2010
- Figure 30: Swedish Exports Services, (Local Currency Billion), 2003-2012
- Figure 31: Swedish Foreign Direct Investment (US$ Billion), 2001-2010
- Figure 32: Swedish GDP at Purchasing Power Parity (US$ Billion), 2006-2015
- Figure 33: Swedish GDP at Constant Prices (Local Currency Billion), 2006-2015
- Figure 34: Swedish GDP at Constant Prices (US$ Billion), 2006-2015
- Figure 35: Swedish GDP at Current Prices (Local Currency Billion), 2006-2015
- Figure 36: Swedish GDP at Current Prices (US$ Billion), 2006-2015
- Figure 37: Swedish General Government Final Consumption Expenditure (US$ Billion), 2001-2010
- Figure 38: Swedish Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
- Figure 39: Swedish Imports of Goods and Services (Current US$ Billion), 2001-2010
- Figure 40: Swedish Import of Services (Local Currency Billion), 2003-2012
- Figure 41: Swedish Inflation, Average Consumer Prices, 2008-2017
- Figure 42: Swedish Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010
- Figure 43: Swedish Manufacturing Output, Current Prices (US$ Billion), 2001-2010
- Figure 44: Swedish US$- Exchange Rate (Annual Average), 2002-2011
- Figure 45: Swedish Wholesale Price Index, 2000-2009
- Figure 46: Swedish Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009
- Figure 47: Swedish Electricity Exports (Billion Kilowatt Hours), 2001-2010
- Figure 48: Swedish Electricity Imports (Billion Kilowatt Hours), 2001-2010
- Figure 49: Swedish Electricity Installed Capacity (Million Kilowatts), 2000-2009
- Figure 50: Swedish Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
- Figure 51: Swedish Natural Gas Consumption (Billion Cubic Feet), 2001-2010
- Figure 52: Swedish Natural Gas Imports (Billion Cubic Feet), 2001-2010
- Figure 53: Swedish Net Conventional Thermal Electricity Generation (Billion Kilowatt Hours), 2001-2010
- Figure 54: Swedish Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001-2010
- Figure 55: Swedish Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2010
- Figure 56: Swedish Nuclear Electricity Net Generation (Billion Kilowatt hours), 2001-2010
- Figure 57: Swedish Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
- Figure 58: Swedish Petroleum Production (Thousand Barrels Per Day), 2002-2011
- Figure 59: Swedish Coal Consumption (Thousand Short Tons), 2001-2010
- Figure 60: Swedish Political Stability Index, 2002-2010
- Figure 61: Swedish Transparency Index, 2002-2011
- Figure 62: Swedish Patents Granted, 2002-2011
- Figure 63: Swedish Software Patents, 2006-2011
The Swedish Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 published by ICD Research in August 13, 2012. This report consists of Pages: 118 and the price starts from US $ 1250.
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