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Market Research Report

Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

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Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Published: March 5, 2019 Content info: 88 Pages
Description

Morocco is a constitutional monarchy with an elected parliament. The country has been a key Western ally in its fight against Islamist terrorism. Morocco is enhancing its military capabilities in response to the recent wave of unrest in the Middle East and North Africa (MENA) region. The prime factor stimulating the country's defense expenditure is its ongoing arms race with adjoining Algeria, which receives a steady supply of weapons from Russia.

Over the forecast period, the increased threat of terrorism from internal and external terrorist groups and the ongoing modernization of its armed forces are the key factors expected to drive military expenditure. The country also faces insurgency in the Western Sahara region, where the local insurgent outfit Polisario Front is engaged in a violent struggle with the Moroccan regime for territory. The threat posed by the prospect of prolonged insurgency within the Western Sahara region makes it imperative for Morocco to allocate substantial expenditure to counter-terrorism and counter-insurgency efforts.

Morocco is projected to increase its defense budget from US$3.7 billion in 2019 to US$4.7 billion in 2024, at a CAGR of 4.24%. Moroccan homeland security (HLS) expenditure increased from US$2.1 billion in 2015 to US$3 billion in 2019, registering a CAGR of 8.56%. On a cumulative basis, Morocco is expected to spend a total of US$21.4 billion on its armed forces over the forecast period, compared to US$17.5 billion over 2015-2019. The country's capital expenditure is expected to increase from US$1.2 billion in 2020 to US$1.4 billion in 2024, growing at a robust CAGR of 4.31% over the forecast period.

The Moroccan government is expected to procure transport aircraft, multirole fighters, submarines, missile defense system, and armored vehicles, among others. Additionally, opportunities in security systems and platforms such as military IT networking, wireless systems, motion sensors, alarms, and radar systems are expected to arise as a result of the country's focus on strengthening border security.

The report "Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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.

In particular, it provides an in-depth analysis of the following -

  • The Moroccan defense industry market size and drivers: detailed analysis of the Moroccan defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
  • Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
  • Market opportunities: list of the top ten defense investment opportunities over the next 5 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Moroccan defense industry

Companies mentioned: Lockheed Martin Corp., Raytheon, Damen Schelde Naval Shipbuilding

Scope

  • Between 2015 and 2019, Morocco's defense expenditure increased from US$3.3 billion in 2015 to US$3.7 billion in 2019, registering a CAGR of 3.39%.
  • The defense budget is anticipated to increase from US$3.9 billion in 2020 to US$4.7 billion by 2024, registering a CAGR of 4.24%.
  • The rise in defense spending is mainly driven by the procurement of F-16 Fighting Falcons, Single Channel Ground and Airborne Radio Systems (SINCGARS) combat net radio, M1A1 tanks, electric submarines and patrol ships.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Moroccan 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
  • Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Moroccan defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.
Table of Contents
Product Code: GDDF0551MR

Table of Contents

  • 1. Introduction
  • 1.1. What is this Report About?
  • 1.2. Definitions
  • 1.3. Summary Methodology
  • 1.4. About Strategic Defence Intelligence
  • 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. Equipment of Moroccan Military
  • 3.1.4. Procurement Programs
  • 3.1.5. Social, Political and Economic Environment and Support for Defense Projects
  • 3.1.6. Political and Strategic Alliances
  • 3.2. Defense Market Size Historical and Forecast
  • 3.2.1. Moroccan Defense Budget is Expected to Register a CAGR of 4.24% over the Forecast Period
  • 3.2.2. Counter-terrorism, Border Security, and the Need to Modernize Outdated Defense Equipment Are Expected to Drive Morocco's Defense Expenditure
  • 3.2.3. Defense expenditure as a percentage of GDP is expected to average 3% over the forecast period
  • 3.3. Analysis of Defense Budget Allocation
  • 3.3.1. Capital Expenditure Share Expected to Increase Marginally over the Forecast Period
  • 3.3.2. Capital Expenditure Anticipated to Grow at a CAGR of 4.31% over the Forecast Period
  • 3.3.3. Per Capita Defense Expenditure Expected to Increase During the Forecast Period
  • 3.4. Homeland Security Market Size and Forecast
  • 3.4.1. Moroccan Homeland Security Expenditure Anticipated to Increase at a CAGR of 7.87%
  • 3.4.2. Human Trafficking, Drug Smuggling and Cybercrime Are the Major Targets of Homeland Security Expenditure
  • 3.5. Benchmarking with Key Global Markets
  • 3.5.1. Morocco is the Fourth Largest Defense Spender in the North African Region
  • 3.5.2. Morocco's Military Expenditure is Low when Compared to the Largest Defense Spenders but on Par with Other African Countries
  • 3.5.3. Morocco Allocates a Moderate Percentage of its GDP to Defense
  • 3.6. Market Opportunities: Key Trends
  • 3.6.1. Top 10 Defense Market Sectors by Value (US$ Million), 2019-2024
  • 3.6.2. Critical Infrastructure Protection - Physical Security
  • 3.6.3. Naval Vessel MRO - Corvettes
  • 3.6.4. Land-Based C4ISR
  • 4. Defense Procurement Market Dynamics
  • 4.1.1. Import Market Dynamics
  • 4.1.2. Defense Imports to be Driven by Modernization Initiatives over the Forecast Period
  • 4.1.3. Morocco Imports the Majority of its Arms from Europe
  • 4.1.4. Armored Vehicles Accounted for the Majority of Defense Imports during 2013-2017
  • 4.2. Export Market Dynamics
  • 4.2.1. Morocco Does not Export Arms due to its Under-Developed Domestic Arms Industry
  • 5. Industry Dynamics
  • 5.1. Five Forces Analysis
  • 5.1.1. Bargaining Power of the Supplier: Medium to High
  • 5.1.2. Bargaining power of the buyer: low to medium
  • 5.1.3. Barrier to entry: medium to high
  • 5.1.4. Intensity of rivalry: medium
  • 5.1.5. Threat of substitution: medium
  • 6. Market Entry Strategy
  • 6.1. Market Regulation
  • 6.1.1. Morocco does not disclose any offset obligations imposed by the country
  • 6.1.2. Foreign direct investment (FDI) is determined on a case-by-case basis
  • 6.2. Market Entry Route
  • 6.2.1. Budgeting Process
  • 6.2.2. Procurement Policy and Process
  • 6.2.3. Government-to-government agreements are the preferred market entry route for foreign OEMs
  • 6.2.4. Joint venture and license manufacturing agreements provide an attractive market entry route
  • 6.2.5. Key Challenges
  • 7. Competitive Landscape and Strategic Insights
  • 7.1. Competitive Landscape Overview
  • 7.1.1. Morocco Market Share Analysis, 2018-2023
  • 7.2. Key Foreign Companies
  • 7.2.1. Lockheed Martin Corp.: Overview
  • 7.2.2. Lockheed Martin Corp.: Products and Services
  • 7.2.3. Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives
  • 7.2.4. Lockheed Martin Corp.: Recent Contract Wins
  • 7.2.5. Raytheon: Overview
  • 7.2.6. Raytheon: Products and Services
  • 7.2.7. Raytheon: Recent Announcements and Strategic Initiatives
  • 7.2.8. Raytheon: Recent Contract Wins
  • 7.2.9. Damen Schelde Naval Shipbuilding: Overview
  • 7.2.10. Damen Schelde Naval Shipbuilding: Products and Services
  • 7.2.11. Damen Schelde Naval Shipbuilding: Recent Announcements and Strategic Initiatives
  • 7.2.12. Damen Schelde Naval Shipbuilding: Recent Contract Wins
  • 8. Business Environment and Country Risk
  • 8.1. Economic Performance
  • 8.1.1. GDP Per Capita
  • 8.1.2. GDP, Current Prices
  • 8.1.3. Exports of Goods and Services (Current LCU Billion)
  • 8.1.4. Imports of Goods and Services (Current LCU Billion)
  • 8.1.5. Gross National Disposable Income (US$ Billion)
  • 8.1.6. Local Currency Unit per US Dollar
  • 8.1.7. Market Capitalization of Listed Companies (US$ Billion)
  • 8.1.8. Market Capitalization of Listed Companies (% of GDP)
  • 8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
  • 8.1.10. Goods Exports as a Percentage of GDP
  • 8.1.11. Goods Imports as a Percentage of GDP
  • 8.1.12. Services Imports as a Percentage of GDP
  • 8.1.13. Service Exports as a Percentage of GDP
  • 8.1.14. Foreign Direct Investment, Net (BoP, Current US$ Billion)
  • 8.1.15. Net Foreign Direct Investment as Percentage of GDP
  • 8.1.16. Mining, Manufacturing, Utilities Output LCU Billion

9. Appendix

  • 9.1. About GlobalData
  • 9.2. Disclaimer

List of Tables

  • Table 1: Moroccan Army Strength
  • Table 2: Morocco Navy Strength
  • Table 3: Moroccan Air Force Strength
  • Table 4: Moroccan Ongoing Procurement Programs
  • Table 5: Moroccan Future Procurement Programs
  • Table 6: Morocco's Top Defense Procurement Programs by Value (US$ Million), 2019-2024
  • Table 7: Moroccan Defense Cooperation
  • Table 8: Moroccan Military Training Exercises
  • Table 9: Moroccan Defense Expenditure (MAD Billion and US$ Billion), 2015-2024
  • Table 10: Moroccan GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
  • Table 11: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Table 12: Moroccan Defense Capital Expenditure (MAD Billion and US$ Billion), 2015-2024
  • Table 13: Moroccan Per Capita Defense Expenditure (US$), 2015-2024
  • Table 14: Moroccan Homeland Security Expenditure (MAD Billion and US$ Billion), 2015-2024
  • Table 15: Benchmarking with Key Markets, 2015-2019 vs 2020-2024
  • Table 16: Top 10 Morocco Defense Market Sectors by Value (US$ Million), 2019-2024
  • Table 17: Moroccan Budget Formation Timetable
  • Table 18: Competitive Landscape of the Morocco Defense Industry
  • Table 19: Top Defense Suppliers in Morocco Defense Industry by Value (US$ Million) 2019-2024
  • Table 20: Lockheed Martin Corp. - Product Focus
  • Table 21: Lockheed Martin Corp. - Contracts
  • Table 22: Raytheon - Product Focus
  • Table 23: Raytheon - Contracts
  • Table 24: Damen Schelde Naval Shipbuilding - Product Focus
  • Table 25: Damen Schelde Naval Shipbuilding - Contracts

List of Figures

  • Figure 1: Moroccan Defense Imports/Exports, 2013 and 2017
  • Figure 2: Moroccan Defense Imports/Exports, 2013 and 2017
  • Figure 3: Morocco's Top Five Prospective Procurements/Developments
  • Figure 4: Moroccan National Security Threats
  • Figure 5: Morocco's Partnering Countries for Defense Cooperation and Military Training
  • Figure 6: Moroccan Defense Expenditure (MAD billion), 2015-2024
  • Figure 7: Moroccan Defense Expenditure (US$ billion), 2015-2024
  • Figure 8: Moroccan GDP Growth vs Defense Expenditure as Percentage of GDP Growth, 2015-2024
  • Figure 9: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Figure 10: Moroccan Capital Budget Allocation (MAD Billion), 2015-2024
  • Figure 11: Moroccan Capital Budget Allocation (US$ Billion), 2015-2024
  • Figure 12: Moroccan Per Capita Defense Expenditure (US$), 2015-2024
  • Figure 13: Moroccan Homeland Security Expenditure (MAD Billion), 2015-2024
  • Figure 14: Moroccan Homeland Security Budget (US$ Billion), 2015-2024
  • Figure 15: Benchmarking with Key Markets, 2015-2019 vs 2020-2024
  • Figure 16: Defense Expenditure of World's Largest Military Spenders (US$ Billion), 2019 and 2024
  • Figure 17: Defense Expenditure as Percentage of GDP of Largest Military Spenders (%), 2019
  • Figure 18: Physical Security Market Size (US$ Million), 2019-2024
  • Figure 19: Corvettes Market Size (US$ Million), 2019-2024
  • Figure 20: Land-Based C4ISR Market Size (US$ Million), 2019-2024
  • Figure 21: Morocco's Top Defense Procurements in Terms of Their Supplier Relationships
  • Figure 22: Moroccan Defense Import Trend (US$ million), 2013-2017 (TIV values)
  • Figure 23: Moroccan Defense Imports by Country (%), 2013-2017
  • Figure 24: Moroccan Defense Imports by Category (%), 2013-2017
  • Figure 25: Industry Dynamics Porter's Five Forces Analysis
  • Figure 26: Key Challenges in Moroccan Defense Market
  • Figure 27: Moroccan Market Share Analysis, 2019-2024
  • Figure 28: Moroccan GDP Per Capita at Constant Prices (US$), 2015-2025
  • Figure 29: Moroccan GDP, Current Prices (US$ Billion), 2015-2025
  • Figure 30: Moroccan Exports of Goods and Services (Current LCU Billion), 2005-2014
  • Figure 31: Moroccan Imports of Goods and Services (Current LCU Billion), 2005-2014
  • Figure 32: Moroccan Gross National Disposable Income (US$ Billion), 2007-2014
  • Figure 33: Local Currency per USD, 2015-2024
  • Figure 34: Moroccan Market Capitalization of Listed Companies (US$ Billion), 2005-2012
  • Figure 35: Moroccan Market Capitalization of Listed Companies (% of GDP), 2005-2012
  • Figure 36: Moroccan Government Cash Surplus/Deficit as Percentage of GDP (LCU), 2005-2012
  • Figure 37: Moroccan Goods Exports as Percentage of GDP, 2005-2013
  • Figure 38: Moroccan Goods Imports as Percentage of GDP, 2005-2013
  • Figure 39: Moroccan Services Imports as Percentage of GDP, 2005-2013
  • Figure 40: Moroccan Service Exports as Percentage of GDP, 2005-2013
  • Figure 41: Moroccan Foreign Direct Investment, Net (BoP, Current US$ Billion), 2005-2013
  • Figure 42: Moroccan Net Foreign Direct Investment as Percentage of GDP, 2005-2013
  • Figure 43: Moroccan Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
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