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Market Research Report

Future of the Azerbaijani Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Published by GlobalData Product code 765990
Published Content info 63 Pages
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Future of the Azerbaijani Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
Published: December 14, 2018 Content info: 63 Pages
Description

"Future of the Azerbaijani Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", published by GlobalData, 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.

This report offers detailed analysis of the Azerbaijani defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

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

  • The Azerbaijani defense industry market size and drivers: detailed analysis of the Azerbaijani defense industry during 2019-2023, 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 Azerbaijani defense industry.

Scope

  • Azerbaijan's defense budget stands at US$1.7 billion in 2018, having registered a CAGR of -17.86% during the historic period. Although the budget remained fairly constant in local currency terms, it declined in US dollar terms due to fluctuations in the exchange rate.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Azerbaijan 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 Azerbaijan defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.
Table of Contents
Product Code: GDDF0538MR

Table of Contents

1. Introduction 6

  • 1.1. What is this Report About? 6
  • 1.2. Definitions 6
  • 1.3. Summary Methodology 8
  • 1.4. About GlobalData 9

2. Executive Summary 10

3. Market Attractiveness and Emerging Opportunities 12

  • 3.1. Current Market Conditions 13
    • 3.1.1. Military Fleet Size 13
    • 3.1.2. Procurement Programs 18
    • 3.1.3. Key Drivers and Challenges 19
  • 3.2. Defense Market Size Historical and Forecast 20
    • 3.2.1. Azerbaijani defense budget to record a CAGR of 5.27% over the forecast period 20
    • 3.2.2. Constant state of dispute with Armenia and military modernization are expected to be the key factors driving defense expenditure 23
    • 3.2.3. The defense budget as a percentage of GDP is expected to increase over the forecast period 24
  • 3.3. Analysis of Defense Budget Allocation 26
    • 3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period 26
    • 3.3.2. Capital expenditure is expected to grow at a CAGR of 5.25% over the forecast period 28
    • 3.3.3. Per capita defense expenditure expected to increase over the forecast period 30
  • 3.4. Homeland Security Market Size and Forecast 32
    • 3.4.1. Protection of energy infrastructure and combating drug trafficking will be the key factors driving homeland security 32
    • 3.4.2. Azerbaijan falls under the "some risk" category on the Terrorism Index 33
    • 3.4.3. Azerbaijani faces "some risk" of acts of terrorism 34
    • 3.4.4. Azerbaijan has a terrorism index score of 1.2 36
  • 3.5. Benchmarking with Key Global Markets 37
    • 3.5.1. Azerbaijan's defense budget is expected to register moderate growth over 2019-2023 37
    • 3.5.2. Azerbaijani defense expenditure is relatively small when compared to the leading defense spenders 39
    • 3.5.3. Azerbaijan spent 3.8% of its GDP on defense in 2018 40
  • 3.6. Market Opportunities: Key Trends and Drivers 41
    • 3.6.1. Top Defense Sectors by Value (US$ Million) - Projections over 2018-2023 41

4. Defense Procurement Market Dynamics 42

  • 4.1. Import Market Dynamics 43
    • 4.1.1. Azerbaijan's reliance on military imports is expected to decline over the forecast period 43
    • 4.1.2. Azerbaijan imports the majority of its arms from Russia 44
    • 4.1.3. Armored vehicles, missiles and ships dominate Azerbaijani defense imports 45
  • 4.2. Export Market Dynamics 46
    • 4.2.1. Azerbaijan's defense exports are negligible, however, they are expected to increase considerably over the forecast period 46

5. Industry Dynamics 47

  • 5.1. Market Regulation 47
    • 5.1.1. Azerbaijan's foreign investment policy prohibits FDI in the defense sector 47
  • 5.2. Market Entry Route 47
    • 5.2.1. Budgeting Process 47
    • 5.2.2. Government-to-government deals form an attractive entry route for foreign manufacturers 48

6. Competitive Landscape and Strategic Insights 49

  • 6.1. Competitive Landscape Overview 49
    • 6.1.1. The majority of defense equipment in Azerbaijan is supplied by foreign manufacturers 49

7. Business Environment and Country Risk 50

  • 7.1. Economic Performance 50
    • 7.1.1. GDP Per Capita 50
    • 7.1.2. Gross Domestic Product 51
    • 7.1.3. Exports of Goods and Services (LCU Billion) 52
    • 7.1.4. Imports of Goods and Services (LCU Billion) 53
    • 7.1.5. Gross National Disposable Income 54
    • 7.1.6. LCU per USD (Period Average) 55
    • 7.1.7. Goods Exports as a Percentage of GDP 56
    • 7.1.8. Goods Imports as a Percentage of GDP 57
    • 7.1.9. Services Imports as a Percentage of GDP 57
    • 7.1.10. Services Exports as a Percentage of GDP 58
    • 7.1.11. Foreign Direct Investment, net (BoP, current US$ Billion) 59
    • 7.1.12. Net Foreign Direct Investment as a Percentage of GDP 61
    • 7.1.13. Mining, Manufacturing, Utilities Output (LCU Billion) 62

8. Appendix 63

  • 8.1. About GlobalData 63
  • 8.2. Disclaimer 63

List of Tables

  • Table 1: Azerbaijani Army Strength 13
  • Table 2: Azerbaijani Air Force Strength 16
  • Table 3: Azerbaijani Navy Strength 17
  • Table 4: Azerbaijan - Future Procurement Programs 18
  • Table 5: Azerbaijan - Future Procurement Programs 18
  • Table 6: Azerbaijani Defense Expenditure (AZN Billion & US$ Billion), 2014-2023 21
  • Table 7: Azerbaijani GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2023 24
  • Table 8: Azerbaijani Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 26
  • Table 9: Azerbaijani Defense Capital Expenditure (AZN Billion & US$ Billion), 2014-2023 28
  • Table 10: Azerbaijani Per Capita Expenditure (US$), 2014-2023 30
  • Table 11: Terrorism Index, 2018 34
  • Table 12: Benchmarking with Key Markets, 2014-2018 vs 2019-2023 37
  • Table 13: Top Azerbaijani Defense Sectors by Value (US$ Million), 2018-2023 41
  • Table 14: Azerbaijan - Budget Formation Timetable 47
  • Table 15: Competitive Landscape of the Azerbaijani Defense Industry 49

List of Figures

  • Figure 1: Azerbaijani Defense Expenditure (in AZN Billion), 2014-2023 21
  • Figure 2: Azerbaijani Defense Expenditure (US$ Billion), 2014-2023 22
  • Figure 3: Azerbaijani GDP Growth vs Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2014-2023 25
  • Figure 4: Azerbaijani Defense Expenditure Split Between Capital and Revenue Expenditure (%), 2014-2023 27
  • Figure 5: Azerbaijani Defense Capital Expenditure (AZN Billion), 2014-2023 29
  • Figure 6: Azerbaijani Defense Capital Expenditure (US$ Billion), 2014-2023 29
  • Figure 7: Azerbaijani Per Capita Expenditure (US$), 2014-2023 31
  • Figure 8: Terrorism Heat Map, 2018 33
  • Figure 9: Terrorism Index, 2018 36
  • Figure 10: Benchmarking with Key Markets, 2014-2018 vs 2019-2023 38
  • Figure 11: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023 39
  • Figure 12: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 40
  • Figure 13: Azerbaijani Defense Imports (US$ Million), 2013-2017 43
  • Figure 14: Azerbaijani Defense Imports by Country (%), 2013-2017 44
  • Figure 15: Azerbaijani Defense Imports by Category (%), 2013-2017 45
  • Figure 16: Azerbaijani GDP Per Capita (US$), 2015-2025 50
  • Figure 17: Azerbaijani GDP at Current Prices (US$ Billion), 2015-2025 51
  • Figure 18: Azerbaijani Exports of Goods and Services (LCU Billion), 2005-2014 52
  • Figure 19: Azerbaijani Imports of Goods and Services (LCU Billion), 2005-2014 53
  • Figure 20: Azerbaijani Gross National Disposable Income (US$ Billion), 2005-2014 54
  • Figure 21: LCU per USD (US$), 2015-2025 55
  • Figure 22: Azerbaijani Goods Exports as a Percentage of GDP, 2005-2014 56
  • Figure 23: Azerbaijani Goods Imports as a Percentage of GDP, 2005-2014 57
  • Figure 24: Azerbaijani Services Imports as a Percentage of GDP, 2005-2014 57
  • Figure 25: Azerbaijani Services Exports as a Percentage of GDP, 2005-2014 58
  • Figure 26: Azerbaijani Net Foreign Direct Investment (BoP, Current US$ Billion) 2005-2014 60
  • Figure 27: Azerbaijani Net Foreign Direct Investment as a Percentage of GDP, 2005-2014 61
  • Figure 28: Azerbaijani Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 62
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