Market Research Report
The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||885375|
|Published||Content info||101 Pages
Delivery time: 1-2 business days
|The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: July 3, 2019||Content info: 101 Pages||
The Czech Republic is projected to spend US$17.7 billion on its armed forces over the next five years. The country enjoys a relatively stable security environment due to its strong counter terrorism capabilities, membership of NATO, and comparatively low international profile.
However, the threats posed by right-wing extremists, the migrant crisis, and the Islamic State in most European cities have forced the country to modernize and upgrade its military arsenal. The Czech Republic's defense budget values US$2.9 billion in 2019 and registered a CAGR of 13.58% during the historic period. Over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 5.88% to value US$4.0 billion in 2024 due to its plan to increase its defense budget to 2% of GDP, participation in peacekeeping operations, and counter terrorism measures.
The Czech Armed Forces, similar to the militaries of other Central European countries, are mostly equipped with Soviet-era weapons systems that need to be replaced by NATO-capable hardware. The capital expenditure allocation which averaged 11.4% during the historic period is expected to average 12.5% over the forecast period. Key opportunities for suppliers are expected to be in sectors such as C4ISR, multi-role aircraft, multi-mission helicopters, reconnaissance drones and infantry fighting vehicles.
The homeland security expenditure is expected to witness a major boost due to the procurement of state-of-the-art surveillance and reconnaissance equipment and platforms to prevent terrorism, organized crime, human trafficking, illegal immigration, enhance security, and safeguard and secure cyber space. The Czech Republic's homeland security expenditure stands at US$3.6 billion in 2019 and registered a CAGR of 8.90% during the historic period. Over the forecast period, the country's homeland security expenditure is expected to increase from US$3.8 billion in 2020 to US$4.6 billion in 2024, reflecting a CAGR of 5.24%.
The domestic defense industry in the Czech Republic is moderately developed which helps the country to maintain a decent rank in the global arms suppliers list. During 2014-2018, Iraq was the largest importer of Czech defense equipment, accounting for 39.9% of the Czech Republic's total defense exports. Over 2014-2018, aircraft accounted for the highest share of total defense exports with 53.2%, followed by armored vehicles with 25.6%, sensors with 14.8%, and artillery with 6.0%. The Czech Republic defense exports are expected to show steady growth over the forecast period due to rapidly deteriorating security situations around the world, especially in Middle East and Europe.
The report "The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024", offers detailed analysis of the Czech 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:
Companies mentioned: Aero Vodochody A.S, Lom Praha s.p, VOP CZ, Omnipol a s, Aura s. r. o.