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Market Research Report

Singaporean Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

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Singaporean Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Published: August 12, 2019 Content info: 303 Pages
Description

Singapore's defense expenditure is expected to register a CAGR of 3.16% during the forecast period to reach US$13.2 billion in 2024. Despite its small land area and population, Singapore's economic importance and military capability rank it among Southeast Asia's regional powers.

Singapore's defense budget is valued at US$11.4 billion in 2019 and registered a CAGR of 4.49% during the historic period. Threats posed by terrorist organizations such as the Al-Qaeda-linked Jemaah Islamiyah (JI) and other regional terrorist groups, the acquisition of military equipment, overseas training of its armed forces, and participation in the international peace-building missions and disaster relief operations have mainly driven the budget increases in the historic period. The country plans to increase its defense expenditure with significant and steady investment in defense procurements according to defense minister Ng Eng Hen in March, 2019.

Capital expenditure is anticipated to grow at a CAGR of 3.54%, due to the country's procurement plans over the forecast period, which is expected to increase from US$425.1 million in 2020 to US$488.6 million in 2024. Large scale opportunities remain in areas such as armored vehicles, multi role helicopters, utility helicopters, submarines, missile defense systems and naval auxiliary vessels. Singapore's homeland security is expected to witness robust investment due to a number of measures planned by the government, such as the procurement of modern equipment for border surveillance, as there is need to protect the borders from illegal trafficking of goods and people and threats from terrorist organizations.

In addition to these measures, the government is also focusing on containing the threats of human trafficking and cybercrime and countering the internal threats posed by these issues, in addition to developing improved identification systems for its citizens. Singapore's homeland security (HLS) expenditure stands at US$5.0 billion in 2019 and is projected to reach US$6.6 billion in 2024, registering a CAGR of 5.16% over 2020-2024.

Singapore encourages foreign investments in the defense sector and prefers technology transfers without formal offsets. The Singaporean Defense Ministry insists on a technology transfer agreement as part of all equipment procurement deals and insists on local support activities and joint programmes that have the same objective as offsets. Singapore has witnessed large scale imports of foreign military equipment during 2014-2018 due to the ongoing arms modernization programme. Traditionally, the US has been the largest supplier of military equipment and platforms to Singapore accounting for 46.2% of total arms imports. The other significant arms suppliers were France, Spain, Israel, the Netherlands, the UK, Italy, Switzerland, and South Africa.

The report "The Singaporean Defense 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 defense industry market size and drivers: detailed analysis of the Singaporean 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
  • Porter's Five Force analysis of the Singaporean defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Singaporean defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Companies mentioned: Boeing, ThyssenKrupp Marine Systems, Thales, Singapore Technologies Aerospace, Singapore Technologies Marine, Singapore Technologies Kinetics

Scope:

  • Despite its small land area and population, Singapore's economic importance and military capability rank it among Southeast Asia's regional powers. Singapore's defense budget is valued at US$11.4 billion in 2019 and registered a CAGR of 4.49% during the historic period.
  • Threats posed by terrorist organizations such as the Al-Qaeda-linked Jemaah Islamiyah (JI) and other regional terrorist groups, the acquisition of military equipment, overseas training of its armed forces, and participation in the international peace-building missions and disaster relief operations have mainly driven the budget increases in the historic period.
  • The country plans to increase its defense expenditure with significant and steady investment in defense procurements according to defense minister Ng Eng Hen in March, 2019. Due to this military modernization process, the country's defense expenditure is anticipated to reach US$13.2 billion in 2024 and register a CAGR of 3.16% during 2020-2024.

Reasons to buy:

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the The Singaporean 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
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the The Singaporean defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Table of Contents
Product Code: GDDF0585MR

Table of Contents

  • LIST OF FIGURES
  • LIST OF TABLES

1. Introduction

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

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. Procurement Programs
    • 3.1.4. Top Procurement Programs by Value (US$ Million) 2019-2024
    • 3.1.5. Geopolitical, Social and Economic Scenario
    • 3.1.6. Political and Strategic Alliances
  • 3.2. Defense Market Size Historical and Forecast
    • 3.2.1. Defense expenditure expected to grow at a CAGR of 3.16% during 2020-2024
    • 3.2.2. Countering terrorist threats, acquiring sophisticated military equipment and overseas training requirements are expected to drive defense expenditure
    • 3.2.3. Defense expenditure as a percentage of GDP is expected to average 3.0% during 2020-2024
  • 3.3. Analysis of Defense Budget Allocation
    • 3.3.1. Capital expenditure allocation is expected to increase over the forecast period
    • 3.3.2. Singapore's defense capital expenditure to value US$488.6 million in 2024
    • 3.3.3. Per capita defense expenditure to increase over the forecast period
  • 3.4. Homeland Security Market Size and Forecast
    • 3.4.1. Homeland Security (HLS) is expected to grow at CAGR 5.16% over the forecast period
    • 3.4.2. Border protection and cyber security are driving the country's homeland security budget
  • 3.5. Benchmarking with Key Global Markets
    • 3.5.1. Singapore has the second highest defense expenditure in Southeast Asia
    • 3.5.2. The country's defense budget is high compared to other Southeast Asian countries
    • 3.5.3. The defense budget as a percentage of GDP is set to slightly decrease over the forecast period
  • 3.6. Market Opportunities: Key Trends and Drivers
    • 3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
    • 3.6.2. Critical Infrastructure Protection (CIP) - Physical Security
    • 3.6.3. Submarine - SSK-Diesel Electric Submarine
    • 3.6.4. Military Infrastructure and Logistics - Infrastructure Construction

4. Defense Procurement Market Dynamics

  • 4.1. Import Market Dynamics
    • 4.1.1. Defense imports are expected to increase over the forecast period
    • 4.1.2. The US dominated Singaporean defense imports from 2014-2018
    • 4.1.3. Aircraft were the major defense imports during 2014-2018
  • 4.2. Export Market Dynamics
    • 4.2.1. Arms export expected to increase over the forecast period
    • 4.2.2. Oman emerged as the biggest importer of Singaporean defense equipment
    • 4.2.3. Naval vessels accounted for the majority of defense exports between 2014 and 2018

5. Industry Dynamics

  • 5.1. Five Forces Analysis
    • 5.1.1. Bargaining Power of Supplier: Low to Medium
    • 5.1.2. Bargaining Power of Buyer: Medium to 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. Favorable FDI policies to attract foreign OEMs
    • 6.1.2. Defense policy requires investments in training and technology to develop domestic capabilities
  • 6.2. Market Entry Route
    • 6.2.1. Budgeting Process
    • 6.2.2. Procurement Policy and Process
    • 6.2.3. The transfer of technology is a key entry strategy for foreign OEMs
  • 6.3. Key Challenges
    • 6.3.1. Limited defense budget discourages investors from entering market
    • 6.3.2. Restricted availability of production discourages foreign investments

7. Competitive Landscape and Strategic Insights

  • 7.1. Competitive Landscape Overview
    • 7.1.1. Singapore's defense sector has a mix of domestic and foreign competitors
  • 7.2. Singapore Market Share Analysis, 2019-2024
  • 7.3. Key Foreign Companies
    • 7.3.1. Boeing: Overview
    • 7.3.2. Boeing: Products and Services
    • 7.3.3. Boeing: Recent announcements and strategic initiatives
    • 7.3.4. Boeing: Alliances
    • 7.3.5. Boeing: Recent Contract Wins
    • 7.3.6. ThyssenKrupp Marine Systems: Overview
    • 7.3.7. ThyssenKrupp Marine Systems: Products
    • 7.3.8. ThyssenKrupp Marine Systems: Recent Announcements and Strategic Initiatives
    • 7.3.9. ThyssenKrupp Marine Systems: Recent Contract Wins
    • 7.3.10. Thales: Overview
    • 7.3.11. Thales: Products
    • 7.3.12. Thales: Recent Announcements and Strategic Initiatives
    • 7.3.13. Thales: Alliances
    • 7.3.14. Thales: Recent Contract Wins
    • 7.3.15. Singapore Technologies Aerospace: Overview
    • 7.3.16. Singapore Technologies Aerospace: Products
    • 7.3.17. Singapore Technologies Aerospace: Recent Announcements and Strategic Initiatives
    • 7.3.18. Singapore Technologies Aerospace: Alliances
    • 7.3.19. Singapore Technologies Aerospace: Recent Contract wins
    • 7.3.20. Singapore Technologies Marine: Overview
    • 7.3.21. Singapore Technologies Marine: Products
    • 7.3.22. Singapore Technologies Marine: Recent Announcements and Strategic Initiatives
    • 7.3.23. Singapore Technologies Marine: Alliances
    • 7.3.24. Singapore Technologies Marine Recent Contract Wins
    • 7.3.25. Singapore Technologies Electronics: Overview
    • 7.3.26. Singapore Technologies Electronics: Products and Services
    • 7.3.27. Singapore Technologies Electronics: Recent Announcements and Strategic Initiatives
    • 7.3.28. Singapore Technologies Electronics: Alliances
    • 7.3.29. Singapore Technologies Electronics: Recent contract wins
    • 7.3.30. Singapore Technologies Kinetics: Overview
    • 7.3.31. Singapore Technologies Kinetics: Products and Services
    • 7.3.32. Singapore Technologies Kinetics: Recent Announcements and Strategic Initiatives
    • 7.3.33. Singapore Technologies Kinetics: Alliances
    • 7.3.34. Singapore Technologies Kinetics: Recent Contract Wins

8. Business Environment and Country Risk

  • 8.1. Economic Performance
    • 8.1.1. GDP per Capita at Constant Prices (US$)
    • 8.1.2. GDP, Current Prices (US$ Billion)
    • 8.1.3. Exports of Goods and Services (LCU Billion)
    • 8.1.4. Imports of Goods and Services (LCU Billion)
    • 8.1.5. Gross National Disposable Income
    • 8.1.6. LCU per US$ (Period Average)
    • 8.1.7. Market Capitalization of Listed Companies
    • 8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
    • 8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP
    • 8.1.10. Goods Exports (% of GDP)
    • 8.1.11. Goods Imports as (%of GDP)
    • 8.1.12. Services Imports as (%of GDP)
    • 8.1.13. Services Exports as (%of GDP)
    • 8.1.14. Net Foreign Direct Investment
    • 8.1.15. Net Foreign Direct Investment as a % of GDP
    • 8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix

List of Tables

  • Table 1: Singapore - Ongoing Development and Procurement Programs, 2019
  • Table 2: Singapore - Future Procurement Programs, 2018
  • Table 3: Singapore - Top Defense Procurement Programs by Value (US$ Million), 2019-2024
  • Table 4: Singapore - Defense Expenditure (SGD Billion & US$ Billion), 2015-2024
  • Table 5: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2015-2024
  • Table 6: Singapore - Defense Budget Allocation for Capital and Revenue Expenditure (%), 2015-2024
  • Table 7: Singapore - Defense Capital Expenditure, (SGD Million & US$ Million), 2015-2024
  • Table 8: Singapore - Defense Expenditure as Per Capita Defense Spend (US$), 2015-2024
  • Table 9: Singapore Homeland Security Expenditure (SGD Billion & US$ Billion), 2015-2024
  • Table 10: Benchmarking with Key Markets - 2015-2019 vs. 2020-2024
  • Table 11: Top Singapore Defense Sectors by Value (US$ Million), 2019-2024
  • Table 12: Top Defense Suppliers in Singapore Defense Industry - By Value (US$ Million) 2019-2024
  • Table 13: Boeing. - Products
  • Table 14: Boeing - Alliances
  • Table 15: Boeing - Recent Contract Wins
  • Table16: ThyssenKrupp Marine Systems - Product Focus
  • Table 17: ThyssenKrupp Marine Systems - Recent Contract Wins
  • Table 18: Thales - Products
  • Table 19: Thales - Alliances
  • Table 20: Thales - Recent Contract Wins
  • Table 21: Singapore Technologies Aerospace - Products and Services
  • Table 22: Singapore Technologies Aerospace - Alliances
  • Table 23: Singapore Technologies Aerospace - Recent Contract Wins
  • Table 24: Singapore Technologies Marine - Products
  • Table 25: Singapore Technologies Marine - Alliances
  • Table 26: Singapore Technologies Marine - Recent Contract Wins
  • Table 27: Singapore Technologies Electronics - Products and Services
  • Table 28: Singapore Technologies Electronics - Alliances
  • Table 29: Singapore Technologies Electronics - Recent Contract Wins
  • Table 30: Singapore Technologies Kinetics - Products and Services
  • Table 31: Singapore Technologies Kinetics - Alliances
  • Table 32: Singapore Technologies Kinetics - Recent Contract Wins

List of Figures

  • Figure 1: Singaporean Defense Budget: 2020 and 2024
  • Figure 2: Singaporean Defense Imports/Exports, 2014 and 2018
  • Figure 3: Singapore's Top Prospective Procurements/Developments
  • Figure 4: Singaporean National Security Threats
  • Figure 5: Singapore's Partner Countries for Defense Cooperation and Military Training
  • Figure 6: Singapore Defense Expenditure (SGD Billion), 2015-2024
  • Figure 7: Singapore Defense Expenditure (US$ Billion), 2015-2024
  • Figure 8: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2015-2024
  • Figure 9: Singapore Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Figure 10: Singapore Defense Capital Expenditure (SGD Million), 2015-2024
  • Figure 11: Singapore Defense Capital Expenditure (US$ Million), 2015-2024
  • Figure 12: Singapore Per Capita Defense Expenditure (US$), 2015-2024
  • Figure 13: Singapore's Homeland Security Expenditure (SGD Billion), 2015-2024
  • Figure 14: Singapore's Homeland Security Expenditure (US$ Billion), 2015-2024
  • Figure 15: Benchmarking with Key Global Markets, 2015-2019 vs. 2020-2024
  • Figure 16: Benchmarking with World's Largest Defense Spenders (US$ Billion), 2019 and 2024
  • Figure 17: Benchmarking with Large Defense Spenders as a Percentage of GDP - 2019
  • Figure 18: Critical Infrastructure Protection (CIP) - Physical Security Market Size (US$ Million), 2019-2024
  • Figure 19: SSK-Diesel Electric Submarine Market Size (US$ Million), 2019-2024
  • Figure 20: Military Infrastructure and Logistics - Infrastructure Construction Market Size (US$ Million), 2019-2024
  • Figure 21: Top Singapore Defense Procurements in Terms of Supplier Relationships
  • Figure 22: Singapore Defense Import Trend, 2014-2018 (TIV values)
  • Figure 23: Singapore Defense Imports by Country (%), 2014-2018
  • Figure 24: Singapore Defense Imports by Weapon Category (%), 2014-2018
  • Figure 25: Singaporean Defense Exports by Value, 2014-2018
  • Figure 26: Singaporean Defense Exports by Country (US$ million), 2014-2018
  • Figure 27: Singaporean Defense Exports by Category (%), 2014-2018
  • Figure 28: Industry Dynamics - Porter's Five Forces Analysis
  • Figure 29: Singapore Budgeting Process
  • Figure 30: Singaporean Market Share Analysis, 2019-2024
  • Figure 31: Singapore GDP per Capita at Constant Prices (US$), 2015-2025
  • Figure 32: Singapore GDP, Current Prices (US$ Billion), 2015-2025
  • Figure 33: Singapore Exports of Goods and Services (LCU Billion), 2005-2014
  • Figure 34: Singapore Imports of Goods and Services (LCU Billion), 2005-2014
  • Figure 35: Singapore Gross National Disposable Income (US$ Billion), 2005-2013
  • Figure 36: Singapore LCU per US$, 2015-2024
  • Figure 37: Singapore Market Capitalization of Listed Companies (US$ Billion), 2005-2012
  • Figure 38: Singapore Market Capitalization of Listed Companies (% of GDP), 2005-2012
  • Figure 39: Singapore Total Government Cash Surplus/Deficit (% of GDP), 2005-2012
  • Figure 40: Singapore Goods Exports (% of GDP), 2005-2014
  • Figure 41: Singapore Goods Imports (% of GDP), 2005-2014
  • Figure 42: Singapore Services Imports (% of GDP), 2005-2014
  • Figure 43: Singapore Services Exports (% of GDP), 2005-2014
  • Figure 44: Singapore Net Foreign Direct Investment (US$ Billion), 2005-2014
  • Figure 45: Singapore Net Foreign Direct Investment (% of GDP), 2005-2014
  • Figure 46: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
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