Market Research Report
South African Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||914995|
|Published||Content info||114 Pages
Delivery time: 1-2 business days
|South African Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: August 13, 2019||Content info: 114 Pages||
The South African defense budget is anticipated to value US$4.3 billion by 2024, growing at a CAGR of 3.10%. South Africa's military expenditure stands at US$3.6 billion in 2019 and is anticipated to grow from US$3.8 billion in 2020 to value US$4.3 billion in 2024, registering a CAGR of 3.10% over the forecast period. The growth will primarily be fueled by the country's active participation in peacekeeping operations governed by the UN (United Nations), African Union, and the Southern African Development Community (SADC).
During 2015-2019, the capital expenditure allocation averaged 28.9% and is anticipated to marginally increase to an average of 29.6% over the forecast period. Consequently, over the forecast period, revenue expenditure is also expected to remain nearly the same at an average of 70.4%. During 2015-2019, the defense budget as a percentage of GDP is expected to decrease marginally from an average of 1.03% to 0.91% over 2020-2024. The country's per capita defense expenditure is expected to increase from US$64 in 2020 to US$67.9 in 2024.
South African homeland security expenditure is expected to value US$7.4 billion in 2020 and is anticipated to grow at a CAGR of 4.50% to reach US$8.8 billion in 2024. This expenditure is primarily driven by South Africa's focus on enhancing its defense capabilities to counter high violent crime rates and rising threats of global terrorism. The HLS budget is anticipated to be invested into the procurement of surveillance equipment such as CCTV and biometric identification systems.
South African defense imports declined drastically from 2014 to 2015, and there were no imports from 2016 to 2018. The country sourced the majority of its defense equipment from Russia, which accounted for 96.2% of total imports during 2014-2018. The other major country from which South Africa imported military equipment during that period is the UK. During 2014-2018, the South African defense export market increased significantly, with the market reaching its highest value in 2018. The US was the largest importer of South African defense goods, accounting for 21.2% of total defense exports, whilst the UAE and India accounted for the country's second and third largest shares with 20.5% and 9.7%, respectively.
The report "South African Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" offers detailed analysis of the South African 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: Denel, Ansys Limited, Reutech, Saab Grintek, IVEMA, Aerosud, Global Armour, Milkor, Paramount Advanced Technologies, Tellumat Defense