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Market Research Report

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

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Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Published: February 28, 2019 Content info: 74 Pages
Description

Belgium's defense budget is to cumulatively value US$16.3 billion over 2020-2024. Belgium is streamlining its forces, and no longer has a separate army, air force and navy, but rather as a unified defense entity with land, air and sea components, served by a joint medical component. Opportunities related to the procurement of defense equipment in Belgium are expected to be in areas such as naval vessels, multirole aircraft, multirole aircraft MRO, transport aircraft, missiles and arms and ammunitions.

The country's military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement. The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024. The country's per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.

Belgium's budget allocation for defense capital expenditure is expected to increase from 17% in 2019 to 22.7% in 2024. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.27%, from US$562.5 million in 2020 to US$773.1 million in 2024, owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.

The Belgian homeland security expenditure valued US$4.4 billion in 2019 and is expected to reach US$5.5 billion by 2024, registering a CAGR of 4.90% over 2020-2024. This expenditure is primarily driven by Belgium's focus on combating the rising incidences of cyber-crimes, terrorism and drug trafficking. As Belgium's defense force is relatively small, it often cooperates with the Netherlands and Luxembourg regarding joint exercises and procuring high-cost equipment. Belgium's defense force's area of expertise is demining, with an emphasis on sea demining.

The report "Future of the Belgian 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 Belgium defense industry market size and drivers: detailed analysis of the Belgian 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 Belgian defense industry

Companies mentioned: Israel Aerospace Industries (IAI), Lockheed Martin, Embraer, Airbus, NH Industries, Leonardo (SIAI Marchetti), Dassault/Dornier, MOWAG/ General Dynamics European Land Systems, Steyr-Daimler-Puch , Spezialfahrzeuge (SSF)/ General Dynamics, Damen Schelde Naval Shipbuilding (DSNS), Mecar SA., Thales Belgium, Northrop Grumman Corp, Airbus Helicopters

Scope

  • Belgium's military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement.
  • Military expenditure, on a cumulative basis, is anticipated to be US$16.3 billion, which is higher than the US$14.4 billion spent during the historic period.
  • Belgium is an active participant in joint operations with the European Union (EU) and peacekeeping operations with NATO and the United Nations (UN), and as such, seeks higher spending in terms of its defense sector.
  • The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024.
  • The country's per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Belgian 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 Belgian defense industry covering sections including demand drivers, key trends and latest industry contracts.
Table of Contents
Product Code: GDDF0553MR

Table of Contents

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. Equipment of Belgian Military
    • 3.1.2. Procurement Programs
    • 3.1.3. Ongoing procurement programs
    • 3.1.4. Future procurement programs
    • 3.1.5. Key Drivers and Challenges
  • 3.2. Defense Market Size Historical and Forecast
    • 3.2.1. Belgium's defense expenditure is anticipated to increase at a CAGR of 1.99% over the forecast period
    • 3.2.2. Equipment procurement plans and joint operations expected to drive defense expenditure over the forecast period
  • 3.3. Analysis of Defense Budget Allocation
    • 3.3.1. Belgium's defense expenditure as a percentage of GDP anticipated to decrease
    • 3.3.2. Capital expenditure share to average 20.2% over the forecast period
    • 3.3.3. Capital expenditure expected to increase at a CAGR of 8.27% over 2020-2024
    • 3.3.4. Per capita defense expenditure set to increase over the forecast period
  • 3.4. Homeland Security Market Size and Forecast
    • 3.4.1. Belgium's homeland security expenditure expected to increase at a CAGR of 4.90% over the forecast period
    • 3.4.2. Drug trafficking and cyber security are the country's main homeland security related concerns
  • 3.5. Benchmarking with Key Global Markets
    • 3.5.1. Belgium's defense budget is expected to increase at a lower rate than other European countries over the forecast period
    • 3.5.2. Belgium's defense expenditure is low compared to other European nations
    • 3.5.3. Belgium allocates a comparatively low share of GDP to defense
  • 3.6. Market Opportunities: Key Trends and Growth Stimulators
    • 3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024

4. Defense Procurement Market Dynamics

  • 4.1. Import Market Dynamics
    • 4.1.1. Defense imports are expected to recover over the forecast period
    • 4.1.2. Belgium sourced most its arms imports from its neighbors
    • 4.1.3. Aircraft, naval vessels and sensors dominated military hardware imports
  • 4.2. Export Market Dynamics
    • 4.2.1. Arms exports to increase over the forecast period
    • 4.2.2. Belgium's arms exports expected to reach new markets over the forecast period
    • 4.2.3. Armored vehicles and aircraft are the main exported defense products

5. Market Entry Strategy

  • 5.1. Market Regulation
    • 5.1.1. Offset policy aids development of domestic defense industry
    • 5.1.2. Belgium permits 100% FDI in the defense industry
  • 5.2. Market Entry Route
    • 5.2.1. Budgeting Process
    • 5.2.2. Procurement Policy and Process
    • 5.2.3. Joint weapons development program, a viable market entry route
    • 5.2.4. Subsidiaries provide market entry opportunities
    • 5.2.5. Acquisition of domestic companies enables entrance to market

6. Competitive Landscape and Strategic Insights

  • 6.1. Competitive Landscape Overview

7. Business Environment and Country Risk

  • 7.1. Economic Performance
    • 7.1.1. Gross Domestic per Capita
    • 7.1.2. Gross Domestic Product, current US$ Billion
    • 7.1.3. Exports of Goods and Services
    • 7.1.4. Imports of Goods and Services
    • 7.1.5. Gross National Disposable Income
    • 7.1.6. Local Currency Unit per US$
    • 7.1.7. Market Capitalization of Listed Companies
    • 7.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
    • 7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP
    • 7.1.10. Goods Exports as a Percentage of GDP
    • 7.1.11. Goods Imports as a Percentage of GDP
    • 7.1.12. Services Imports as a Percentage of GDP
    • 7.1.13. Services Exports as a Percentage of GDP
    • 7.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
    • 7.1.15. Net Foreign Direct Investment as a Percentage of GDP
    • 7.1.16. Mining, Manufacturing, Utilities Output

8. Appendix

  • 8.1. About GlobalData
  • 8.2. Disclaimer

List of Tables

  • Table 1: Belgian Army Strength
  • Table 2: Belgian Navy Strength
  • Table 3: Belgian Air Force Strength
  • Table 4: Belgium Ongoing Procurement Programs
  • Table 5: Belgium Future Procurement Programs
  • Table 6: Belgium Defense Expenditure (EUR Billion & US$ Billion), 2015-2024
  • Table 7: Belgium GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
  • Table 8: Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Table 9: Belgian Procurement Plans, 2019-2030
  • Table 10: Belgium Defense Capital Expenditure (EUR Million & US$ Million), 2015-2024
  • Table 11: Belgium Per Capita Defense Expenditure (US$), 2015-2024
  • Table 12: Belgian Homeland Security Expenditure (EUR Billion & US$ Billion), 2015-2024
  • Table 13: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
  • Table 14: Top 10 Belgian Defense Market Sectors by Value (US$ Million) - 2019-2024
  • Table 15: Offset Regulations in Belgium
  • Table 16: Belgium's Participation in International Defense Development Programs
  • Table 17: Competitive Landscape of the Belgian Defense Industry

List of Figures

  • Figure 1: Belgian Defense Budget, 2020 and 2024
  • Figure 2: Belgian Defense Imports/Exports, 2013 and 2017
  • Figure 3: Belgium's Top Prospective Procurements/Developments
  • Figure 4: Belgian Defense Expenditure (EUR Billion), 2014-2023
  • Figure 5: Belgian Defense Expenditure (US$ Billion), 2014-2023
  • Figure 6: Belgium GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2015-2024
  • Figure 7: Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Figure 8: Belgian Defense Capital Expenditure (EUR Million), 2015-2024
  • Figure 9: Belgian Defense Capital Expenditure (US$ Million), 2015-2024
  • Figure 10: Belgium Per Capita Defense Expenditure (US$), 2015-2024
  • Figure 11: Belgian Homeland Security Budget (EUR Billion), 2015-2024
  • Figure 12: Belgian Homeland Security Budget (US$ Billion), 2015-2024
  • Figure 13: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
  • Figure 14: Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
  • Figure 15: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
  • Figure 16: Belgian Defense Import Trend, 2013-2017 (TIV Values in US$ Million)
  • Figure 17: Belgian Defense Imports by Country (%), 2013-2017
  • Figure 18: Belgian Defense Imports by Category (%),2013-2017
  • Figure 19: Belgian Defense Exports Trend (TIV Values in US$ Million), 2013-2017
  • Figure 20: Belgian Defense Exports by Country (%), 2013-2017
  • Figure 21: Belgium Defense Exports by Category (%), 2013-2017
  • Figure 22: Belgium's Budgeting Process
  • Figure 23: Belgium GDP per Capita, 2015-2025
  • Figure 24: Belgium Gross Domestic Product (current US$ Billion), 2015-2025
  • Figure 25: Belgium Exports of Goods and Services (current LCU Billion), 2005-2014
  • Figure 26: Belgium Imports of Goods and Services (current LCU Billion), 2005-2014
  • Figure 27: Belgium Gross National Disposable Income (US$ Billion), 2005-2013
  • Figure 28: Belgium LCU per US$, 2015-2024
  • Figure 29: Belgium Market Capitalization of Listed Companies (US$ Billion), 2005-2012
  • Figure 30: Belgium Market Capitalization of Listed Companies (% of GDP), 2005-2012
  • Figure 31: Belgium Government Cash Surplus/Deficit (% of GDP), 2005-2012
  • Figure 32: Belgium Goods Exports (% of GDP), 2005-2014
  • Figure 33: Belgium Goods Imports (% of GDP), 2005-2014
  • Figure 34: Belgium Services Imports (% of GDP), 2005-2014
  • Figure 35: Belgium Services Exports (% of GDP), 2005-2014
  • Figure 36: Belgium Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
  • Figure 37: Belgium Net Foreign Direct Investment (% of GDP), 2005-2014
  • Figure 38: Belgium Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
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