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Market Research Report

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

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Future of the Bruneian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
Published: July 10, 2018 Content info: 62 Pages
Description

Summary

Brunei's military expenditure stands at US$373.8 million in 2018 and is projected to register a CAGR of 1.89% till 2023. The country's defense expenditure is primarily driven by China's claims in the South China Sea, and its growing assertiveness in this region, forcing Brunei to reevaluate its priorities and invest in shaping its defense capability to address the maritime security threats and military modernization of the Royal Brunei Armed Forces (RBAF).

As a percentage of GDP, the country's defense budget is expected to register an average of 2.6% over the forecast period. The average allocation for capital expenditure during the historic period was 32%. Over the forecast period, it is expected to allocate an average of 32.1%.

"Future of the Bruneian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", 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 Bruneian 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 Bruneian defense industry market size and drivers: detailed analysis of the Bruneian 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 Bruneian defense industry.

Companies Mentioned: Lockheed Martin, Sikorsky, Construcciones Aeronauticas SA (CASA)/ IPTN, GAIT Industries/ Nexter, Bell Helicopters, Pilatus, Messerschmitt-Bolkow-Blohm (MBB), PT Pindad, Royal Brunei Technical Services (RBTS).

Scope

Brunei's military expenditure stands at US$373.8 million in 2018 and is projected to register a CAGR of 1.89% to reach US$443.2 million by 2023.

The country's defense expenditure is primarily driven by territorial disputes in the South China Sea, the military modernization of the Royal Brunei Armed Forces (RBAF) and the threat of terrorism.

As a percentage of GDP, the country's defense budget is expected to register an average of 2.6% over the forecast period.

The average allocation for capital expenditure during the historic period was 32%. Over the forecast period, it is expected to allocate an average of 32.1%.

Reasons to buy

This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Bruneian 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 Bruneian defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.

Table of Contents
Product Code: DF0508MR

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 Strategic Defence Intelligence 9

2. Executive Summary 10

3. Market Attractiveness and Emerging Opportunities 11

  • 3.1. Current Market Scenario 12
    • 3.1.1. Military Fleet Size 12
    • 3.1.2. Procurement Programs 14
    • 3.1.3. Key Drivers and Challenges 15
  • 3.2. Defense Market Size Historical and Forecast 17
    • 3.2.1. Brunei's defense expenditure is expected to grow at a CAGR of 1.89% over the forecast period 17
    • 3.2.2. Territorial disputes in the South China Sea, military modernization initiatives, and the threat of terrorism are expected to drive defense expenditure over the forecast period 19
    • 3.2.3. Brunei's defense expenditure as a percentage of GDP is expected to decrease marginally over the forecast period 21
  • 3.3. Analysis of Defense Budget Allocation 23
    • 3.3.1. Capital expenditure allocation expected to increase during the forecast period 23
    • 3.3.2. Capital expenditure to increase at a CAGR of 1.92% over the forecast period 25
    • 3.3.3. Per capita defense expenditure is expected to increase during the forecast period 27
  • 3.4. Homeland Security Market Size and Forecast 29
    • 3.4.1. Brunei homeland security market to increase at a CAGR of 2.89% over the forecast period 29
    • 3.4.2. Homeland security expenditure to be driven by human and illicit drug trafficking 31
    • 3.4.3. Brunei faces some level of threat from terrorism 33
  • 3.5. Benchmarking with Key Global Markets 34
    • 3.5.1. Brunei's defense budget is poised to grow over the forecast period 34
    • 3.5.2. Brunei's defense spending is low compared to other major military spenders 36
    • 3.5.3. Brunei allocates a significant percentage of GDP towards defense spending 37
  • 3.6. Market Opportunities: Key Trends and Growth Stimulators 38
    • 3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections Over 2018-2023 38

4. Defense Procurement Market Dynamics 39

  • 4.1. Import Dynamics 40
    • 4.1.1. Defense imports recorded a decline during 2013-2017 40
    • 4.1.2. Brunei sourced the majority of its arms imports from the US 41
    • 4.1.3. Naval vessels and aircraft accounted for the majority of arms imports during 2013-2017 42
  • 4.2. Export Dynamics 43
    • 4.2.1. Brunei does not export military hardware due to a lack of domestic manufacturing capacity 43

5. Market Entry Strategy 44

  • 5.1. Market Regulation 44
    • 5.1.1. Brunei has not disclosed any offset obligations imposed by the country 44
    • 5.1.2. FDI in the defense sector is controlled entirely by the government 44
  • 5.2. Market Entry Route 45
    • 5.2.1. Budget Process 45
    • 5.2.2. Procurement Policy and Process 46
    • 5.2.3. The biennial defense exhibition provides an attractive entry route 46
    • 5.2.4. Direct commercial sales are the preferred entry route 46
    • 5.2.5. Closer military co-operation provides an opportunity to enter the defense market 47

6. Competitive Landscape and Strategic Insights 48

  • 6.1. Competitive Landscape Overview 48

7. Business Environment and Country Risk 49

  • 7.1. Economic Performance 49
    • 7.1.1. GDP Per Capita 49
    • 7.1.2. GDP, Current Prices 50
    • 7.1.3. Exports of Goods and Services, Current Prices 51
    • 7.1.4. Imports of Goods and Services, Current Prices 52
    • 7.1.5. Gross National disposable income (US$ Billion) 53
    • 7.1.6. Local Currency Unit per US Dollar 54
    • 7.1.7. Goods Exports as a Percentage of GDP 55
    • 7.1.8. Goods Imports as a Percentage of GDP 56
    • 7.1.9. Service Imports as a Percentage of GDP 57
    • 7.1.10. Service 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 60
    • 7.1.13. Mining, Manufacturing, Utilities Output (LCU Billion) 61

8. Appendix 62

  • 8.1. About SDI 62
  • 8.2. Disclaimer 62

List of Tables

  • Table 1: Brunei Land Forces Strength 12
  • Table 2: Brunei Navy Strength 13
  • Table 3: Brunei Air Force Strength 13
  • Table 4: Brunei Ongoing Procurement Programs 14
  • Table 5: Brunei Future Procurement Programs 14
  • Table 6: Brunei Defense Expenditure (BND Million & US$ Million), 2014-2023 17
  • Table 7: Brunei GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023 21
  • Table 8: Brunei Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 23
  • Table 9: Brunei Defense Capital Expenditure (BND Million & US$ Million), 2014-2023 25
  • Table 10: Brunei Per-Capita Defense Expenditure (US$), 2014-2023 27
  • Table 11: Brunei Homeland Security Expenditure (BND Million & US$ Million), 2014-2023 29
  • Table 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 34
  • Table 13: Top 10 Brunei's Defense Market Sectors by Value (US$ Million) - 2018-2023 38
  • Table 14: Brunei Budget Preparation Process 45
  • Table 15: Brunei - Competitive Landscape of Defense Industry, 2018 48

List of Figures

  • Figure 1: Brunei Defense Expenditure (BND Million), 2014-2023 18
  • Figure 2: Brunei Defense Expenditure (US$ Million), 2014-2023 18
  • Figure 3: Brunei GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023 22
  • Figure 4: Brunei Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 24
  • Figure 5: Brunei Defense Capital Expenditure (BND Million), 2014-2023 26
  • Figure 6: Brunei Defense Capital Expenditure (US$ Million), 2014-2023 26
  • Figure 7: Brunei Per Capita Expenditure (US$), 2014-2023 28
  • Figure 8: Brunei Homeland Security Budget (BND Million), 2014-2023 30
  • Figure 9: Brunei Homeland Security Budget (US$ Million), 2014-2023 30
  • Figure 10: Terrorism Heat Map, 2018 33
  • Figure 11: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 35
  • Figure 12: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023 36
  • Figure 13: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 37
  • Figure 14: Brunei Defense Imports (US$ Million), 2013-2017 40
  • Figure 15: Brunei Defense Imports by Country (%), 2013-2017 41
  • Figure 16: Brunei Defense Imports by Weapon Category (%), 2013-2017 42
  • Figure 17: Brunei GDP Per Capita, 2015-2025 49
  • Figure 18: Brunei GDP, Current Prices (in US$ Billion), 2015-2025 50
  • Figure 19: Brunei Exports of Goods and Services, Current Prices (LCU Billion), 2005-2014 51
  • Figure 20: Brunei Imports of Goods and Services, Current Prices (LCU Billion), 2005-2014 52
  • Figure 21: Brunei Gross National Disposable Income (US$ Billion), 2010-2013 53
  • Figure 22: Local Currency Unit per US$ - Exchange Rate, 2015-2024 54
  • Figure 23: Brunei Goods Exports as a Percentage of GDP, 2005-2009 55
  • Figure 24: Brunei Goods Imports as a Percentage of GDP, 2005-2009 56
  • Figure 25: Brunei Service Imports as a Percentage of GDP, 2005-2009 57
  • Figure 26: Brunei Service Exports as a Percentage of GDP, 2005-2009 58
  • Figure 27: Brunei Foreign Direct Investment, net (BoP, Current US$ Billion), 2005-2009 59
  • Figure 28: Brunei Net Foreign Direct Investment as a Percentage of GDP, 2005-2009 60
  • Figure 29: Brunei Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 61
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