Future of the danish defense industry market attractiveness, competitive landscape and forecasts to 2018 - Reports Corner

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Future of the Danish Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2018

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Reports Cornerwww.reportscorner.com
Product Synopsis
This report is the result of SDI's extensive market and company
research covering the Danish defense industry, and provides detailed
analysis of both historic and forecast defense industry values including
key growth stimulators, analysis of the leading companies in the
industry, and key news.

Brief SummaryBrief Summary
Product Synopsis
This report is the result of SDI's extensive market and company
research covering the Danish defense industry, and provides detailed
analysis of both historic and forecast defense industry values including
key growth stimulators, analysis of the leading companies in the
industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Danish Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2018 offers the reader an
insight into the market opportunities and entry strategies adopted by
foreign original equipment manufacturers (OEMs) to gain market share
in the Danish defense industry.

What is the current market landscape and what is changing?
The Danish defense budget, valued at US$4.1 billion in 2013, is
estimated to register a CAGR of -9.16% during the forecast period and
decline to US$2.8 billion by 2018. This decrease in spending is
expected to be primarily due to the country's public debt, which will
force Denmark to cut its defense budget over the forecast period.
Primarily driven by capability building and participation in NATO and
UN operations, the country's defense expenditure is expected to focus
more on the procurement of equipment for its maritime security, cyber
security, missile defense, and counterterrorism capabilities over the
period 2014-2018. The country's defense imports and exports are
expected to increase marginally over the forecast period.

What are the key drivers behind recent market changes?
Denmark's defense priorities focus on enhancing the capabilities of its
armed forces to deploy force contributions at short notice for
safeguarding Danish interests at home and abroad, and for
participation in NATO's operations and UN peacekeeping operations.
These factors are expected to drive the country's military expenditure
over the forecast period.
What makes this report unique and essential to read?
The Future of the Danish Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2018 provides detailed
analysis of the current industry size and growth expectations from 2014
to 2018, including highlights of key growth stimulators. It also
benchmarks the industry against key global markets and provides a
detailed understanding of emerging opportunities in specific areas.

Key Features and Benefits
The report provides detailed analysis of the current industry size and
growth expectations from 2014 to 2018, including highlights of key
growth stimulators, and also benchmarks the industry against key
global markets and provides a detailed understanding of emerging
opportunities in specific areas.
The report includes trend analysis of imports and exports, together with
their implications and impact on the Danish defense industry.
The report covers five forces analysis to identify various power centers
in the industry and how these are expected to develop in the future.

The report allows readers to identify possible ways to enter the market,
together with detailed descriptions of how existing companies have
entered the market, including key contracts, alliances, and strategic
initiatives.
The report helps the reader to understand the competitive landscape of
the defense industry in Denmark. It provides an overview of key
defense companies, both domestic and foreign, together with insights
such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
Denmark has a small defense budget when compared to other
European countries such as the UK, Germany, and France, and is
likely to register negative growth over the forecast period.

As the Danish government allocates a small proportion of its budget to
defense, the country spends less on the purchase of equipment and
high-technology arms and ammunition. Moreover, the country spends
less on advanced technology and research and development, resulting
in lower export capacities. Consequently, the country's low defense
budget has become a barrier to entry for foreign companies. As
Denmark's defense industry comprises small companies with little
specialization in a particular weapon category, and due to a lack of
advanced defense technology, foreign weapon suppliers wishing to
conduct business face challenges in infrastructure. Although these
foreign suppliers can bring in advanced technology, this will result in
technology imports without any offset incentives. Foreign suppliers face
challenges on these fronts while pursuing a defense business
opportunity.

Denmark is a member of the Nordic Council, which was formed in 1952
with the purpose of enhancing economic co-operation among Nordic
countries. Moreover, with the formation of the Nordic Defense Co-
operation (NORDEFCO) in 2009, defense procurement from - and joint
equipment development programs with -Nordic member countries are
likely to increase during the forecast period. Additionally, as Denmark
has signed a defense co-operation treaty with the US, the country is
giving preference to US companies while purchasing defense
materials. As a consequence, it has become challenging for companies
from countries other than the US and those in the Nordic region to
enter the Danish defense market.
Key Highlights
Safeguarding Danish interests: The primary purpose of Danish armed
forces is to enforce the sovereignty of the kingdom and safeguarding
Danish interests in Greenland, Faroe Islands and abroad.

In addition, the country's armed forces are also expected to carry out
national tasks such as surveillance and rescue operations. Climate
changes leading to increased geographic accessibility in Arctic region
have been resulting in heightened commercial activity in the area. The
Danish armed forces are expected to safeguard the country's right to
extract natural resources in Greenland and the Arctic region. During
the review period, the Ministry of Defense undertook a number of major
reorganizations of its armed forces to equip relevant and contemporary
capacities. In addition, the Danish government believes that the
continuous proliferation of weapons of mass destruction and long-
range missiles along with cyber-attacks pose major security threats to
Danish interests. International developments coupled with these factors
will lead to altered requirements for the capacity development of
Danish armed forces, which is expected to deploy its forces quickly and
flexibly, with a focus on short as well as sustained operations.

As part of the capacity development, the Danish government is
planning to equip its armed forces with modern military arms and
equipment such as joint strike fighter aircraft, marine helicopters,
armored vehicles, patrol vessels, small ships, radars and
communication systems, new artillery systems, and ballistic missile
defense systems among others. International Peacekeeping missions:
Denmark is the main contributor to NATO (KFOR) operations in
Kosovo with a commitment of about 150 military personnel. In
November 2010 Denmark reaffirmed its commitment to assist NATO
forces in Afghanistan and also committed to help train Afghan security
forces ahead of an eventual withdrawal of NATO troops scheduled at
the end of 2014, allowing the country to assume full sovereignty.

Cyber-warfare has moved up the list of favorite mode of attack by
terrorist groups over the last five years. The possibility of destroying the
nation's strategic resources even without entering into the country is
appealing to these terrorists groups and instances of such cyber-
attacks have been increasing. Danish Defense Intelligence identified
cyber war as the most serious threat to national security in its risk
assessment announced in October 2012. The Danish government
placed high priority on cyber security and established a Computer
Emergency Response Team (CERT), which joined the Europe
Government CERTs group (EGC group), a joint effort by European
countries to counter cyber-attacks. Furthermore, Denmark's Defense
Intelligence Service is planning to establish a cyber warfare unit 'Center
for Cyber Security' to safeguard its military network from cyber-attacks
with an estimated budget of US$6 million. The center's budget is
expected to increase annually to reach US$26 million by 2017 and will
be handling both defensive and offensive cyber security measures.

Arms imports in Denmark declined sharply in 2010 and 2011 due to the
country's budget cuts, which recovered in 2012. The country's defense
imports are expected to recover gradually over the forecast period, as
the country plans to modernize its military and procurement of F-35
joint strike fighters, MH-60R marine helicopters, and ballistic missile
defense systems. Denmark sourced 31.8% of its defense import
requirements from the UK during 2008-2012, followed by Sweden, the
Netherlands and Germany, accounting for 29.7%, 18.0%, and 10.0% of
defense imports respectively. Switzerland and the US were other major
arms suppliers for the country. Over the period 2013-2017, the country
is expected to increase its defense imports, especially from the US and
its European neighbors.

Table of ContentsTable of Contents
1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Danish defense expenditure expected to register a CAGR of -9.1% over the forecast period
3.1.2. Capability building, and participation in NATO and UN operations expected to drive defense
spending over the forecast period
3.1.3. Denmark's defense expenditure as a percentage of GDP expected to decrease
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of Capital Expenditure expected to increase over forecast period

3.2.2. Share of equipment expenditure expected to remain same over forecast period
3.2.3. Procurement of helicopter and artillery system to drive Denmark's equipment expenditure
3.2.4. Budget allocation for other capital expenditure to register a CAGR of -0.91% during the forecast
period
3.2.5. Share of personnel expenditure expected to decrease over forecast period
3.2.6. Per capita defense expenditure set to decrease over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Danish homeland security expenditure expected to increase at a CAGR of 3.15%
3.3.2. Cyber security and counter terrorism are main homeland security concerns
3.3.3. Denmark falls under “low risk” of terrorism category
3.4. Benchmarking with Key Global Markets
3.4.1. Denmark defense budget expected to decline over the forecast period
3.4.2. Denmark to follow its European neighbors in cutting defense spending
3.4.3. Denmark follows its neighbors in allocating lower share of GDP for defense
3.4.4. Denmark faces low threat from foreign terrorist organizations

3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Fighters and Multi-Role Aircraft
3.5.2. Maritime Helicopter
3.5.3. Rotorcraft MRO
3.5.4. Maritime Security
3.5.5. Air Defense Missile Systems
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. Denmark sourced majority of its arms imports from its neighbors
4.1.3. Armored vehicles and Aircraft dominate military hardware imports
4.2. Export Market Dynamics
4.2.1. Arms exports to recover during the forecast period
4.2.2. Denmark arms exports expected to increase
4.2.3. Aircraft and Ships are the main exported defense products

5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: low
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry
6.1.2. Denmark permits 100% foreign direct investment in defense sector
6.2. Market Entry Route
6.2.1. Forming subsidiaries or acquiring Danish companies are good market entry opportunities
6.2.2. Forming consortiums and product development agreements open new market entry strategy
choices
6.2.3. Joint weapon development programs are a viable market entry opportunity

6.3. Key Challenges
6.3.1. Low defense budget and limited technological capability hinder market entry by foreign companies
6.3.2. Preference to procurement from US and Nordic companies challenging for other suppliers
7 Competitive Landscape and Strategic Insights
1.1 Competitive Landscape Overview
1.2 Key Foreign Companies
7.1.1. Systematic A/S: overview
7.1.2. Systematic A/S: products and services
7.1.3. Systematic A/S: recent announcements and strategic initiatives
7.1.4. Systematic A/S: alliances
7.1.5. Systematic A/S: recent contract wins
7.1.6. Terma A/S: overview
7.1.7. Terma A/S: products and service

7.1.8. Terma A/S: recent announcements and strategic initiatives
7.1.9. Terma A/S: alliances
7.1.10. Terma A/S: recent contract wins
7.1.11. AP Services A/S: overview
7.1.12. AP Services A/S: products and services
7.1.13. Arenalogic ApS: overview
7.1.14. Arenalogic ApS: products and services
7.1.15. Arenalogic ApS: recent announcements and strategic initiatives
7.1.16. Arenalogic ApS: alliances
7.1.17. Copenhagen Sensor Technology ApS: overview
7.1.18. Copenhagen Sensor Technology ApS: products and services
7.1.19. Copenhagen Sensor Technology ApS: recent announcements and strategic initiatives
7.1.20. Copenhagen Sensor Technology ApS: alliances
7.1.21. Danish Aerotech A/S: overview

7.1.22. Danish Aerotech A/S: products and services
7.1.23. Danish Aerotech A/S: recent announcements and strategic initiatives
7.1.24. Danish Aerotech A/S: alliances
7.1.25. Danish Aerotech A/S: recent contract wins
7.1.26. Falck Schmidt Defence Systems A/S: overview
7.1.27. Falck Schmidt Defence Systems A/S: products and services
7.1.28. Falck Schmidt Defence Systems A/S: recent announcements and strategic initiatives
7.1.29. Falck Schmidt Defence Systems A/S: alliances
7.1.30. Falck Schmidt Defence Systems A/S: recent contract wins
7.1.31. IFAD TS A/S: overview
7.1.32. IFAD TS A/S: products and services
7.1.33. IFAD TS A/S: recent announcements and strategic initiatives
7.1.34. IFAD TS A/S: alliances
7.1.35. IFAD TS A/S: recent contract wins

1.3 Key Foreign Companies
7.1.36. Alcatel-Lucent Denmark A/S: overview
7.1.37. Alcatel-Lucent Denmark A/S: products and services
7.1.38. Alcatel-Lucent Denmark A/S: recent announcements and strategic initiatives
7.1.39. Alcatel-Lucent Denmark A/S: recent contract wins
7.1.40. Lockheed Martin Denmark: overview
7.1.41. Lockheed Martin Denmark: products and services
7.1.42. Lockheed Martin Denmark: recent announcements and strategic initiatives
7.1.43. Lockheed Martin Denmark: alliances
7.1.44. Lockheed Martin Denmark: recent contract wins
7.1.45. TenCate Advanced Armour Denmark A/S: overview
7.1.46. TenCate Advanced Armour Denmark A/S: defense products
7.1.47. TenCate Advanced Armour Denmark A/S: recent announcements and strategic initiatives
7.1.48. TenCate Advanced Armour Denmark A/S: alliances
7.1.49. TenCate Advanced Armour Denmark A/S: recent contract wins

8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Rural
8.1.2. Population - Urban
8.1.3. Population - Number of Households
8.2. Economic Performance
8.2.1. Gross Domestic per Capita
8.2.2. Gross Domestic Product, current US$
8.2.3. Exports of Goods and Services
8.2.4. Imports of Goods and Services
8.2.5. Gross National Disposable Income
8.2.6. Manufacturing Output
8.2.7. Consumer Price Index
8.2.8. Wholesale Price Index

8.2.9. Local Currency Unit per US$
8.2.10. Local Currency Unit per EUR
8.2.11. Market Capitalization of Listed Companies
8.2.12. Market Capitalization of Listed Companies as a % of GDP
8.2.13. Total Government Cash Surplus/Deficit
8.2.14. Government Cash Surplus/Deficit
8.2.15. Central Government Debt
8.2.16. Central Government Debt as a % of GDP
8.2.17. Goods Exports as a % of GDP
8.2.18. Goods Imports as a % of GDP
8.2.19. Goods Trade Surplus/Deficit as a % of GDP
8.2.20. Services Imports as a % of GDP
8.2.21. Services Exports as a % of GDP
8.2.22. Services trade surplus/deficit as a % of GDP

8.2.23. Net Foreign Direct Investment
8.2.24. Net FDI as a percentage of GDP
8.2.25. International reserves, including Gold
8.3. Energy and Utilities
8.3.1. Total Conventional Thermal Electricity Net Generation
8.3.2. Hydroelectricity Net Generation
8.3.3. Nuclear Electricity Net Generation
8.3.4. Total Conventional Thermal Electricity Installed Capacity
8.3.5. Total Electricity Exports
8.3.6. Total Electricity Imports
8.3.7. Proved Reserves of Natural Gas (Trillion Cubic Feet)
8.3.8. Total Petroleum Consumption
8.3.9. Crude Oil Proved Reserves (Billion Barrels)
8.3.10. Total Non-Hydro Renewable Electricity Net Generation

8.4. Infrastructure Quality and Availability
8.4.1. Roads, total network (km)
8.4.2. Rail lines, total network
8.5. Minerals
8.5.1. Mining, Manufacturing, Utilities Output
8.6. Technology
8.6.1. Research and development expenditure
8.6.2. Patents Granted
8.7. Telecommunication
8.7.1. Telephone lines
8.7.2. Telephone lines Penetration Rate
9 Appendix
9.1. About SDI
9.2. Disclaimer

For more informationFor more information
For more information please visit our website
https://www.reportscorner.com/reports/22395/Future-of-the-Danish-Defense-
Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/

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