ResearchMoz: Future of the Danish Defense Industry to 2018

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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.

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ResearchMoz: Future of the Danish Defense Industry to 2018

  1. 1. Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018Product SynopsisThis report is the result of SDIs extensive market and company research covering the Danish defenseindustry, and provides detailed analysis of both historic and forecast defense industry values including keygrowth stimulators, analysis of the leading companies in the industry, and key news.Introduction and LandscapeWhy was the report written?The Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign originalequipment 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 beprimarily due to the countrys public debt, which will force Denmark to cut its defense budget over theforecast period. Primarily driven by capability building and participation in NATO and UN operations, thecountrys defense expenditure is expected to focus more on the procurement of equipment for its maritimesecurity, cyber security, missile defense, and counterterrorism capabilities over the period 2014-2018. Thecountrys defense imports and exports are expected to increase marginally over the forecast period.What are the key drivers behind recent market changes?Denmarks defense priorities focus on enhancing the capabilities of its armed forces to deploy forcecontributions at short notice for safeguarding Danish interests at home and abroad, and for participation inNATOs operations and UN peacekeeping operations. These factors are expected to drive the countrysmilitary 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 to2018 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 andprovides a detailed understanding of emerging opportunities in specific areas.Key Features and BenefitsThe 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 marketsand 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 theDanish defense industry.Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  2. 2. The report covers five forces analysis to identify various power centers in the industry and how these areexpected to develop in the future.The report allows readers to identify possible ways to enter the market, together with detailed descriptions ofhow 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. Itprovides an overview of key defense companies, both domestic and foreign, together with insights such as keyalliances, strategic initiatives, and a brief financial analysis.Key Market IssuesDenmark 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 governmentallocates a small proportion of its budget to defense, the country spends less on the purchase of equipment andhigh-technology arms and ammunition. Moreover, the country spends less on advanced technology andresearch and development, resulting in lower export capacities. Consequently, the countrys low defensebudget has become a barrier to entry for foreign companies. As Denmarks defense industry comprises smallcompanies with little specialization in a particular weapon category, and due to a lack of advanced defensetechnology, foreign weapon suppliers wishing to conduct business face challenges in infrastructure. Althoughthese foreign suppliers can bring in advanced technology, this will result in technology imports without anyoffset incentives. Foreign suppliers face challenges on these fronts while pursuing a defense businessopportunity.Denmark is a member of the Nordic Council, which was formed in 1952 with the purpose of enhancingeconomic co-operation among Nordic countries. Moreover, with the formation of the Nordic DefenseCo-operation (NORDEFCO) in 2009, defense procurement from - and joint equipment development programswith -Nordic member countries are likely to increase during the forecast period. Additionally, as Denmark hassigned a defense co-operation treaty with the US, the country is giving preference to US companies whilepurchasing defense materials. As a consequence, it has become challenging for companies from countriesother than the US and those in the Nordic region to enter the Danish defense market.Key HighlightsSafeguarding Danish interests: The primary purpose of Danish armed forces is to enforce the sovereignty ofthe kingdom and safeguarding Danish interests in Greenland, Faroe Islands and abroad. In addition, thecountrys 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 inheightened commercial activity in the area. The Danish armed forces are expected to safeguard the countrysright to extract natural resources in Greenland and the Arctic region. During the review period, the Ministry ofDefense undertook a number of major reorganizations of its armed forces to equip relevant and contemporarycapacities. In addition, the Danish government believes that the continuous proliferation of weapons of massdestruction 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 capacitydevelopment of Danish armed forces, which is expected to deploy its forces quickly and flexibly, with a focusFuture of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  3. 3. on short as well as sustained operations. As part of the capacity development, the Danish government isplanning to equip its armed forces with modern military arms and equipment such as joint strike fighteraircraft, marine helicopters, armored vehicles, patrol vessels, small ships, radars and communication systems,new artillery systems, and ballistic missile defense systems among others. International Peacekeepingmissions: Denmark is the main contributor to NATO (KFOR) operations in Kosovo with a commitment ofabout 150 military personnel. In November 2010 Denmark reaffirmed its commitment to assist NATO forcesin Afghanistan and also committed to help train Afghan security forces ahead of an eventual withdrawal ofNATO 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 nations strategic resources even without entering into the country isappealing to these terrorists groups and instances of such cyber-attacks have been increasing. Danish DefenseIntelligence identified cyber war as the most serious threat to national security in its risk assessmentannounced in October 2012. The Danish government placed high priority on cyber security and established aComputer Emergency Response Team (CERT), which joined the Europe Government CERTs group (EGCgroup), a joint effort by European countries to counter cyber-attacks. Furthermore, Denmarks DefenseIntelligence Service is planning to establish a cyber warfare unit Center for Cyber Security to safeguard itsmilitary network from cyber-attacks with an estimated budget of US$6 million. The centers budget isexpected to increase annually to reach US$26 million by 2017 and will be handling both defensive andoffensive cyber security measures.Arms imports in Denmark declined sharply in 2010 and 2011 due to the countrys budget cuts, whichrecovered in 2012. The countrys defense imports are expected to recover gradually over the forecast period, asthe country plans to modernize its military and procurement of F-35 joint strike fighters, MH-60R marinehelicopters, and ballistic missile defense systems. Denmark sourced 31.8% of its defense import requirementsfrom 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 suppliersfor the country. Over the period 2013-2017, the country is expected to increase its defense imports, especiallyfrom the US and its European neighbors.1 Introduction1.1. What Is This Report About?1.2. Definitions1.3. Summary Methodology1.4. Sdi Terrorism Index1.5. About Strategic Defence Intelligence2 Executive Summary3 Market Attractiveness And Emerging Opportunities3.1. Defense Market Size Historical And Forecast3.1.1. Danish Defense Expenditure Expected To Register A Cagr Of -9.1% Over The Forecast Period3.1.2. Capability Building, And Participation In Nato And Un Operations Expected To Drive DefenseSpending Over The Forecast Period3.1.3. Denmarks Defense Expenditure As A Percentage Of Gdp Expected To DecreaseFuture of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  4. 4. 3.2. Analysis Of Defense Budget Allocation3.2.1. Share Of Capital Expenditure Expected To Increase Over Forecast Period3.2.2. Share Of Equipment Expenditure Expected To Remain Same Over Forecast Period3.2.3. Procurement Of Helicopter And Artillery System To Drive Denmarks Equipment Expenditure3.2.4. Budget Allocation For Other Capital Expenditure To Register A Cagr Of -0.91% During The ForecastPeriod3.2.5. Share Of Personnel Expenditure Expected To Decrease Over Forecast Period3.2.6. Per Capita Defense Expenditure Set To Decrease Over The Forecast Period3.3. Homeland Security Market Size And Forecast3.3.1. 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 Concerns3.3.3. Denmark Falls Under Low Risk Of Terrorism Category3.4. Benchmarking With Key Global Markets3.4.1. Denmark Defense Budget Expected To Decline Over The Forecast Period3.4.2. Denmark To Follow Its European Neighbors In Cutting Defense Spending3.4.3. Denmark Follows Its Neighbors In Allocating Lower Share Of Gdp For Defense3.4.4. Denmark Faces Low Threat From Foreign Terrorist Organizations3.5. Market Opportunities: Key Trends And Growth Stimulators3.5.1. Fighters And Multi-role Aircraft3.5.2. Maritime Helicopter3.5.3. Rotorcraft Mro3.5.4. Maritime Security3.5.5. Air Defense Missile Systems4 Defense Procurement Market Dynamics4.1. Import Market Dynamics4.1.1. Defense Imports Are Expected To Recover Over The Forecast Period4.1.2. Denmark Sourced Majority Of Its Arms Imports From Its Neighbors4.1.3. Armored Vehicles And Aircraft Dominate Military Hardware Imports4.2. Export Market Dynamics4.2.1. Arms Exports To Recover During The Forecast Period4.2.2. Denmark Arms Exports Expected To Increase4.2.3. Aircraft And Ships Are The Main Exported Defense Products5 Industry Dynamics5.1. Five Forces Analysis5.1.1. Bargaining Power Of Supplier: Low5.1.2. Bargaining Power Of Buyer: High5.1.3. Barrier To Entry: Low5.1.4. Intensity Of Rivalry: Medium To High5.1.5. Threat Of Substitution: High6 Market Entry Strategy6.1. Market Regulation6.1.1. Offset Policy Aids Development Of Domestic Defense Industry6.1.2. Denmark Permits 100% Foreign Direct Investment In Defense SectorFuture of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  5. 5. 6.2. Market Entry Route6.2.1. Forming Subsidiaries Or Acquiring Danish Companies Are Good Market Entry Opportunities6.2.2. Forming Consortiums And Product Development Agreements Open New Market Entry StrategyChoices6.2.3. Joint Weapon Development Programs Are A Viable Market Entry Opportunity6.3. Key Challenges6.3.1. Low Defense Budget And Limited Technological Capability Hinder Market Entry By ForeignCompanies6.3.2. Preference To Procurement From Us And Nordic Companies Challenging For Other Suppliers7 Competitive Landscape And Strategic Insights1.1 Competitive Landscape Overview1.2 Key Foreign Companies7.1.1. Systematic A/s: Overview7.1.2. Systematic A/s: Products And Services7.1.3. Systematic A/s: Recent Announcements And Strategic Initiatives7.1.4. Systematic A/s: Alliances7.1.5. Systematic A/s: Recent Contract Wins7.1.6. Terma A/s: Overview7.1.7. Terma A/s: Products And Service7.1.8. Terma A/s: Recent Announcements And Strategic Initiatives7.1.9. Terma A/s: Alliances7.1.10. Terma A/s: Recent Contract Wins7.1.11. Ap Services A/s: Overview7.1.12. Ap Services A/s: Products And Services7.1.13. Arenalogic Aps: Overview7.1.14. Arenalogic Aps: Products And Services7.1.15. Arenalogic Aps: Recent Announcements And Strategic Initiatives7.1.16. Arenalogic Aps: Alliances7.1.17. Copenhagen Sensor Technology Aps: Overview7.1.18. Copenhagen Sensor Technology Aps: Products And Services7.1.19. Copenhagen Sensor Technology Aps: Recent Announcements And Strategic Initiatives7.1.20. Copenhagen Sensor Technology Aps: Alliances7.1.21. Danish Aerotech A/s: Overview7.1.22. Danish Aerotech A/s: Products And Services7.1.23. Danish Aerotech A/s: Recent Announcements And Strategic Initiatives7.1.24. Danish Aerotech A/s: Alliances7.1.25. Danish Aerotech A/s: Recent Contract Wins7.1.26. Falck Schmidt Defence Systems A/s: Overview7.1.27. Falck Schmidt Defence Systems A/s: Products And Services7.1.28. Falck Schmidt Defence Systems A/s: Recent Announcements And Strategic Initiatives7.1.29. Falck Schmidt Defence Systems A/s: Alliances7.1.30. Falck Schmidt Defence Systems A/s: Recent Contract Wins7.1.31. Ifad Ts A/s: OverviewFuture of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  6. 6. 7.1.32. Ifad Ts A/s: Products And Services7.1.33. Ifad Ts A/s: Recent Announcements And Strategic Initiatives7.1.34. Ifad Ts A/s: Alliances7.1.35. Ifad Ts A/s: Recent Contract Wins1.3 Key Foreign Companies7.1.36. Alcatel-lucent Denmark A/s: Overview7.1.37. Alcatel-lucent Denmark A/s: Products And Services7.1.38. Alcatel-lucent Denmark A/s: Recent Announcements And Strategic Initiatives7.1.39. Alcatel-lucent Denmark A/s: Recent Contract Wins7.1.40. Lockheed Martin Denmark: Overview7.1.41. Lockheed Martin Denmark: Products And Services7.1.42. Lockheed Martin Denmark: Recent Announcements And Strategic Initiatives7.1.43. Lockheed Martin Denmark: Alliances7.1.44. Lockheed Martin Denmark: Recent Contract Wins7.1.45. Tencate Advanced Armour Denmark A/s: Overview7.1.46. Tencate Advanced Armour Denmark A/s: Defense Products7.1.47. Tencate Advanced Armour Denmark A/s: Recent Announcements And Strategic Initiatives7.1.48. Tencate Advanced Armour Denmark A/s: Alliances7.1.49. Tencate Advanced Armour Denmark A/s: Recent Contract Wins8 Business Environment And Country Risk8.1. Demographics And Social Statistics8.1.1. Population - Rural8.1.2. Population - Urban8.1.3. Population - Number Of Households8.2. Economic Performance8.2.1. Gross Domestic Per Capita8.2.2. Gross Domestic Product, Current Us$8.2.3. Exports Of Goods And Services8.2.4. Imports Of Goods And Services8.2.5. Gross National Disposable Income8.2.6. Manufacturing Output8.2.7. Consumer Price Index8.2.8. Wholesale Price Index8.2.9. Local Currency Unit Per Us$8.2.10. Local Currency Unit Per Eur8.2.11. Market Capitalization Of Listed Companies8.2.12. Market Capitalization Of Listed Companies As A % Of Gdp8.2.13. Total Government Cash Surplus/deficit8.2.14. Government Cash Surplus/deficit8.2.15. Central Government Debt8.2.16. Central Government Debt As A % Of Gdp8.2.17. Goods Exports As A % Of Gdp8.2.18. Goods Imports As A % Of GdpFuture of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  7. 7. 8.2.19. Goods Trade Surplus/deficit As A % Of Gdp8.2.20. Services Imports As A % Of Gdp8.2.21. Services Exports As A % Of Gdp8.2.22. Services Trade Surplus/deficit As A % Of Gdp8.2.23. Net Foreign Direct Investment8.2.24. Net Fdi As A Percentage Of Gdp8.2.25. International Reserves, Including Gold8.3. Energy And Utilities8.3.1. Total Conventional Thermal Electricity Net Generation8.3.2. Hydroelectricity Net Generation8.3.3. Nuclear Electricity Net Generation8.3.4. Total Conventional Thermal Electricity Installed Capacity8.3.5. Total Electricity Exports8.3.6. Total Electricity Imports8.3.7. Proved Reserves Of Natural Gas (trillion Cubic Feet)8.3.8. Total Petroleum Consumption8.3.9. Crude Oil Proved Reserves (billion Barrels)8.3.10. Total Non-hydro Renewable Electricity Net Generation8.4. Infrastructure Quality And Availability8.4.1. Roads, Total Network (km)8.4.2. Rail Lines, Total Network8.5. Minerals8.5.1. Mining, Manufacturing, Utilities Output8.6. Technology8.6.1. Research And Development Expenditure8.6.2. Patents Granted8.7. Telecommunication8.7.1. Telephone Lines8.7.2. Telephone Lines Penetration Rate9 Appendix9.1. About Sdi9.2. DisclaimerResearchMoz(http://www.researchmoz.us/) is the one stop online destination to find and buy market researchreports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with ourhuge collection of market research reports. We provide our services to all sizes of organizations and across allindustry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well aspublishers and will assist you in making an informed decision by giving you unbiased and deep insights onwhich reports will satisfy your needs at the best price.Contact:M/s Sheela,90 State Street,Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
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