Oct 4, 2017   SOURCE: BusinessWire

Future of the Algeria Defense Industry to 2022 - Market Attractiveness, Competitive Landscape and Forecasts - Research and Markets

The "Future of the Algeria Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.

Increased threat of terrorism from the Islamic group, Al-Qaeda in the Islamic Maghreb (AQIM) operating in North Africa, an arms race with neighboring countries such as Morocco and Tunisia, and the ongoing modernization of the armed forces are key factors that have compelled Algeria to bolster its defenses and develop a robust defense posture.

With a defense budget of US$10.3 billion in 2017, Algeria is currently the largest military spender in the African region and the world's tenth largest defense importer of military goods. Military expenditure is strongly supported by the presence of the oil and natural gas industry, where the revenues are directed towards strengthening defense and security.

The country's capital expenditure is expected to grow at a robust CAGR of 9.48% during the forecast period 2017 to 2022. The Algerian Government is expected to procure replacement air refueling tankers, transport aircraft, multi role fighters, armored vehicles, corvettes, and frigates, among others. Additionally, opportunities in security systems and platforms such as unmanned aerial vehicles (UAV), thermal imaging sensors, motion sensors, alarms, and radar systems are expected to arise as a result of the country's focus on strengthening border security.

Algeria's sudden rise as a major military force in Africa can be attributed to its burgeoning economy and a desire to establish its military superiority in the region. Algeria's domestic defense manufacturing capabilities are still underdeveloped, due to which the country mainly relies on foreign imports. Historically, Algeria has primarily imported weapons and related systems from Russia, occupying a 60.4% share; however, this trend is gradually changing as it opens its market to other countries and reduces its dependency on one particular nation.

The country is increasing efforts to reduce its military dependency on foreign suppliers and, therefore, is largely concentrating on the joint development of defense systems as to strengthen its domestic defense manufacturing capabilities. Furthermore, Algeria has witnessed a number of JVs with Algerian, Russian, French, and Serbian companies in areas such as armored vehicles, unmanned aircraft, military healthcare, and counter-terrorism equipment.

Key Topics Covered: 1. Introduction

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

4. Defense Procurement Market Dynamics

5. Industry Dynamics

6. Market Entry Strategy

7. Competitive Landscape and Strategic Insights

8. Business Environment and Country Risk

9. Appendix

Companies Mentioned

  • EPE
  • Entreprise Nationale des Vhicules Industriels
  • JSC Rosoboronexport
  • Khenchela Mechanical Constructions Establishment (ECMK)
  • NIMR-Algerie
  • National Office of Explosive Substances
  • Seriana Company of Industrial Achievements (ERIS)

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