Mar 20, 2019   SOURCE: BusinessWire

The Future of the $4.7 Billion Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024 - ResearchAndMarkets.com

The "Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

Future of the Moroccan 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.

Morocco is projected to increase its defense budget from US$3.7 billion in 2019 to US$4.7 billion in 2024, at a CAGR of 4.24%. Moroccan homeland security (HLS) expenditure increased from US$2.1 billion in 2015 to US$3 billion in 2019, registering a CAGR of 8.56%. On a cumulative basis, Morocco is expected to spend a total of US$21.4 billion on its armed forces over the forecast period, compared to US$17.5 billion over 2015-2019. The country's capital expenditure is expected to increase from US$1.2 billion in 2020 to US$1.4 billion in 2024, growing at a robust CAGR of 4.31% over the forecast period.

The Moroccan government is expected to procure transport aircraft, multirole fighters, submarines, missile defense system, and armored vehicles, among others. Additionally, opportunities in security systems and platforms such as military IT networking, wireless systems, motion sensors, alarms, and radar systems are expected to arise as a result of the country's focus on strengthening border security.

Select Findings

  • Between 2015 and 2019, Morocco's defense expenditure increased from US$3.3 billion in 2015 to US$3.7 billion in 2019, registering a CAGR of 3.39%.
  • The defense budget is anticipated to increase from US$3.9 billion in 2020 to US$4.7 billion by 2024, registering a CAGR of 4.24%.
  • The rise in defense spending is mainly driven by the procurement of F-16 Fighting Falcons, Single Channel Ground and Airborne Radio Systems (SINCGARS) combat net radio, M1A1 tanks, electric submarines and patrol ships.

Summary

Morocco is a constitutional monarchy with an elected parliament. The country has been a key Western ally in its fight against Islamist terrorism. Morocco is enhancing its military capabilities in response to the recent wave of unrest in the Middle East and North Africa (MENA) region. The prime factor stimulating the country's defense expenditure is its ongoing arms race with adjoining Algeria, which receives a steady supply of weapons from Russia.

Over the forecast period, the increased threat of terrorism from internal and external terrorist groups and the ongoing modernization of its armed forces are the key factors expected to drive military expenditure. The country also faces insurgency in the Western Sahara region, where the local insurgent outfit Polisario Front is engaged in a violent struggle with the Moroccan regime for territory. The threat posed by the prospect of prolonged insurgency within the Western Sahara region makes it imperative for Morocco to allocate substantial expenditure to counter-terrorism and counter-insurgency efforts.

In particular, it provides an in-depth analysis of the following:

  • The Moroccan defense industry market size and drivers: detailed analysis of the Moroccan 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 Moroccan defense industry

Companies Mentioned

  • Lockheed Martin Corp.
  • Raytheon
  • Damen Schelde Naval Shipbuilding

Topics Covered

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About Strategic Defence Intelligence

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario

3.1.1. Primary threat perception

3.1.2. Military Doctrine and Strategy

3.1.3. Equipment of Moroccan Military

8.1.1. Procurement Programs

8.1.2. Social, Political and Economic Environment and Support for Defense Projects

8.1.3. Political and Strategic Alliances

8.2. Defense Market Size Historical and Forecast

8.2.1. Moroccan Defense Budget is Expected to Register a CAGR of 4.24% over the Forecast Period

8.2.2. Counter-terrorism, Border Security, and the Need to Modernize Outdated Defense Equipment Are Expected to Drive Morocco's Defense Expenditure

8.2.3. Defense expenditure as a percentage of GDP is expected to average 3% over the forecast period

8.3. Analysis of Defense Budget Allocation

8.3.1. Capital Expenditure Share Expected to Increase Marginally over the Forecast Period

8.3.2. Capital Expenditure Anticipated to Grow at a CAGR of 4.31% over the Forecast Period

8.3.3. Per Capita Defense Expenditure Expected to Increase During the Forecast Period

8.4. Homeland Security Market Size and Forecast

8.4.1. Moroccan Homeland Security Expenditure Anticipated to Increase at a CAGR of 7.87%

8.4.2. Human Trafficking, Drug Smuggling and Cybercrime Are the Major Targets of Homeland Security Expenditure

8.5. Benchmarking with Key Global Markets

8.5.1. Morocco is the Fourth Largest Defense Spender in the North African Region

8.5.2. Morocco's Military Expenditure is Low when Compared to the Largest Defense Spenders but on Par with Other African Countries

8.5.3. Morocco Allocates a Moderate Percentage of its GDP to Defense

8.6. Market Opportunities: Key Trends

8.6.1. Top 10 Defense Market Sectors by Value (US$ Million), 2019-2024

9.1.1. Critical Infrastructure Protection - Physical Security

9.1.2. Naval Vessel MRO - Corvettes

9.1.3. Land-Based C4ISR

10. Defense Procurement Market Dynamics

10.1.1. Import Market Dynamics

10.1.2. Defense Imports to be Driven by Modernization Initiatives over the Forecast Period

10.1.3. Morocco Imports the Majority of its Arms from Europe

10.1.4. Armored Vehicles Accounted for the Majority of Defense Imports during 2013-2017

10.2. Export Market Dynamics

10.2.1. Morocco Does not Export Arms due to its Under-Developed Domestic Arms Industry

11. Industry Dynamics

11.1. Five Forces Analysis

11.1.1. Bargaining Power of the Supplier: Medium to High

11.1.2. Bargaining power of the buyer: low to medium

11.1.3. Barrier to entry: medium to high

11.1.4. Intensity of rivalry: medium

11.1.5. Threat of substitution: medium

12. Market Entry Strategy

12.1. Market Regulation

12.1.1. Morocco does not disclose any offset obligations imposed by the country

12.1.2. Foreign direct investment (FDI) is determined on a case-by-case basis

12.2. Market Entry Route

12.2.1. Budgeting Process

12.2.2. Procurement Policy and Process

12.2.3. Government-to-government agreements are the preferred market entry route for foreign OEMs

12.2.4. Joint venture and license manufacturing agreements provide an attractive market entry route

12.2.5. Key Challenges

13. Competitive Landscape and Strategic Insights

13.1. Competitive Landscape Overview

13.1.1. Morocco Market Share Analysis, 2018-2023

13.2. Key Foreign Companies

13.2.1. Lockheed Martin Corp.: Overview

13.2.2. Lockheed Martin Corp.: Products and Services

13.2.3. Lockheed Martin Corp.: Recent Announcements and Strategic Initiatives

13.2.4. Lockheed Martin Corp.: Recent Contract Wins

13.2.5. Raytheon: Overview

13.2.6. Raytheon: Products and Services

13.2.7. Raytheon: Recent Announcements and Strategic Initiatives

13.2.8. Raytheon: Recent Contract Wins

13.2.9. Damen Schelde Naval Shipbuilding: Overview

13.2.10. Damen Schelde Naval Shipbuilding: Products and Services

13.2.11. Damen Schelde Naval Shipbuilding: Recent Announcements and Strategic Initiatives

13.2.12. Damen Schelde Naval Shipbuilding: Recent Contract Wins

14. Business Environment and Country Risk

14.1. Economic Performance

14.1.1. GDP Per Capita

14.1.2. GDP, Current Prices

14.1.3. Exports of Goods and Services (Current LCU Billion)

14.1.4. Imports of Goods and Services (Current LCU Billion)

14.1.5. Gross National Disposable Income (US$ Billion)

14.1.6. Local Currency Unit per US Dollar

14.1.7. Market Capitalization of Listed Companies (US$ Billion)

14.1.8. Market Capitalization of Listed Companies (% of GDP)

14.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)

14.1.10. Goods Exports as a Percentage of GDP

14.1.11. Goods Imports as a Percentage of GDP

14.1.12. Services Imports as a Percentage of GDP

14.1.13. Service Exports as a Percentage of GDP

14.1.14. Foreign Direct Investment, Net (BoP, Current US$ Billion)

14.1.15. Net Foreign Direct Investment as Percentage of GDP

14.1.16. Mining, Manufacturing, Utilities Output LCU Billion

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