Jun 7, 2019   SOURCE: BusinessWire

German Defense Market Report 2019: Market Attractiveness, Competitive Landscape and Forecast to 2024 - ResearchAndMarkets.com

The "German Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024" report has been added to ResearchAndMarkets.com's offering.

German defense expenditure is expected to be US$295.9 billion cumulatively over 2020-2024

"German Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024", offers detailed analysis of the German 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.

Germany has reassured the North Atlantic Treaty Organization (NATO) it will adhere to its plans to continue increasing military spending to reach 1.5% of gross domestic product by 2024 despite declining tax revenues in an attempt to strengthen the combat readiness of its armed forces. German defense expenditure is projected to increase at a CAGR of 6.48% over 2020-2024, compared to a CAGR of 8.48% over 2015-2019. A large portion of this budget will be directed towards the procurement of overhauled modern weapon systems and other advanced equipment.

The German MoD is anticipated to allocate an average of 19.5% of its total defense budget towards capital expenditure, with the remaining 80.5% assigned to revenue expenditure. Germany's government is considering purchasing 45 Boeing F/A-18 fighter jets for its air force to replace its aging Tornado fleet. In addition, German defense expenditure will also be driven by the country's involvement in peacekeeping operations. Most of the German soldiers and police officers currently deployed on peace missions are serving with the United Nations peace mission in Mali (MINUSMA), Afghanistan, KFOR in Kosovo and also has a large military contingent serving in the EU mission EUNAVOR MED (Operation Sophia) in the Mediterranean. Germany has the second largest commitment to peacekeeping operations among European countries, after the UK.

A well-established domestic defense industry was able to meet the requirements of the German defense ministry over the historic period. Germany mostly imported equipment in areas where it lacked competency or technological capability, such as satellite radar systems, air defense systems, and missiles. However, the German government is seeking approval from the parliament for major military purchases, such as helicopters, UAVs and rocket launchers, valued at several billion euros.

Germany encourages Foreign Direct Investment (FDI) in all areas of its domestic defense industry as part of its open economy policy, which allows foreign corporations to own a 100% stake in a German defense firm. Many foreign OEMs have successfully established subsidiaries by merging with existing German companies to form a conglomerate, or have formed joint ventures (JV) with domestic firms to enter the market. However, in December 2018, Germany toughened rules on non-EU share purchases and acquisitions of its strategic companies, amid growing disquiet about takeovers by Chinese firms.

Key Topics Covered:

1. Introduction

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. Military Fleet Size

3.1.4. Procurement Programs

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

3.1.6. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Germany's defense expenditure is expected to increase at a CAGR of 6.48% over 2020-2024

3.2.2. Maintenance of the country's armed forces and peacekeeping operations to drive defense expenditure over the forecast period

3.2.3. German defense expenditure as a percentage of GDP expected to decrease

3.3. Analysis of Defense Budget Allocation

3.3.1. Germany to allocate a higher share towards revenue expenditure than capital expenditure over the forecast period

3.3.2. Capital expenditure is expected to increase at a CAGR of 6.46% over the forecast period

3.3.3. Per capita defense expenditure is expected to increase significantly between 2019-2024

3.4. Homeland Security Market Size and Forecast

3.4.1. German homeland security expenditure is expected to increase at a CAGR of 11.09% during the forecast period

3.4.2. Counter terrorism and cyber security to drive homeland security expenditure

3.5. Benchmarking with Key Global Markets

3.5.1. The German defense budget is expected to increase over the forecast period

3.5.2. Germany's defense expenditure is expected to be one of the top among European countries

3.5.3. Germany allocates a lower share of GDP to defense compared to other European countries

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024

3.6.2. Multi-role Aircraft MRO

3.6.3. IFV

3.6.4. Transport Aircraft Engines

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports are expected to increase slightly during the forecast period after the recent dip

4.1.2. Germany sourced most of its arms imports from the US

4.1.3. Missiles and sensors dominate military hardware imports

4.2. Export Market Dynamics

4.2.1. Arms exports recovered in 2016 after a decrease in 2014 and 2015 but are again slowly declining due to Germany's arms embargoes

4.2.2. South Korea, Greece and Israel are Germany's biggest arms importers

4.2.3. Naval vessels and armored vehicles are the main exported defense products

5. Industry Dynamics

5.1. Five Forces Analysis

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Threshold for foreign direct investment screening lowered to 10% for the defense sector

6.2. Market Entry Route

6.2.1. Budget Process

6.2.2. Procurement Policy and Process

6.2.3. Germany Toughened Rules for Non-EU Buyouts

6.2.4. The German Government Wants to Dissuade Unwanted Takeovers by Chinese Investors

6.3. Key Challenges

6.3.1. Project delays deter defense industry growth

6.3.2. German arms exports to large defense markets outside the EU are minimal

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Germany Market Share Analysis, 2019-2024

7.1.2. Foreign OEMs have strong collaborations with domestic defense firms

7.2. Key Companies

7.2.1. Diehl Stiftung: Overview

7.2.2. Diehl Stiftung: Products

7.2.3. Diehl Stiftung: Recent Announcements and Strategic Initiatives

7.2.4. Diehl Stiftung: Alliances

7.2.5. Diehl Stiftung: Recent Contract Wins

7.2.6. Airbus Group: Overview

7.2.7. Airbus Group: Products

7.2.8. Airbus Group: Recent Announcements and Strategic Initiatives

7.2.9. Airbus Group: Alliances

7.2.10. Airbus Group: Recent Contract Wins

7.2.11. Airbus Group: Financial Analysis

7.2.12. Heckler & Koch: Overview

7.2.13. Heckler & Koch: Products

7.2.14. Heckler and Koch: Recent Announcements and Strategic Initiatives

7.2.15. Heckler and Koch: Recent Contract Wins

7.2.16. MAN Truck & Bus AG: Overview

7.2.17. MAN Truck & Bus AG: Products and Services

7.2.18. MAN Truck & Bus AG: Recent Announcements and Strategic Initiatives

7.2.19. MAN Truck & Bus AG: Alliances

7.2.20. MAN Truck & Bus AG: Recent Contract Wins

7.2.21. Airbus Helicopters: Overview

7.2.22. Airbus Helicopters: Products and Services

7.2.23. Airbus Helicopters: Recent Announcements and Strategic Initiatives

7.2.24. Airbus Helicopters: Alliances

7.2.25. Airbus Helicopters: Recent Contract Wins

7.2.26. ESG Elektroniksystem-und Logistik: Overview

7.2.27. ESG Elektroniksystem-und Logistik: Products

7.2.28. ESG Elektroniksystem-und Logistik: Recent Announcements and Strategic Initiatives

7.2.29. ESG Elektroniksystem-und Logistik: Alliances

7.2.30. ESG Elektroniksystem-und Logistik: Recent Contract Wins

7.2.31. ThyssenKrupp Marine Systems (TKMS): Overview

7.2.32. ThyssenKrupp Marine Systems (TKMS): Products

7.2.33. ThyssenKrupp Marine Systems (TKMS): Recent Announcements and Strategic Initiatives

7.2.34. ThyssenKrupp Marine Systems: Alliances

7.2.35. ThyssenKrupp Marine Systems: Recent Contract Wins

7.2.36. Thales Deutschland: Overview

7.2.37. Thales Deutschland: Products

7.2.38. Thales Deutschland: Recent Announcements and Strategic Initiatives

7.2.39. Thales Deutschland: Alliances

7.2.40. Thales Deutschland: Recent Contract Wins

7.2.41. MBDA: Overview

7.2.42. MBDA: Products

7.2.43. MBDA: Recent Announcements and Strategic Initiatives

7.2.44. MBDA: Alliances

7.2.45. MBDA: Recent Contract Wins

7.2.46. Eurofighter Jagdflugzeug: Overview

7.2.47. Eurofighter Jagdflugzeug: Products

7.2.48. Eurofighter Jagdflugzeug: Recent Announcements and Strategic Initiatives

7.2.49. Eurofighter Jagdflugzeug: Recent Contract Wins

7.2.50. Rheinmetall: Overview

7.2.51. Rheinmetall: Products and Services

7.2.52. Rheinmetall: Recent Announcements and Strategic Initiatives

7.2.53. Rheinmetall: Alliances

7.2.54. Rheinmetall: Recent Contract Wins

7.2.55. Rheinmetall: Financial Analysis

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. Gross Domestic per Capita

8.1.2. Gross Domestic Product, Current US$

8.1.3. Exports of Goods and Services

8.1.4. Imports of Goods and Services

8.1.5. Gross National Disposable Income

8.1.6. Local Currency Unit per US$

8.1.7. Market Capitalization of Listed Companies

8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP

8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP

8.1.10. Goods Exports as a Percentage of GDP

8.1.11. Goods Imports as a Percentage of GDP

8.1.12. Services Exports as a Percentage of GDP

8.1.13. Services Imports as a Percentage of GDP

8.1.14. Foreign Direct Investments, Net (BoP, Current US$ Billion)

8.1.15. Net Foreign Direct Investment as a Percentage of GDP

8.1.16. Mining, Manufacturing, Utilities, Output (LCU billion)

Companies Mentioned

  • Saab
  • Airbus Helicopters
  • Sikorsky
  • Northrop Grumman Corp
  • Lockheed Martin Corp.
  • Leonardo
  • Daewoo Shipbuilding & Marine Engineering

For more information about this report visit https://www.researchandmarkets.com/r/q085wf