Jul 15, 2019   SOURCE: BusinessWire

Czech Defense Market Outlook Report 2019-2024: Attractiveness, Competitive Landscape, Forecasts - ResearchAndMarkets.com

The "The Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

Czech Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024 offers detailed analysis of the Czech 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.

The Czech Republic is projected to spend US$17.7 billion on its armed forces over the next five years. The country enjoys a relatively stable security environment due to its strong counter terrorism capabilities, membership of NATO, and comparatively low international profile.

However, the threats posed by right-wing extremists, the migrant crisis, and the Islamic State in most European cities have forced the country to modernize and upgrade its military arsenal. The Czech Republic's defense budget values US$2.9 billion in 2019 and registered a CAGR of 13.58% during the historic period. Over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 5.88% to value US$4 billion in 2024 due to its plan to increase its defense budget to 2% of GDP, participation in peacekeeping operations, and counter terrorism measures.

The Czech Armed Forces, similar to the militaries of other Central European countries, are mostly equipped with Soviet-era weapons systems that need to be replaced by NATO-capable hardware. The capital expenditure allocation which averaged 11.4% during the historic period is expected to average 12.5% over the forecast period. Key opportunities for suppliers are expected to be in sectors such as C4ISR, multi-role aircraft, multi-mission helicopters, reconnaissance drones and infantry fighting vehicles.

The homeland security expenditure is expected to witness a major boost due to the procurement of state-of-the-art surveillance and reconnaissance equipment and platforms to prevent terrorism, organized crime, human trafficking, illegal immigration, enhance security, and safeguard and secure cyber space. The Czech Republic's homeland security expenditure stands at US$3.6 billion in 2019 and registered a CAGR of 8.9% during the historic period. Over the forecast period, the country's homeland security expenditure is expected to increase from US$3.8 billion in 2020 to US$4.6 billion in 2024, reflecting a CAGR of 5.24%.

The domestic defense industry in the Czech Republic is moderately developed which helps the country to maintain a decent rank in the global arms suppliers list. During 2014-2018, Iraq was the largest importer of Czech defense equipment, accounting for 39.9% of the Czech Republic's total defense exports. Over 2014-2018, aircraft accounted for the highest share of total defense exports with 53.2%, followed by armored vehicles with 25.6%, sensors with 14.8%, and artillery with 6%. The Czech Republic defense exports are expected to show steady growth over the forecast period due to rapidly deteriorating security situations around the world, especially in Middle East and Europe.

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

  • The defense industry market size and drivers: detailed analysis of the Czech 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
  • Porter's Five Force analysis of the Czech defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Czech defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Companies Mentioned

  • Aero Vodochody A.S
  • Lom Praha s.p
  • VOP CZ
  • Omnipol a s
  • Aura s. r. o.

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. Procurement Programs

3.1.4. Top Procurement Programs by Value (US$ Million) 2019-2024

3.1.5. Geopolitical, social, and economic scenario

3.1.6. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. The Czech Republic defense expenditure is expected to grow at a CAGR of 5.88% over the forecast period

3.2.2. Growing Russian assertiveness, military modernization initiatives, and counter-terrorism are expected to fuel defense expenditure over the forecast period

3.2.3. The Czech Republic defense expenditure as a percentage of GDP is anticipated to average 1.1% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Capital expenditure allocation expected to increase during the forecast period

3.3.2. Capital expenditure to increase at a CAGR of 6.48% over 2020-2024

3.3.3. Central Support Administration and Command expenditure (CSAC) hold major share in the Czech Republic's defense budget

3.3.4. Central Support Administration and Command to receive the largest share of the Czech Republic defense budget

3.3.5. Per capita defense expenditure is expected to increase during the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. The Czech Republic homeland security market to increase at a CAGR of 5.24% over the forecast period

3.4.2. Homeland security expenditure to be driven by efforts to counter cyber-attacks, migration crisis, and espionage

3.5. Benchmarking with Key Global Markets

3.5.1. The Czech Republic's defense budget is poised to grow over the forecast period

3.5.2. The Czech Republic's defense spending is low compared to other European nations

3.5.3. The defense budget as a percentage of GDP is set to increase over the forecast period

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2019-2024

3.6.2. Infantry Fighting Vehicles

3.6.3. Land Based C4ISR

3.6.4. Multi-role Aircraft

4. Defense Procurement Market Dynamics

4.1. Import Dynamics

4.1.1. Defense imports declined during 2014-2018

4.2. Export Market Dynamics

4.2.1. The Czech Republic defense exports are expected to show moderate growth over the forecast period

4.2.2. Iraq dominated the Czech Republic defense export market during the historic period

4.2.3. Aircraft and armored vehicles accounts for the highest portion of Czech defense exports

5. Industry Dynamics

5.1. Five Forces Analysis

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Offset policy aids the development of the domestic defense industry

6.1.2. The Czech Republic allows 100% foreign direct investment in the defense sector

6.2. Market Entry Route

6.2.1. Budget Process

6.2.2. Defense procurement process

6.2.3. Bilateral business partnerships are the preferred entry routes

6.2.4. Foreign OEMs enter the market through the formation of consortiums and joint product development agreements

6.3. Key Challenges

6.3.1. Lack of harmonization of procurement requirements and defense industrial policies

6.3.2. Corruption acts as an obstacle to market entry

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape: Overview

7.2. The Czech Republic Market Share Analysis, 2019-2024

7.3. Key Companies

7.3.1. Aero Vodochody A.S.: Overview

7.3.2. Aero Vodochody A.S.: Products and services

7.3.3. Aero Vodochody A.S.: Recent announcements and strategic initiatives

7.3.4. Aero Vodochody A.S.: Alliances

7.3.5. Aero Vodochody A.S.: Recent contract wins

7.3.6. Lom Praha s.p.

7.3.7. VOP CZ, s.p.

7.3.8. Omnipol a.s.

7.3.9. Aura s.r.o.

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP Per Capita at Constant Prices (US$)

8.1.2. GDP, Current Prices (US$ Billion)

8.1.3. Exports of Goods and Services, Local Currency Unit (LCU Billion)

8.1.4. Imports of Goods and Services, Local Currency Unit (LCU Billions)

8.1.5. Gross National disposable income (US$ Billion)

8.1.6. Local Currency Unit per US$ (Period Average)

8.1.7. Market Capitalization of Listed Companies

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

8.1.9. Government Cash Surplus/Deficit as % of GDP (LCU)

8.1.10. Goods Exports (% of GDP)

8.1.11. Goods Imports (% of GDP)

8.1.12. Service Imports (% of GDP)

8.1.13. Service Exports (% of GDP)

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

8.1.15. Net Foreign Direct Investment as % of GDP

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

For more information about this report visit https://www.researchandmarkets.com/r/6tlv7i