Nov 27, 2019   SOURCE: BusinessWire

The Angolan Defense Market: Attractiveness, Competitive Landscape and $1.9 Billion Opportunity Outlook to 2024 - ResearchAndMarkets.com

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

The Angolan defense and security budget is expected to register a CAGR of 3.86% over the forecast period to reach US$1.9 billion in 2024.

Angola's military and security expenditure, which stands at US$1.6 billion in 2019, declined at a CAGR of -19.07% during the historic period. In June 2014, oil prices plummeted nearly 60%, which resulted in the decline in the defense budget's growth rate during the historic period. Over the forecast period, the defense budget is anticipated to increase at a CAGR of 3.86% to reach US$1.9 billion in 2024. This is primarily attributed to the country's efforts to upgrade its military arsenal, as well as enhance its border security.

The country's capital expenditure allocation averaged 11.3% during 2015-2019 and is expected to marginally decline to average 10.9% over the forecast period. Consequently, revenue expenditure is expected to increase from an average of 88.7% during 2014-2018 to 89.1% over the forecast period, which will be directed towards additional recruitment, training, and development programs for military personnel. The capital expenditure allocation, which registered a CAGR of -22.23% during the historic period, is projected to increase at a CAGR of 4.34% over 2020-2024, primarily due to a recovery in global oil prices, which is anticipated to enable the country to finance the procurement of multirole aircraft and naval vessels.

Aircraft accounted for the majority of Angola's imports during 2014-2018, with Russia being the largest supplier. Aircraft, armored vehicles, artillery and engines were the other defense imports during 2014-2018, with Israel, Bulgaria, China and other countries including South Africa, the UK and the US being the other significant suppliers. The country does not export any arms to foreign countries, as its domestic defense industry is under-developed.

Report Coverage

This report offers detailed analysis of the Angolan 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.

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

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

Key Topics Covered

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Conditions

3.1.1. Procurement Programs

3.1.2. Key Drivers and Challenges

3.2. Defense and Security Market Size Historical and Forecast

3.2.1. Angolan defense and security budget is expected to surge at a CAGR of 3.86% over the forecast period

3.2.2. Equipment modernization is expected to drive defense expenditure

3.2.3. Defense budget as a percentage of GDP expected to grow at the stable rate during the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Capital expenditure share of the defense budget to increase over the forecast period

3.3.2. Capital expenditure budget expected to increase over the forecast period

3.3.3. Per capita defense expenditure expected to increase over the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Domestic security to drive expenditure for homeland protection

3.5. Benchmarking with Key Global Markets

3.5.1. The country's defense budget is expected to remain modest over the forecast period

3.5.2. Angolan military expenditure is limited when compared to countries with the largest defense expenditure

3.5.3. Angola allocates a modest percentage of GDP to defense

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million), Projections over 2018-2023

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Imports into Angola expected to increase over the forecast period

4.1.2. Russia supplied the majority of defense equipment to Angola during the historic period

4.1.3. Aircraft were the major defense import during the historic period

4.2. Export Market Dynamics

4.2.1. Angola does not export arms due to its under-developed domestic arms industry

5. Market Entry Strategy

5.1. Market Regulation

5.1.1. Angola has not disclosed any offset obligations imposed by the country

5.1.2. FDI in the defense sector prohibited by the Angolan government

5.1.3. Budgeting Process

5.1.4. Procurement Policy and Process

5.2. Market Entry Route

5.2.1. Direct selling is the preferred market entry route for foreign OEMs

6. Competitive Landscape and Strategic Insights

6.1. Competitive Landscape Overview

6.1.1. Angolan Market Share Analysis, 2019

7. Business Environment and Country Risk

7.1. Economic Performance

7.1.1. Gross Domestic per Capita

7.1.2. Gross Domestic Product, current US$

7.1.3. Exports of Goods and Services

7.1.4. Imports of Goods and Services

7.1.5. Local Currency Unit per US$

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

7.1.7. Goods Exports as a Percentage of GDP

7.1.8. Goods Imports as a Percentage of GDP

7.1.9. Services Imports as a Percentage of GDP

7.1.10. Services Exports as a Percentage of GDP

7.1.11. Net Foreign Direct Investment

7.1.12. Net Foreign Direct Investment as a Percentage of GDP

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

Companies Mentioned

  • United Aircraft Corporation (UAC)
  • Splav
  • Tactical Missiles Corporation
  • Sukhoi
  • KBP Instrument Design Bureau
  • Oboronprom Corporation

For more information about this report visit https://www.researchandmarkets.com/r/sw7zkr