Swiss Defense Market Report 2019-2024: Attractiveness, Competitive Landscape and Forecasts - ResearchAndMarkets.com

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

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

Switzerland's military expenditure, which stands at US$5.27 billion in 2019, is anticipated to grow from US$5.32 billion in 2020 to value US$5.89 billion in 2024, registering a CAGR of 2.59% over the forecast period. With a neutral stance during times of war and a reputation for being a peace loving nation, Switzerland has traditionally made only modest budget allocations to defense. In 2019, the Swiss Government increased its defense budget expenditure by 9.9% compared to the previous year.

The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.69% during 2015-2019 to 0.67% over 2020-2024. The country's per capita defense expenditure is expected to increase from US$612.0 in 2020 to US$646.5 in 2024. The Swiss homeland security expenditure valued US$1.3 billion in 2020 and is expected to grow at a CAGR of 2.55% to reach US$1.5 billion in 2024, over the forecast period.

The growth will primarily be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment. Switzerland is an active participant in joint operations in the peacekeeping operations with NATO and the United Nations (UN), and as such, is targeting higher spending in terms of its defense sector. This, along with the Air 2030 program that the country is anticipated to undertake over the next coming years, is expected to drive Switzerland's defense expenditure over the forecast period.

Over the forecast period, the country's capital expenditure allocation is expected to average 35.5%, and revenue expenditure is expected to cap at an average of 64.5%. Capital expenditure over the forecast period is expected to increase at a CAGR of 3.47%, from US$1.9 billion in 2020 to US$2.1 billion in 2024, due to the significant uptick in weapon procurement plans, as well as the procurement of defense equipment to replace outdated ones.

Swiss defense imports increased drastically from 2014 to 2016, before declining in 2017 and 2018. The country sourced the majority of its defense equipment from the US, accounting for 68.6% of total imports during 2014-2018. The major countries importing military equipment include Germany, Sweden and Norway. Over the forecast period, Switzerland's arms imports will continue to be dominated by the US and the European suppliers. The country's defense exports reveal a declining trend from 2015 to 2018, after a high rise in 2015. During 2014-2018, Saudi Arabia, China, and Indonesia were the three largest consumers of the country's defense equipment.

Scope

  • Switzerland's military expenditure, which stands at US$5.27 billion in 2019, is anticipated to grow from US$5.32 billion in 2020 to value US$5.89 billion in 2024, registering a CAGR of 2.59%, over the forecast period.
  • With a neutral stance during times of war and a reputation for being a peace loving nation, Switzerland has traditionally made only modest budget allocations to defense. In 2019, the Swiss Government increased its defense budget expenditure by 9.9% compared to the previous year.
  • The growth will primarily be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment.

Key Topics Covered:

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About the Publisher

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. Geopolitical and Economic Scenario

3.1.5. Political & Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Swiss defense budget is expected to register a CAGR of 2.59% over the forecast period

3.2.2. Procurement of better defense systems and peace-support programs to drive defense expenditure

3.2.3. Defense expenditure as a percentage of GDP is expected to average 0.69% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Capital expenditure's share expected to increase over the forecast period

3.3.2. Capital expenditure expected to grow at a CAGR of 3.47% 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. Swiss homeland security expenditure expected to increase at a CAGR of 2.55% over the forecast period

3.4.2. Organized crime and terrorist financing are the major threats to homeland security

3.5. Benchmarking with Key Global Markets

3.5.1. Switzerland's defense budget to increase at a CAGR of 2.59% over the forecast period

3.5.2. Switzerland military expenditure is low when compared to the largest defense spenders

3.5.3. The country allocates a lower percentage of GDP towards defense compared to other top defense spenders globally

3.6. Market Opportunities: Key Trends

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

3.6.2. Land-based C4ISR

3.6.3. Software

3.6.4. Networking

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports to be driven by modernization initiatives over the forecast period

4.1.2. Switzerland sourced the majority of its arms from the US

4.1.3. Missiles accounted for the majority of defense imports during 2013-2017

4.2. Export Market Dynamics

4.2.1. Swiss defense exports peaked in 2015 and registered their highest level since 2009

4.2.2. Switzerland supplies defense equipment to a diverse consumer base

4.2.3. Aircraft accounted for the majority of the country's defense exports during 2014-2018

5. Industry Dynamics

5.1. Five Forces Analysis

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Offset policy requires suppliers to invest 100% of the contract value into the Swiss economy

6.1.2. Swiss defense industry open to foreign direct investment

6.2. Market Entry Route

6.2.1. Budgeting Process

6.2.2. Foreign defense companies enter the market via acquisitions or alliances

6.2.3. Establishment of subsidiary or operating unit in Switzerland

6.2.4. Entering into joint ventures

6.3. Key Challenges

6.3.1. Switzerland's defense neutrality challenging for defense foreign companies

6.3.2. Low defense budget and lack of external threat act as an obstacle for foreign investors

6.3.3. Domestic defense companies facing challenges from foreign companies

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Swiss Market Share Analysis, 2018

7.2. Key Private Sector Operators

7.2.1. Pilatus Group: overview

7.2.2. Pilatus Group: defense products

7.2.3. Pilatus Group: recent announcements and strategic initiatives

7.2.4. Pilatus Group: alliances

7.2.5. Pilatus Group: recent contract awards

7.2.6. RUAG Defense: overview

7.2.7. RUAG Defense: products and services

7.2.8. RUAG Defense: recent announcements and strategic initiatives

7.2.9. RUAG Defense: alliances

7.2.10. RUAG Defense: recent contract awards

7.2.11. Thales: overview

7.2.12. Thales: products and services

7.2.13. General Dynamics European Land Systems: overview

7.2.14. General Dynamics European Land Systems: defense products

7.2.15. General Dynamics European Land Systems: recent announcements and strategic initiatives

7.2.16. General Dynamics European Land Systems: alliances

7.2.17. General Dynamics European Land Systems: recent contract wins

7.2.18. Rheinmetall Air Defense AG: overview

7.2.19. Rheinmetall Air Defense AG: products and services

7.2.20. Rheinmetall Air Defense AG: recent announcements and strategic initiatives

7.2.21. Rheinmetall AirDefense: alliances

7.2.22. Rheinmetall Air Defense AG: recent contract wins

7.2.23. Atos AG: overview

7.2.24. Atos AG: defense services

7.2.25. Meteolabor AG: overview

7.2.26. Meteolabor AG: products

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP Per Capita

8.1.2. GDP, Current Prices

8.1.3. Exports of Goods and Services (current LCU Billion)

8.1.4. Imports of Goods and Services (current LCU Billion)

8.1.5. Local Currency Unit per US Dollar

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

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

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

8.1.9. Goods Imports as a Percentage of GDP

8.1.10. Goods Exports as a Percentage of GDP

8.1.11. Services Imports as a Percentage of GDP

8.1.12. Service Exports as a Percentage of GDP

8.1.13. Foreign Direct Investment, net (BoP, current US$ Billion)

8.1.14. Net Foreign Direct Investment as a Percentage of GDP

8.1.15. Mining, Manufacturing, Utilities Output LCU Billion

9. Appendix

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