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Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Belgium’s defense budget is to cumulatively value US$16.3 billion over 2020-2024. Belgium is streamlining its forces, and no longer has a separate army, air force and navy, but rather as a unified defense entity with land, air and sea components, served by a joint medical component. Opportunities related to the procurement of defense equipment in Belgium are expected to be in areas such as naval vessels, multirole aircraft, multirole aircraft MRO, transport aircraft, missiles and arms and ammunitions.

The country’s military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement. The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024. The country’s per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.

Belgium’s budget allocation for defense capital expenditure is expected to increase from 17% in 2019 to 22.7% in 2024. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.27%, from US$562.5 million in 2020 to US$773.1 million in 2024, owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.

The Belgian homeland security expenditure valued US$4.4 billion in 2019 and is expected to reach US$5.5 billion by 2024, registering a CAGR of 4.90% over 2020-2024. This expenditure is primarily driven by Belgium’s focus on combating the rising incidences of cyber-crimes, terrorism and drug trafficking. As Belgium’s defense force is relatively small, it often cooperates with the Netherlands and Luxembourg regarding joint exercises and procuring high-cost equipment. Belgium’s defense force’s area of expertise is demining, with an emphasis on sea demining.

The report Future of the Belgian 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.

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

  • The Belgium defense industry market size and drivers: detailed analysis of the Belgian 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 Belgian defense industry
Companies mentioned: Israel Aerospace Industries (IAI), Lockheed Martin, Embraer, Airbus, NH Industries, Leonardo (SIAI Marchetti), Dassault/Dornier, MOWAG/ General Dynamics European Land Systems, Steyr-Daimler-Puch , Spezialfahrzeuge (SSF)/ General Dynamics, Damen Schelde Naval Shipbuilding (DSNS), Mecar SA., Thales Belgium, Northrop Grumman Corp, Airbus Helicopters

Scope
  • Belgium's military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement.
  • Military expenditure, on a cumulative basis, is anticipated to be US$16.3 billion, which is higher than the US$14.4 billion spent during the historic period.
  • Belgium is an active participant in joint operations with the European Union (EU) and peacekeeping operations with NATO and the United Nations (UN), and as such, seeks higher spending in terms of its defense sector.
  • The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024.
  • The country’s per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Belgian defense industry market trends for the coming five years.
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector.
  • A deep qualitative analysis of the Belgian defense industry covering sections including demand drivers, key trends and latest industry contracts.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
    • Table Figure 1: Belgian Defense Budget, 2020 and 2024
    • Table Figure 2: Belgian Defense Imports/Exports, 2013 and 2017
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Belgium's Top Prospective Procurements/Developments
    • Current Market Scenario
      • Equipment of Belgian Military
        • Table Belgian Army Strength
        • Table Belgian Navy Strength
        • Table Belgian Air Force Strength
      • Procurement Programs
      • Ongoing procurement programs
        • Table Belgium Ongoing Procurement Programs
      • Future procurement programs
        • Table Belgium Future Procurement Programs
      • Key Drivers and Challenges
    • Defense Market Size Historical and Forecast
      • Belgium's defense expenditure is anticipated to increase at a CAGR of 1.99% over the forecast period
        • Table Belgium Defense Expenditure (EUR Billion & US$ Billion), 2015-2024
        • Table Figure 4: Belgian Defense Expenditure (EUR Billion), 2014-2023
        • Table Figure 5: Belgian Defense Expenditure (US$ Billion), 2014-2023
      • Equipment procurement plans and joint operations expected to drive defense expenditure over the forecast period
    • Analysis of Defense Budget Allocation
      • Belgium's defense expenditure as a percentage of GDP anticipated to decrease
        • Table Belgium GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
        • Table Figure 6: Belgium GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2015- 2024
      • Capital expenditure share to average 20.2% over the forecast period
        • Table Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
        • Table Figure 7: Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
      • Capital expenditure expected to increase at a CAGR of 8.27% over 2020-2024
        • Table Belgian Procurement Plans, 2019-2030
        • Table Belgium Defense Capital Expenditure (EUR Million & US$ Million), 2015-2024
        • Table Figure 8: Belgian Defense Capital Expenditure (EUR Million), 2015-2024
        • Table Figure 9: Belgian Defense Capital Expenditure (US$ Million), 2015-2024
      • Per capita defense expenditure set to increase over the forecast period
        • Table Belgium Per Capita Defense Expenditure (US$), 2015-2024
        • Table Figure 10: Belgium Per Capita Defense Expenditure (US$), 2015-2024
    • Homeland Security Market Size and Forecast
      • Belgium's homeland security expenditure expected to increase at a CAGR of 4.90% over the forecast period
        • Table Belgian Homeland Security Expenditure (EUR Billion & US$ Billion), 2015-2024
        • Table Figure 11: Belgian Homeland Security Budget (EUR Billion), 2015-2024
        • Table Figure 12: Belgian Homeland Security Budget (US$ Billion), 2015-2024
      • Drug trafficking and cyber security are the country's main homeland security related concerns
    • Benchmarking with Key Global Markets
      • Belgium's defense budget is expected to increase at a lower rate than other European countries over the forecast period
        • Table Benchmarking with Key Markets - 2015-2019 vs 2020-2024
        • Table Figure 13: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
      • Belgium's defense expenditure is low compared to other European nations
        • Table Figure 14: Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
      • Belgium allocates a comparatively low share of GDP to defense
        • Table Figure 15: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019- 2024
        • Table Top 10 Belgian Defense Market Sectors by Value (US$ Million) - 2019-2024
  • Defense Procurement Market Dynamics
    • Import Market Dynamics
      • Defense imports are expected to recover over the forecast period
        • Table Figure 16: Belgian Defense Import Trend, 2013-2017 (TIV Values in US$ Million)
      • Belgium sourced most its arms imports from its neighbors
        • Table Figure 17: Belgian Defense Imports by Country (%), 2013-2017
      • Aircraft, naval vessels and sensors dominated military hardware imports
        • Table Figure 18: Belgian Defense Imports by Category (%),2013-2017
    • Export Market Dynamics
      • Arms exports to increase over the forecast period
        • Table Figure 19: Belgian Defense Exports Trend (TIV Values in US$ Million), 2013-2017
      • Belgium's arms exports expected to reach new markets over the forecast period
        • Table Figure 20: Belgian Defense Exports by Country (%), 2013-2017
      • Armored vehicles and aircraft are the main exported defense products
        • Table Figure 21: Belgium Defense Exports by Category (%), 2013-2017
  • Market Entry Strategy
    • Market Regulation
      • Offset policy aids development of domestic defense industry
        • Table Offset Regulations in Belgium
      • Belgium permits 100% FDI in the defense industry
    • Market Entry Route
      • Budgeting Process
        • Table Figure 22: Belgium's Budgeting Process
      • Procurement Policy and Process
      • Joint weapons development program, a viable market entry route
        • Table Belgium's Participation in International Defense Development Programs
      • Subsidiaries provide market entry opportunities
      • Acquisition of domestic companies enables entrance to market
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Competitive Landscape of the Belgian Defense Industry
  • Business Environment and Country Risk
    • Economic Performance
      • Gross Domestic per Capita
        • Table Figure 23: Belgium GDP per Capita, 2015-2025
      • Gross Domestic Product, current US$ Billion
        • Table Figure 24: Belgium Gross Domestic Product (current US$ Billion), 2015-2025
      • Exports of Goods and Services
        • Table Figure 25: Belgium Exports of Goods and Services (current LCU Billion), 2005-2014
      • Imports of Goods and Services
        • Table Figure 26: Belgium Imports of Goods and Services (current LCU Billion), 2005-2014
      • Gross National Disposable Income
        • Table Figure 27: Belgium Gross National Disposable Income (US$ Billion), 2005-2013
      • Local Currency Unit per US$
        • Table Figure 28: Belgium LCU per US$, 2015-2024
      • Market Capitalization of Listed Companies
        • Table Figure 29: Belgium Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies as a Percentage of GDP
        • Table Figure 30: Belgium Market Capitalization of Listed Companies (% of GDP), 2005-2012
      • Government Cash Surplus/Deficit as a Percentage of GDP
        • Table Figure 31: Belgium Government Cash Surplus/Deficit (% of GDP), 2005-2012
      • Goods Exports as a Percentage of GDP
        • Table Figure 32: Belgium Goods Exports (% of GDP), 2005-2014
      • Goods Imports as a Percentage of GDP
        • Table Figure 33: Belgium Goods Imports (% of GDP), 2005-2014
      • Services Imports as a Percentage of GDP
        • Table Figure 34: Belgium Services Imports (% of GDP), 2005-2014
      • Services Exports as a Percentage of GDP
        • Table Figure 35: Belgium Services Exports (% of GDP), 2005-2014
      • Foreign Direct Investment, net (BoP, current US$ Billion)
        • Table Figure 36: Belgium Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
      • Net Foreign Direct Investment as a Percentage of GDP
        • Table Figure 37: Belgium Net Foreign Direct Investment (% of GDP), 2005-2014
      • Mining, Manufacturing, Utilities Output
        • Table Figure 38: Belgium Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
  • Appendix
    • Disclaimer

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