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

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

Summary

Russia’s annexation of Crimea in 2014 and the country’s increasing assertive behavior in Eastern Europe has led to Denmark paying more attention to deterrence in the Baltic region by adapting to NATO’s new priorities with regards to the reinforcement of collective defense and deterrence. Also, growing instability in the Sahel-region, North Africa and the Middle East provides a breeding ground for Islamic militants that create the foundation for terrorism and illegal migration threating Denmark’s sovereignty and security.

Denmark’s military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019. Over the forecast period, the country’s defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%. The country’s defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.

The country’s homeland security (HLS) expenditure decreased from US$90.3 million in 2015 to US$66.9 million in 2019, at a CAGR of -7.23%. Over the forecast period, expenditure on HLS is projected to decrease further, from US$66.9 million in 2020 to US$64.9 million in 2024, at a CAGR of -0.78%. The decrease in HLS spending is a result of the country’s increasing focus on military modernization and defense procurements. However, the HLS spending will be primarily driven by efforts to combat the rising number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend the country’s borders.

While Denmark is majorly dependent on the US for its defense equipment, there was a considerable increase in the country’s defense exports during 2014-2018. In 2012, the Danish government formulated the “Open to Business” initiative, under which the country aimed to boost its exports of military goods and services. The initiative also tasked the Ministry of Defense (MoD) with helping its domestic manufacturers to gain access to advanced technology through its offset programs.

The report Future of the Danish 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 defense industry market size and drivers: detailed analysis of the Danish 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 Danish 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 Danish 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: Systematic A/S, Terma A/S, Copenhagen Sensor Technology ApS, Danish Aerotech A/S, Falck Schmidt Defense Systems A/S, IFAD TS A/S

Scope
  • Denmark’s military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019.
  • Over the forecast period, the country’s defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%.
  • The country’s defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Danish 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 Danish defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
    • Table Figure 1: Denmark Defense Budget, 2020 and 2024
    • Table Figure 2: Denmark Defense Imports and Exports
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Denmark's Top Five Prospective Procurements/Developments
    • Current Market Scenario
      • Primary Threat Perception
        • Table Figure 4: Denmark's National Security Threats
      • Military Doctrine and Strategy
      • Procurement Programs
        • Table Danish Ongoing Procurement Programs
        • Table Danish Future Procurement Programs
      • Top Procurement Programs By Value (US$ Million), 2019-2024
        • Table Top Five Danish Defense Programs by Value (US$ Million), 2019-2024
      • Geopolitical, Social and Economic Scenario
      • Political and Strategic Alliances
        • Table Figure 5: Denmark's Partner Countries for Defense Cooperation and Military Training
        • Table Danish Defense Cooperation
        • Table Danish Military Training Exercises
    • Defense Market Size Historical and Forecast
      • Danish defense expenditure expected to register a CAGR of 1.61% over the forecast period
        • Table Danish Defense Expenditure (DKK Billion and US$ Billion), 2015-2024
        • Table Figure 6: Danish Defense Expenditure (DKK Billion), 2015-2024
        • Table Figure 7: Danish Defense Expenditure (US$ Billion), 2015-2024
      • Growing Russian assertiveness, participation in NATO peacekeeping operations and increase in cyberattacks are expected to drive defense expenditure over the forecast period
      • Denmark's defense expenditure as a percentage of GDP expected to remain stable
        • Table Danish GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015-2024
        • Table Figure 8: Danish GDP Growth vs Defense Expenditures Percentage of GDP Growth, 2015-2024
    • Analysis of Defense Budget Allocation
      • Capital expenditure is expected to account for 36.8% of the defense budget over 2020-2024
        • Table Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2015- 2024
        • Table Figure 9: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
      • Capital expenditure is expected to record a CAGR of 2.99% over the forecast period
        • Table Danish Defense Capital Expenditure (DKK Billion and US$ Million), 2015-2024
        • Table Figure 10: Danish Defense Capital Expenditure (DKK Billion), 2015-2024
        • Table Figure 11: Danish Defense Capital Expenditure (US$ billion), 2015-2024
      • Per-capita defense expenditure set to increase over the forecast period
        • Table Danish Per-Capita Defense Expenditure (US$), 2015-2024
        • Table Figure 12: Danish Per-Capita Defense Expenditure (US$), 2015-2024
    • Homeland Security Market Size and Forecast
      • Danish homeland security expenditure expected to exhibit a negative CAGR of 0.78% during 2020-2024
        • Table Danish Homeland Security Expenditure (DKK Million & US$ Million), 2015-2024
        • Table Figure 13: Danish Homeland Security Budget (DKK Million), 2015-2024
        • Table Figure 14: Danish Homeland Security Budget (US$ Million), 2015-2024
      • Cyber security and counter terrorism are the country's main homeland security concerns
    • Benchmarking with Key Global Markets
      • Denmark defense budget expected to increase at a higher rate than other European countries over the forecast period
        • Table Benchmarking with Key Markets - 2015-2019 vs. 2020-2024
        • Table Figure 15: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
      • Danish defense budget expected to remain low compared to other European countries
        • Table Figure 16: Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
      • Denmark allocates a low share of GDP to defense compared to most European countries
        • Table Figure 17: Benchmarking with Large Defense Spenders as a Percentage of GDP - 2019
    • Market Opportunities: Key Trends
      • Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
        • Table Top 10 Danish Defense Sectors by Value (US$ Million) - 2019-2024
      • Multirole Aircraft
        • Table Figure 18: Danish Multirole Aircraft Market Size (US$ Million), 2019-2024
      • Vehicular-based Tactical Communication Systems
        • Table Figure 19: Danish Vehicular-based Tactical Communication Systems Market Size (US$ Million), 2019-2024
      • Land-based C4ISR
        • Table Figure 20: Danish Land-based C4ISR Market Size (US$ Million), 2019-2024
  • Defense Procurement Market Dynamics
    • Table Figure 21: Danish Defense Procurements In Terms Of Their Supplier Relationships
    • Import Market Dynamics
      • Defense imports are expected to increase over the forecast period
        • Table Figure 22: Denmark Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
      • Denmark sourced most of its arms imports from the US
        • Table Figure 23: Denmark Defense Imports by Country (%), 2014-2018
      • Sensors and aircraft dominate military hardware imports
        • Table Figure 24: Denmark Defense Imports by Category (%), 2014-2018
    • Export Market Dynamics
      • Arms exports to recover over the forecast period
        • Table Figure 25: Denmark Defense Exports by Value (US$ Million), 2014-2018 (TIV Values)
      • Portugal, Malaysia, Finland, Algeria, and Oman are the main purchasers of Danish arms
        • Table Figure 26: Denmark Defense Exports by Country (%), 2014-2018
      • Sensors and ships together accounted for the majority of exported defense products
        • Table Figure 27: Denmark Defense exports by Category (%), 2014-2018
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 28: Industry Dynamics - Porter's Five Forces Analysis
      • Bargaining Power of Supplier: Low to Medium
      • Bargaining Power of Buyer: High
      • Barrier to Entry: Low
      • Intensity of Rivalry: Medium to High
      • Threat of Substitution: High
  • Market Entry Strategy
    • Budgeting Process
      • Table Figure 29: Denmark Budgeting Process
    • Procurement Policy and Process
    • Market Regulation
      • Offset policy aids development of domestic defense industry
        • Table Offset Regulations in Denmark
      • Denmark permits 100% foreign direct investment in the defense sector
    • Market Entry Route
      • Forming subsidiaries or acquiring Danish companies are preeminent market entry opportunities
      • Forming consortiums and product development agreements open new market entry strategy choices
      • Joint weapon development programs are a viable market entry opportunity
    • Key Challenges
      • Table Figure 30: Key Challenges in Denmark's Defense Market
      • Low defense budget and limited technological capability hinder the Danish defense market
      • Preference given to procurements from US and Nordic countries
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Top 10 Defense Suppliers in Danish Defense Industry by Value (US$ Million), 2019-2024
      • Danish defense sector is dominated by domestic competitors
        • Table Competitive Landscape of the Danish Defense Industry
      • Denmark Market Share Analysis, 2019-2024
        • Table Figure 31: Denmark Market Share Analysis, 2019-2024
    • Key Domestic Companies
      • Systematic A/S: Overview
      • Systematic A/S: Products and Services
        • Table Systematic A/S - Products and Services
      • Systematic A/S: Recent Announcements and Strategic Initiatives
      • Systematic A/S: Alliances
        • Table Systematic A/S - Alliances
      • Systematic A/S: Recent Contract Wins
        • Table Systematic A/S - Recent Contract Wins
      • Terma A/S: Overview
      • Terma A/S: Products
        • Table Terma A/S - Products
      • Terma A/S: Recent Announcements and Strategic Initiatives
      • Terma A/S: Alliances
        • Table Terma A/S - Alliances
      • Terma A/S: Recent Contract Wins
        • Table Terma A/S - Recent Contract Wins
      • Copenhagen Sensor Technology ApS: Overview
      • Copenhagen Sensor Technology ApS: Products
        • Table Copenhagen Sensor Technology ApS - Products
      • Copenhagen Sensor Technology ApS: Recent Announcements and Strategic Initiatives
      • Copenhagen Sensor Technology ApS: Alliances
        • Table Copenhagen Sensor Technology ApS - Alliances
      • Copenhagen Sensor Technology ApS: Recent Contract Wins
        • Table Copenhagen Sensor Technology ApS - Recent Contract Wins
      • Danish Aerotech A/S: Overview
      • Danish Aerotech A/S: Products
        • Table Danish Aerotech A/S - Products
      • Danish Aerotech A/S: Recent Announcements and Strategic Initiatives
      • Danish Aerotech A/S: Alliances
        • Table Danish Aerotech A/S - Alliances
      • Danish Aerotech A/S: Recent Contract Wins
        • Table Danish Aerotech A/S - Recent Contract Wins
      • Falck Schmidt Defense Systems A/S: Overview
      • Falck Schmidt Defense Systems A/S: Products
        • Table Falck Schmidt Defense Systems A/S - Products
      • Falck Schmidt Defense Systems A/S: Recent Announcements and Strategic Initiatives
      • Falck Schmidt Defense Systems A/S: Alliances
        • Table Falck Schmidt Defense Systems - Alliances
      • Falck Schmidt Defense Systems A/S: Recent Contract Wins
        • Table Falck Schmidt Defense Systems - Recent Contract Wins
      • IFAD TS A/S: Overview
      • IFAD TS A/S: Products
        • Table IFAD TS A/S - Products
      • IFAD TS A/S: Recent Announcements and Strategic Initiatives
      • IFAD TS A/S: Alliances
        • Table IFAD TS A/S - Alliances
      • IFAD TS A/S: Recent Contract Wins
        • Table IFAD TS A/S - Recent Contract Wins
    • Key Foreign Companies
      • Lockheed Martin Denmark: Overview
      • Lockheed Martin Denmark: Products and Services
        • Table Lockheed Martin Denmark - Products and Services
      • Lockheed Martin Denmark: Recent Announcements and Strategic Initiatives
      • Lockheed Martin Denmark: Alliances
        • Table Lockheed Martin Denmark - Alliances
      • Lockheed Martin Denmark: Recent Contract Wins
        • Table Lockheed Martin Denmark - Recent Contract Wins
      • Lockheed Martin: Financial Analysis
        • Table Figure 32: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2014-2018
        • Table Figure 33: Lockheed Martin - Operating Profit Trend Analysis (US$ Billion), 2014-2018
        • Table Figure 34: Lockheed Martin - Net Profit Trend Analysis (US$ Billion), 2014-2018
      • TenCate Advanced Armour Denmark A/S: Overview
      • TenCate Advanced Armour Denmark A/S: Products
        • Table TenCate Advanced Armour Denmark A/S - Products
      • TenCate Advanced Armour Denmark A/S: Recent Announcements and Strategic Initiatives
      • TenCate Advanced Armour Denmark A/S: Alliances
        • Table TenCate Advanced Armour Denmark A/S - Alliances
      • TenCate Advanced Armour Denmark A/S: Recent Contract Wins
        • Table TenCate Advanced Armour Denmark A/S - Recent Contract Wins
  • Business Environment and Country Risk
    • Economic Performance
      • GDP per Capita
        • Table Figure 35: Denmark's GDP Per Capita (US$), 2015-2025
      • GDP, current US$ Billion
        • Table Figure 36: Denmark's GDP (current US$ Billion), 2015-2025
      • Exports of Goods and Services
        • Table Figure 37: Denmark's Exports of Goods and Services (current LCU Billion), 2005-2014
      • Imports of Goods and Services
        • Table Figure 38: Denmark's Imports of Goods and Services (current LCU Billion), 2005-2014
      • Gross National Disposable Income
        • Table Figure 39: Denmark's Gross National Disposable Income (US$ Billion), 2005-2014
      • Local Currency Unit per US$, Period Average
        • Table Figure 40: Denmark's DKK per US$, 2015-2024
      • Market Capitalization of Listed Companies
        • Table Figure 41: Denmark's Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies (% of GDP)
        • Table Figure 42: Denmark's Market Capitalization of Listed Companies (% of GDP), 2005-2012
      • Government Cash Surplus/Deficit (% of GDP) (LCU)
        • Table Figure 43: Denmark's Government Cash Surplus/Deficit (% of GDP), 2005-2012
      • Goods Exports (% of GDP)
        • Table Figure 44: Denmark's Goods Exports (% of GDP), 2005-2014
      • Goods Imports (% of GDP)
        • Table Figure 45: Denmark's Goods Imports (% of GDP), 2005-2014
      • Services Imports (% of GDP)
        • Table Figure 46: Denmark's Services Imports (% of GDP), 2005-2014
      • Services Exports (% of GDP)
        • Table Figure 47: Denmark's Services Exports (% of GDP), 2005-2014
      • Foreign Direct Investment, net (BoP, current US$ Billion)
        • Table Figure 48: Denmark's FDI, net (BoP, Current US$ Billion), 2005-2014
      • Net FDI (% of GDP)
        • Table Figure 49: Denmark's Net FDI (% of GDP), 2005-2014
      • Mining, Manufacturing, Utilities Output
        • Table Figure 50: Denmark's Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
  • Appendix
    • About GlobalData
    • Disclaimer

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