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

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

Summary

The Portuguese defense budget is anticipated to value US$2.7 billion by 2024, growing at a CAGR of 2.03%. Portugal’s military expenditure, which stands at US$2.46 billion in 2019, is anticipated to grow from US$2.53 billion in 2020 to value US$2.74 billion in 2024, registering a CAGR of 2.03%, over the forecast period. The growth will primarily be fueled by the government plans to completely withdraw austerity reforms over the forecast period, which is expected to boost the country’s economy.

Military expenditure, on a cumulative basis, is anticipated to be US$13.1 billion over the forecast period, which is higher than the US$11.3 billion spent during the historic period. Portugal 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. This, along with the Military Programming Law (LPM) that the country is anticipated to undertake over the next coming years, is expected to drive Portugal’s defense expenditure over the forecast period.

Over the forecast period, the country’s capital expenditure allocation is expected to average 18.6%, and revenue expenditure is expected to cap at an average of 81.4%. Capital expenditure over the forecast period is expected to increase at a CAGR of 2.04%, from US$471.1 million in 2020 to US$510.7 million in 2024. This is owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones. For instance, Portugal is procuring 6 Agusta Westland AW119 Koala helicopters, 6 Viana do Castelo OPVs and one multi-role vessel, 47 4x4 Tactical Communications Vehicles, apart from procuring the country is also modernization its Black Shark Heavyweight Torpedoes, Tridente Class Attack Submarines.

The Portuguese homeland security expenditure valued US$2.5 billion in 2020 and is expected to grow at a CAGR of 2.54% to reach US$2.8 billion in 2024, over the forecast period. This expenditure is primarily driven by Portugal’s focus on enhancing its defense capabilities to counter the increasing rate of cyber-attacks and securing the country’s maritime borders. The HLS budget is anticipated to be invested in the procurement of tablets, PDAs, offshore patrol vessels, biometric systems, and other advanced technology systems to strengthen its internal security forces.

The report Future of the Portuguese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024, offers detailed analysis of the Portuguese 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 defense industry market size and drivers: detailed analysis of the Portuguese 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 Portuguese 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 Portuguese 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: OGMA - IndústriaAeronáutica de Portugal SA, EID - Empresa de Investigação e Desenvolvimento de Electrónica SA, Edisoft, EMPORDEF TI Inc., IndraSistemas Portugal, Leonardo - Società per azioni, Arsenal Alfeite, Fabrequipa, Critical Software

Scope
  • Portugal’s military expenditure, which stands at US$2.46 billion in 2019, is anticipated to grow from US$2.53 billion in 2020 to value US$2.74 billion in 2024, registering a CAGR of 2.03%, over the forecast period.
  • The growth will primarily be fueled by the government plans to completely withdraw austerity reforms over the forecast period, which is expected to boost the country’s economy.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Portuguese 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 Portuguese 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 : Portuguese Defense Budget: 2020 and 2024
    • Table Figure 2 : Portuguese Defense Imports/Exports: 2014 and 2018
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Portugal's Top Prospective Procurements/Developments
    • Current Market Scenario
      • Primary Threat Perception
        • Table Figure 4: Portuguese National Security Threats
      • Military Doctrine and Strategy
      • Procurement Programs
        • Table Portugal - Ongoing Development and Procurement Programs
        • Table Portugal - Future Procurement Programs
      • Top Procurement Programs by Value (US$ Million) 2019-2024
        • Table Portugal - Top Five Defense Procurement Programs by Value (US$ Million), 2019-2024
      • Social, Political and Economic Environment and Support for Defense Projects
      • Political and Strategic Alliances
        • Table Figure 5: Portugal Partnering Countries for Defense Cooperation and Military Training
    • Defense Market Size Historical and Forecast
      • Portuguese defense budget is expected to record a CAGR of 2.03% over the forecast period
        • Table Portuguese Defense Expenditure (EUR Billion & US$ Billion), 2015-2024
        • Table Figure 6: Portuguese Defense Expenditure (EUR Billion), 2015-2024
        • Table Figure 7: Portuguese Defense Expenditure (US$ Billion), 2015-2024
      • International peacekeeping operations expected to drive defense expenditure over the forecast period
      • Portuguese defense expenditure as a percentage of GDP is expected to decline over the forecast period
        • Table Portuguese GDP Growth and Defense Expenditure as a Percentage of GDP, 2015-2024
        • Table Figure 8: Portuguese GDP Growth and Defense Expenditure as a Percentage of GDP, 2015-2024
    • Analysis of Defense Budget Allocation
      • Capital expenditure is expected to account for 18.6% of the defense budget over 2020-2024
        • Table Portuguese Defense Budget Split Between Capital and Revenue Expenditure (%),2015- 2024
        • Table Figure 9: Portuguese Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
      • Capital expenditure is anticipated to record a CAGR of 2.04% over the forecast period
        • Table Portuguese Defense Capital Expenditure (EUR Million &US$ Million), 2015-2024
        • Table Figure 10: Portuguese Defense Capital Expenditure (EUR Million), 2015-2024
        • Table Figure 11: Portuguese Defense Capital Expenditure (US$ Million), 2015-2024
      • Army is expected to receive the highest allocation over the forecast period
        • Table Portuguese Defense Budget Share(%) Split by Services(Army, Navy, Air Force and Other), 2015-2024
        • Table Figure 12: Portuguese Defense Expenditure Split Between Army, Navy, Air Force and Others (%), 2015-2024
      • Army is anticipated to have the major share of expenditure over the forecast period
        • Table Portuguese Defense Budget Allocations in EUR Million - Breakdown by Services (Army, Air Force, Navy and Others), 2015-2024
        • Table Figure 13: Portuguese Defense Expenditure in (EUR Million), - Breakdown by Services (Army, Navy, Air Force and Others), 2015-2024
        • Table Portuguese Defense Budget in US$ Million - Breakdown by Services (Army, Navy,Air Force and Others), 2015-2024
        • Table Figure 14: Portuguese Defense Budget in US$ Million - Breakdown by Services (Army, Navy, Air Force and Others), 2015-2024
      • Per capita defense expenditure is projected to increase over the forecast period
        • Table Portuguese Per Capita Defense Expenditure (US$), 2015-2024
        • Table Figure 15: Portuguese Per Capita Defense Expenditure (US$), 2015-2024
    • Homeland Security Market Size and Forecast
      • Portuguese homeland security budget anticipated to record a CAGR of 2.54% over the forecast period
        • Table Portuguese Defense Expenditure for Homeland Security (EUR Billion & US$ Billion), 2015-2024
        • Table Figure 16: Portuguese Homeland Security Budget (EUR Billion), 2015-2024
        • Table Figure 17: Portuguese Homeland Security Budget (US$ Billion), 2015-2024
      • Cyber-attacks and maritime security set to drive homeland security expenditure over the forecast period
    • Benchmarking with Key Global Markets
      • Portuguese defense budget expected to remain low compared to the leading spenders
        • Table Benchmarking with Key Markets - 2015-2019 vs 2020-2024
        • Table Figure 18: Benchmarking with the World's Largest and Top Regional Defense Spenders (US$ Billion), 2015-2019 vs 2020-2024
      • Portuguese defense expenditure to remain low compared to major spenders in Europe
        • Table Figure 19: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2019 and 2024
      • Portugal allocates lower share of GDP to defense compared to the US and other European countries
        • Table Figure 20: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
    • Market Opportunities: Key Trends and Growth Stimulators
      • Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
        • Table Portugal - Top 10 Defense Market Categories by Value (US$ Million), 2019-2024
      • Corvettes MRO
        • Table Figure 21: Corvettes MRO Market Size (US$ Million), 2019-2024
      • Physical Security
        • Table Figure 22: Physical Security Market Size (US$ Million), 2019-2024
      • Land-based C4ISR
        • Table Figure 23: Land-based C4ISR Market Size (US$ Million), 2019-2024
  • Defense Procurement Market Dynamics
    • Table Figure 24: Portugal - Defense Procurements in Terms of Supplier Relationships, 2019
    • Import Market Dynamics
      • Defense imports are expected to increase over 2020-2024
        • Table Figure 25: Portuguese Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
      • Portugal sourced the majority of its arms imports from Denmark
        • Table Figure 26: Portuguese Defense Imports by Country (%), 2014-2018
      • Naval vessels and armored vehicles accounted for the majority of military imports
        • Table Figure 27: Portuguese Defense Imports by Category (%), 2014-2018
    • Export Market Dynamics
      • Defense exports expected to rise during the forecast period
        • Table Figure 28: Portuguese Defense Export Trend (US$ Million), 2014-2018 (TIV Values)
      • Romania accounted for the majority of Portuguese defense exports
        • Table Figure 29: Portuguese Defense Exports by Country (%), 2014-2018
      • Aircraft are the main exported defense products
        • Table Figure 30: Portuguese Defense Exports by Category (%), 2014-2018
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 31: Industry Dynamics - Porter's Five Forces Analysis
      • Bargaining Power of Supplier: High to Medium
      • Bargaining Power of Buyer: Medium to Low
      • Barrier to Entry: Low to Medium
      • Intensity of Rivalry: Medium to High
      • Threat of Substitution: Medium to High
  • Market Entry Strategy
    • Market Regulation
      • Offset policy aids development of domestic defense industry and research activities
        • Table Offset Regulations in Portugal
    • Market Entry Route
      • Budgeting Process
        • Table Figure 32: The Portuguese Budgeting Process
      • Procurement Policy and Process
      • Setting up subsidiaries offers a market entry opportunity
      • Technology transfer, sub-contracts, and long-term supply contracts open new market entry strategy choices
    • Key Challenges
      • Table Figure 33: Key Challenges in Portuguese Defense Market
      • Preference for EU companies poses a challenge for other companies
      • Budget cuts due to austerity measures challenging defense companies
      • Domestic defense companies facing challenges from foreign companies
      • Corrupt practices in the Portuguese government challenges the industry
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Competitive Landscape of the Portuguese Defense Industry
      • Portuguese Market Share Analysis, 2018
        • Table Figure 34: Portuguese Market Share Analysis, 2018
        • Table Portugal - Top Defense Suppliers by Value (US$ Million),2019-2024
    • Key Domestic Companies
      • OGMA - IndústriaAeronáutica de Portugal SA: Overview
      • OGMA - IndústriaAeronáutica de Portugal SA: Products
        • Table OGMA - IndústriaAeronáutica de Portugal SA - Products
      • OGMA - Indústria Aeronáutica de Portugal SA: Recent Announcements and Strategic Initiatives
      • OGMA - IndústriaAeronáutica de Portugal SA: Alliances
        • Table OGMA - IndústriaAeronáutica de Portugal SA- Alliances
      • OGMA - IndústriaAeronáutica de Portugal SA: Recent Contract Wins
        • Table OGMA - IndústriaAeronáutica de Portugal SA- Recent Contract Wins
      • EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA: Overview
      • EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA: Products
        • Table EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA - Products
      • EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA: Recent Announcements and Strategic Initiatives
      • EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA: Alliances
        • Table EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA- Alliances
      • EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA: Recent Contract Wins
        • Table EID - Empresa de Investigaçao e Desenvolvimento de Electrónica SA - Contracts
      • Edisoft: Overview
      • Edisoft: Products
        • Table Edisoft- Products
      • Edisoft: Recent Announcements and Strategic Initiatives
      • Edisoft: Alliances
        • Table Edisoft- Alliances
      • Edisoft: Recent Contract Wins
        • Table Edisoft- Recent Contract Wins
      • EMPORDEF TI Inc.: Overview
      • EMPORDEF TI Inc.: Products
        • Table EMPORDEF TI Inc. - Products
      • EMPORDEF TI Inc.: Recent Announcements and Strategic Initiatives
      • EMPORDEF TI Inc.: Alliances
        • Table EMPORDEF TI Inc.- Alliances
      • EMPORDEF TI Inc.: Recent Contract Wins
        • Table EMPORDEF TI Inc.- Recent Contract Wins
      • IndraSistemas Portugal: Overview
      • IndraSistemas Portugal: Products and Services
        • Table IndraSistemas Portugal - Products and Services
      • IndraSistemas Portugal: Recent Announcements and Strategic Initiatives
      • IndraSistemas Portugal: Alliances
        • Table IndraSistemas Portugal- Alliances
      • IndraSistemas Portugal: Recent Contract Wins
        • Table IndraSistemas Portugal- Recent Contract Wins
      • Leonardo - Società per azioni: Overview
      • Leonardo - Società per azioni: Products
        • Table AgustaWestland- Products
      • Leonardo - Società per azioni: Recent Announcements and Strategic Initiatives
      • Leonardo - Società per azioni: Alliances
        • Table AgustaWestland Portugal- Alliances
      • Leonardo - Società per azioni: Recent Contract Wins
        • Table AgustaWestland Portugal- Recent Contract Wins
      • Arsenal Alfeite: Overview
      • Arsenal Alfeite: Products and Services
        • Table Arsenal Alfeite- Products and Services
      • Arsenal Alfeite: Recent Announcements and Strategic Initiatives
      • Arsenal Alfeite: Recent Contract Wins
        • Table Arsenal Alfeite- Recent Contract Wins
      • Fabrequipa: Overview
      • Fabrequipa: Products
        • Table Fabrequipa - Products
      • Fabrequipa: Recent Announcements and Strategic Initiatives
      • Fabrequipa: Alliances
        • Table Fabrequipa- Alliances
      • Fabrequipa: Recent Contract Wins
        • Table Fabrequipa- Recent Contract Wins
      • Critical Software: Overview
      • Critical Software: Products
        • Table Critical Software - Products
      • Critical Software: Recent Announcements and Strategic Initiatives
      • Critical Software: Alliances
        • Table Critical Software - Alliances
      • Critical Software: Recent Contract Wins
        • Table Critical Software - Recent Contract Wins
  • Business Environment and Country Risk
    • Economic Performance
      • Gross Domestic per Capita (US$)
        • Table Figure 35: Portuguese GDP per Capita (US$), 2015-2025
      • Gross Domestic Product, Current US$ Billion
        • Table Figure 36: Portuguese Gross Domestic Product (Current US$ Billion), 2015-2025
      • Exports of Goods and Services
        • Table Figure 37: Portuguese Exports of Goods and Services (LCU Billion), 2005-2014
      • Imports of Goods and Services
        • Table Figure 38: Portuguese Imports of Goods and Services (LCU Billion), 2005-2014
      • Gross National Disposable Income
        • Table Figure 39: Portuguese Gross National Disposable Income (US$ Billion), 2005-2014
      • Local Currency Unit per US$
        • Table Figure 40: Portuguese LCU per US$, 2015-2024
      • Market Capitalization of Listed Companies
        • Table Figure 41: Portuguese Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies as a Percentage of GDP
        • Table Figure 42: Portuguese Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
      • Government Cash Surplus/Deficit as a Percentage of GDP
        • Table Figure 43: Portuguese Government Cash Surplus/Deficit as a Percentage of GDP,2005-2012
      • Goods Imports as a Percentage of GDP
        • Table Figure 44: Portuguese Goods Imports as a Percentage of GDP, 2005-2014
      • Goods Exports as a Percentage of GDP
        • Table Figure 45: Portuguese Goods Exports as a Percentage of GDP, 2005-2014
      • Services Imports as a Percentage of GDP
        • Table Figure 46: Portuguese Services Imports as a Percentage of GDP, 2005-2014
      • Services Exports as a Percentage of GDP
        • Table Figure 47: Portuguese Services Exports as a Percentage of GDP, 2005-2014
      • Net Foreign Direct Investment
        • Table Figure 48: Portuguese Net Foreign Direct Investment (Current US$ Billion), 2005-2014
      • Net FDI as a Percentage of GDP
        • Table Figure 49: Portuguese Net FDI as a Percentage of GDP, 2005-2014
      • Mining, Manufacturing, Utilities Output
        • Table Figure 50: Portuguese Mining, Manufacturing, Utilities Output(US$ Billion), 2005-2014
  • Appendix
    • Disclaimer

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