Future of the Portuguese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
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This is owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.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 -
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