The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024

The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024

Summary

The Netherlands defense budget is expected to reach US$17.9 billion in 2024, growing at a CAGR of 7.93%over the forecast period. The Netherlands has the 18th largest economy in the world and the sixth-largest in the European Union. During the historic period, the Netherlands military expenditure, which stands at US$12.4 billion in 2019, is anticipated to grow from US$13.2 billion in 2020 to value US$17.9 billion in 2024, registering a CAGR of 7.93%, over the forecast period. The growth will primarily be driven by the country’s military contributions to NATO operations.

The Netherlands 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. Although, military expenditure will be driven by modernization programs and the NATO mandate to spend a minimum of 2% of GDP on defense, the Netherlands is anticipated to allocate an average of 1.4% of GDP to defense over the forecast period. The country’s per capita defense expenditure is expected to increase from US$766.1 in 2020 to US$1,027.7 in 2024.

Over the forecast period, the country’s capital expenditure allocation is expected to average 25.2% of total expenditure, and revenue expenditure is expected to average 74.8%. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.83%, from US$3.2 billion in 2020 to US$4.5 billion in 2024, due to the significant uptick in weapon procurement plans, and the procurement of defense equipment to replace outdated ones. Opportunities related to the procurement of defense equipment in Netherlands are expected to be in areas such as reconnaissance vehicles, M-Class Naval Vessels, multi-role Tanker-Transport, Wheeled Vehicle Replacement Program (DVOW), submarine replacement program.

The army accounted for the highest budget allocation during the historic period, with an average share of 14%. Over the forecast period, the army’s share is projected to remain unchanged. Navy expenditure - which represented an average share of 8.3% of defense expenditure during the historic period - is anticipated to decrease to an average share of 8.2% over the forecast period. The air force, which accounted for an average share of 7.8% during the historic period, is expected to account for a share of 7.7% of the defense budget over the forecast period.

After valuing US$11 million in 2014, defense imports recovered in between 2015-2018 and are set to increase over the forecast period due to the procurement of F-35s, armored vehicles, and modernization programs for naval vessels. During 2014-2018, Germany was the country’s main arms supplier, followed by the US, Italy. Aircraft, armored vehicles and missiles, occupy the majority of the market share of imports. Defense exports declined during 2014-2016, before rising in 2017, due to a reduction in procurements by Portugal, Greece, and Italy as a consequence of the weak economic climate. Over the forecast period, exports will recover, driven by procurements beyond Europe, including Jordan, Indonesia, the US, Canada, UAE, Mexico among others.

The report The Netherlands Defense Market: Market Attractiveness, Competitive Landscape and Forecast to 2024, offers detailed analysis of the Netherlands 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.

Companies mentioned: Boeing, Raytheon Missile Systems, Lockheed Martin, Leidos Inc, Honeywell International Inc, ARTEC GmbH, GKN Aerospace, Elbit Systems, Terma, SABCA, Krauss-Maffei Wegmann (KMW), Saab, Damen Schelde Naval Shipbuilding (DSNS), TNO Defense, Thales Nederlands, RH Marine Group

Scope

The report provides an in-depth analysis of the following -

  • The defense industry market size and drivers: detailed analysis of the Netherlands 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 Netherlands 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 The Netherlands defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Netherlands 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 Netherlands 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 : The Netherlands Defense Budget: 2020 and 2024
    • Table Figure 2 : The Netherlands Defense Imports/Exports: 2014 and 2018
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: The Netherlands Top Prospective Procurements/Developments
    • Current Market Scenario
      • Primary threat perception
        • Table Figure 4: The Netherlands National Security Threats
      • Military Doctrine & Strategy
        • Table The Deployment of the Netherlands Armed Forces vs Defense Tasks
      • Procurement Programs
        • Table The Netherlands – Ongoing Procurement Programs
        • Table The Netherlands – Future Procurement Programs
      • Top Procurement Programs By Value (US$ Million) 2019-2024
        • Table The Netherlands top 10 Defense Procurement Programs by Value (US$ Million) 2019-2024
      • Geopolitical and Economic Scenario
      • Political & Strategic Alliances
        • Table Figure 5: The Netherlands Partner Countries for Defense Cooperation and Military Training
    • Defense Market Size Historical and Forecast
      • Netherland defense budget to increase at a CAGR of 7.93% over the forecast period
        • Table The Netherlands Defense Expenditure (EUR Billion and US$ Billion), 2015–2024
        • Table Figure 6: The Netherlands – Defense Expenditure (EUR Billion), 2015–2024
        • Table Figure 7: The Netherlands – Defense Expenditure (US$ Billion), 2015- 2024
      • Military modernization, and commitment levels to NATO, UN and EU stipulations
      • The Netherlands defense expenditure as a percentage of GDP expected to increase
        • Table The Netherlands – GDP Growth vs Defense Expenditure as a Percentage of GDP, 2015–2024
        • Table Figure 8: The Netherlands – GDP Growth vs. Defense Expenditures as Percentage of GDP Growth, 2015- 2024
    • Analysis of Defense Budget Allocation
      • Share of Capital Expenditure expected to average 25.2% over forecast period
        • Table The Netherlands – Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2024
        • Table Figure 9: The Netherlands – Defense Budget Split Between Capital and Revenue Expenditure (%), 2015– 2024
      • Capital expenditure expected to increase at a CAGR of 8.83% over the forecast period
        • Table The Netherlands – Defense Capital Expenditure (EUR Billion and US$ Billion), 2015–2024
        • Table Figure 10: The Netherlands – Defense Capital Expenditure (EUR Billion), 2015–2024
        • Table Figure 11: The Netherlands – Defense Capital Expenditure (US$ Billion), 2015–2024
      • The Others segment accounted for the largest percentage share
        • Table The Netherlands – Defense Expenditure Breakdown (%), 2015–2024
        • Table Figure 12: The Netherlands – Defense Expenditure Breakdown (%), 2015–2024
      • Army will account for the second highest share in the Netherlands defense budget
        • Table The Netherlands Defense Budget Allocations in EUR Billion - Breakdown by Services (Army,
        • Table Figure 13: The Netherlands Defense Budget in EUR Billion - Breakdown by Services (Army, Navy, Air
        • Table The Netherlands Defense Budget Allocations in US$ Billion - Breakdown by Services (Army,
        • Table Figure 14: The Netherlands Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air
      • Per capita defense expenditure set to increase
        • Table The Netherlands – Per Capita Defense Expenditure (US$), 2015–2024
        • Table Figure 15: The Netherlands – Per Capita Defense Expenditure (US$), 2015–2024
    • Homeland Security Market Size and Forecast
      • Homeland security market is expected to register a CAGR of 2.97% over the forecast period
        • Table The Netherlands – Homeland Security Expenditure (EUR Billion and US$ Billion), 2015–2024
        • Table Figure 16: The Netherlands – Homeland Security Budget (EUR Billion), 2015–2024
        • Table Figure 17: The Netherlands – Homeland Security Budget (US$ Billion), 2015–2024
      • Counter measures for drug trafficking and terrorism to drive homeland security expenditure
        • Table The Netherlands– Threat Level
    • Benchmarking with Key Global Markets
      • Netherlands defense budget expected to marginally increase over the forecast period
        • Table The Netherlands – Benchmarking with Key Markets, 2015–2019 vs 2020–2024
        • Table Figure 18: The Netherlands – Benchmarking with Key Markets, 2015–2019 vs 2020–2024
      • Netherlands military budget is limited compared to other countries
        • Table Figure 19: The Netherlands – Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2019 and 2024
      • The Netherlands is expected to spend an average of 1.2% of GDP on defense over the forecast period
        • Table Figure 20: The Netherlands – 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 period 2019- 2024
        • Table Top 10 Sectors of the Netherlands Defense Market by Value (US$ Million) - 2019-2024
      • Land-Based C4ISR
        • Table Figure 21: The Netherlands – Land-Based C4ISR Market Size (US$ Million), 2019-2024
      • Multi-role aircraft
        • Table Figure 22: The Netherlands – Multi-Role Aircraft Market Size (US$ Million), 2019–2024
      • Tactical Truck
        • Table Figure 23: The Netherlands – Tactical Truck Market Size (US$ Million), 2019–2024
  • Defense Procurement Market Dynamics
    • Table Figure 24: The Netherlands Defense Procurements In Terms Of Their Supplier Relationships
    • Import Market Dynamics
      • Defense imports are expected to increase slightly over the forecast period
        • Table Figure 25: The Netherlands – Defense Import Trends, 2014–2018 (TIV Values US$ Million)
      • Germany was the leading supplier of arms to Netherlands during 2014-2018
        • Table Figure 26: The Netherlands – Defense Imports by Country (%), 2014–2018
      • Armored vehicles and aircraft dominate military hardware imports
        • Table Figure 27: The Netherlands – Defense Imports by Category (%), 2014–2018
    • Export Market Dynamics
      • Arms exports to recover over the forecast period
        • Table Figure 28: The Netherlands – Defense Export Trends, 2014–2018 (TIV Values US$ Million)
      • Netherlands arms exports expected to increase
        • Table Figure 29: The Netherlands Defense exports by Country (%), 2014–2018
      • Sensors and ships are the main exported defense products
        • Table Figure 30: The Netherlands 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: medium
      • Bargaining power of buyer: medium
      • Barrier to entry: 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 the Netherlands
      • FDI in defense sector is unrestricted without review
    • Market Entry Route
      • Budgeting Process
        • Table Figure 32: The Netherlands Budgeting Process
      • Procurement Policy & Process
      • Acquisition of domestic companies is an effective market entry route for foreign firms
      • Collaborations provide market entry opportunities
      • Joint ventures, partnerships and subcontracting offer alternative entry strategies
      • Joint R&D programs provide an effective strategy to gain market access
    • Key Challenges
      • Table Figure 33: Key Challenges in the Netherlands Defense Market
      • Preference for EU companies poses a challenge for other companies
      • Inadequate government support for defense industry
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Top 10 Defense Suppliers in The Netherlands Defense Industry – By Value (US$ Million) 2019-2024
      • Table The Netherlands – Competitive Landscape of the Defense Industry
      • The Netherlands Market Share Analysis, 2018
        • Table Figure 34: The Netherlands Market Share Analysis, 2018
    • Key Domestic Companies
      • Damen Schelde Naval Shipbuilding: overview
      • Damen Schelde Naval Shipbuilding: products
        • Table Damen Schelde Naval Shipbuilding– Product focus
      • Damen Schelde Naval Shipbuilding: recent announcements and strategic initiatives
      • Damen Schelde Naval Shipbuilding: alliances
        • Table Damen Schelde Naval Shipbuilding– Alliances
      • Damen Schelde Naval Shipbuilding: recent contract wins
        • Table Damen Schelde Naval Shipbuilding – Contracts
      • TNO Defense: overview
      • TNO Defense: products and services
        • Table TNO Defense– Product focus
      • TNO Defense: recent announcements and strategic initiatives
      • TNO Defense: alliances
        • Table TNO Defense– Alliances
      • TNO Defense: recent contract wins
        • Table TNO Defense– Recent Contract Wins
      • Thales Nederland: overview
      • Thales Nederland: products and services
        • Table Thales Nederland– Product focus
      • Thales Nederland: recent announcements and strategic initiatives
      • Thales Nederland: alliances
        • Table Thales Nederland – Alliances
      • Thales Nederland: recent contract wins
        • Table Thales Nederland– Recent Contract Wins
      • RH Marine Group: overview
      • RH Marine Group: products
        • Table RH Marine Group – Product focus
      • RH Marine Group: recent announcements and strategic initiatives
      • RH Marine Group: alliances
        • Table RH Marine Group – Alliances
      • RH Marine Group: recent contract wins
        • Table RH Marine Group – Recent Contract Wins
      • Lockheed Martin: overview
      • Lockheed Martin: products
        • Table Lockheed Martin– Product focus
      • Lockheed Martin: recent announcements and strategic initiatives
      • Lockheed Martin: alliances
        • Table Lockheed Martin– Alliances
      • Lockheed Martin: recent contract wins
        • Table Lockheed Martin– Recent Contract Wins
      • Lockheed Martin Corp.: financial analysis
        • Table Figure 35: Lockheed Martin – Revenue Trend Analysis (US$ Billion), 2014–2018
        • Table Figure 36: Lockheed Martin – Operating Profit Trend Analysis (US$ Billion), 2014–2018
        • Table Figure 37: Lockheed Martin – Net Profit Trend Analysis (US$ Billion), 2014–2018
  • Business Environment and Country Risk
    • Economic Performance
      • Gross Domestic per Capita
        • Table Figure 38: The Netherlands GDP Per Capita US$, 2015–2025
      • Gross Domestic Product, current US$
        • Table Figure 39: The Netherlands Gross Domestic Product (current US$ Billion), 2015–2025
      • Imports of Goods and Services
        • Table Figure 40: The Netherlands Imports of goods and services (LCU Billion), 2005–2014
      • Exports of Goods and Services
        • Table Figure 41: The Netherlands Exports of goods and services (LCU Billion), 2005–2014
      • Gross National Disposable Income
        • Table Figure 42: The Netherlands gross national disposable income (US$ Billion), 2005–2013
      • Local Currency Unit per US$
        • Table Figure 43: Netherlands LCU per US$, 2015–2024
      • Market Capitalization of Listed Companies
        • Table Figure 44: Netherlands Market Capitalization of listed Companies (US$ Billion), 2005–2012
      • Market Capitalization of Listed Companies as a % of GDP
        • Table Figure 45: The Netherlands Market Capitalization of listed companies as a % of GDP, 2005–2012
      • Government Cash Surplus/Deficit
        • Table Figure 46: The Netherlands Government cash Surplus/deficit as a % of GDP, 2005–2012
      • Goods Imports as a % of GDP
        • Table Figure 47: The Netherlands Goods Imports as a % of GDP, 2005–2014
      • Goods Exports as a % of GDP
        • Table Figure 48: The Netherlands Goods Exports as a % of GDP, 2005–2014
      • Services Imports as a % of GDP
        • Table Figure 49: The Netherlands Services Imports as a % of GDP, 2005–2014
      • Services Exports as a % of GDP
        • Table Figure 50: The Netherlands Services Exports as a % of GDP, 2005–2014
      • Net Foreign direct investment, (BoP, current US$ Billion)
        • Table Figure 51: The Netherlands Net Foreign Direct Investment (current US$ Billion), 2005–2014
      • Net FDI as a % of GDP
        • Table Figure 52: The Netherlands Net FDI as a % of GDP, 2005–2014
      • Mining, Manufacturing, Utilities Output
        • Table Figure 53: The Netherlands Mining, Manufacturing, Utilities Output (US$ Billion), 2005–2014
  • Appendix
    • Disclaimer

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