Swiss Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
Switzerland’s military expenditure, which stands at US$5.27 billion in 2019, is anticipated to grow from US$5.32 billion in 2020 to value US$5.89 billion in 2024, registering a CAGR of 2.59%, over the forecast period. With a neutral stance during times of war and a reputation for being a peace loving nation, Switzerland has traditionally made only modest budget allocations to defense. In 2019, the Swiss Government increased its defense budget expenditure by 9.9% compared to the previous year.
The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.69% during 2015-2019 to 0.67% over 2020-2024. The country’s per capita defense expenditure is expected to increase from US$612.0 in 2020 to US$646.5 in 2024. The Swiss homeland security expenditure valued US$1.3 billion in 2020 and is expected to grow at a CAGR of 2.55% to reach US$1.5 billion in 2024, over the forecast period.
The growth will primarily be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment. Switzerland is an active participant in joint operations in the peacekeeping operations with NATO and the United Nations (UN), and as such, is targeting higher spending in terms of its defense sector. This, along with the Air 2030 program that the country is anticipated to undertake over the next coming years, is expected to drive Switzerland’s defense expenditure over the forecast period.
Over the forecast period, the country’s capital expenditure allocation is expected to average 35.5%, and revenue expenditure is expected to cap at an average of 64.5%. Capital expenditure over the forecast period is expected to increase at a CAGR of 3.47%, from US$1.9 billion in 2020 to US$2.1 billion in 2024, due to the significant uptick in weapon procurement plans, as well as the procurement of defense equipment to replace outdated ones.
Swiss defense imports increased drastically from 2014 to 2016, before declining in 2017 and 2018. The country sourced the majority of its defense equipment from the US, accounting for 68.6% of total imports during 2014-2018. The major countries importing military equipment include Germany, Sweden and Norway. Over the forecast period, Switzerland’s arms imports will continue to be dominated by the US and the European suppliers. The country’s defense exports reveal a declining trend from 2015 to 2018, after a high rise in 2015. During 2014-2018, Saudi Arabia, China, and Indonesia were the three largest consumers of the country’s defense equipment.
The report “Swiss Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” offers detailed analysis of the Swiss 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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