Swiss Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Swiss Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

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be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment.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due to the significant uptick in weapon procurement plans, as well as the procurement of defense equipment to replace outdated ones.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 -

  • The defense industry market size and drivers: detailed analysis of the Swiss 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 Swiss 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 Swiss defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Scope
  • 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 growth will primarily be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment.
Reasons to buy
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Swiss 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 Swiss defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Companies mentioned - Elbit Systems, Thales Group, Revision Military, Inc., Pilatus Group, RUAG Defense, General Dynamics European Land Systems (GDELS), Pilatus Group, RUAG Defense, General Dynamics European Land Systems, Rheinmetall Air Defense AG, Atos AG, Meteolabor AG.


  • Introduction
    • What is this Report About?
    • Definitions
    • Summary Methodology
    • About GlobalData
  • Executive Summary
    • Table Figure 1: Swiss Defense Budget: 2020 and 2024
    • Table Figure 2 : Swiss Defense Imports/Exports: 2014 and 2018
  • Market Attractiveness and Emerging Opportunities
    • Table Figure 3: Switzerland's Top Prospective Procurements/Developments
    • Current Market Scenario
      • Primary Threat Perception
        • Table Figure 4: Swiss National Security Threats
      • Military Doctrine and Strategy
      • Procurement Programs
        • Table Swiss Ongoing Procurement Programs
        • Table Swiss Future Procurement Programs
      • Geopolitical and Economic Scenario
      • Political & Strategic Alliances
        • Table Votes concerning the Swiss Armed Forces since 1989
    • Defense Market Size Historical and Forecast
      • Swiss defense budget is expected to register a CAGR of 2.59% over the forecast period
        • Table Swiss Defense Expenditure (CHF Billion & US$ Billion), 2015-2024
        • Table Figure 5: Swiss Defense Expenditure (CHF Billion), 2015-2024
        • Table Figure 6: Swiss Defense Expenditure (US$ Billion), 2015-2024
      • Procurement of better defense systems and peace-support programs to drive defense expenditure
      • Defense expenditure as a percentage of GDP is expected to average 0.69% over the forecast period
        • Table Swiss GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2015-2024
        • Table Figure 7: Swiss GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2015-2024
    • Analysis of Defense Budget Allocation
      • Capital expenditure's share expected to increase over the forecast period
        • Table Swiss Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
        • Table Figure 8: Swiss Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
      • Capital expenditure expected to grow at a CAGR of 3.47% over the forecast period
        • Table Swiss Defense Capital Expenditure (CHF Billion & US$ Billion), 2015-2024
        • Table Figure 9: Swiss Capital Budget Allocation (CHF Billion), 2015-2024
        • Table Figure 10: Swiss Capital Budget Allocation (US$ Billion), 2015-2024
      • Per capita defense expenditure expected to increase over the forecast period
        • Table Swiss Per Capita Defense Expenditure (US$), 2015-2024
        • Table Figure 11: Swiss Per Capita Defense Expenditure (US$), 2015-2024
    • Homeland Security Market Size and Forecast
      • Swiss homeland security expenditure expected to increase at a CAGR of 2.55% over the forecast period
        • Table Swiss Homeland Security Expenditure (CHF Billion & US$ Billion), 2015-2024
        • Table Figure 12: Swiss Homeland Security Expenditure (CHF Billion), 2015-2024
        • Table Figure 13: Swiss Homeland Security Budget (US$ Billion), 2015-2024
      • Organized crime and terrorist financing are the major threats to homeland security
    • Benchmarking with Key Global Markets
      • Switzerland's defense budget to increase at a CAGR of 2.59% over the forecast period
        • Table Benchmarking with Key Markets - 2015-2019 vs. 2020-2024
        • Table Figure 14: Benchmarking with Key Markets - 2015-2019 vs. 2020-2024
      • Switzerland military expenditure is low when compared to the largest defense spenders
        • Table Figure 15: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2019 and 2024
      • The country allocates a lower percentage of GDP towards defense compared to other top defense spenders globally
        • Table Figure 16: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
    • Market Opportunities: Key Trends
      • Top 10 Defense market sectors by value (US$ Million) - Projections over period 2019-2024
        • Table Top 10 Swiss Defense Market Sectors by Value (US$ Million) - 2019-2024
      • Land-based C4ISR
        • Table Figure 17: Land-based C4ISR Market Size (US$ Million), 2019-2024
      • Software
        • Table Figure 18: Software Market Size (US$ Million), 2019-2024
      • Networking
        • Table Figure 19: Networking Market Size (US$ Million), 2019-2024
  • Defense Procurement Market Dynamics
    • Table Figure 20: Switzerland - Defense Procurements in Terms of Supplier Relationships, 2019
    • Import Market Dynamics
      • Defense imports to be driven by modernization initiatives over the forecast period
        • Table Figure 21: Swiss Defense Import Trend (US$ million), 2014-2018 (TIV values)
      • Switzerland sourced the majority of its arms from the US
        • Table Figure 22: Swiss Defense Imports by Country (%), 2014-2018
      • Missiles accounted for the majority of defense imports during 2013-2017
        • Table Figure 23: Swiss Defense Imports by Category (%), 2014-2018
    • Export Market Dynamics
      • Swiss defense exports peaked in 2015 and registered their highest level since 2009
        • Table Figure 24: Swiss Defense Exports Trend (US$ Million), 2014-2018
      • Switzerland supplies defense equipment to a diverse consumer base
        • Table Figure 25: Swiss Defense Exports by Country (%), 2014-2018
      • Aircraft accounted for the majority of the country's defense exports during 2014- 2018
        • Table Figure 26: Swiss Defense Exports by Category (%), 2014-2018
  • Industry Dynamics
    • Five Forces Analysis
      • Table Figure 27: Industry Dynamics - Porter's Five Forces Analysis
      • Bargaining Power of Supplier: low
      • Bargaining Power of Buyer: high
      • Barrier to Entry: low to medium
      • Intensity of Rivalry: high
      • Threat of Substitution: medium to high
  • Market Entry Strategy
    • Market Regulation
      • Offset policy requires suppliers to invest 100% of the contract value into the Swiss economy
        • Table Offset Regulations in Switzerland
      • Swiss defense industry open to foreign direct investment
    • Market Entry Route
      • Budgeting Process
        • Table Figure 28: The Swiss Budgeting Process
      • Foreign defense companies enter the market via acquisitions or alliances
      • Establishment of subsidiary or operating unit in Switzerland
      • Entering into joint ventures
    • Key Challenges
      • Table Figure 29: Key Challenges in Swiss Defense Market
      • Switzerland's defense neutrality challenging for defense foreign companies
      • Low defense budget and lack of external threat act as an obstacle for foreign investors
      • Domestic defense companies facing challenges from foreign companies
  • Competitive Landscape and Strategic Insights
    • Competitive Landscape Overview
      • Table Competitive Landscape of the Swiss Defense Industry
      • Swiss Market Share Analysis, 2018
        • Table Figure 30: Swiss Market Share Analysis, 2018
        • Table Switzerland - Top Defense Suppliers by Value (US$ Million),2019-2024
    • Key Private Sector Operators
      • Pilatus Group: overview
      • Pilatus Group: defense products
        • Table Pilatus Group - Product Focus
      • Pilatus Group: recent announcements and strategic initiatives
      • Pilatus Group: alliances
        • Table Pilatus Group: Alliances
      • Pilatus Group: recent contract awards
        • Table Pilatus Group: Recent Contract Awards
      • RUAG Defense: overview
      • RUAG Defense: products and services
        • Table RUAG Defense- Product and Service Focus
      • RUAG Defense: recent announcements and strategic initiatives
      • RUAG Defense: alliances
        • Table RUAG Defense: Alliances
      • RUAG Defense: recent contract awards
        • Table RUAG Defense: Recent Contract Awards
      • Thales: overview
      • Thales: products and services
        • Table Thales - Product and Service Focus
      • General Dynamics European Land Systems: overview
      • General Dynamics European Land Systems: defense products
        • Table General Dynamics European Land Systems - Product Focus
      • General Dynamics European Land Systems: recent announcements and strategic initiatives
      • General Dynamics European Land Systems: alliances
        • Table General Dynamics European Land Systems: Alliances
      • General Dynamics European Land Systems: recent contract wins
        • Table General Dynamics European Land Systems: Recent Contract Wins
      • Rheinmetall Air Defense AG: overview
      • Rheinmetall Air Defense AG: products and services
        • Table Rheinmetall Air Defense AG - Product and Service Focus
      • Rheinmetall Air Defense AG: recent announcements and strategic initiatives
      • Rheinmetall AirDefense: alliances
        • Table Rheinmetall AirDefense: Alliances
      • Rheinmetall Air Defense AG: recent contract wins
        • Table Rheinmetall Air Defense: Recent Contract Wins
      • Atos AG: overview
      • Atos AG: defense services
        • Table Atos AG - Service Focus
      • Meteolabor AG: overview
      • Meteolabor AG: products
        • Table Meteolabor AG - Product Focus
  • Business Environment and Country Risk
    • Economic Performance
      • GDP Per Capita
        • Table Figure 31: Swiss GDP Per Capita at Constant Prices (US$), 2015-2025
      • GDP, Current Prices
        • Table Figure 32: Swiss GDP, Current Prices (US$ Billion), 2015-2025
      • Exports of Goods and Services (current LCU Billion)
        • Table Figure 33: Swiss Exports of Goods and Services (current LCU Billion), 2005-2014
      • Imports of Goods and Services (current LCU Billion)
        • Table Figure 34: Swiss Imports of Goods and Services (current LCU Billion), 2005-2014
      • Local Currency Unit per US Dollar
        • Table Figure 35: Local Currency per USD, 2015-2024
      • Market Capitalization of Listed Companies (US$ Billion)
        • Table Figure 36: Swiss Market Capitalization of Listed Companies (US$ Billion), 2005-2012
      • Market Capitalization of Listed Companies (% of GDP)
        • Table Figure 37: Swiss Market Capitalization of Listed Companies (% of GDP), 2005-2012
      • Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
        • Table Figure 38: Swiss Government Cash Surplus/Deficit as a % of GDP (LCU), 2005-2011
      • Goods Imports as a Percentage of GDP
        • Table Figure 39: Swiss Goods imports as a % of GDP, 2005-2014
      • Goods Exports as a Percentage of GDP
        • Table Figure 40: Swiss Goods Exports as a % of GDP, 2005-2014
      • Services Imports as a Percentage of GDP
        • Table Figure 41: Swiss Services Imports as a % of GDP, 2005-2014
      • Service Exports as a Percentage of GDP
        • Table Figure 42: Swiss Service Exports as a % of GDP, 2005-2014
      • Foreign Direct Investment, net (BoP, current US$ Billion)
        • Table Figure 43: Swiss Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
      • Net Foreign Direct Investment as a Percentage of GDP
        • Table Figure 44: Swiss Net Foreign Direct Investment as a % of GDP, 2005-2014
      • Mining, Manufacturing, Utilities Output LCU Billion
        • Table Figure 45: Swiss Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
  • Appendix
    • About GlobalData
    • Disclaimer

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