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be fueled by government plans to invest in military equipment and devices based on new technologies, replacing outdated equipment.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due to the significant uptick in weapon procurement plans, as well as the procurement of defense equipment to replace outdated ones.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