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Future of the Angolan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defence Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political, and Economic Environment & Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Angola’s defense budget is expected to surge at a CAGR of 5.60% over the forecast period
3.2.2. Equipment modernization is expected to drive defense expenditure
3.2.3. Defense budget as a percentage of GDP expected to grow at the stable rate during the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure share of the defense budget to increase over the forecast period
3.3.2. Capital expenditure budget expected to increase during the forecast period
3.3.3. Per-capita defense expenditure expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security expenditure is expected to grow at a CAGR of 4.80% over the forecast period
3.4.2. Domestic security to drive expenditure for homeland protection
3.4.3. Angola comes under the ‘some risk’ category of terrorist attack
3.4.4. Angola faces “some risk” from acts of terrorism
3.4.5. Angola has a terrorism index score of 0
3.5. Benchmarking with Key Global Markets
3.5.1. The country’s defense budget is expected to remain modest during the forecast period
3.5.2. Angolan military expenditure is limited when compared to countries with the largest defense expenditure
3.5.3. Angola allocates a modest percentage of GDP to defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Multi-role Aircraft
3.6.2. Naval Vessels
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Imports into Angola expected to increase during the forecast period
4.1.2. Russia supplied the majority of defense equipment to Angola during the historic period
4.1.3. Aircraft were the major defense import during the historic period
4.2. Export Market Dynamics
4.2.1. Angola does not export arms due to its under-developed domestic arms industry
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: medium to high
5.1.2. Bargaining power of buyer: medium
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: high
5.1.5. Threat of substitution: medium to high
5.2. Market Regulation
5.2.1. Angola does not disclose any offset obligations imposed by the country
5.2.2. FDI in defense sector prohibited by the Angolan Government
5.2.3. Budgeting Process
5.2.4. Procurement Policy and Process
5.3. Market Entry Route
5.3.1. Direct selling is the preferred market entry route for foreign OEMs
5.4. Key Challenges
5.4.1. Corruption poses an obstacle for market entry
5.4.2. Low allocation to capital expenditure attracts fewer suppliers
6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.2. Key Companies
6.2.1. Sukhoi: overview
6.2.2. Sukhoi: products
6.2.3. Sukhoi: recent announcements and strategic initiatives
6.2.4. Sukhoi - recent contract wins
6.2.5. KBP Instrument Design Bureau - overview
6.2.6. KBP Instrument Design Bureau - major products and services
6.2.7. KBP Instrument Design Bureau - recent announcements and strategic initiatives
6.2.8. Oboronprom Corporation - overview
6.2.9. Oboronprom Corporation - major products and services
6.2.10. Oboronprom Corporation - recent announcements and strategic initiatives
6.2.11. Oboronprom Corporation - alliances
7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Gross Domestic per Capita
7.1.2. Gross Domestic Product, current US$
7.1.3. Exports of Goods and Services
7.1.4. Imports of Goods and Services
7.1.5. Local Currency Unit per US$
7.1.6. Government cash surplus/deficit as % of GDP (LCU)
7.1.7. Goods Exports as a % of GDP
7.1.8. Goods Imports as a % of GDP
7.1.9. Services Imports as a % of GDP
7.1.10. Services Exports as a % of GDP
7.1.11. Net Foreign Direct Investment
7.1.12. Net FDI as a percentage of GDP
7.1.13. Mining, Manufacturing, Utilities Output (LCU Bn)
8. Appendix
8.1. About SDI
8.2. Disclaimer
List of Tables
Table 1: Angola Ground Forces Strength
Table 2: Angola Air Force Strength
Table 3: Angola Navy Strength
Table 4: Angola - Ongoing Development and Procurement Programs
Table 5: Angola - Future Procurement Programs
Table 6: Angola Defense Expenditure (AOA Billion & US$ Billion), 2013-2022
Table 7: Angola GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2013-2022
Table 8: Angola Defense Budget Split between Capital and Revenue Expenditure (%), 2013-2022
Table 9: Angola Defense Capital Expenditure (AOA Billion & US$ Billion), 2013-2022
Table 10: Angola Per-Capita Defense Expenditure (US$), 2013-2022
Table 11: Angola Homeland Security Budget (US$ Billion), 2013-2022
Table 12: Terrorism Index, 2017
Table 13: Benchmarking with Key Markets, 2013-2017 vs. 2018-2022
Table 14: Angola Budget Formation Timetable
Table 15: Competitive Landscape of the Angola Defense Industry
Table 16: Sukhoi - Major Products & Services
Table 17: Sukhoi - Recent Contract Wins
Table 18: KBP Instrument Design Bureau - Major Products & Services
Table 19: Oboronprom Corporation - Major Products & Services
Table 20: Oboronprom Corporation - Alliances 68"
List of Figures
Figure 1: Angola Defense Expenditure (AOA Billion), 2013-2022
Figure 2: Angola Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Angola GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2013-2022
Figure 4: Angola Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Figure 5: Angola Capital Budget Allocation (AOA Billion),2013-2022
Figure 6: Angola Capital Budget Allocation (US$ Million), 2013 - 2022
Figure 7: Angola Per-Capita Defense Expenditure (US$), 2013-2022
Figure 8: Angola Homeland Security Budget (AOA billion), 2013-2022
Figure 9: Angola Homeland Security Budget (US$ billion), 2013-2022
Figure 10: Terrorism Heat Map, 2017
Figure 11: Terrorism Index, 2017
Figure 12: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 15: Multi-Role Aircraft Market Size (US$ Million), 2017-2020
Figure 16: Naval Vessels Market Size (US$ Million), 2017-2018
Figure 17: Angola Defense Import Trend, 2012-2016 (TIV values)
Figure 18: Angola Defense Imports by Country (%), 2012-2016
Figure 19: Angola Defense Imports by Weapon Category (%), 2012-2016
Figure 20: Industry Dynamics - Porter’s Five Forces Analysis
Figure 21: Angola GDP per capita (US$), 2015-2025
Figure 22: Angola Gross Domestic Product (current US$ Billion), 2015-2025
Figure 23: Angola Exports of goods and services (LCU Billion), 2005-2013
Figure 24: Angola Imports of goods and services (LCU Billion), 2005-2013
Figure 25: Angola LCU per US$, 2015-2024
Figure 26: Angola Government cash surplus/deficit as a % of GDP (LCU), 2005-2012
Figure 27: Angola Goods Exports as a % of GDP, 2005-2013
Figure 28: Angola Goods Imports as a % of GDP, 2005-2013
Figure 29: Angola Services Imports as a % of GDP, 2005-2013
Figure 30: Angola Services Exports as a % of GDP, 2002-2013
Figure 31: Angola Net Foreign Direct Investment (BoP, current US$ Billion), 2005-2013
Figure 32: Angola Net FDI as a percentage of GDP, 2005-2013
Figure 33: Angola Mining, Manufacturing, Utilities Output (LCU Bn) 2005-2014

Future of the Angolan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

Angola’s military expenditure, declined at a CAGR of -16.98% during the historic period. In June 2014, oil prices have plummeted nearly 60% which resulted in the decline in the growth rate of defense budget Over the forecast period, the defense budget is anticipated to increase at a CAGR of 5.60% to reach US$3.8 Billion in 2022. This is primarily attributed to the country’s efforts to upgrade its military arsenal, as well as enhance its border security.

Capital expenditure allocation, which registered a CAGR of -13.57% during the historic period, is projected to increase at a CAGR of 5.27% during 2018-2022, primarily due to the country’s procurement of multi-role aircraft and naval vessels. Angola’s homeland security (HLS) expenditure valued US$2.9 Billion in 2017. Moreover, HLS expenditure is estimated to record a CAGR of 4.80% during the forecast period.

Aircraft accounted for the largest share of imports during 2012-2016, with Russia being the biggest supplier. The country is also anticipated to procure Principe de Asturias, the recently decommissioned Spanish aircraft carrier, over the forecast period. Other significant import partners include Brazil, Bulgaria, Belarus, South Africa, Canada and Italy.

The report “Future of the Angolan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Angolan 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 Angolan defense industry market size and drivers: Detailed analysis of the Angolan defense industry during 2018-2022, 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 Angolan 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 over the next 10 years.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of the Angolan defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Sukhoi, KBP Instrument Design Bureau and Oboronprom Corporation.

Scope

- The defense budget of Angola for the year 2017 is US$2.9 billion. For the historic period, 2013-2017, the defense budget of the country registered a CAGR of -16.98%. The defense budget is currently being driven by efforts to modernize the army, threats from terrorist organizations, and tensions in the South China Sea.
- During the historic period, the Angola MoD allocated an average of 9.7% of the total defense budget to capital expenditure, while an average of 90.3% was reserved for revenue expenditure. Over the forecast period, allocation towards capital expenditure is expected to increase at an average of 9.8%.
- The MoD is expected to invest in multi-role aircraft and naval vessels.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Angola 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 Angola defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts


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