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Future of the Bangladeshi Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the Bangladeshi Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

Bangladesh is an emerging market-based economy, which aims to significantly develop its economic, social, and human infrastructure to transform itself into a prosperous country over the coming decades. To protect itself from external threats and maintain internal stability, the government allocated an average of 1.3% of its GDP towards defense purposes during the historic period. Over the forecast period, the country’s defense budget is anticipated to value US$24.3 billion cumulatively.

The Bangladeshi government has been steadily increasing its defense budget. Defense expenditure registered a CAGR of 10.72% during 2014–2018. This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces. Over the forecast period, the defense budget is projected to increase to US$6 billion in 2023, at a CAGR of 11.60%. Despite a rapidly growing population, the country’s per capita defense expenditure is also expected to increase to US$34.4 in 2023.

The country’s budget for homeland security (HLS) is projected to increase over the forecast period, driven by increasing threats from arms and drug trafficking and terrorism. Demand for equipment over the forecast period is mainly expected to revolve around aircraft, helicopters, naval vessels, unmanned aerial vehicles, missiles, artillery surveillance and monitoring equipment.

The Future of the Bangladeshi Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2023, provides readers with detailed analysis of both historic and forecast defense industry values, 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 Bangladeshi defense industry market size and drivers: detailed analysis of the Bangladeshi defense industry during 2019–2023, 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
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities:list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Bangladeshi defense industry.

Companies Mentioned - Bangladesh Ordnance Factory, Leonardo, Airbus Helicopters SAS.

Scope

- The Bangladeshi government has been steadily increasing its defense budget. Defense expenditure registered a CAGR of 10.72% during 2014-2018.
- The country allocated US$2.3 billion to its defense sector in 2014, which increased to US$3.5 billion in 2018.
- This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces.
- Over the forecast period, the defense budget is projected to increase from US$3.9 billion in 2019 to US$6 billion in 2023, at a CAGR of 11.60%. Despite a rapidly growing population, the country’s per capita defense expenditure is also expected to increase from US$23.1 in 2019 to US$34.4 in 2023.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Bangladeshi 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
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Bangladeshi defense industry covering sections including demand drivers, Key Trends , and latest industry contracts


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. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.6. Social, Political and Economic Environment & Support for Defense Projects
3.1.7. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. The Bangladeshi defense budget is anticipated to grow at a CAGR of 11.60%
3.2.2. Military modernization and peacekeeping missions are anticipated to drive defense expenditure over the forecast period
3.2.3. Bangladeshi defense expenditure as a percentage of GDP set to increase over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure allocation is expected to increase slightly over the forecast period
3.3.2. Need to replace obsolete equipment to drive defense capital expenditure
3.3.3. Army Defense accounted for the largest percentage share of the overall defense budget
3.3.4. Army to account for the majority share of Bangladesh’s defense budget
3.3.5. Per capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Bangladeshi homeland security expenditure is anticipated to grow at a CAGR of 8.44% over the forecast period
3.4.2. Measures to combat drug smuggling and human trafficking are expected to drive Bangladeshi homeland security expenditure
3.4.3. Bangladesh falls under the “highly affected” category
3.4.4. Bangladesh is “highly affected” by acts of terrorism
3.4.5. Bangladesh has a terrorism index score of “6.2”
3.5. Benchmarking with Key Global Markets
3.5.1. Bangladeshi defense budget expected to increase at a CAGR of 11.60% over the forecast period
3.5.2. Bangladeshi military expenditure remains very low compared to other Asian countries
3.5.3. The country allocates a low percentage of its GDP towards the defense sector
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
3.6.2. Maritime surveillance and detection
3.6.3. Corvettes MRO
3.6.4. Multi-role aircraft
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase over the forecast period
4.1.2. Weapons manufactured in China comprised the majority of imports to Bangladesh
4.1.3. Armored vehicles and ships dominated military hardware imports
4.2. Export Market Dynamics
4.2.1. The country exported negligible defense goods during 2013-2017
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: High
5.1.2. Bargaining Power of Buyer: Low
5.1.3. Barrier to Entry: Medium
5.1.4. Intensity of Rivalry: Low to Medium
5.1.5. Threat of Substitution: Medium to High
5.2. Market Regulation
5.2.1. Bangladesh does not disclose any offset obligations imposed by the country
5.2.2. Foreign direct investment (FDI) in the defense sector not disclosed by the government
5.3. Market Entry Route
5.3.1. Budgeting Process
5.3.2. Equipment manufacturers enter the market through government-to-government deals
5.3.3. Joint venture and license manufacturing agreements provide an attractive market entry route
5.4. Key Challenges
5.4.1. Limited defense budget deters investors from market entry
5.4.2. Corruption hinders growth of the Bangladeshi defense sector
5.4.3. Chinese companies dominate the market, creating a challenge for other foreign firms
6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.2. Key Companies
6.2.1. Bangladesh Ordnance Factory: Overview
6.2.2. Bangladesh Ordnance Factory: Products and Services
6.2.3. Bangladesh Machine Tools Factory (BMTF) Ltd: Overview
6.2.4. Bangladesh Machine Tools Factory: Products and Services
6.2.5. Leonardo: Overview
6.2.6. Leonardo: products
6.2.7. Leonardo: recent announcements and strategic initiatives
6.2.8. Leonardo: alliances
6.2.9. Leonardo: recent contract wins
6.2.10. Leonardo: financial analysis
6.2.11. Airbus Helicopters SAS: Overview
6.2.12. Airbus Helicopters SAS: Products and Services
6.2.13. Airbus Helicopters SAS: Recent Contract Wins
7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Nominal GDP per Capita
7.1.2. GDP at Current Prices (US$ Billion)
7.1.3. Exports of Goods and Services (Current LCU Billion)
7.1.4. Imports of Goods and Services (Current LCU Billion)
7.1.5. Gross National Disposable Income (US$ Billion)
7.1.6. LCU per US$ (Period Average)
7.1.7. Market Capitalization of Listed Companies (US$ Billion)
7.1.8. Market Capitalization of Listed Companies (% of GDP)
7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
7.1.10. Goods Exports as a Percentage of GDP
7.1.11. Goods Imports as a Percentage of GDP
7.1.12. Services Imports as a Percentage of GDP
7.1.13. Service Exports as a Percentage of GDP
7.1.14. Foreign Direct Investment, Net (BoP, current US$ Billion)
7.1.15. Net Foreign Direct Investment as a Percentage of GDP
7.1.16. Mining, Manufacturing, Utilities Output (LCU Billion)
8. Appendix
8.1. About SDI
8.2. Disclaimer
List of Tables
Table 1: Bangladeshi Ground Forces Strength
Table 2: Bangladesh Navy Strength
Table 3: Bangladesh Air Force Strength
Table 4: Bangladeshi - Ongoing Development and Procurement Programs
Table 5: Bangladesh - Future Procurement Programs
Table 6: Bangladesh - Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Bangladeshi Defense Expenditure (BDT Billion & US$ Billion), 2014-2023
Table 8: Bangladeshi GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023
Table 9: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 10: Bangladesh Defense Capital Expenditure (BDT Billion & US$ Billion), 2014-2023
Table 11: Bangladeshi Defense Budget Split Between Military Services (Army, Air Force, Navy and Others) (%), 2014-2023
Table 12: Bangladesh - Defense Budget Breakdown by Service (BDT Billion), 2014-2023
Table 13: Bangladesh - Defense Budget Breakdown by Service ( US$ Billion), 2014-2023
Table 14: Bangladeshi Per Capita Defense Expenditure (US$), 2014-2023
Table 15: Bangladeshi Homeland Security Expenditure (BDT Billion & US$ Billion), 2014-2023
Table 16: Terrorism Index, 2018
Table 17: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 18: Bangladesh - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
Table 19: Bangladeshi Budget Formation Timetable
Table 20: Bangladesh - Top Defense Suppliers by Value (US$ Million), 2018-2023
Table 21: Competitive Landscape of the Bangladeshi Defense Industry
Table 22: Bangladesh Ordnance Factory - Key Products and Services
Table 23: Bangladesh Machine Tools Factory - Key Products and Services
Table 24: Leonardo - Product Focus
Table 25: Leonardo - Alliances
Table 26: Leonardo- Recent Contract Wins
Table 27: Airbus Helicopters SAS - Key Products and Services
Table 28: Airbus Helicopters SAS - Recent Contracts
List of Figures
Figure 1: Bangladeshi Defense Expenditure (BDT Billion), 2014-2023
Figure 2: Bangladeshi Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Bangladeshi GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Bangladeshi Defense Capital Expenditure (BDT Billion), 2014-2023
Figure 6: Bangladeshi Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Bangladeshi Defense Budget Split Between Army, Air Force, Navy and Others, 2014-2023
Figure 8: Bangladesh - Defense Budget Breakdown by Service (BDT Billion), 2014-2023
Figure 9: Bangladesh. - Defense Budget Breakdown by Service (US$ Billion), 2014-2023
Figure 10: Bangladeshi Per Capita Defense Expenditure (US$), 2014-2023
Figure 11: Bangladeshi Homeland Security Expenditure (BDT Billion), 2014-2023
Figure 12: Bangladeshi Homeland Security Expenditure (US$ Billion), 2014-2023
Figure 13: Terrorism Heat Map, 2018
Figure 14: Terrorism Index, 2018
Figure 15: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 18: Maritime surveillance and detection Market Size (US$ million), 2018-2023
Figure 19: Corvettes MRO Market Size (US$ million), 2018-2023
Figure 20: Multi-role aircraft market Size (US$ million), 2018-2023
Figure 21: Bangladesh - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 22: Bangladeshi Defense Import Trend, 2013-2017 (TIV values)
Figure 23: Bangladeshi Defense Import by Country, 2013-2017 (TIV values)
Figure 24: Bangladesh Defense Imports by Category (%), 2013-2017
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
Figure 26: Leonardo- Revenue Trend Analysis (EUR Billion), 2013-2017
Figure 27: Leonardo- Net Profit Trend Analysis (EUR Million), 2013-2017
Figure 28: Leonardo- Operating Profit Trend Analysis (EUR Million), 2013-2017
Figure 29: Bangladeshi GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 30: Bangladesh - GDP at Current Prices (US$ Billion), 2015-2025
Figure 31: Bangladeshi Exports of Goods and Services (LCU Billion), 2005-2014
Figure 32:Bangladeshi Imports of Goods and Services (LCU Billion), 2005-2014
Figure 33: Bangladeshi Gross National Disposable Income (US$ Billion), 2005-2013
Figure 34: Bangladesh LCU per US$, 2015-2024
Figure 35: Bangladeshi Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 36: Bangladeshi Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 37: Bangladeshi Government Cash Surplus/Deficit as % of GDP (LCU), 2005-2011
Figure 38: Bangladesh - Goods Exports as a % of GDP (%), 2005-2014
Figure 39: Bangladesh - Goods Imports as a % of GDP (%), 2005-2014
Figure 40: Bangladeshi Services Imports as a % of GDP (%), 2005-2014
Figure 41: Bangladesh Service Exports as a % of GDP (%), 2005-2014
Figure 42: Bangladesh - Foreign Direct Investment, Net (BoP, current US$ Billion), 2005-2014
Figure 43: Bangladeshi Net Foreign Direct Investment as % of GDP, 2005-2013
Figure 44: Bangladeshi Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

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