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

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

Summary

Brunei’s military expenditure stands at US$331.7 Million in 2017 and is projected to register a CAGR of 3.41% to reach US$389 Million by 2022. The country’s defense expenditure is primarily driven by territorial disputes in the South China Sea, military modernization of Royal Brunei Armed Forces (RBAF) and threat of terrorism. As a percentage of GDP, the country’s defense budget is expected to register an average of 2.5% over the forecast period. The average allocation for capital expenditure over the historic period was 32.4%. Over the forecast period it is expected to allocate an average of 32.5% for capital expenditure.

Brunei’s defense industrial base is largely undeveloped and, as a result, the country is highly dependent on foreign suppliers to meet its military needs. Brunei’s arms imports registered a decreasing trend from 2012 to 2013, after peaking in 2011, when the country imported defense equipment worth US$229 Million, however it is anticipated that during the forecast period the country will follow a more balanced procurement pattern to develop the capabilities of its army, navy, and air force. Brunei sourced the majority of its arms imports from Germany, while US stood as the second largest arms importer followed by France, Denmark, Netherlands, and Sweden.

China’s claims in South China Sea and its subsequent growing assertiveness in this region has forced Brunei to reevaluate its priorities and invest in shaping its defense capability to address the maritime security threats. In the medium-term, the Brunei navy is expected to acquire maritime patrol aircraft, three CN235-220 maritime aircraft, and place an order to induct a C-130J Super Hercules transport aircraft from US to enhance air lift capabilities, maritime and border surveillance, disaster relief, and special operations capabilities. The RBAF has received delivery of final S-70i helicopters in 2015 under its multi-mission helicopter modernization program; however Brunei is likely to exercise its options for ten additional helicopters as part of the RBAF Sikorsky S70i project contract signed in 2011.

The report “Future of the Brunei Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2022” offers detailed analysis of Brunei 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, this report provides an in-depth analysis of the following -
- Brunei defense industry market size and drivers: Detailed analysis of Brunei 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. It also details the key challenges faced by defense market participants within the country.
- Porter’s Five Force analysis of Brunei 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 Brunei 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: Royal Brunei Technical Services (RBTS).

Scope

- The Brunei defense budget stands at US$331.7 million in 2017 and registered a CAGR of -5.67% during the historic period.Expenditure will be driven by territorial disputes in the South China Sea, military modernization of RBAF, and threat of terrorism. Demand is expected to revolve around multi-mission helicopters, maritime surveillance radar, airspace surveillance platforms, maritime patrol aircraft, fixed wing transport aircraft, and medium range air defense systems. Over the forecast period, revenue expenditure is expected to reach US$262.2 million by 2022, registering a CAGR of 3.31%. This increase is owing to a construction of a new naval training school for the Royal Brunei Navy, personnel salaries, operational expenses, and training of armed forces.
- During 2013-2017, an average of 32.4% of the country’s defense budget was allocated to capital expenditure, while an average of 67.6% was reserved for revenue expenditure. Over the forecast period 2018-2022, the share of capital expenditure is expected to average 32.5%, while the remaining 67.5% will be assigned to revenue expenditure, which will continue to comprise the majority of the nation‘s defense budget.
- The MoD is expected to invest in multi-mission helicopter, transport aircraft, maritime patrol aircraft.

Reasons to buy

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