Market Research Logo

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

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

Summary

The Czech Republic’s defense budget registered a CAGR of 10.47% during the historic period. The growth in the Czech defense market is primarily driven by the need to modernize the country’s defense arsenal, the Russia military aggression in Ukraine; which brought the possibility of an armed conflict in Europe. The country’s participation in peacekeeping operations and counter terrorism has also fueled the growth in Czech Republic defense expenditure during the historic period.

With this trend expected to continue over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 6.34%, to value US$3.7 billion in 2023. As a percentage of GDP, the country’s defense expenditure is expected to average 1.03% over the forecast period, compared to 0.98% recorded during the historic period.

Future of the Czech Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

This report offers detailed analysis of the Czech 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 Czech defense industry market size and drivers: detailed analysis of the Czech 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 Czech defense industry.

Companies Mentioned: Aero Vodochody, Lom Praha s.p., VOP CZ, s.p., Omnipol, Aura s.r.o, Dicom, Spol. s.r.o, Českázbrojovkaa.s, Tesla, akciovaspolecnost, Tatra a.s, etovLeteckaVyroba S.r.o.

Scope

- The Czech Republic’s defense budget values US$2.8 billion in 2018, and registered a CAGR of 10.47% during the historic period.
- The growth in the Czech defense market is primarily driven by the need to modernize the country’s defense arsenal, the Russia military aggression in Ukraine; which brought the possibility of an armed conflict in Europe.
- The country’s participation in peacekeeping operations and counter terrorism has also fueled the growth in Czech Republic defense expenditure during the historic period.
- With this trend expected to continue over the forecast period, Czech Republic defense expenditure is anticipated to register a CAGR of 6.34%, to value US$3.7 billion in 2023.
- As a percentage of GDP, the country’s defense expenditure is expected to average 1.03% over the forecast period, compared to 0.98% recorded during the historic period.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Czech 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 Czech 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. Military Fleet Size
3.1.2. Procurement Programs
3.1.3. Key Drivers and Challenges
3.1.4. Growing Russian assertiveness
3.1.5. Limited defense budget limits the market entry of foreign companies
3.1.6. Lack of harmonization of procurement requirements and defense industrial policies
3.1.7. Corruption acts as an obstacle to market entry
3.2. Defense Market Size Historical and Forecast
3.2.1. Czech Republic defense expenditure is expected to grow at a CAGR of 6.34% over the forecast period
3.2.2. Growing Russian assertiveness, military modernization initiatives, and counter-terrorism are expected to fuel defense expenditure over the forecast period
3.2.3. Czech Republic defense expenditure as a percentage of GDP is anticipated to average 1.03% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure allocation expected to increase during the forecast period
3.3.2. Capital expenditure to increase at a CAGR of 6.33% over 2019-2023
3.3.3. Central Support Administration and Command expenditure (CASC) hold major share in Czech Republic’s defense budget
3.3.4. Central Support Administration and Command to receive the largest share of the Czech Republic defense budget
3.3.5. Per capita defense expenditure is expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Czech Republic homeland security market to increase at a CAGR of 5.02% over the forecast period
3.4.2. Homeland security expenditure to be driven by efforts to counter cyber-attacks, migration crisis, and espionage
3.4.3. Czech Republic faces some level of threat from foreign terrorist organizations
3.4.4. Czech Republic falls under “some risk” by terrorism category
3.4.5. Czech Republic has a terrorism index score of 1.9
3.5. Benchmarking with Key Global Markets
3.5.1. Czech Republic’s defense budget is poised to grow over the forecast period
3.5.2. Czech Republic’s defense spending is low compared to other European nations
3.5.3. Czech Republic allocates a significant percentage of GDP towards defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2018-2023
4. Defense Procurement Market Dynamics
4.1. Import Dynamics
4.1.1. Defense imports declined during 2013-2017
4.1.2. Czech Republic sourced the majority of its arms imports from Israel and Italy
4.1.3. Missiles and armored vehicles are the major military hardware imports
4.2. Export Market Dynamics
4.2.1. Czech Republic defense exports are expected to show steady growth over the forecast period
4.2.2. Iraq dominated the Czech Republic defense export market during the historic period
4.2.3. Aircraft and armored vehicles accounts for the highest portion of Czech defense exports
5. Industry Dynamics
5.1. Budgeting Process
5.2. Procurement Policy & Process
5.3. Market Regulation
5.3.1. Offset policy aids the development of the domestic defense industry
5.3.2. The Czech Republic allows 100% foreign direct investment in the defense sector
5.4. Market Entry Route
5.4.1. Bilateral business partnerships are the preferred entry routes
5.4.2. Foreign OEMs enter the market through the formation of consortiums and joint product development agreements
6. Competitive landscape and Strategic Insights
6.1. Competitive Landscape: Overview
7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP Per Capita
7.1.2. GDP, Current Prices
7.1.3. Exports of goods and services, current prices
7.1.4. Imports of goods and services, current prices
7.1.5. Gross National disposable income (US$ Billion)
7.1.6. Local Currency Unit per US Dollar
7.1.7. Market Capitalization of Listed Companies
7.1.8. Market Capitalization of Listed Companies a percentage of GDP
7.1.9. Government Cash Surplus/Deficit as a percentage of GDP
7.1.10. Goods exports as a percentage of GDP
7.1.11. Goods imports as a percentage of GDP
7.1.12. Service 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 % 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: Czech Republic Land Forces Strength
Table 2: Czech Republic Air Force Strength
Table 3: Czech Republic Ongoing Procurement Programs
Table 4: Czech Republic Future Procurement Programs
Table 5: Czech Republic Defense Expenditure (CZK Billion & US$ Billion), 2014-2023
Table 6: Czech Republic GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 7: Czech Republic Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 8: Czech Republic Defense Capital Expenditure (CZK Billion & US$ Million), 2014-2023
Table 9: Czech Republic Defense Expenditure Allocation (% Share), 2014-2023
Table 10: Czech Republic Defense Budget in CZK Billion - Breakdown by Services (Army, Air Force, CSAC and Others) 2014-2023
Table 11: Czech Republic Defense Budget in US$ Billion - Breakdown by Services (Army, Air Force, CSAC and Others) 2014-2023
Table 12: Czech Republic Per-Capita Defense Expenditure (US$), 2014-2023
Table 13:Czech Republic Homeland Security Expenditure (CZK Billion & US$ Billion), 2014-2023
Table14: Terrorism Index, 2018
Table 15: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 16: Top 10 Czech Republic Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 17: Offset Regulations in the Czech Republic
Table 18: Market Entry Strategies by Key Foreign Companies
Table 19: Competitive Landscape of the Czech Defense Industry
List of Figures
Figure 1: Czech Republic Defense Expenditure (CZK Billion), 2014-2023
Figure 2: Czech Republic Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Czech Republic GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4:Czech Republic Budget Split Between Capital and Revenue Expenditure (%),2014-2023
Figure 5: Czech Republic Defense Capital Expenditure (CZK Billion), 2014-2023
Figure 6:Czech Republic Defense Capital Expenditure (US$ Million), 2014-2023
Figure 7: Czech Republic Defense Expenditure Allocation (% Share), 2014-2023
Figure 8: Czech Republic Defense Budget in CZK Billion - Breakdown by Services (Army, Air Force, CSAC and Others) 2014-2023
Figure 9: The Czech Republic Defense Budget in US$ Billion - Breakdown by Services (Army, Air Force, CSAC and Others) 2014-2023
Figure 10: Czech Republic Per Capita Expenditure (US$), 2014-2023
Figure 11: Czech Republic Homeland Security Budget (CZK Billion), 2014-2023
Figure 12: Czech Republic Homeland Security Budget (US$ 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: Czech republic Defense Imports (US$ Million), 2013-2017
Figure 19: Czech Republic Defense Imports by Country (%), 2013-2017
Figure 20: Czech Republic Defense Imports by Category (%),2013-2017
Figure 21: Czech republic Defense Exports by Value (US$ Million), 2013-2017
Figure 22: Czech Republic Defense Exports by Country (%),2013-2017
Figure 23: Czech republic Defense Exports by Category (%),2013-2017
Figure 24: Czech Republic GDP Per Capita, 2015-2025
Figure 25: Czech Republic GDP, Current Prices (In USD Billion), 2015-2025
Figure 26: Czech Republic Exports of goods and services, current prices (LCU Billion), 2005- 2014
Figure 27: Czech Republic Imports of goods and services, current prices (LCU Billion), 2005- 2014
Figure 28: Czech Republic Gross National Disposable Income (USD Billion), 2005-2013
Figure 29: Local Currency Unit per US$- Exchange Rate , 2015-2024
Figure 30: Czech Republic Market Capitalization of Listed Companies (USD Billion), 2005-2012
Figure 31: Czech Republic Market Capitalization of Listed Companies as percentage of GDP, 2005-2012
Figure 32: Czech Republic Government Cash Surplus/Deficit as a percentage of GDP, 2005-2012
Figure 33: Czech Republic Goods Exports as a percentage of GDP, 2005-2014
Figure 34: Czech Republic Goods Imports as a percentage of GDP, 2005-2014
Figure 35: Czech Republic Service Imports as a percentage of GDP, 2005-2014
Figure 36: Czech Republic Service Exports as % of GDP, 2005-2014
Figure 37: Czech Republic Foreign direct investment, net (BoP, current USD Billion), 2005-2014
Figure 38: Czech Republic Net foreign direct investment as % of GDP, 2005-2014
Figure 39: Czech Republic Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report