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

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

Summary

Netherlands is the seventh-largest economy in the Eurozone. During the historic period, defense expenditure increased at a compound annual growth rate (CAGR) of 2.36% from US$10.1 Billion in 2014. The country’s defense budget is anticipated to average 1.5% of GDP over the forecast period 2019-2023.

Over the forecast-period the Netherlands’ defense expenditure is projected to grow at the rate of 4.07%. Although, military expenditure will be driven by modernization programs and a NATO mandate to spend a minimum of 2% of GDP on defense, The Netherlands is likely to default on this target, allocating an average of 1.5% of GDP to defense over the forecast period.

Defense exports declined during 2014-2016, due to a reduction in procurements by Portugal, Greece, and Italy as a consequence of the weak economic climate. Exports will recover over the forecast period driven by exports outside of Europe, including Jordan, Morocco, the US, Canada, Turkey, Saudi Arabia, Mexico, Oman, Colombia, the Bahamas, and Peru emerging as customers. The Netherlands main defense exports include sensors, naval vessels, armored vehicles, and air defense systems.

Foreign companies can enter the Dutch defense market by establishing joint ventures within the domestic defense industry. Foreign companies can also acquire domestic firms or establish subsidiaries as the government’s FDI policy allows 100% investment. There are also opportunities to establish joint R&D programs involving the Netherlands as a consortium member. Due to defense cuts, collaborations and partnerships are encouraged by the government to save costs.

The report ""Future of the Netherlands’ Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023"" offers detailed analysis of the The Netherlands 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 Netherlands defense industry market size and drivers: Detailed analysis of the Netherlands 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 Netherlands defense industry.

Companies mentioned in this report: Fokker Technologies, Damen Schelde Naval Shipbuilding, TNO Defense, Thales Nederland, Fokker Aerostructures, RH Marine Group, Lockheed Martin Corp.

Scope

- The Netherlands is the seventh-largest economy in the Eurozone.
- During the historic period, defense expenditure increased at a compound annual growth rate (CAGR) of 2.36%, from US$10.1 billion in 2014 to US$11.1 billion in 2018.
- The country’s defense budget is anticipated to average 1.5% of GDP over the forecast period 2019-2023.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Netherlands 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 Netherlands 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. Ongoing procurement programs
3.1.6. Future procurement programs
3.1.7. Top Procurement Programs By Value (US$ Million) 2018-2023
3.1.8. Social, Political and Economic Environment & Support for Defense Projects
3.1.9. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Netherland defense budget to increase at a CAGR of 4.07% over the forecast period
3.2.2. Military modernization, and commitment levels to NATO, UN and EU stipulations
3.2.3. Netherlands defense expenditure as a percentage of GDP expected to decrease
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of Capital Expenditure expected to average 22.2% over forecast period
3.3.2. Capital expenditure expected to increase at a CAGR of 3.71% over the forecast period
3.3.3. The Others segment accounted for the largest percentage share
3.3.4. Army will account for the second highest share in the Netherlands defense budget
3.3.5. Per capita defense expenditure set to increase
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security market is expected to register a CAGR of 4.30% over the forecast period
3.4.2. Counter measures for drug trafficking and terrorism to drive homeland security expenditure
3.4.3. Netherlands falls under the “moderate risk of terrorism” category
3.4.4. The Netherlands faces some level of threat from foreign terrorist organizations
3.4.5. Netherlands has a terrorism index score of 2.4
3.5. Benchmarking with Key Global Markets
3.5.1. Netherlands defense budget expected to be marginally increase over the forecast period
3.5.2. Netherlands military budget is limited compared to other countries
3.5.3. The Netherlands is expected to spend an average of 1.5% of GDP on defense over the forecast period
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
3.6.2. Land-Based C4ISR
3.6.3. Fighters and multi-role aircraft
3.6.4. Networking
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase slightly over the forecast period
4.1.2. US was the leading supplier of arms to Netherlands during 2012-2016
4.1.3. Aircraft and armored vehicles dominate military hardware imports
4.2. Export Market Dynamics
4.2.1. Arms exports to recover during the forecast period
4.2.2. Netherlands arms exports expected to increase
4.2.3. Sensors and ships are the main exported defense products
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: medium to low
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: low to high
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry and research activities
6.1.2. FDI in defense sector is unrestricted without review
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy & Process
6.2.3. Acquisition of domestic companies is an effective market entry route for foreign firms
6.2.4. Collaborations provide market entry opportunities
6.2.5. Joint ventures, partnerships and subcontracting offer alternative entry strategies
6.2.6. Joint R&D programs provide an effective strategy to gain market access
6.3. Key Challenges
6.3.1. Inadequate government support for defense industry
6.3.2. Defense procurements affected by European debt crisis
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Fokker Technologies: overview
7.2.2. Fokker Technologies: products
7.2.3. Fokker Technologies: recent announcements and strategic initiatives
7.2.4. Fokker Technologies: alliances
7.2.5. Fokker Technologies: recent contract wins
7.2.6. Damen Schelde Naval Shipbuilding: overview
7.2.7. Damen Schelde Naval Shipbuilding: products
7.2.8. Damen Schelde Naval Shipbuilding: recent announcements and strategic initiatives
7.2.9. Damen Schelde Naval Shipbuilding: alliances
7.2.10. Damen Schelde Naval Shipbuilding: recent contract wins
7.2.11. TNO Defense: overview
7.2.12. TNO Defense: products and services
7.2.13. TNO Defense: recent announcements and strategic initiatives
7.2.14. TNO Defense: alliances
7.2.15. TNO Defense: recent contract wins
7.2.16. Thales Nederland: overview
7.2.17. Thales Nederland: products and services
7.2.18. Thales Nederland: recent announcements and strategic initiatives
7.2.19. Thales Nederland: alliances
7.2.20. Thales Nederland: recent contract wins
7.2.21. Fokker Aerostructures: overview
7.2.22. Fokker Aerostructures: services
7.2.23. Fokker Aerostructures: recent announcements and strategic initiatives
7.2.24. Fokker Aerostructures: alliances
7.2.25. Fokker Aerostructures: recent contract wins
7.2.26. RH Marine Group: overview
7.2.27. RH Marine Group: products
7.2.28. RH Marine Group: recent announcements and strategic initiatives
7.2.29. RH Marine Group: alliances
7.2.30. RH Marine Group: recent contract wins
7.2.31. Lockheed Martin: overview
7.2.32. Lockheed Martin: products
7.2.33. Lockheed Martin: recent announcements and strategic initiatives
7.2.34. Lockheed Martin: alliances
7.2.35. Lockheed Martin: recent contract wins
7.2.36. Lockheed Martin Corp.: financial analysis
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. Gross Domestic per Capita
8.1.2. Gross Domestic Product, current US$
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a % of GDP
8.1.9. Government Cash Surplus/Deficit
8.1.10. Goods Exports as a % of GDP
8.1.11. Goods Imports as a % of GDP
8.1.12. Services Imports as a % of GDP
8.1.13. Services Exports as a % of GDP
8.1.14. Net Foreign direct investment, (BoP, current US$ Bn)
8.1.15. Net FDI as a % of GDP
8.1.16. Mining, Manufacturing, Utilities Output
9. Appendix
9.1. About SDI
9.2. Disclaimer
List of Tables
Table 1: The Deployment of the Netherlands Armed Forces vs Defense Tasks
Table 2: The Netherlands Army Strength
Table 3: The Netherlands Navy Strength
Table 4: The Netherlands Air Force Strength
Table 5: The Netherlands - Ongoing Procurement Programs
Table 6: The Netherlands - Future Procurement Programs
Table 7: The Netherlands top Defense Procurement Programs by Value (US$ Million) 2018-2023
Table 8: The Netherlands Defense Expenditure (EUR Billion and US$ Billion), 2014-2023
Table 9: The Netherlands - GDP Growth vs Defense Expenditure as a Percentage of GDP, 2014-2023
Table 10: The Netherlands - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 11: The Netherlands - Defense Capital Expenditure (EUR Billion and US$ Billion), 2014-2023
Table 12: The Netherlands - Defense Expenditure Breakdown (%), 2014-2023
Table 13: The Netherlands Defense Budget Allocations in EUR Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2014-2023
Table 14: The Netherlands Defense Budget Allocations in US$ Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2014-2023
Table 15: The Netherlands - Per Capita Defense Expenditure (US$), 2014-2023
Table 16: The Netherlands - Homeland Security Expenditure (EUR Billion and US$ Billion), 2014-2023
Table 17: Terrorism Index, 2018
Table 18: The Netherlands - Benchmarking with Key Markets, 2014-2018 vs 2019-2023
Table 19: Top 10 Sectors of the Netherlands Defense Market by Value (US$ Million) - 2018-2023
Table 20: Offset Regulations in the Netherlands
Table 21: The Netherlands Budget Formation Timetable:
Table 22: Top 10 Defense Suppliers in The Netherlands Defense Industry - By Value (US$ Million) 2018-2023
Table 23: The Netherlands - Competitive Landscape of the Defense Industry
Table 24: Fokker Technologies - Product Focus
Table 25: Fokker Technologies- Alliances
Table 26: Fokker Technologies- Recent Contract Wins
Table 27: Damen Schelde Naval Shipbuilding- Product focus
Table 28: Damen Schelde Naval Shipbuilding- Alliances
Table 29: Damen Schelde Naval Shipbuilding - Contracts
Table 30: TNO Defense- Product focus
Table 31: TNO Defense- Alliances
Table 32: TNO Defense- Recent Contract Wins
Table 33: Thales Nederland- Product focus
Table 34: Thales Nederland- Alliances
Table 35: Thales Nederland- Recent Contract Wins
Table 36:Fokker Aerostructures - Service focus
Table 37:Fokker Aerostructures- Alliances
Table 38: Fokker Aerostructures- Recent Contract Wins
Table 39: RH Marine Group - Product focus
Table 40: RH Marine Group - Alliances
Table 41: RH Marine Group - Recent Contract Wins
Table 42:Lockheed Martin- Product focus
Table 43: Lockheed Martin- Alliances
Table 44: Lockheed Martin- Recent Contract Wins
List of Figures
Figure 1: The Netherlands - Defense Expenditure (EUR Billion), 2014-2023
Figure 2: The Netherlands - Defense Expenditure (US$ Billion), 2014 - 2023
Figure 3: The Netherlands - GDP Growth vs. Defense Expenditures as Percentage of GDP Growth, 2014-2023
Figure 4: The Netherlands - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: The Netherlands - Defense Capital Expenditure (EUR Billion), 2014-2023
Figure 6: The Netherlands - Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: The Netherlands - Defense Expenditure Breakdown (%), 2014-2023
Figure 8: The Netherlands Defense Budget in EUR Billion - Breakdown by Services (Army, Navy, Air Force, Support Command and Others) 2014-2023
Figure 9: The Netherlands Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force, Support Commands and Others) 2014-2023
Figure 10: The Netherlands - Per Capita Defense Expenditure (US$), 2014-2023
Figure 11: The Netherlands - Homeland Security Budget (EUR Billion), 2014-2023
Figure 12: The Netherlands - Homeland Security Budget (US$ Billion), 2014-2023
Figure 13: Terrorism Heat Map, 2018
Figure 14: The Netherlands - Terrorism Index, 2018
Figure 15: The Netherlands - Benchmarking with Key Markets, 2014-2018 vs 2019-2023
Figure 16: The Netherlands - Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2018 and 2023
Figure 17: The Netherlands - Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 18: The Netherlands - Land-Based C4ISR Market Size (US$ Million), 2018-2023
Figure 19: The Netherlands - Fighters and Multi-Role Aircraft Market Size (US$ Million), 2018-2023
Figure 20: The Netherlands - Networking Market Size (US$ Million), 2018-2023
Figure 21: The Netherlands Defense Procurements In Terms Of Their Supplier Relationships
Figure 22: The Netherlands - Defense Import Trends, 2012-2016 (TIV Values US$ Million)
Figure 23: The Netherlands - Defense Imports by Country (%), 2012-2016
Figure 24: The Netherlands - Defense Imports by Category (%), 2012-2016
Figure 25: The Netherlands - Defense Export Trends, 2012-2016 (TIV Values US$ Million)
Figure 26: The Netherlands Defense exports by Country (%), 2012-2016
Figure 27: The Netherlands Defense Exports by Category (%), 2012-2016
Figure 28: Industry Dynamics - Porter’s Five Forces Analysis
Figure 29: Lockheed Martin Corp. - Revenue Trend Analysis (US$ billion), 2012-2016
Figure 30: Lockheed Martin Corp. - Operating Profit Trend Analysis (US$ billion), 2012-2016
Figure 31: Lockheed Martin Corp. - Net Profit Trend Analysis (US$ billion), 2012-2016
Figure 32: Netherlands GDP Per Capita US$, 2015-2025
Figure 33: Netherlands Gross Domestic Product (current US$ Billion), 2015-2025
Figure 34: Netherlands Exports of goods and services (LCU Billion), 2005-2014
Figure 35: Netherlands Imports of goods and services (LCU Billion), 2005-2014
Figure 36: Netherlands gross national disposable income (US$ Billion), 2005 - 2013
Figure 37: Netherlands LCU per US$, 2015-2024
Figure 38: Netherlands Market Capitalization of listed Companies (US$ Billion), 2005-2012
Figure 39: Netherlands Market Capitalization of listed companies as a % of GDP, 2005-2012
Figure 40: Netherlands Government cash Surplus/deficit as a % of GDP, 2005-2012
Figure 41: Netherlands Goods Exports as a % of GDP, 2005-2014
Figure 42: Netherlands Goods Imports as a % of GDP, 2005-2014
Figure 43: Netherlands Services Imports as a % of GDP, 2005-2014
Figure 44: Netherlands Services Exports as a % of GDP, 2005-2014
Figure 45: Netherlands Net Foreign Direct Investment (current US$ Billion), 2005-2014
Figure 46: Netherlands Net FDI as a % of GDP, 2005-2014
Figure 47: Netherlands Mining, Manufacturing, Utilities Output(US$ Billion), 2005-2014

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