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

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

Summary

The Future of Pakistani 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.

Synopsis

This report offers detailed analysis of Pakistani 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 -
- Pakistani defense industry market size and drivers: detailed analysis of Pakistani 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. It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of Pakistani 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 Pakistanin defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Scope

- One of the most attractive defense markets in South Asia, Pakistan is anticipated to invest US$66.9 billion cumulatively over the forecast period, compared to US$42.3 billion spent during 2014-2018. Expenditure is anticipated to focus more on the procurement of equipment to augment air defense capabilities, enhance the operational capabilities of the current fleet of naval vessels, and better communication and surveillance systems. Cumulative expenditure on the procurement of advanced military hardware is projected to stand at US$25.6 billion over the next five years.
- The share of capital expenditure as a percentage of overall defense expenditure is anticipated to rise from an average of 36.1% during 2014-2018 to 38.3% over the forecast period.
- The Pakistani MoD is expected to invest in land based C4ISR, conventional diesel electric submarine, multirole aircraft, airborne C4ISR, missile defense system, attack helicopters, Main Battle Tanks (MBT), corvettes MRO, infrastructure construction and frigates.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Pakistani 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 Pakistani defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, 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. Pakistani annual defense expenditure to reach US$15.7 billion by 2023
3.2.2. US Annual military and security aid to Pakistan boosts military spending
3.2.3. Territorial disputes and the war against terrorism expected to drive defense expenditure
3.2.4. The country’s defense expenditure as a percentage of GDP to increase over 2019-2023
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure share to average 38.3% during the forecast period
3.3.2. Capital expenditure to record a CAGR of 9.45% over 2019-2023
3.3.3. Budget allocation for the army to be highest over the forecast period
3.3.4. Defense expenditure allocation for the army expected to increase over the forecast period
3.3.5. Per capita defense expenditure expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Allocation for the police forms the major component of homeland security expenditure
3.4.2. Measures to curb organized crime and cyber-attacks will drive homeland security expenditure
3.4.3. Pakistan is at a significant risk from external and internal threats
3.4.4. Pakistan is one of the most terror prone countries in the world
3.4.5. Pakistan has a terrorism index score of “8.4”
3.5. Benchmarking with Key Global Markets
3.5.1. Pakistani defense expenditure expected to record a CAGR of 9.34% over 2019-2023
3.5.2. Pakistani defense expenditure is low compared to other Asian defense spenders
3.5.3. Pakistan’s defense expenditure is anticipated to reach 3.1% of GDP in 2023
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over period 2018-2023
3.6.2. Land-Based C4ISR
3.6.3. SSK-Diesel Electric Submarine
3.6.4. Fighter and multi-role aircraft
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports projected to increase over the forecast period
4.1.2. China and the US were the leading suppliers of arms to Pakistan during 2013-2017
4.1.3. Aircraft and armored vehicles accounted for the majority of defense imports between 2013 and 2017
4.2. Export Market Dynamics
4.2.1. DEPO expected to start defense exports
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of the supplier: low to medium
5.1.2. Bargaining power of the buyer: high
5.1.3. Barriers to entry: medium to high
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: low to medium
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Defense procurements assigned to DGDP and DGMP
6.1.2. Pakistani government updated Offset Act for defense equipment procurements
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy & Process
6.2.3. Foreign firms enter the Pakistani defense industry through Foreign Military Sales (FMS)
6.2.4. Collaborations and joint ventures - a viable market entry route
6.3. Key Challenges
6.3.1. Corruption in the Pakistani defense sector hinders its growth
6.3.2. An unstable political system coupled with internal instability discourages foreign participation
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Pakistan
7.1.2. Growing domestic defense industry is predominantly state run
7.2. Key Domestic Companies
7.2.1. Karachi Shipyard & Engineering Works: overview
7.2.2. Karachi Shipyard & Engineering Works: products and services
7.2.3. Karachi Shipyard & Engineering Works (KS&EW): recent announcements and strategic initiatives
7.2.4. Karachi Shipyard & Engineering Works: alliances
7.2.5. Karachi Shipyard & Engineering Works: recent contract wins
7.2.6. Pakistan Aeronautical Complex: overview
7.2.7. Pakistan Aeronautical Complex: products and services
7.2.8. Pakistan Aeronautical Complex: recent announcements and strategic initiatives
7.2.9. Pakistan Aeronautical Complex: alliances
7.2.10. Pakistan Aeronautical Complex: recent contract wins
7.2.11. Pakistan Ordnance Factories: overview
7.2.12. Pakistan Ordnance Factories: products and services
7.2.13. Pakistan Ordnance Factories: recent announcements and strategic initiatives
7.2.14. Pakistan Ordnance Factories: alliances
7.2.15. Pakistan Ordnance Factories: recent contract wins
7.2.16. Pakistan Space and Upper Atmosphere Research Commission: overview
7.2.17. Pakistan Space and Upper Atmosphere Research Commission: products and services
7.2.18. Pakistan Space and Upper Atmosphere Research Commission: recent announcements and strategic initiatives
7.2.19. Pakistan Space and Upper Atmosphere Research Commission: alliances
7.2.20. Pakistan Space and Upper Atmosphere Research Commission: recent contract wins
7.2.21. Heavy Industries Taxila: overview
7.2.22. Heavy Industries Taxila: products and services
7.2.23. Heavy Industries Taxila: recent announcements and strategic initiatives
7.2.24. Heavy Industries Taxila: alliances
7.2.25. Heavy Industries Taxila: recent contract wins
7.2.26. The Heavy Mechanical Complex: overview
7.2.27. The Heavy Mechanical Complex: products and services
7.2.28. The Heavy Mechanical Complex: recent announcements and strategic initiatives
7.2.29. The Heavy Mechanical Complex: alliances
7.2.30. SATUMA: overview
7.2.31. SATUMA: products and services
7.2.32. SATUMA: recent announcements and strategic initiatives
7.2.33. SATUMA: recent contract wins
7.3. Key Foreign Companies
7.3.1. Boeing: overview
7.3.2. Boeing: products and services
7.3.3. Boeing: recent announcements and strategic initiatives
7.3.4. Boeing: recent contract wins
7.3.5. Boeing: Financial Analysis
7.3.6. Raytheon: overview
7.3.7. Raytheon: products and services
7.3.8. Raytheon: recent announcements and strategic initiatives
7.3.9. Raytheon: recent contract wins
7.3.10. Raytheon: financial analysis
7.3.11. Lockheed Martin: overview
7.3.12. Lockheed Martin: products and services
7.3.13. Lockheed Martin: recent announcements and strategic initiatives
7.3.14. Lockheed Martin: alliances
7.3.15. Lockheed Martin: recent contract wins
7.3.16. Lockheed Martin Corp.: financial analysis
7.3.17. Chengdu Aircraft Industry Group: overview
7.3.18. Chengdu Aircraft Industry Group: products and services
7.3.19. Chengdu Aircraft Industry Group: recent announcements and strategic initiatives
7.3.20. Chengdu Aircraft Industry Group: alliances
7.3.21. Chengdu Aircraft Industry Group: recent contract wins
7.3.22. Turkish Aerospace Industries (TAI): overview
7.3.23. Turkish Aerospace Industries: products
7.3.24. Turkish Aerospace Industries: Recent Announcements and Strategic Initiatives
7.3.25. Turkish Aerospace Industries: Alliances
7.3.26. Turkish Aerospace Industries: Recent Contract Wins
7.3.27. Aselsan: overview
7.3.28. Aselsan: products
7.3.29. Aselsan: recent announcements and strategic initiatives
7.3.30. Aselsan: Alliances
7.3.31. Aselsan: recent contract wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per capita
8.1.2. GDP, current prices
8.1.3. Exports of goods and services (LCU billion)
8.1.4. Imports of goods and services (LCU)
8.1.5. Local currency unit per US$
8.1.6. Market capitalization of listed companies US$ billion
8.1.7. Market capitalization of listed companies (% of GDP)
8.1.8. Government cash surplus/deficit as a percentage of GDP
8.1.9. Goods exports as a Percentage of GDP
8.1.10. Goods imports as a percentage of GDP
8.1.11. Service imports as a percentage of GDP
8.1.12. Service Exports as a percentage of GDP
8.1.13. Foreign direct investment
8.1.14. Net foreign direct investment as a percentage of GDP
8.1.15. Mining, manufacturing, utilities output
9. Appendix
9.1. About SDI
9.2. Disclaimer
List Tables
Table 1: Pakistan - Land Forces Strength, 2018
Table 2: Pakistan - Navy Strength, 2018
Table 3: Pakistan - Air Force Strength, 2018
Table 4: Pakistan - Ongoing Procurement Programs, 2018
Table 5: Pakistan - Future Procurement Programs, 2018
Table 6: Pakistan - Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Pakistan - Defense Expenditure (PKR Billion & US$ Billion), 2014-2023
Table 8: Pakistan - Defense Expenditure Including US Aid, 2014-2018
Table 9: Pakistan - GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 10: Pakistan - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 11: Pakistan - Defense Capital Expenditure (PKR Billion & US$ Billion), 2014-2023
Table 12: Pakistan - Defense Capital Expenditure Breakdown (%), 2014-2023
Table 13: Pakistan - Defense Budget in PKR Billion, by Service (PKR Billion / %), 2014-2023
Table 14: Pakistan - Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023
Table 15: Pakistan - Per Capita Defense Expenditure (US$), 2014-2023
Table 16: Pakistan - Homeland Security Expenditure (PKR Billion / US$ Billion), 2014-2023
Table 17: Terrorism Index, 2018
Table 18: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 19: Pakistan - Defense Market Sectors by Value (US$ Million), 2018-2023
Table 20: Offset Multiplier Categories
Table 21: Pakistan - Budget Formation Timetable:
Table 22: FMS route followed by Foreign Companies
Table 23: Market Entry Strategies by Key Foreign Companies
Table 24: Key Foreign Companies and Operations in Pakistan’s Defense Industry
Table 25: Top Defense Suppliers in Pakistan’s Defense Industry - By Value (US$ Million) 2018-2023
Table 26: Competitive Landscape of Pakistan’s Defense Industry
Table 27: Karachi Shipyard & Engineering Works - Product Focus
Table 28: Karachi Shipyard & Engineering Works - Alliances
Table 29: Karachi Shipyard & Engineering Works - Recent Contract Wins
Table 30: Pakistan Aeronautical Complex - Product Focus
Table 31: Pakistan Aeronautical Complex - Alliances
Table 32: Pakistan Aeronautical Complex - Recent Contract Wins
Table 33: Pakistan Ordnance Factories - Product Focus
Table 34: Pakistan Ordnance Factories - Alliances
Table 35: Pakistan Ordnance Factories - Recent Contract Wins
Table 36: Pakistan Space and Upper Atmosphere Research Commission - Product Focus
Table 37: Pakistan Space and Upper Atmosphere Research Commission - Alliances
Table 38: Pakistan Space and Upper Atmosphere Research Commission - recent contract wins
Table 39: Heavy Industries Taxila - product focus
Table 40: Heavy Industries Taxila - alliances
Table 41: Heavy Industries Taxila - recent contract wins
Table 42: The Heavy Mechanical Complex - product focus
Table 43: The Heavy Mechanical Complex - alliances
Table 44: SATUMA - product focus
Table 45: SATUMA - recent contract wins
Table 46: Boeing - Product Focus
Table 47: Boeing - Recent Contract Wins
Table 48: Raytheon - Product Focus
Table 49: Raytheon - Recent Contract Wins
Table 50: Lockheed Martin - Product Focus
Table 51: Lockheed Martin - alliances
Table 52: Lockheed Martin - Recent Contract Wins
Table 53: Chengdu Aircraft Industry Group - Product Focus
Table 54: Chengdu Aircraft Industry Group - Alliances
Table 55: Chengdu Aircraft Industry Group - Recent Contract Wins
Table 56: Turkish Aerospace Industries (TAI) - Main Products
Table 57: Turkish Aerospace Industries (TAI) - Alliances
Table 58: Turkish Aerospace Industries (TAI) - Recent Contract Wins
Table 59: Aselsan - Main Products
Table 60: Aselsan - Alliances
Table 61: Aselsan - Recent Contract Wins 129
List of Figures
Figure 1: Pakistan - Defense Expenditure (PKR Billion), 2014-2023
Figure 2: Pakistan - Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Pakistan - US Military and Security Aid (US$ Million), 2014-2018
Figure 4: Pakistan - Defense Expenditure Including US Aid (US$ Billion), 2014-2018
Figure 5: Pakistan - Defense Budget Excluding US Aid (US$ Billion) vs Pakistani Defense Expenditure Including US Aid (US$ Billion), 2014-2018
Figure 6: Pakistan - GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023
Figure 7: Pakistan - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 8: Pakistan - Defense Capital Expenditure (PKR Billion), 2014-2023
Figure 9: Pakistan - Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 10: Pakistan - Defense Expenditure Breakdown (%), 2014-2023
Figure 11: Pakistan - Defense Expenditure Allocation by Service (PKR Billion), 2014-2023
Figure 12: Pakistan - Defense Expenditure Allocation by Service (US$ Billion), 2014-2023
Figure 13: Pakistan - Per Capita Defense Expenditure (US$), 2014-2023
Figure 14: Pakistan - Homeland Security Budget (PKR Billion), 2014-2023
Figure 15: Pakistan - Homeland Security Budget (US$ Billion), 2014-2023
Figure 16: Terrorism Heat Map, 2018
Figure 17: Terrorism Index, 2018
Figure 18: Benchmarking with Key Markets - 2014-2018 vs 2019-2023
Figure 19: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 20: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 21: Pakistan - Land-Based C4ISR Market Size (US$ Million), 2018-2023
Figure 22: Pakistan - SSK-Diesel Electric Submarine and MRO Market Size (US$ Million), 2018-2023
Figure 23: Pakistan - Fighter and Multirole Aircraft Market Size (US$ Million), 2018-2023
Figure 24: Top Pakistani Defense Procurements in Terms of Their Supplier Relationships
Figure 25: Pakistan - Defense Import Trend (US$ Million), 2013-2017 (TIV Values)
Figure 26: Pakistan - Defense Imports by Country (%), 2013-2017
Figure 27: Pakistan - Defense Imports by Category (%), 2013-2017
Figure 28: Industry Dynamics Porter’s Five Forces Analysis
Figure 29: Pakistan - Defense Procurements System, 2018
Figure 30: Boeing - Revenue Trend Analysis (US$ Billion), 2013-2017
Figure 31: Boeing - Operating Profit Trend Analysis (US$ Billion), 2013-2017
Figure 32: Boeing - Net Profit Trend Analysis (US$ Billion), 2013-2017
Figure 33: Raytheon - Revenue Trend Analysis (US$ billion), 2013-2017
Figure 34: Raytheon - Operating Profit Trend Analysis (US$ billion), 2012-2016
Figure 35: Raytheon - Net Profit Trend Analysis (US$ billion), 2012-2016
Figure 36: Lockheed Martin Corp. - Revenue Trend Analysis (US$ billion), 2013-2017
Figure 37: Lockheed Martin Corp. - Operating Profit Trend Analysis (US$ billion), 2013-2017
Figure 38: Lockheed Martin Corp. - Net Profit Trend Analysis (US$ billion), 2013-2017
Figure 39: Pakistan - GDP Per Capita (US$), 2015-2025
Figure 40: Pakistan - GDP, Current Prices (US$ Billion), 2015-2025
Figure 41: Pakistan - Export of Goods and Services (LCU Billion), 2005-2014
Figure 42: Pakistan - Imports of Goods and Services (LCU), 2005-2014
Figure 43: Pakistan - Local Currency per US$ Exchange Rate, 2015-2024
Figure 44: Pakistan - Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 45: Pakistan - Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 46: Pakistan - Government Cash Surplus/Deficit as a Percentage of GDP, 2005-2013
Figure 47: Pakistan - Goods Exports as a Percentage of GDP, 2005-2014
Figure 48: Pakistan - Goods Imports as a Percentage of GDP, 2005-2014
Figure 49: Pakistan - Service Imports as a Percentage of GDP, 2005-2014
Figure 50: Pakistan - Service Exports as a Percentage of GDP, 2005-2014
Figure 51: Pakistan - Foreign Direct Investment (US$ Billion), 2005-2014
Figure 52: Pakistan - Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 53: Pakistan - Mining, Manufacturing, Utilities Output (USD Billion), 2005-2014

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