Future of the Spain Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Spanish defense industry, which values US$8.1 Billion in 2017, is anticipated to grow at a CAGR of 5.16% over the forecast period, to reach US$10.2 Billion by 2022. The country is currently facing a physical debt due to economic slowdown, which has resulted in a cut in military procurements over the historic period 2013-2017. However, over the forecast period, Spain’s defense expenditure will be stimulated by its involvement in existing military procurement programs, security threats from terrorist organizations, and territorial disputes with Morocco. The country’s defense budget is expected to be capped at an average of 0.7% of GDP over the forecast period.
Government expenditure on the Spanish homeland security market has been increasing because of growing troubles posed by drug trafficking, illegal immigration, and terrorist activities. Spain’s geographical location, bordering the Mediterranean Sea, makes it favorable for the transit of drugs and border crossings. Furthermore, the recent turmoil in the North African region has led to increased illegal immigration in Spain, thereby increasing the urgency of acquiring enhanced border security and control. The forecast period is expected to witness enhanced opportunities in security systems and its related platforms. The Spanish homeland security budget is valued at US$8.5 Billion in 2017 and is anticipated to increase to US$11.2 Billion by 2022, reflecting a CAGR of 3.89% over the forecast period 2018-2022.
During 2011-2015, Spanish defense exports ranked seventh largest in the world, accounting for 3.5% of world deliveries. Over 2012-2016, Spain has enhanced its naval and aerospace sectors significantly and, as a result, aircraft and naval vessels account for the majority of defense exports, occupying 69.7% and 26.7% respectively. Australia was the largest recipient, occupying 26.7% of the Spanish defense exports, followed by Saudi Arabia and Turkey.
Spain witnessed a sharp decline in imports between 2012 and 2016 due to the financial crisis and postponed its procurement plans. Germany is the largest exporter to Spain, contributing 37.9% in overall imports, and this is expected to continue over the forecast period. Germany is followed by the US and France. The country mostly imported equipment in areas where it lacked competency or technological capability, such as missiles, armored vehicles, fighter aircraft, and engines.
The report “Future of the Spain Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of Spain 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 -
- Spain defense industry market size and drivers: Detailed analysis of Spain 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 Spain 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 Spain 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: Thales, Iveco, Navantia, General Dynamics European Land Systems (GDELS), Aernnova Aerospace, S.A., Aries Ingenieria Y Sistemas, S.A., Indra Sistemas S.A., Sociedad Anonima De Electrónica Submarina, S.A., Tecnobit, Uro Vehiculos Especiales S.A., and Amper.
- In 2017, the Spanish government allocated US$8.1 billion for the total defense budget, which recorded a CAGR of 0.79% between 2013 and 2017. The marginal growth in defense expenditure is primarily due to the aftershocks of the European debt crisis, which has greatly weakened the foundations of the Spanish economy and forced the country to rationalize and re-prioritize its defense spending. The country is expected to witness higher levels of budget allocations over the forecast period, during which the expenditure is anticipated to increase at a CAGR of 5.16%.
- During 2013-2017, revenue expenditure accounted for an average of 84.8% of the total Spanish defense expenditure. The remaining 15.2% was spent on procuring equipment and services. The implementation of budget cuts and reform measures, such as the reduction of troop sizes and no new procurement programs by the MoD, are expected to curtail overall expenditure. Over the forecast period, the country’s defense capital allocations are anticipated to increase marginally and average 16.1% of its defense budget, while revenue expenditure accounts for the remaining 83.9% of the budget.
- The MoD is expected to invest in fighters and Multi-role aircraft, Military-IT networking and transport and utility aircraft.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Spain 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 Spain defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts