Future of the Spanish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
Summary
Spanish defense exports ranked seventh largest in the world, accounting for 2.9% of the world’s deliveries. During 2013-2017, Spain enhanced its aerospace and naval sectors significantly and, as a result, aircraft and naval vessels accounted for the majority of defense exports, occupying 60.6% and 34.5%, respectively. Australia was the largest recipient, occupying 34.2% of Spanish defense exports, followed by Turkey and Saudi Arabia.
The Spanish defense industry, which values US$10.2 billion in 2018, is anticipated to grow at a CAGR of 7.09% over the forecast period to reach US$14 billion in 2023. The country was facing a fiscal debt due to its economic slowdown, which resulted in a cut in military procurements during 2015-2016. However, in 2017, Spain’s defense expenditure started to recover and is anticipated to grow over the forecast period driven by the country’s existing military procurement programs, security threats from terrorist organizations, and territorial disputes with Morocco. The country’s defense budget is anticipated to average 0.7% of GDP over the forecast period.
The independence referendum by Catalonia, which resulted in heightened political tensions, caused Spain to go down by 10 ranks in Global Peace Index. The forecast period is expected to witness enhanced opportunities in security systems and its related platforms.
The Spanish Ministry of Defence (MoD) is making an effort to modernize its armed forces and support its existing projects. Capital expenditure is expected to increase to US$2.2 billion in 2023. The Defense Ministry is expected to procure A400M military transport aircraft, S-80 submarines, Eurofighter typhoons, Buque de Acción Marítima (BAM) ocean-going patrol boats, Tiger helicopters, medium-to-heavy military trucks, cyber security, and UAVs.
The report ""Future of the Spanish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023"" offers detailed analysis of the Spanish 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.
Companies Mentioned - 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 S.A.
Scope
- Spanish Defense Industry Market Size and Drivers: detailed analysis of the Spanish 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 Spanish defense industry.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Spanish 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 Spanish 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 and 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 and Support for Defense Projects
- 3.1.9. Political and Strategic Alliances
- 3.2. Defense Market Size - Historical and Forecast
- 3.2.1. Spanish defense budget is expected to grow at a CAGR of 7.09% over the forecast period
- 3.2.2. Territorial dispute with Morocco, security threats posed by terrorist organizations, and large equipment procurement programs will drive defense expenditure over the forecast period
- 3.3. Analysis of Defense Budget Allocation
- 3.3.1. Revenue expenditure accounts for the largest percentage share
- 3.3.2. Capital expenditure expected to increase at a CAGR of 9.22% over 2019-2023
- 3.3.3. Defense expenditure as a percentage of GDP is expected to reach 0.75% in 2023
- 3.3.4. Per capita defense expenditure set to increase over the forecast period
- 3.4. Homeland Security Market Size and Forecast
- 3.4.1. Homeland security expenditure is expected to register a CAGR of 2.28% over the forecast period
- 3.4.2. Border security and drug trafficking will drive homeland security expenditure in Spain
- 3.4.3. Spain is at “some risk” of terrorism
- 3.4.4. Spain faces some level of threat from foreign terrorist organizations
- 3.4.5. Spain has a terrorism index score of 1.7
- 3.5. Benchmarking with Key Global Markets
- 3.5.1. Spanish defense expenditure expected to increase over the forecast period
- 3.5.2. The country’s defense budget is relatively small compared to other leading spenders
- 3.5.3. Spanish defense expenditure as a percentage of GDP is expected to increase over the forecast period
- 3.6. Market Opportunities: Key Trends and Drivers
- 3.6.1. Top 10 Defense Market Categories by Value (US$ Million) - Forecast-Period Projections
- 3.6.2. Land-based C4ISR
- 3.6.3. Physical Security
- 3.6.4. Multirole Aircraft
- 4. Defense Procurement Market Dynamics
- 4.1. Import Market Dynamics
- 4.1.1. Spanish defense imports are expected to grow moderately over the forecast period
- 4.1.2. Germany emerged as a significant arms supplier to Spain
- 4.1.3. Missiles and aircraft dominate military hardware imports
- 4.2. Export Market Dynamics
- 4.2.1. Spain ranked seventh among the countries with the highest volume of defense exports
- 4.2.2. Australia accounted for the largest percentage share of Spanish defense exports
- 4.2.3. Aircraft and naval vessels are the main exported defense products
- 5. Industry Dynamics
- 5.1. Five Forces Analysis
- 5.1.1. Bargaining Power of Supplier: 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: High
- 6. Market Entry Strategy
- 6.1. Market Regulation
- 6.1.1. Offset policy mandates suppliers invest 100% of the contract value into the Spanish economy
- 6.1.2. FDI in defense subject to approval
- 6.1.3. Unified Procurement Policy
- 6.2. Market Entry Route
- 6.2.1. Budgeting Process
- 6.2.2. Procurement Policy and Process
- 6.2.3. Foreign OEMs venture into the market by partnering with domestic defense firms
- 6.2.4. Joint R&D provides an attractive entry route to foreign OEMs
- 6.2.5. Collaborations provide market entry opportunities
- 6.3. Key Challenges
- 6.3.1. Defense budget cuts discourage investors from entering the industry
- 6.3.2. Project delays deter defense industry growth
- 7. Competitive Landscape and Strategic Insights
- 7.1. Competitive Landscape Overview
- 7.2. Competitive Landscape Overview
- 7.3. Key Foreign Companies
- 7.3.1. Thales: Overview
- 7.3.2. Thales: Key Products
- 7.3.3. Thales: Recent Announcements and Strategic Initiatives
- 7.3.4. Thales: Alliances
- 7.3.5. Thales: Recent Contract Wins
- 7.3.6. Thales: Financial Analysis
- 7.3.7. Iveco: Overview
- 7.3.8. Iveco: Key Products
- 7.3.9. Iveco: Recent Announcements and Strategic Initiatives
- 7.3.10. Iveco: Alliances
- 7.3.11. Iveco: Recent Contract Wins
- 7.4. Key Public Sector Companies
- 7.4.1. Navantia: Overview
- 7.4.2. Navantia: Key Products
- 7.4.3. Navantia: Recent Announcements and Strategic Initiatives
- 7.4.4. Navantia: Alliances
- 7.4.5. Navantia: Recent Contract Wins
- 7.5. Key Private Sector Companies
- 7.5.1. General Dynamics European Land Systems (GDELS): Overview
- 7.5.2. General Dynamics European Land Systems (GDELS): Key Products
- 7.5.3. General Dynamics European Land Systems (GDELS): Recent Announcements and Strategic Initiatives
- 7.5.4. General Dynamics European Land Systems (GDELS): Alliances
- 7.5.5. General Dynamics European Land Systems (GDELS): Recent Contract Wins
- 7.5.6. Aernnova Aerospace S.A.: Overview
- 7.5.7. Aernnova Aerospace S.A.: Key Products
- 7.5.8. Aernnova Aerospace S.A.: Recent Announcements and Strategic Initiatives
- 7.5.9. Aernnova Aerospace S.A: Alliances
- 7.5.10. Aernnova Aerospace S.A.: Recent Contract Wins
- 7.5.11. Aries Ingenieria Y Sistemas, S.A.: Overview
- 7.5.12. Aries Ingenieria Y Sistemas, S.A.: Key Products
- 7.5.13. Aries Ingenieria Y Sistemas, S.A.: Recent Announcements and Strategic Initiatives
- 7.5.14. Aries Ingenieria Y Sistemas, S.A: Alliances
- 7.5.15. Indra Sistemas S.A.: Overview
- 7.5.16. Indra Sistemas SA: Key Products
- 7.5.17. Indra Sistemas S.A.: Recent Announcements and Strategic Initiatives
- 7.5.18. Indra Sistemas S.A.: Alliances
- 7.5.19. Indra Sistemas S.A.: Recent Contract Wins
- 7.5.20. Indra Sistemas S.A.: Financial Analysis
- 7.5.21. Sociedad Anonima De Electrónica Submarina, S.A.: Overview
- 7.5.22. Sociedad Anonima De Electrónica Submarina, S.A.: Key Products
- 7.5.23. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Announcements and Strategic Initiatives
- 7.5.24. Sociedad Anonima De Electrónica Submarina, S.A.: Alliances
- 7.5.25. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Contract Wins
- 7.5.26. Tecnobit: Overview
- 7.5.27. Tecnobit: Key Products
- 7.5.28. Tecnobit: Recent Announcements and Strategic Initiatives
- 7.5.29. Tecnobit: Alliances
- 7.5.30. Tecnobit: Recent Contract Wins
- 7.5.31. Uro Vehiculos Especiales S.A.: Overview
- 7.5.32. Uro Vehiculos Especiales S.A.: Key Products
- 7.5.33. Uro Vehiculos Especiales S.A.: Recent Announcements and Strategic Initiatives
- 7.5.34. Uro Vehiculos Especiales S.A.: Recent Contract Wins
- 7.5.35. Amper S.A.: Overview
- 7.5.36. Amper S.A.: Key Products
- 7.5.37. Amper S.A.: Recent Announcements and Strategic Initiatives
- 7.5.38. Amper S.A.: Alliances
- 7.5.39. Amper S.A.: Recent Contract Wins
- 7.5.40. Amper S.A.: Financial Analysis
- 8. Business Environment and Country Risk
- 8.1. Economic Performance
- 8.1.1. GDP Per Capita at Constant Prices
- 8.1.2. GDP at Current Prices (US$ Billion)
- 8.1.3. Exports of Goods and Services (current LCU Billion)
- 8.1.4. Imports of Goods and Services (current LCU Billion)
- 8.1.5. Gross National Disposable Income (US$ Billion)
- 8.1.6. LCU per US$ (period average)
- 8.1.7. Market Capitalization of Listed Companies (US$ Billion)
- 8.1.8. Market Capitalization of Listed Companies (% of GDP)
- 8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
- 8.1.10. Goods Exports as a Percentage of GDP
- 8.1.11. Goods Imports as a Percentage of GDP
- 8.1.12. Services Imports as a Percentage of GDP
- 8.1.13. Service Exports as a Percentage of GDP
- 8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
- 8.1.15. Net Foreign Direct Investment as a Percentage of GDP
- 8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion)
- 9. Appendix
- 9.1. About SDI
- 9.2. Disclaimer
- List of Tables
- Table 1: The Spanish Army Strength
- Table 2: Spanish Navy Strength
- Table 3: Spanish Air Force Strength
- Table 4: Spain - Ongoing Procurement Programs
- Table 5: Spain - Future Procurement Programs
- Table 6: Spanish - Defense Procurement Programs by Value (US$ Million) 2018-2023
- Table 7: Spanish Defense Expenditure (EUR Billion and US$ Billion), 2014-2023
- Table 8: Spanish Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
- Table 9: Spanish - Defense Capital Expenditure (EUR Million and US$ Million), 2014-2023
- Table 10: Spanish - GDP Growth vs Defense Expenditure as a Percentage of GDP, 2014-2023
- Table 11: Spanish Per Capita Defense Expenditure (US$), 2014-2023
- Table 12: Spanish - Homeland Security Expenditure (EUR Billion and US$ Billion), 2014-2023
- Table 13: Terrorism Index, 2018
- Table 14: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
- Table 15: Spain’s - 10 Leading Defense Market Categories by Value (US$ Million) - 2018-2023
- Table 16: Spanish Defense Offset Regulations
- Table 17: Spanish Budget Formation Timetable
- Table 18: Market Entry Strategies by Key Foreign Companies
- Table 19: Competitive Landscape of the Spanish Defense Industry
- Table 20: Spain - Top 10 Defense Suppliers by Value (US$ Million), 2018-2023
- Table 21: Thales - Key Products
- Table 22: Thales - Alliances
- Table 23: Thales - Recent Contract Wins
- Table 24: Iveco - Key Products
- Table 25: Iveco - Alliances
- Table 26: Iveco - Recent Contract Wins
- Table 27: Navantia - Key Products
- Table 28: Navantia - Alliances
- Table 29: Navantia - Recent Contract Wins
- Table 30: General Dynamics European Land Systems (GDELS) - Key Products
- Table 31: General Dynamics European Land Systems (GDELS) - Alliances
- Table 32: General Dynamics European Land Systems (GDELS) - Recent Contract Wins
- Table 33: Aernnova Aerospace S.A. - Key Products
- Table 34: Aernnova Aerospace S.A - Alliances
- Table 35: Aernnova Aerospace S.A. - Recent Contract Wins
- Table 36: Aries Ingenieria Y Sistemas, S.A - Key Products
- Table 37: Aries Ingenieria Y Sistemas - Alliances
- Table 38: Indra Sistemas SA - Key Products
- Table 39: Indra Sistemas S.A. - Alliances
- Table 40: Indra Sistemas S.A. - Recent Contract Wins
- Table 41: Sociedad Anonima De Electrónica Submarina, S.A. - Key Products
- Table 42: Sociedad Anonima De Electrónica Submarina, S.A. - Alliances
- Table 43: Sociedad Anonima De Electrónica Submarina, S.A. - Recent Contract Wins
- Table 44: Tecnobit - Key Products
- Table 45: Tecnobit - Alliances
- Table 46: Tecnobit - Recent Contract Wins
- Table 47: Uro Vehiculos Especiales S.A. - Key Products
- Table 48: Uro Vehiculos Especiales S.A. - Recent Contract Wins
- Table 49: Amper S.A. - Key Products
- Table 50: Amper S.A.: - Alliances
- Table 51: Amper S.A.: - Recent Contract Wins
- List of Figures
- Figure 1: Spanish Defense Expenditure (EUR Billion), 2014-2023
- Figure 2: Spanish Defense Expenditure (US$ Billion), 2014-2023
- Figure 3: Spanish Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
- Figure 4: Spanish - Defense Capital Expenditure (EUR Million), 2014-2023
- Figure 5: Spanish - Defense Capital Expenditure (US$ Million), 2014-2023
- Figure 6: Spanish GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
- Figure 7: Spanish Per Capita Defense Expenditure (US$), 2014-2023
- Figure 8: Spanish Homeland Security Budget (EUR Billion), 2014-2023
- Figure 9: Spanish Homeland Security Budget (US$ Billion), 2014-2023
- Figure 10: SDI Terrorism Heat Map, 2018
- Figure 11: Terrorism Index, 2018
- Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
- Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 & 2023
- Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
- Figure 15: Land-based C4ISR (US$ Million), 2018-2023
- Figure 16: Physical Security (US$ Million), 2018-2023
- Figure 17: Multirole Aircraft (US$ Million), 2018-2023
- Figure 18: Spain - Defense Procurements in Terms of Supplier Relationships, 2018
- Figure 19: Spanish Defense Import Trend (US$ Million), 2013-2017 (TIV values)
- Figure 20: Spanish Defense Imports by Country (%), 2013-2017
- Figure 21: Spanish Defense Imports by Category (%), 2013-2017
- Figure 22: Spanish Defense Exports (US$ Million), 2013-2017 (TIV values)
- Figure 23: Spanish Defense Exports by Country (%), 2013-2017
- Figure 24: Spanish Defense Exports by Category (%), 2013-2017
- Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
- Figure 26: Thales - Revenue Trend Analysis (EUR Billion), 2013-2017
- Figure 27: Thales - Operating Profit Trend Analysis (EUR Million), 2013-2017
- Figure 28: Thales - Net Profit Trend Analysis (EUR Million), 2013-2017
- Figure 29: Indra Sistemas S.A. - Revenue Trend Analysis (EUR Billion), 2013-2017
- Figure 30: Indra Sistemas S.A. - Operating Profit Trend Analysis (EUR Million), 2013-2017
- Figure 31: Indra Sistemas S.A. - Net Profit Trend Analysis (EUR Million), 2013-2017
- Figure 32: Amper S.A. - Revenue Trend Analysis (EUR Billion), 2013-2017
- Figure 33: Amper S.A. - Operating Profit Trend Analysis (EUR Million), 2013-2017
- Figure 34: Amper S.A. - Net Profit Trend Analysis (EUR Million), 2013-2017
- Figure 35: Spanish GDP Per Capita at Constant Prices (US$), 2015-2025
- Figure 36: Spain GDP at Current Prices (US$ Billion), 2015-2025
- Figure 37: Spanish Exports of Goods and Services (LCU Billion), 2005-2014
- Figure 38: Spanish Imports of Goods and Services (LCU Billion), 2005-2014
- Figure 39: Spanish Gross National Disposable Income (US$ Billion), 2005-2013
- Figure 40: Spain LCU per US$, 2015-2024
- Figure 41: Spanish Market Capitalization of Listed Companies (US$ Billion), 2005-2012
- Figure 42: Spanish Market Capitalization of Listed Companies (% of GDP), 2005-2012
- Figure 43: Spanish Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2005-2012
- Figure 44: Spain- Goods Exports as a Percentage of GDP (%), 2005-2014
- Figure 45: Spain- Goods Imports as a Percentage of GDP (%), 2005-2014
- Figure 46: Spanish Services Imports as a Percentage of GDP (%), 2005-2014
- Figure 47: Spanish Service Exports as a Percentage of GDP (%), 2005-2014
- Figure 48: Spain - Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
- Figure 49: Spanish Net Foreign Direct Investment (as a Percentage of GDP) 2005-2014
- Figure 50: Spanish Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
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