Future of the Swiss Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
With a neutral stance during times of war and a reputation for being a peace loving nation, Switzerland has traditionally made only modest budget allocations to defense. In 2018, the Swiss Government increased its defense budget expenditure by 6.7% compared to the previous year. The growth was triggered by the country’s need to invest in military equipment and devices based on new age cutting-edge technologies, replacing outdated equipment. Consequently, Swiss military expenditure is forecast to increase steadily, to reach US$6.5 billion in 2023, at a CAGR of 4.67%, over the forecast period.
During 2019-2023, Switzerland is expected to assign an average of 24.7% of its defense budget to capital expenditure, higher than recorded during 2014-2018. The remainder of the budget will be used to meet revenue expenditures. The country is expected to invest in the procurement of C4ISR, cyber security, UAV’s, critical infrastructure protection (CIP), and military radar, over the forecast period. In addition, the defense board aims to upgrade its existing communications network, as well as incorporating improved levels of internet security.
Swiss expenditure on homeland security was US$1.40 billion in 2018. In the next five years, expenditure is projected to increase marginally, growing at a CAGR of 0.91%. The nation’s homeland security expenditure will be primarily directed towards countering illicit activities such as burglaries, the drug trade, and cyber fraud. Equipment suppliers are likely to experience an increase in demand for equipment related to surveillance activities.
The country’s budget for homeland security is projected to increase over the forecast period, driven by the need to fight against organized crime, money laundering, financing of terrorist activities, and human trafficking. Additionally, the country is expected to invest in border security equipment. Demand for equipment is mainly expected to revolve around C4ISR, military IT, data and computing, critical infrastructure protection (CIP), military UAV, military radar, EO/IR and cyber security.
The report ""Future of the Swiss Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023"" offers detailed analysis of the Swiss defense industry with market size forecasts covering the next five years.
In particular, it provides an in-depth analysis of the following -
- The Swiss defense industry market size and drivers: detailed analysis of the Swiss 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 Swiss defense industry.
Companies mentioned in this report: Elbit Systems, Thales Group, Revision Military, Inc., Pilatus Group, RUAG Defense, General Dynamics European Land Systems (GDELS).
- The Swiss defense budget, which is projected to be US$5.1 billion in 2018, is expected to increase at a CAGR of 4.67% over the forecast period and reach US$6.5 billion by 2023.
- Defense expenditure amounted to 0.7% of overall GDP in 2018, and is expected to increase over next five years, to an average of 0.8%.
- The country’s defense expenditure will be driven by its neutral stance; as it obliges them to be independent and be capable of providing for their own security.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Swiss 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 swiss defense industry covering sections including demand drivers, Key Trends , and latest industry contracts
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