Future of the MINT Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019 by StrategicDefenceIntelligence

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									Future of the MINT Defense Industry –
 Market Attractiveness, Competitive
   Landscape and Forecasts to 2019
Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019


 TABLE OF CONTENTS
 1.   Introduction ......................................................................................................................... 10
   1.1. What is this Report about? ...........................................................................................................10
   1.2. Definitions .....................................................................................................................................10
   1.3. Summary Methodology.................................................................................................................12
   1.4. SDI Terrorism Index ......................................................................................................................13
   1.5. About Strategic Defence Intelligence ..........................................................................................13
 2.   Executive Summary ............................................................................................................ 14
 3.   Market Attractiveness and Emerging Opportunities ........................................................ 16
   3.1. Defense Market Size Historical and Forecast..............................................................................17
       3.1.1. MINT defense expenditure to grow at a CAGR of 10.77% over the forecast period................................ 17
       3.1.2. Key Drivers for Defense expenditure ........................................................................................................ 20
       3.1.3. Defense expenditure as a percentage of GDP expected to increase over the forecast period ............... 22
       3.1.4. Per capita defense spending forecast to increase over the forecast period ............................................ 24

   3.2. Analysis of Defense Budget Allocation .......................................................................................26
       3.2.1. Share of Revenue expenditure expected to decrease over the forecast period ...................................... 26
       3.2.2. Army expenditure - MINT countries .......................................................................................................... 36
       3.2.3. Navy expenditure - MINT countries .......................................................................................................... 37
       3.2.4. Air Force expenditure - MINT countries .................................................................................................... 38

   3.3. Homeland Security Market Size and Forecast ............................................................................45
       3.3.1. MINT countries homeland security expenditure to increase at a CAGR of 8.20% over the forecast
       period 45
       3.3.2. Key Drivers for HLS expenditure .............................................................................................................. 48
       3.3.3. MINT countries and terrorism risk ............................................................................................................ 50

   3.4. Benchmarking with Key Global Markets .....................................................................................51
       3.4.1. The US will dominate global military spending over the forecast period .................................................. 51
       3.4.2. MINT countries vs. World Leader in defense expenditure ....................................................................... 53
       3.4.3. MINT countries vs. world leaders in defense expenditure as a percentage of GDP ................................ 54
       3.4.4. MINT countries – threat of terrorism ......................................................................................................... 55

   3.5. Market Opportunities: Key Trends and Growth Stimulators ......................................................57
       3.5.1. Fighter and multi-role aircraft .................................................................................................................... 57




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Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019
      3.5.2. Military helicopters .................................................................................................................................... 58
      3.5.3. Unmanned Aerial Vehicles ....................................................................................................................... 59
      3.5.4. Radars ...................................................................................................................................................... 60

 4.   Defense Procurement Market Dynamics ........................................................................... 61
   4.1. Import Market Dynamics ...............................................................................................................62
      4.1.1. Defense imports grew at a CAGR of 15.1% during 2008–2012 ............................................................... 62
      4.1.2. Defense imports – key exporting countries .............................................................................................. 64
      4.1.3. Defense imports – key import categories ................................................................................................. 66

   4.2. Export Market Dynamics ..............................................................................................................68
      4.2.1. Defense exports currently being pursued only by Turkey and Indonesia ................................................ 68
      4.2.2. Defense exports – key countries for export .............................................................................................. 69
      4.2.3. Defense exports – key export categories ................................................................................................. 71

 5.   Market Entry Strategy ......................................................................................................... 72
   5.1. Market Regulation .........................................................................................................................72
      5.1.1. Foreign Direct Investment (FDI) in defense.............................................................................................. 72
      5.1.2. Offset policy .............................................................................................................................................. 72
   5.2. Market Entry Route .......................................................................................................................73
 6.   Competitive Landscape and Strategic Insights ................................................................ 74
   6.1. Competitive Landscape Overview ...............................................................................................74
   6.2. Mexico – Defense Companies ......................................................................................................75
      6.2.1. Productos Mendoza: Company overview ................................................................................................. 75
      6.2.2. Productos Mendoza: products and services............................................................................................. 75
      6.2.3. Aviabaltika de Mexico Company: overview .............................................................................................. 76
      6.2.4. Aviabaltika de Mexico Company: products and services ......................................................................... 76

   6.3. Indonesia – Defense Companies..................................................................................................77
      6.3.1. PT Dirgantara Indonesia: overview .......................................................................................................... 77
      6.3.2. PT Dirgantara Indonesia: Major Products and Services .......................................................................... 77
      6.3.3. PT Dirgantara Indonesia: recent announcements and strategic initiatives .............................................. 77
      6.3.4. PT Dirgantara Indonesia: alliances ........................................................................................................... 78
      6.3.5. 6.3.5. PT Dirgantara Indonesia: recent contract wins .............................................................................. 79
      6.3.6. PAL Indonesia: overview .......................................................................................................................... 80
      6.3.7. PAL Indonesia: Major Products and Services .......................................................................................... 80




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Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019
      6.3.8. PAL Indonesia: recent announcements and strategic initiatives .............................................................. 80
      6.3.9. PAL Indonesia: Alliances .......................................................................................................................... 81
      6.3.10. PAL Indonesia: Recent Contract Wins ..................................................................................................... 81
      6.3.11. PT Pindad: overview ................................................................................................................................. 82
      6.3.12. PT Pindad: Major Products and Services ................................................................................................. 82
      6.3.13. PT Pindad: recent announcements and strategic initiatives..................................................................... 83
      6.3.14. PT Pindad: alliances ................................................................................................................................. 83
      6.3.15. PT Pindad: recent contract wins ............................................................................................................... 84
      6.3.16. Dok & Perkapalan: overview .................................................................................................................... 85
      6.3.17. Dok & Perkapalan: Major Products and Services .................................................................................... 85
      6.3.18. Dok & Perkapalan: recent announcements and strategic initiatives ........................................................ 85
      6.3.19. Dok & Perkapalan: alliances ..................................................................................................................... 86
      6.3.20. Dok & Perkapalan: Recent Contract Wins................................................................................................ 86
      6.3.21. PT Dahana: overview ............................................................................................................................... 87
      6.3.22. PT Dahana: products and services .......................................................................................................... 87
      6.3.23. PT Dahana: recent announcements and strategic initiatives ................................................................... 87
      6.3.24. PT Dahana: alliances................................................................................................................................ 87
      6.3.25. PT Dahana: recent contract wins ............................................................................................................. 88
      6.3.26. PT Multiintegra: overview ......................................................................................................................... 89
      6.3.27. PT Multiintegra: products and services .................................................................................................... 89
      6.3.28. PT Multiintegra: recent announcements and strategic initiatives ............................................................. 90
      6.3.29. PT Multiintegra: recent contract wins ....................................................................................................... 90
      6.3.30. Radar and Communications Systems: overview ...................................................................................... 91
      6.3.31. Radar and Communications Systems: products and services ................................................................. 91
      6.3.32. Radar and Communications Systems: recent announcements and strategic initiatives. ......................... 91
      6.3.33. Radar and Communications Systems: alliances ...................................................................................... 92
      6.3.34. PT SOG Indonesia: overview ................................................................................................................... 93
      6.3.35. PT SOG Indonesia: products and services .............................................................................................. 93
      6.3.36. PT SOG Indonesia: recent announcements and strategic initiatives ....................................................... 93
      6.3.37. PT SOG Indonesia: alliances ................................................................................................................... 93

   6.4. Nigeria – Defense Companies (5 companies) .............................................................................94
      6.4.1. Dornier Aviation Nigeria AIEP Limited: overview ..................................................................................... 94




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Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019
      6.4.2. Dornier Aviation Nigeria AIEP Limited: products and services................................................................. 94
      6.4.3. Defence Industries Corporation of Nigeria: overview ............................................................................... 95
      6.4.4. Defense Industries Corporation of Nigeria: products and services .......................................................... 95
      6.4.5. Defense Industries Corporation of Nigeria: recent announcements and strategic initiatives ................... 95
      6.4.6. Defense Industries Corporation of Nigeria: alliances ............................................................................... 96
      6.4.7. Defence Industries Corporation of Nigeria: recent contract awards ......................................................... 96
   6.5. Turkey – Defense Companies ......................................................................................................97
      6.5.1. Otokar: overview ....................................................................................................................................... 97
      6.5.2. Otokar: Major products and services ........................................................................................................ 97
      6.5.3. Otokar: recent announcements and strategic initiatives ........................................................................... 97
      6.5.4. Otokar: alliances ....................................................................................................................................... 98
      6.5.5. Otokar: recent contract wins ..................................................................................................................... 98
      6.5.6. Otokar: Financial Analysis ........................................................................................................................ 99
      6.5.7. Roketsan: overview ................................................................................................................................ 101
      6.5.8. Roketsan: products and services ........................................................................................................... 101
      6.5.9. Roketsan: recent announcements and strategic initiatives. ................................................................... 102
      6.5.10. Roketsan: alliances ................................................................................................................................. 102
      6.5.11. Roketsan: recent contract wins .............................................................................................................. 103
      6.5.12. Makina ve Kimya Endüstrisi Kurumu (MKEK): overview ........................................................................ 104
      6.5.13. Makina ve Kimya Endüstrisi Kurumu (MKEK): products and services ................................................... 104
      6.5.14. Makina ve Kimya Endüstrisi Kurumu (MKEK): Alliances ........................................................................ 105
      6.5.15. Aselsan: overview ................................................................................................................................... 106
      6.5.16. Aselsan: products and services .............................................................................................................. 106
      6.5.17. Aselsan: recent announcements and strategic initiatives ....................................................................... 107
      6.5.18. Aselsan: Alliances ................................................................................................................................... 107
      6.5.19. Aselsan: recent contract wins ................................................................................................................. 108
      6.5.20. Aselsan: Financial Analysis .................................................................................................................... 109
      6.5.21. Turkish Aerospace Industries (TAI): overview ........................................................................................ 111
      6.5.22. Turkish Aerospace Industries: products and services ............................................................................ 111
      6.5.23. Turkish Aerospace Industries: Recent Announcements and Strategic Initiatives .................................. 112
      6.5.24. Turkish Aerospace Industries: Alliances ................................................................................................. 113
      6.5.25. Turkish Aerospace Industries: Recent Contract Wins ............................................................................ 113




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Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019
      6.5.26. Havelsan: overview ................................................................................................................................. 114
      6.5.27. Havelsan: products and services ............................................................................................................ 114
      6.5.28. Havelsan: Recent announcements and Strategic Initiatives .................................................................. 115
      6.5.29. Havelsan: Alliances ................................................................................................................................ 115
      6.5.30. Havelsan: Recent contract wins ............................................................................................................. 116
      6.5.31. Havelsan: Financial Analysis .................................................................................................................. 116
      6.5.32. Tusas Engine Industries (TEI): overview ................................................................................................ 117
      6.5.33. Tusas Engine Industries: products and services .................................................................................... 117
      6.5.34. Tusas Engine Industries, Inc. (TEI): recent announcements and strategic initiatives ............................ 118
      6.5.35. Tusas Engine Industries, Inc. (TEI): Alliances ........................................................................................ 118
      6.5.36. Tusas Engine Industries, Inc. (TEI): Recent contract wins ..................................................................... 118
      6.5.37. FNSS Defense Systems Co.: overview .................................................................................................. 119
      6.5.38. FNSS Defense Systems Co.: Major Products and Services .................................................................. 119
      6.5.39. FNSS Defense Systems Co.: Recent announcements and strategic initiatives .................................... 119
      6.5.40. FNSS Defense Systems Co.: Alliances .................................................................................................. 120
      6.5.41. FNSS Defense Systems Co.: Recent Contract Wins ............................................................................. 120
      6.5.42. Istanbul Shipyard: Overview ................................................................................................................... 121
      6.5.43. Istanbul: products and services .............................................................................................................. 121
      6.5.44. Istanbul Shipyard: Recent announcements and strategic initiatives ...................................................... 121
      6.5.45. Istanbul Shipyard: Recent contract wins ................................................................................................ 122

 7.   Appendix ............................................................................................................................ 123
   7.1. About SDI.....................................................................................................................................123
   7.2. Disclaimer ....................................................................................................................................123




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Future of the MINT Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019


 LIST OF FIGURES

 Figure 1: MINT Defense Expenditure (US$ Billion), 2010–2014.......................................................................................................................... 18
 Figure 2: MINT Defense Expenditure (US$ Billion), 2015–2019.......................................................................................................................... 19
 Figure 3: MINT GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as Percentage of GDP, 2010–2014 ............................ 22
 Figure 4: MINT GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2015–2019 .......................... 23
 Figure 5: MINT Per Capita Defense Expenditure (US$), 2010–2014 .................................................................................................................. 24
 Figure 6: MINT Defense Expenditure (US$), 2015–2019 .................................................................................................................................... 25
 Figure 7: MINT Countries Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014 ................................................... 26
 Figure 8: MINT Countries Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019 ................................................... 27
 Figure 9: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), ................................................................................. 28
 Figure 10: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), ............................................................................... 29
 Figure 11: Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), ........................................................................... 30
 Figure 12: Indonesian Defense Budget Split Between Capital and Revenue Expenditure (%), ........................................................................... 31
 Figure 13: Nigerian Defense Budget Split Between Capital and Revenue Expenditure (%), ............................................................................... 32
 Figure 14: Nigerian Defense Budget Split Between Capital and Revenue Expenditure (%), ............................................................................... 33
 Figure 15: Turkish Defense Budget Split Between Capital and Revenue Expenditure (%), ................................................................................. 34
 Figure 16: Turkish Defense Budget Split Between Capital and Revenue Expenditure (%), ................................................................................. 35
 Figure 17: Mexican Defense Expenditure Allocation for Army, Air Force and Navy (%), 2010–2014 ................................................................... 39
 Figure 18: Mexican Defense Expenditure Allocation for Army, Air Force and Navy (%), 2015–2019 ................................................................... 40
 Figure 19: Indonesian Defense Expenditure Allocation for Army, Air Force and Navy (%), 2010–2014 ............................................................... 41
 Figure 20: Indonesian Defense Expenditure Allocation for Army, Air Force and Navy (%), 2015–2019 ............................................................... 42
 Figure 21: Nigerian Defense Expenditure Allocation for Army, Air Force and Navy (%), 2010–2014 ................................................................... 43
 Figure 22: Nigerian Defense Expenditure Allocation for Army, Air Force and Navy (%), 2015–2019 ................................................................... 44
 Figure 23: MINT Homeland Security Expenditure (US$ Billion), 2010–2014 ....................................................................................................... 46
 Figure 24: MINT Homeland Security Expenditure (US$ Billion), 2015–2019 ....................................................................................................... 47
 Figure 25: SDI Terrorism Heat Map, 2013 .......................................................................................................................................................... 50
 Figure 26: Benchmarking with Key Markets – 2010–2014 vs. 2015–2019 .......................................................................................................... 52
 Figure 27: MINT countries vs. World Leaders in defense expenditure (US$ Billion), 2014 and 2019.................................................................. 53
 Figure 28: MINT countries vs. world leaders in defense expenditure as a percentage of GDP (%) 2014 ............................................................. 54
 Figure 29: MINT Countries - Defense Import Trend (US$ Million), 2008–2012.................................................................................................... 63
 Figure 30: MINT Countries - Defense Impor
								
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