The Netherlands Defense Sector – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015 by ICDResearch

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This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Netherlands defense industry. In
particular, it offers in-depth analysis of the following:

• Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 2011–2015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
• Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Netherlands defense industry.
• Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
• Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
• Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in the Netherlands. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
• Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.

More Info
									The Netherlands Defense Industry -
Market Opportunities and Entry
Strategies, Analyses and Forecasts to
2015
Market Intelligence Report
Reference code: ICDDF0030MR10

Published: DECEMBER 2010

www.icd-research.com
ICD Research

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7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813




© ICD Research Intelligence. This report is a licensed product and is not to be photocopied
TABLE OF CONTENTS


LIST OF TABLES .......................................................................................................................... 8
LIST OF FIGURES ........................................................................................................................ 9
1 Introduction ......................................................................................................................... 11
1.1       About this Report ..........................................................................................................................11
1.2       Definitions .....................................................................................................................................11
1.3       Methodology ..................................................................................................................................13
1.3.1 Secondary research ..................................................................................................................................... 13
1.3.2 Primary research .......................................................................................................................................... 13
1.3.3 Conventions ................................................................................................................................................. 14
1.4       ICD Research Intelligence Terrorism Index .................................................................................14
1.5       About ICD Research......................................................................................................................14
1.6       About Strategic Defence Intelligence (www.strategicdefenceintelligence.com) ......................14
2      Executive Summary ............................................................................................................ 16
3      Market Attractiveness and Emerging Opportunities ........................................................ 18
3.1       Defense Market Size and Forecast ...............................................................................................19
3.1.1 Netherlands annual defense expenditure to reach US$11.2 billion by 2015 ................................................... 19
3.1.2 Participation in peacekeeping missions, joint operations to ensure internal stability and modernization
      will support defense expenditure................................................................................................................... 20
3.1.3 Defense expenditure as a percentage of GDP expected to decline to 1.3% in 2015 ...................................... 21
3.2       Analysis of Defense Budget Allocation .......................................................................................22
3.2.1 Capital expenditure allocation expected to decrease during forecast period .................................................. 22
3.2.2 Capital expenditure budget expected to decline during forecast period ......................................................... 23
3.2.3 Allocation for common services is expected to increase in forecast period .................................................... 24
3.2.4 Army expenditure expected to decline at a CARC of -0.48% during forecast period ...................................... 26
3.2.5 Air force expenditure expected to reach US$915 million by 2015 .................................................................. 27
3.2.6 Navy expected to spend US$4.8 billion during forecast period ...................................................................... 28
3.3       Homeland Security Market Size and Forecast ............................................................................29
3.3.1 Internal security expenditure estimated at US$8.0 billion for 2009 ................................................................. 29
3.3.2 Human trafficking, drug trafficking and cybercrime increase homeland security expenditure.......................... 29
3.3.3 Netherlands falls under “low risk” of terrorism category ................................................................................. 30
3.3.4 Netherlands has terrorism index score of 0.0 ................................................................................................ 31
3.3.5 Netherlands faces low risk of terrorist attack ................................................................................................. 32
3.4       Benchmarking with Key Global Markets .....................................................................................34
3.4.1 Netherlands has the sixth largest defense budget among European countries .............................................. 34
3.4.2 The US and China dominate the global defense industry, while the Netherlands ranks twentieth................... 35
3.4.3 Netherlands allocates higher share of GDP for defense than Italy or Germany .............................................. 36
3.4.4 Netherlands ranked sixth among top arms exporting countries during review period ..................................... 37
3.5       Market Opportunities: Key Trends and Growth Stimulators ......................................................38


The Netherlands Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015                                 December 2010
© ICD Research Intelligence. This report is a licensed product and is not to be photocopied                                                           Page 2
TABLE OF CONTENTS


3.5.1 Demand for frigates, minesweeping capability submarines and upgrade of existing naval equipment is
      expected during forecast period .................................................................................................................... 38
3.5.2 Army expected to replace obsolete equipment and enhance existing weaponry ............................................ 40
3.5.3 Increased demand for spares, radars, sensors and advanced missiles expected .......................................... 42
3.5.4 Communication, support and identification systems will witness greater demand .......................................... 44
4      Defense Procurement Market Dynamics ........................................................................... 46
4.1       Import Market Dynamics ...............................................................................................................47
4.1.1 Defense imports expected to increase during forecast period........................................................................ 47
4.1.2 European countries enter the Netherlands defense market ........................................................................... 48
4.1.3 Armored vehicles, artillery and missiles account for majority of arms imports ................................................ 49
4.2       Export Market Dynamics ..............................................................................................................50
4.2.1 Defense exports are expected to remain at 2009 levels ................................................................................ 50
4.2.2 European countries are primary export destinations for Netherlands defense firms ....................................... 51
4.2.3 Ships, aircraft and sens
								
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