Future of the Chinese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Summary China is the second largest defense spender globally after the US. The country’s large military budget is primarily driven by its robust economic growth and its desire to match-up with the US in terms of military capabilities. Additionally, China shares its borders with 14 countries, and is involved in several border disputes which increase the need to invest in the recruitment and maintenance of a large number of troops to prevent infiltration or other hostile acts. The Chinese defense budget grew at a CAGR of about 7.3% during 2013–2017, from around US$115 Billion in 2013 to about US$153.9 Billion in 2017.
Over the forecast period, the country’s defense expenditure is expected to increase from over US$167 Billion in 2018 to around US$226.5 Billion in 2022, reflecting a CAGR of more than 7.8%. The country’s focus on military modernization, building technical capabilities, and dealing with territorial conflicts, while at the same time contributing to various peacekeeping operations worldwide, will drive the defense budget over the forecast period.
China is the second largest military spender globally, with a cumulative spending of over US$687 Billion between 2013 and 2017. Disputes over borders and territories, participation in peacekeeping missions, and military modernization are expected to drive the country’s future military expenditure, which is expected to grow at a CAGR of around 7.8% during 2018-2022. Meanwhile, the country’s defense budget is projected to remain stable at an average of 1.3% of GDP over the forecast period, and per capita defense expenditure will increase from around US$110 in 2017 to more than US$158 by 2022.
The report “Future of the Chinese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Chinese 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 the following - - The Chinese defense industry market size and drivers: detailed analysis of the Chinese 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 with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country. - Porter’s Five Force analysis of the Chinese 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 the Chinese 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: China North Industries Corporation (NORINCO), China Electronics Technology Group Corporation (CETC), Aviation Industry Corporation of China (AVIC), China National Nuclear Corporation (CNNC), China Nuclear Engineering and Construction Corporation (CNEC), China Aerospace Science and Industry Corporation (CASIC), China State Shipbuilding Corporation (CSSC), and China National Electronics Import and Export Corporation (CEIEC)
Scope - China is the second largest defense spender globally after the US. The country’s large military budget is primarily driven by its robust economic growth and its desire to match-up with the US in terms of military capabilities. Additionally, China shares its borders with 14 countries, and is involved in several border disputes which increase the need to invest in the recruitment and maintenance of a large number of troops to prevent infiltration or other hostile acts. The Chinese defense budget grew at a CAGR of 7.33% during 2013-2017, from US$115.9 billion in 2013 to US$153.9 billion in 2017. - China’s military modernization plans require a huge capital inflow and the government is expected to meet the requirements of these programs over the forecast period. The country’s defense capital expenditure increased from US$37.9 billion in 2013 to US$50.4 billion in 2017, growing at a CAGR of 7.37%. - Initiatives to combat organized crime and increase border security expenditure, and investments in infrastructure development, have driven the homeland security budget between 2013 and 2017. Over the forecast period, these factors are expected to continue to drive the country’s defense expenditure.
Reasons to buy - This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Chinese 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 the Chinese defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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