Future of the Finland Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Finland Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

  • April 2017 •
  • 96 pages •
  • Report ID: 4883852 •
  • Format: PDF
Future of the Finland Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

Finland is a geo-strategically vital base due to its vicinity to Russia. The political and military development in Russia significantly influences the country’s security. The Baltic Sea is a predominant logistic transport corridor for Finland, and Russia’s rising interests in this area is likely to impact the security of the country. The Finnish annual defense budget stands at US$3 Billion in 2017, and is expected to grow at a CAGR of 1.96% over the forecast period, to reach US$3.3 Billion in 2022.

The country’s capital expenditure is expected to marginally increase from US$0.8 Billion in 2017 to US$0.9 Billion in 2022, registering a CAGR of 2.19% during the forecast period. The Finnish Defence Ministry is expected to procure fighters and multi-role aircraft, Maintenance, Repair and Operations (MRO) for multi-role aircraft, naval vessels MRO, and aircraft simulators. Furthermore, during the forecast period, Finland is expected to allocate as much as 73.4% of its defense budget towards revenue expenditure, which will be used to pay pension allowances to retired military personnel, salaries, training and other administrative activities.

During 2013-2017, Finland’s Homeland Security (HLS) expenditure was driven by the continuing problems of illicit drug trading and human trafficking across its eastern border with Russia, along with cyber-crimes. However, with much of the illegal migration from the Middle Eastern countries now subsiding, the country’s homeland security expenditure is anticipated to marginally decline over the forecast period. The expenditure is anticipated to increase at a CAGR of 11.27% during the forecast period, from US$1.6 Billion in 2017, to an estimated US$2.8 Billion in 2022.

The report “Future of the Finland Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers insights into the market opportunities and entry strategies adopted by foreign OEMs (Original Equipment Manufacturers) to gain a market share in the Finnish defense industry.

In depth this report provides the following analysis -
- Provides detailed analysis of the current industry size and growth expectations during 2018-2022, including highlights of the key growth stimulants. It also benchmarks the industry against key global markets, and provides a detailed understanding of emerging opportunities in specific areas.
- Analysis of imports and exports, together with their implications and impact on the Finnish defense industry.
- Five forces analysis to identify various power centers in the industry, and how these are expected to develop in the future.
- Analysis of possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- Analysis of the competitive landscape of the defense industry in Finland, providing an overview of key defense companies, (both domestic and foreign), together with insights such as key alliances, strategic initiatives and a brief financial analysis.
- This report 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.

Companies mentioned in this report: Hanwha Techwin, Babcock International, Lockheed Martin, Boeing, United Shipbuilding Corp., Saab

Scope

- Finland’s total defense expenditure stands at US$3 billion in 2017, and is expected to grow at a CAGR of 1.96% over the forecast period, to reach US$3.3 billion in 2022. Finnish defense expenditure is primarily driven by participation in peacekeeping initiatives, the soldier modernization program and the procurement of advanced technology equipment. Finland is an active participant in the crisis management programs mandated by the United Nations (UN). The Finnish defense industry is expected to focus its expenditure on Leopard 2A6 main battle tanks, multi-role aircraft, cyber security, and C4ISR systems.
- The Finnish Ministry of Defence (MoD) allocated an average of 27.2% to capital expenditure during 2013-2017, and is expected to decrease over the forecast period to reach 26.6%. Currently, due to the austerity measures, the government is focusing on the acquisition of high-quality secondhand equipment to save costs. Its military modernization programs include the procurement of 100 secondhand EX-Danish Leopard 2A6 main battle tanks, air defense missile system, IT Services, C4ISR, soldier combat systems and surveillance system, along with the procurement of littoral ships for the navy and improvements into the coast guard role. Furthermore, under the soldier modernization program, “Warrior 2020”, the army plans to procure communications, automatic mortars, C4I subsystems, lightweight superior ballistic protection and smart munitions systems, in order to create a mobile force. Over 2013-2017, the Finnish defense capital expenditure registered an average of US$0.90 billion. The country’s capital expenditure is expected to marginally increase from US$0.8 billion in 2017 to US$0.9 billion in 2022, registering a CAGR of 2.19% during the forecast period. The Finnish Defence Ministry is expected to procure fighters and multi-role aircraft, Maintenance, Repair and Operations (MRO) for multi-role aircraft, naval vessels MRO, and aircraft simulators.
- The MoD is expected to invest in fighters and Multi-role aircraft, fighters & multi-role aircraft MRO and aircraft simulators.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Finnish 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 Finnish 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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