Finnish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Finnish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

  • October 2019 •
  • 69 pages •
  • Report ID: 5823121 •
  • Format: PDF
Finnish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary
Finland is a geo-strategically vital base due to it being in Russia’s vicinity.Political and military developments in Russia significantly influence the country’s security.

The Baltic Sea is a predominant logistic transport corridor for Finland, and Russia’s rising interests in this area are expected to impact the country’s security. The Finnish annual defense budget is valued at US$0.60 billion in 2019 and is expected to grow at a CAGR of 6.66% over the forecast period to reach US$0.76 billion in 2023. This increase can be attributed to international peacekeeping missions, modernization initiatives, and a perceived security threat from Russia.

Finland’s capital expenditure allocation, which stood at an average of US$0.16 billion during the historic period, is projected to increase to an average of US$0.32 billion over 2020-2024. Key opportunities for equipment suppliers are expected to cover the program to replace the current fleet of 62 Boeing F/A-18 Hornet fighters and the Finnish Defense Forces Logistics Command procurement of surface-to-air missile systems (ITO20) for its Pohjanmaa-class corvettes as part of the Squadron 2020 project.

Finnish defense expenditure as a percentage of GDP recorded an average of 0.23% during 2015-2019 and is expected to average 0.25% over the forecast period. Finnish per capita income stood at an average of US$98.3 with a CAGR of 4.33% during 2015-2019 and is set to increase to an average of US$124.8 with a CAGR of 4.13% over the forecast period.

Finland has a developed defense industry that is mainly focused on the production of land-based systems; as such, for other advanced military hardware, the country depends on imports from other nations.Imports are expected to increase over the forecast period.

Finland supplied defense equipment to Poland, the UK, Sweden, Egypt, Ireland, the UAE, Saudi Arabia, Chile, Colombia, Norway, and Algeria during 2014-2018, while the country’s largest amount of defense exports were sent to Poland in 2014. Exports are expected to increase over the forecast period.

The report “Finnish Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” offers detailed analysis of the Finnish 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, it provides an in-depth analysis of the following -

- The Finnish defense industry market size and drivers: detailed analysis of the Finnish 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.

It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of the Finnish 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 Finnish 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: Patria, Krauss-Maffei Wegmann, Maschinenbau Kiel, Hollming Oy, Marine Alutech, Raytheon, Denel dynamics

Scope
- Finland’s total defense expenditure stands at US$0.60 billion in 2018, and is expected to grow at a CAGR of 6.66% over the forecast period, to reach US$0.84 billion in 2024. Finnish defense expenditure is primarily driven by participation in peacekeeping initiatives, the soldier modernization program, naval fleet modernization initiatives 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, modernizing corvettes and acquiring land based C4ISR systems.
- Finnish defense capital expenditure is expected to increase from US$0.22 billion in 2019 to US$0.42 billion in 2024, growing at a CAGR of 14.77%. The Finnish Defense Ministry is expected to procure multirole fighter aircraft, search and rescue helicopters, armored vehicles, main battle tanks, cyber security, a joint strike missile (JSM) system, and submarines. Revenue expenditure is expected to increase from US$0.38 billion in 2019 to US$0.42 billion in 2024, attributed to additional training and development programs that are to be undertaken over the forecast period.
- The country is anticipated to spend significantly on fighters and multirole aircraft, land-based C4ISR, corvettes, in addition to cyber security, surveillance systems, airport security, biometric systems, video-surveillance systems, training, and cyber security software during the forecast period.

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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