Outlook on Israeli Defense Industry – 2017

Future of the Israeli Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2017

This report provides detailed information regarding Israeli defense industry which includes in depth analysis of both historic and forecast defense industry values such as key growth stimulators, analysis of the leading companies in the industry. 

This market research report is also provides detailed analysis of the current industry size and growth expectations from 2013 to 2017 which highlights the key growth stimulators and also provides a detailed understanding of emerging opportunities in specific areas of the global market.

The report also provides insight into the market opportunities along with the strategies adopted by foreign original equipment manufacturers (OEMs) in order to gain market share in the Israeli defense industry.

Key findings of the report

• The Israeli defense market in 2012 accounted to be US$13.10 billion, and hence was the third largest military expenditure in the Middle East. And during the same review period, Israeli defense expenditure had decreased to a CAGR of -0.94%.
• But a huge growth in CAGR of 2.97% is expected in 2017 which would be partially due to the US$15.5 billion of military aid from the US scheduled between 2013 and 2017. Israel spending is estimated to be US$71.3 billion on defense during the forecast period, mainly because of the continued security threats from Iran, Syria, and other neighbouring Arab countries. And during the same period, the military aid of US$3.1 billion per year from the US will continue to increase the spending power of the country.
• Between 2013 and 2017, Israel is expected to accelerate its defense procurement plans to prepare for potential confrontations with Iran or Syria. And during this period, the global demand for UAVs is expected to rise along with the accumulation of weapons of mass destruction, so that it can be used to prevent terrorist activities. In order to fulfil this global demand for UAVs, Israel is likely to increase its investment in the research and development platforms along with an increase in its security budget.
• Ammunition, defense electronics, small arms, artillery, armoured vehicles, sophisticated land and air defense systems are the defence products that are largely exported by Israel. Among them, sensors, armoured vehicles, and missiles were the three most exported defense goods during 2007-2011 which had market shares of 32%, 22.8%, and 22.8% respectively.
• In 2012, around 1,351 terrorist incidents took place in Israel and because of this increasing number of terrorist activities; it has forced the nation to enhance its homeland security.
• Illegal immigration into Israel rose to around 1000% between 2005 and 2008. In 2008, approximately 7,500 people known to have gain access to the country through the southern border. Within the country, since majority of these immigrants work as illegal labourers, with little access to healthcare or permanent housing, and no access to welfare, it has been reported that many are forced to make a living from an underground economy, as per the reports given by Israel security agency.  
• The Israeli government has introduced mandatory offsets for all defense transactions exceeding US$5 million. Israel also stocks US military hardware such as armoured vehicles and artillery shells, which can be used in the case of an emergency.
• Israel has developed a largely self-sufficient domestic defense industry in the last 50 years which is capable enough to satisfy majority of its defense requirements. Even then, the country still continues to depend on the external technologies in order to fulfil it’s more advanced requirements which include aircraft, air defense systems, and submarines. And because of this, majority of foreign OEMs will show interest in making an entry into the Israeli defense industry and form an alliance with Israeli defense firms in order to jointly develop and market defense equipment in the international market, which will be a major benefit to the foreign companies to capitalize on Israeli expertise in unmanned aerial vehicles, missile defense systems, and defense electronics.

Why is this report necessary?

The report provides key information about the latest trend of imports and exports, along with their implications and impact on the Israeli defense industry. It also covers five forces analysis to identify various power centres in the industry and how these are expected to develop in the future. It helps in identifying the possible ways to enter the market, along with the detailed descriptions about the existing companies which includes key contracts, alliances, and strategic initiatives. The report is very useful for understanding the competitive landscape of the defense industry in Israel. It also provides important information on key alliances, strategic initiatives, and a brief financial analysis of major defense companies, both domestic and foreign.  

The report also covers vital information about various defence companies in Israel which include General Dynamics, Navistar Defense, Lockheed Martin, Raytheon, Rafael Advanced Defense System, Israel Aerospace Industries, Israel Military Industries, Israel Shipyards and Elbit Systems.

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