This report is the extensive market and
company research covering the Finnish defense industry, and provides detailed analysis
of both historic and forecast defense industry values including key growth
stimulators, analysis of the leading companies in the industry, and key news.
Introduction
and Landscape
Why
was the report written?
The Future of the Finnish Defense Industry
- Market Attractiveness, Competitive Landscape, and Forecasts to 2019offers the
reader an insight into the market opportunities and entry strategies adopted by
foreign original equipment manufacturers (OEMs) to gain market share in the
Finnish defense industry.
What
is the current market landscape and what is changing?
Finland's total defense expenditure
stands at US$3.7 billion in 2014 and is expected to grow at a CAGR of 5.79%
over the forecast period, to reach US$4.34 billion in 2019. Finnish defense
expenditure is primarily driven by participating in peacekeeping initiatives,
the upgrade of military equipment such asF-18 Hornet jet fighters, the soldier
modernization program, and the procurement of advanced technology equipment.
The Finnish defense industry is expected to focus its expenditure on NASAMS II
missile system, Leopard 2A6 main battle tanks, soldier combat systems,
transport helicopters, ballistic protection and smart munitions systems, cyber
security, and C4ISR systems. The country's defense budget stands at 1.16% of
GDP in 2014 and is expected to increase marginally to 1.23% of GDP by 2019.
During 2010-2014, the average capital expenditure allocation stood at 31.6% of
the total defense budget, and this is expected to increase marginally over the
forecast period to reach 32.1%. Revenue expenditure is expected to decrease
from an average of 68.4% during 2010-2014 to 67.9% in the forecast period due
to austerity measures by the government. The defense ministry plans to reduce
the number of mobilized troops from 350,000 to 230,000 by 2015 and save on
training costs by conducting joint activities with the Nordic partners.
What
are the key drivers behind recent market changes?
Modernization of defense systems,
participation in peacekeeping initiatives, and the perceived threat from Russia
expected to drive Finnish defense expenditure.
What
makes this report unique and essential to read?
The Future of the Finnish Defense
Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2019provides
detailed analysis of the current industry size and growth expectations from
2015 to 2019, including highlights of key growth stimulators. It also
benchmarks the industry against key global markets and provides a detailed
understanding of emerging opportunities in specific areas.
Key
Features and Benefits
- The report provides detailed analysis of the current industry size and growth expectations from 2015 to 2019, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on the Finnish defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- The report allows readers to identify 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.
- The report helps the reader to understand the competitive landscape of the defense industry in Finland. 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.
Key
Market Issues
The Finnish defense industry favors
Nordic and European countries for defense trade, as Finland is a member of the
European Defense Agency and NORDEFCO (Nordic Defence Cooperation), which limits
the scope for foreign companies to enter Finland's defense industry.
Furthermore, the country follows a strict offset policy, according to which,
offsets are mandatory for all transactions exceeding US$13.3 million and
investors are required to reinvest 100% of the value of the contract into the
Finnish economy. In the case of failure to perform, the foreign investor is
obligated to pay a predetermined percentage of the unfulfilled offset
obligation.
The Finnish defense forces are affected
by the economic slowdown and are cutting operating costs, which is likely to
affect training programs and encouraging participation in joint cross-border
air and naval Nordic operations to save cost. Finland's state debt is forecast
to increase further, causing lean times for the country's defense industry. The
proposed steps for the forecast period include the closure of some military
bases, a more centralized leadership structure, and the discontinuation of the
existing four Provincial Command military districts. These changes will be
implemented as part of a National Defense Reform Program (NDRP), which also
includes a reduction in the number of professional soldiers across all ranks
and the redundancies of administrative civilian personnel in the defense forces
during 2012-2016.Furthermore, these cuts are leading to the procurement of
second-hand equipment from other countries and joint procurement programs with
Nordic countries. In January 2014, the defense force has decided to carry out a
reform which will reduce the military divisions from 26 to 16 in the coming two
years with an estimated cost saving of US$183 million by 2015.
Key
Highlights
The Finnish armed forces have failed to
embark on a defense modernization plan in the past decade, resulting in
obsolete military hardware. Furthermore, the nation's participation in
international peacekeeping missions has created demand for advanced defense
systems such as fighter aircrafts, air surveillance systems, night vision
systems, assault rifles, simulators, ballistic protection, helmet systems, and
communication systems. Additionally, Finland is increasing its efforts to
upgrade its air defense missile capabilities by procuring NASAMS II system,
jointly developed by Norwegian Kongsberg Defense and US Raytheon under a
contract worth US$460 million. Moreover, the country is anticipated to spend
more than US$1 billion on the upgrade of the F-18 super hornet military
aircraft during the forecast period. Due to austerity measures, the defense
ministry is forced to focus on the acquisition of high quality secondhand
equipment. In January 2014, the country joined with the Netherlands to purchase
100 secondhand Leopard 2A6 main battle tanks under a contract worth US$274
million. This initiative was taken to strengthen the upgrade plan of the army's
armored battlefield units between 2015 and 2019. Furthermore, with the
government aiming to reduce its troop size by 100,000 over the next five years,
the country will be able to control revenue expenditures efficiently while
procuring advanced weapons.
The country is susceptible to organized
crime including the illicit drug trade, prostitution, and cyber-crimes.
However, the authorities perceive cyber-crime and payment card fraud as growing
threats. According to official data, an estimated 66 organized crime groups
with a total of 948 members were operating in Finland during 2009.
Additionally, the country serves as a transit hub and destination for women and
girls trafficked from Russia, Estonia, Lithuania, Latvia, Ukraine, Belarus,
Moldova, the Caucasus, China, and Thailand. Moreover, Finland is a destination
for men and women trafficked for forced labor from China, Pakistan, and
Bangladesh. The government enhanced its anti-trafficking measures in 2012 with
increased collaboration between labor inspectors and police officials.
Additionally, the Finnish Border Guard is focused on upgrading to the latest
technology to assist in protecting its land borders, and is improving its
sensor technology and updating data systems. Furthermore, the country plans to
recruit 455 police officers by 2020 to provide enhanced internal security. In
order to prevent these crimes, Finland will need to invest in surveillance
equipment such as CCTV and enhance its border security by procuring electronic
identification systems and automated border crossing systems.
In recent years, there have been a
growing number of collaborations between Nordic countries which will enhance
the defense capabilities of the country along with boosting the indigenous
market. Finland is a part of NORDEFCO (Nordic Defence Cooperation) which is a
collaboration among the Nordic countries, established in 2009, with the
objective of strengthening the member countries' defense capabilities and
operational capacity through cost-effective collaboration. The partners have
witnessed converging military needs including explosive devices, long-range
precision weapons, air surveillance, ground air defenses, and future mechanized
battalion system. Therefore, member countries have planned strategic solutions
including enhanced regional security, heightened common equipment procurements,
and the establishment of joint operating units. The Nordic Vision 2020, rolled
out in 2013, envisions an established committee of specialists and advisors
responsible for conducting joint capacity building and security sector reform
tasks. Moreover, regular cross-border training will contribute to maintaining
and developing capabilities jointly, which will assist in the rapid deployment
of forces to be used for the NATO Response Force and EU Battle Groups.
Furthermore, the members aim to increase interoperability and create a pool of
resources to facilitate air and sea surveillance in the Nordic region. For
example, Sweden and Finland will join NATO partners Norway and Denmark to
provide air surveillance patrols over Iceland in 2015.
Spanning over 107 pages, 28 tables and 67 figures “Future of the
Finnish Defense Industry - Market Attractiveness, Competitive Landscape and
Forecasts to 2019” report covering The Market Attractiveness and
Emerging Opportunities, Defense Procurement Market Dynamics, Industry Dynamics,
Market Entry Strategy, Competitive Landscape and Strategic Insights, Business
Environment and Country Risk, Appendix. The report covered 1 company - KADDB.
Inquiry for more information
visit: http://www.marketresearchreports.com/strategic-defence-intelligence/future-finnish-defense-industry-market-attractiveness-competitive-0
Find All Defence Reports at:- http://www.marketresearchreports.com/defence
Browser reports related to Finland at :
No comments:
Post a Comment