This report is the result of Publisher's
extensive market and company research covering the Norwegian 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 Norwegian 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 Norwegian defense industry.
What
is the current market landscape and what is changing?
Norway's total defense expenditure
stands at US$7 billion in 2014 and is expected to grow at a CAGR of 5.50% over
the forecast period, to reach US$9.1 billion in 2019; this increase in defense
expenditure can be attributed to the modernization and training programs that
are expected to be executed during the forecast period. Norwegian defense
expenditure is further driven by participation in peacekeeping initiatives, the
procurement of military aircraft such as the F-35 fighter aircraft, the
Norwegian All Weather Search and Rescue Helicopter (NAWSARH) program, Advanced
Medium Range Air-to-Air Missiles (AMRAAM), upgrade and support for C-130J aircraft
the soldier modernization program, cyber security and the procurement of
advanced technology equipment. The country's defense budget stands at 1.33% of
GDP in 2014 and is expected to increase marginally to 1.42% 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 grow at the same average
during the forecast period.
What
are the key drivers behind recent market changes?
Modernization of the armed forces and international
peacekeeping operations
What
makes this report unique and essential to read?
The Future of the Norwegian Defense
Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2019
provides 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 Norwegian 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 Norway. 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 Norwegian defense industry favors
Scandinavian and European countries for defense trade, as it is a member of the
European Defense Agency, which limits the scope for foreign companies to enter
the Norwegian defense industry. Furthermore, the country follows a strict
offset policy, according to which, offsets are mandatory for all transactions
exceeding NOK50 million, and investors are required to reinvest 100% of the
value of the contract into the Norwegian economy. Moreover, if the investor is
unable to meet the offset obligation, a penalty is issued of a minimum of 10%
of the outstanding amount. Finally, the relatively high cost of labor in the
country may be an additional deterrent for potential investors.
The Norwegian Government has adopted a
new set of rules for defense exports after the Iraq war massacre in 2012; these
rules further tighten the export policy of Norway, affecting the country's budget
deficit, and forbid Norwegian exports to nations engaged in warfare. In
addition, new laws also ban export to countries that are not part of the NATO
agreement. The following factors are listed in new laws adopted by the
Norwegian defense industry, which determine where weapons can be exported:
- Attitudes to international human rights instruments, and respect for humanitarian law; respect for civil and political rights
- Reports by competent organizations of serious violations of human rights, including the use of torture or other inhuman and degrading treatment or punishment in the receiving state, or the arbitrary deprivation of liberty
- The risk that the exported items could be used for the violation of basic human rights, e.g., using military equipment to crack down on peaceful demonstrations.
Find All Defence
Reports at: http://www.marketresearchreports.com/defence
Key
Highlights
The Norwegian MoD is in the process of
modernizing its armed forces with advanced equipment; in 2010, the country
passed a long term defense plan, which was again revised in 2012. It outlined
modernization plans, including the procurement of 48 F-35 fighter jets,
additional funding for the home guard, advanced training for the armed forces
and home guard, and a special allocation for cyber security. Furthermore, in
early 2013 the Norwegian Defence Logistics Organization (NDLO) has contracted
with Iveco Defense Vehicles for a tranche of 60 light armored vehicles and this
procurement is expected to increase the total fleet to 170 units. In 2012, the
country finalized on modernizing its land forces and proposed to spend US$750
million to upgrade and manufacture 146 CV90 armored combat vehicles which will
significantly enhance army's operational capabilities. The program is expected
to complete in 2017 after adding 41 new CV90 armored fighting vehicles (AFVs)
and upgrading 103 current CV90s. The prime contractors include BAE Systems
manufacturing new vehicles and Kongsberg Defence and Aerospace, who will supply
the integrated data and information system, installation of weapon systems,
sensors, communication and security systems.
The Norwegian government is increasing
its efforts to strengthen its position on cyber security and has drafted a new
National Cyber Defense Strategy (NCDS) in this regard. The initiative will be
run under the Ministry of Defense's (MoD's) jurisdiction with an objective to
create a common situational understanding of the cyber threat, secure
information and communication systems, fortify the ability to detect,
investigate and combat incidents. The Norwegian Armed Forces have established
the Norwegian Cyber Defence in September 2012 with 1500 force employee and the
unit will be responsible for counter-cyber warfare in Norway. Furthermore,
cyber security is one of the main priorities in the 2014 defence budget and the
National Security Authority has been sanctioned an additional contribution of
20.2 million NOK in preserving national cyber security.
Overall, defense imports decreased
during the review period; however, due to the modernization and procurement
plans of the Norwegian MoD, Norwegian defense imports are expected to increase
over the forecast period. European countries such as France, Germany, Italy,
and the UK are expected to remain the key suppliers during the forecast period.
Norway was the world's fifteenth-largest arms exporter during 2008-2012, with
the country contributing a share of 0.6% of all global arms exports during the
same period. During the forecast period, the country's defense exports are
expected to grow significantly as a result of expansion into Thailand,
Singapore, and South Africa, in which, demand for defense equipment is expected
to be strong. Furthermore, new collaboration programs with foreign OEMs are
also expected to drive Norwegian defense exports over the forecast period.
Spanning
Over 162 pages, 68 tables, 100 figures, “Future
of the Norwegian 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 10
companies - Kongberg Defense Systems, NAMMO AS, Kitron, Forsvarets Forsknings
Institutt, Natech NSV AS, Jotne EPM, Technology, Thales Norway AS, Sea-Hawk
Navigation AS, Umoe Mandal, Eidsvoll Electronics AS (Eidel)
Inquiry for more information
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Find other reports on Norway Market at : http://www.marketresearchreports.com/countries/norway
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