Future of the Kazakh Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Military fleet size
3.1.2. Procurement Programs
3.1.3. Key Drivers and Challenges
3.2. Defense Market Size Historical and Forecast
3.2.1. Kazakh annual defense expenditure to reach US$4.6 billion by 2023
3.2.2. Modernization and acquisition of military equipment and counter-terrorism to drive Kazakhstan’s defense expenditure
3.2.3. The country’s defense expenditure as a percentage of GDP is expected to average 1.5% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure to increase considerably over the forecast period
3.3.2. Capital expenditure budget is expected to increase during the forecast period
3.3.3. Per capita defense expenditure expected to increase during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security budget is projected to increase at a CAGR of 7.79% during the forecast period
3.4.2. Human trafficking, drug smuggling, and cybercrime form the major components of homeland security expenditure
3.4.3. Kazakhstan is at some risk from external and internal threats
3.4.4. Kazakhstan faces moderate threats from terrorist organizations
3.4.5. Kazakhstan has a terrorism index score of 3.0
3.5. Benchmarking with Key Global Markets
3.5.1. Kazakh defense expenditure is expected to increase at a CAGR of 8.76% over the forecast period
3.5.2. Kazakhstan’s military expenditure is low when compared to countries with the largest defense expenditure
3.5.3. Kazakhstan allocates a low percentage of GDP to defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over period 2018-2023
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. The current need to modernize the armed forces will drive defense imports
4.1.2. Russia was the leading supplier of arms to Kazakhstan during the historic period; a trend that is expected to continue during the forecast period
4.1.3. Aircraft accounted for the majority of defense imports during 2010-2014
4.2. Export Market Dynamics
4.2.1. Kazakhstan does not export arms due to its under-developed domestic arms industry
5. Industry Dynamics
5.1. Market Regulation
5.1.1. Kazakhstan does not disclose any offset obligations imposed by the country
5.1.2. Foreign direct investment (FDI) in defense sector regulations are not disclosed by the government
5.2. Market Entry Route
5.2.1. Budgeting process
5.2.2. Government-to-government agreements are the preferred market entry route for foreign OEMs
5.2.3. Joint venture and license manufacturing agreements provide an attractive market entry route
5.3. Key Challenges
5.3.1. Corruption and lack of transparency create roadblock for foreign companies
5.3.2. Domination of Russian companies poses a challenge to other foreign firms
6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Kazakhstan
7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP Per Capita
7.1.2. GDP, Current Prices
7.1.3. Exports of goods and services (LCU Billion)
7.1.4. Imports of goods and services (LCU Billion)
7.1.5. Gross National disposable income (US$ Billion)
7.1.6. Local Currency Unit per US Dollars
7.1.7. Market capitalization of listed companies (US$ Billion)
7.1.8. Market capitalization of listed companies (% of GDP)
7.1.9. Goods exports as a % of GDP
7.1.10. Goods imports as a % of GDP
7.1.11. Services imports as a % of GDP
7.1.12. Service exports as a % of GDP
7.1.13. Foreign direct investment, net (BoP, current US$ Billion)
7.1.14. Net foreign direct investment as % of GDP
7.1.15. Mining, Manufacturing, Utilities Output
8. Appendix
8.1. About Us
8.2. Disclaimer

List of Tables
Table 1: The Kazakhstan Ground Forces Strength
Table 2: Kazakhstan Air Force Strength
Table 3: Kazakhstan Navy Strength
Table 4: Kazakh - Ongoing Development and Procurement Programs (US$ Million)
Table 5: The Kazakh - Future Procurement Programs
Table 6: Kazakh Defense Expenditure (KZT Billion and US$ Billion), 2014-2023
Table 7: Kazakh GDP Growth and Defense Expenditure as Percentage of GDP Growth (%), 2014-2023
Table 8: Kazakh Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Kazakh Defense Capital Expenditure (KZT Billion & US$ Billion), 2014-2023
Table 10: Kazakh Per Capita Defense Expenditure (US$), 2014-2023
Table 11: Kazakh Homeland Security Expenditure (KZT Billion and US$ Billion), 2014-2023
Table 12: Terrorism Index, 2018
Table 13: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Table 14: Top Kazakh - Defense Market Sectors by Value (US$ Million), 2018-2023
Table 15: Kazakh Budget Formation Timetable
Table 16: Competitive Landscape of the Kazakh Defense Industry

List of Figures
Figure 1: Kazakh Defense Expenditure (KZT Billion), 2014-2023
Figure 2: Kazakh Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Kazakh GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2013-2023
Figure 4: Kazakh Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Kazakh Capital Budget Expenditure (KZT Billion),2014-2023
Figure 6: Kazakh Capital Budget Allocation (US$ billion), 2014-2023
Figure 7: Kazakh Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Kazakh Homeland Security Budget (KZT Billion), 2014-2023
Figure 9: Kazakh Homeland Security Budget (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Kazakh Defense Import Trend(US$ million), 2013-2017 (TIV values)
Figure 16: Kazakh Defense Imports by Country (%), 2013-2017
Figure 17: Kazakh Defense Imports by Category (%), 2013-2017
Figure 18: Kazakh GDP Per Capita (US$), 2015-2025
Figure 19: Kazakh GDP, Current Prices (US$ Billion), 2015-2025
Figure 20: Kazakh Exports of Goods and Services (LCU Billion), 2005-2014
Figure 21: Kazakh Imports of goods and services (LCU Billion), 2005-2014
Figure 22: Kazakh Gross National Disposable Income (US$ Billion), 2005-2012
Figure 23: Local Currency per US$, 2015-2024
Figure 24: Kazakh Market capitalization of listed companies (US$ Billion), 2005-2012
Figure 25: Kazakh Market capitalization of listed companies (% of GDP), 2005-2012
Figure 26: Kazakh Goods exports as a % of GDP, 2005-2013
Figure 27: Kazakh Goods imports as a % of GDP, 2005-2013
Figure 28: Kazakh Services Imports as a % of GDP, 2005-2013
Figure 29: Kazakh Service Exports as a % of GDP, 2005-2013
Figure 30: Kazakh Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2013
Figure 31: Kazakh Net foreign direct investment as % of GDP, 2005-2013
Figure 32: Kazakh Mining, Manufacturing, Utilities Output (US$ Billion), 2005-2014

• Airbus


• Paramount Group


• Russian Aircraft Corporation MiG


• United Aircraft Corporation Irkut


• Uralvagonzavod


• Sagem


• Astrium


• Otokar


• Thales