Summary
Singapore has the most technologically advanced armed forces among the Association of Southeast Asian Nation states. The capital expenditure allocation, which stood at an average of 3.7% during the historic period, is projected to increase to 4.0% over the forecast period. Although the Singapore Defense Force is considered to be the best equipped and well-trained force in Southeast Asia, the country plans to continue its procurement of advanced military hardware in order to counter the threats to national security.
The Singaporean defense budget is valued at US$11 billion in 2018, and registered a CAGR of 2.99% during the historic period. The budget in the historic period was mainly driven by the threats posed by terrorist organizations such as the Al-Qaeda-linked Jemaah Islamiah (JI), and other regional terrorist groups. The MoD is expected to invest in land based C4ISR, infrastructure construction and physical security of critical infrastructure among others.
Singapore procures the majority of its advanced and high-end defense equipment from foreign companies, with aircraft accounting for the largest share during 2014-2018. Historically, the US has been the largest supplier of weaponry to Singapore. The other significant imports to the country were armored vehicles, missiles, sensors, engines, air defense systems, and naval weapons. On the same time, Singapore also finds a place in the world’s top 30 defense exporters, owing to strong government support and successful attempts at product diversification by domestic companies. Singapore primarily exports defense equipment to Oman and the UAE. The country has also initiated the production of its own ships and artillery.
The Future of the Singaporean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
In particular, it provides an in-depth analysis of the following:
- The Singaporean defense industry market size and drivers: detailed analysis of the Singaporean 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 with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
- Porter’s Five Force analysis of the Singaporean 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 Singaporean 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: Boeing, ThyssenKrupp Marine Systems, Thales, Singapore Technologies Aerospace (ST Aerospace), Singapore Technologies Marine (ST Marine), Singapore Technologies Electronics (ST Electronics) and Singapore Technologies Kinetics (ST Kinetics)
Scope
- The Singaporean defense budget is valued at US$11 billion in 2018, and registered a CAGR of 2.99% during the historic period. The budget in the historic period was mainly driven by the threats posed by terrorist organizations such as the Al-Qaeda-linked Jemaah Islamiah (JI), and other regional terrorist groups.
- The capital expenditure allocation, which stood at an average of 3.7% during the historic period, is projected to increase to 4.0% over the forecast period. Although the Singapore Defense Force is considered to be the best equipped and well-trained force in Southeast Asia, the country plans to continue its procurement of advanced military hardware in order to counter the threats to national security.
- The MoD is expected to invest in land based C4ISR, infrastructure construction and physical security of critical infrastructure among others.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Singaporean 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 Singaporean defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Table of Contents
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defense Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Defense expenditure expected to grow at a CAGR of 3.14% during 2019-2023
3.2.2. Countering terrorist threats, acquiring sophisticated military equipment and overseas training requirements are expected to drive defense expenditure
3.2.3. Defense expenditure as a percentage of GDP is expected to average 3.0% during 2019-2023
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure allocation is expected to increase over the forecast period
3.3.2. Singapore’s defense capital expenditure to value US$536.4 million in 2023
3.3.3. Per capita defense expenditure to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland Security (HLS) is expected to grow at CAGR 8.27% over the forecast period
3.4.2. Border protection and cyber security are driving the country’s homeland security budget
3.4.3. Singapore considered at ‘some risk’ of terrorist attack
3.4.4. Singapore scores 0.0 on the Terrorism Index
3.4.5. Singapore faces a moderate threat from foreign terrorist organizations
3.5. Benchmarking with Key Global Markets
3.5.1. Singapore has the second highest defense expenditure in Southeast Asia
3.5.2. The country’s defense budget is high compared to other Southeast Asian countries
3.5.3. As a percentage of GDP, Singapore’s defense expenditure ranks among the top 20 in the world
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023
3.6.2. Critical Infrastructure Protection (CIP) - Physical Security
3.6.3. C4ISR - Land-based
3.6.4. Military Infrastructure and Logistics - Infrastructure Construction
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to increase over the forecast period
4.1.2. The US dominated Singaporean defense imports from 2013-2017
4.1.3. Aircraft was the major defense import during 2013-2017
4.2. Export Market Dynamics
4.2.1. Arms’ export expected to increase over the forecast period
4.2.2. Oman emerged as the biggest importer of Singaporean defense equipment
4.2.3. Ships accounted for the majority of defense exports between 2013 and 2017
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Low to Medium
5.1.2. Bargaining Power of Buyer: Medium to High
5.1.3. Barrier to Entry: Medium
5.1.4. Intensity of Rivalry: High
5.1.5. Threat of Substitution: High
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Defense policy requires investments in training and technology to develop domestic capabilities
6.1.2. Favorable FDI policies to attract foreign OEMs
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. The transfer of technology is a key entry strategy for foreign OEMs
6.3. Key Challenges
6.3.1. Restricted availability of production discourages foreign investments
6.3.2. Limited defense budget discourages investors from entering market
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Singapore’s defense sector has a mix of domestic and foreign competitors
7.2. Key Foreign Companies
7.2.1. Boeing: Overview
7.2.2. Boeing: Products and Services
7.2.3. Boeing: Recent announcements and strategic initiatives
7.2.4. Boeing: Alliances
7.2.5. Boeing: Recent Contract Wins
7.2.6. ThyssenKrupp Marine Systems: Overview
7.2.7. ThyssenKrupp Marine Systems: Products
7.2.8. ThyssenKrupp Marine Systems: Recent Announcements and Strategic Initiatives
7.2.9. ThyssenKrupp Marine Systems: Recent Contract Wins
7.2.10. Thales: Overview
7.2.11. Thales: Products
7.2.12. Thales: Recent Announcements and Strategic Initiatives
7.2.13. Thales: Alliances
7.2.14. Thales: Recent Contract Wins
7.2.15. Singapore Technologies Aerospace: Overview
7.2.16. Singapore Technologies Aerospace: Products
7.2.17. Singapore Technologies Aerospace: Recent Announcements and Strategic Initiatives
7.2.18. Singapore Technologies Aerospace: Alliances
7.2.19. Singapore Technologies Aerospace: Recent Contract wins
7.2.20. Singapore Technologies Marine: Overview
7.2.21. Singapore Technologies Marine: Products
7.2.22. Singapore Technologies Marine: Recent Announcements and Strategic Initiatives
7.2.23. Singapore Technologies Marine: Alliances
7.2.24. Singapore Technologies Marine Recent Contract Wins
7.2.25. Singapore Technologies Electronics: Overview
7.2.26. Singapore Technologies Electronics: Products and Services
7.2.27. Singapore Technologies Electronics: Recent Announcements and Strategic Initiatives
7.2.28. Singapore Technologies Electronics: Alliances
7.2.29. Singapore Technologies Electronics: Recent contract wins
7.2.30. Singapore Technologies Kinetics: Overview
7.2.31. Singapore Technologies Kinetics: Products and Services
7.2.32. Singapore Technologies Kinetics: Recent Announcements and Strategic Initiatives
7.2.33. Singapore Technologies Kinetics: Alliances
7.2.34. Singapore Technologies Kinetics: Recent Contract Wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per Capita
8.1.2. Gross Domestic Product
8.1.3. Exports of Goods and Services (LCU Billion)
8.1.4. Imports of Goods and Services (LCU Billion)
8.1.5. Gross National Disposable Income
8.1.6. LCU per US$ (Period Average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP
8.1.10. Goods Exports as a Percentage of GDP
8.1.11. Goods Imports as a Percentage of GDP
8.1.12. Services Imports as a Percentage of GDP
8.1.13. Services Exports as a Percentage of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net Foreign Direct Investment as a Percentage of GDP
8.1.16. Mining, Manufacturing, Utilities Output
9. Appendix
List of Tables
Table 1: Singapore - Army Strength, 2018
Table 2: Singapore - Air Force Strength, 2018
Table 3: Singapore - Navy Strength, 2018
Table 4: Singapore - Ongoing Development and Procurement Programs, 2018
Table 5: Singapore - Future Procurement Programs, 2018
Table 6: Singapore - Top Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Singapore - Defense Expenditure (SGD Billion & US$ Billion), 2014-2023
Table 8: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 9: Singapore - Defense Budget Allocation for Capital and Revenue Expenditure (%), 2014-2023
Table 10: Singapore - Defense Capital Expenditure, (SGD Billion & US$ Billion), 2014-2023
Table 11: Singapore - Defense Expenditure as Per Capita Defense Spend (US$), 2014-2023
Table 12: Singapore Homeland Security Expenditure (SGD Billion & US$ Billion), 2014-2023
Table 13: Terrorism Index, 2018
Table 14: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023
Table 15: Top Singapore Defense Sectors by Value (US$ Million), 2018-2023
Table 16: Singapore Budget Process
Table 17: Top Defense Suppliers in Singapore Defense Industry - By Value (US$ Million) 2018-2023
Table 18: Boeing. - Products
Table 19: Boeing - Alliances
Table 20: Boeing - Recent Contract Wins
Table 21: ThyssenKrupp Marine Systems - Product Focus
Table 22: ThyssenKrupp Marine Systems - Recent Contract Wins
Table 23: Thales - Products
Table 24: Thales - Alliances
Table 25: Thales - Recent Contract Wins
Table 26: Singapore Technologies Aerospace - Products and Services
Table 27: Singapore Technologies Aerospace - Alliances
Table 28: Singapore Technologies Aerospace - Recent Contract Wins
Table 29: Singapore Technologies Marine - Products
Table 30: Singapore Technologies Marine - Alliances
Table 31: Singapore Technologies Marine - Recent Contract Wins
Table 32: Singapore Technologies Electronics - Products and Services
Table 33: Singapore Technologies Electronics - Alliances
Table 34: Singapore Technologies Electronics - Recent Contract Wins
Table 35: Singapore Technologies Kinetics - Products and Services
Table 36: Singapore Technologies Kinetics - Alliances
Table 37: Singapore Technologies Kinetics - Recent Contract Wins
List of Figures
Figure 1: Singapore Defense Expenditure (SGD Billion), 2014-2023
Figure 2: Singapore Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Figure 4: Singapore Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Singapore Defense Capital Expenditure (SGD Million), 2014-2023
Figure 6: Singapore Defense Capital Expenditure (US$ Million), 2014-2023
Figure 7: Singapore Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Singapore’s Homeland Security Expenditure (SGD Billion), 2014-2023
Figure 9: Singapore’s Homeland Security Expenditure (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Global Markets, 2014-2018 vs. 2019-2023
Figure 13: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2018 and 2023
Figure 14: Benchmarking with Large Defense Spenders as a Percentage of GDP - 2018
Figure 15: Critical Infrastructure Protection (CIP) - Physical Security Market Size (US$ Million), 2018-2023
Figure 16: C4ISR - Land Based Security Market Size (US$ Million), 2018-2023
Figure 17: Military Infrastructure and Logistics - Infrastructure Construction Market Size (US$ Million), 2018-2023
Figure 18: Top Singapore Defense Procurements in Terms of Supplier Relationships
Figure 19: Singapore Defense Import Trend, 2013-2017 (TIV values)
Figure 20: Singapore Defense Imports by Country (%), 2013-2017
Figure 21: Singapore Defense Imports by Weapon Category (%), 2013-2017
Figure 22: Singaporean Defense Exports by Value, 2013-2017
Figure 23: Singaporean Defense Exports by Country (US$ million), 2013-2017
Figure 24: Singaporean Defense Exports by Category (%), 2013-2017
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis
Figure 26: Singapore GDP per Capita (US$), 2015-2025
Figure 27: Singapore GDP (current US$ Billion), 2015-2025
Figure 28: Singapore Exports of Goods and Services (LCU Billion), 2005-2014
Figure 29: Singapore Imports of Goods and Services (LCU Billion), 2005-2014
Figure 30: Singapore Gross National Disposable Income (US$ Billion), 2005-2013
Figure 31: Singapore LCU per US$, 2015-2024
Figure 32: Singapore Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 33: Singapore Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 34: Singapore Total Government Cash Surplus/Deficit (% of GDP), 2005-2012
Figure 35: Singapore Goods Exports (% of GDP), 2005-2014
Figure 36: Singapore Goods Imports (% of GDP), 2005-2014
Figure 37: Singapore Services Imports (% of GDP), 2005-2014
Figure 38: Singapore Services Exports (% of GDP), 2005-2014
Figure 39: Singapore Net Foreign Direct Investment (US$ Billion), 2005-2014
Figure 40: Singapore Net Foreign Direct Investment (% of GDP), 2005-2014
Figure 41: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Boeing
- Singapore Technologies Aerospace (ST Aerospace)
- Singapore Technologies Electronics (ST Electronics)
- Singapore Technologies Kinetics (ST Kinetics)
- Singapore Technologies Marine (ST Marine)
- Thales
- ThyssenKrupp Marine Systems
Methodology
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