Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
Belgium’s defense budget is to cumulatively value US$16.3 billion over 2020-2024. Belgium is streamlining its forces, and no longer has a separate army, air force and navy, but rather as a unified defense entity with land, air and sea components, served by a joint medical component. Opportunities related to the procurement of defense equipment in Belgium are expected to be in areas such as naval vessels, multirole aircraft, multirole aircraft MRO, transport aircraft, missiles and arms and ammunitions.
The country’s military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement. The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024. The country’s per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.
Belgium’s budget allocation for defense capital expenditure is expected to increase from 17% in 2019 to 22.7% in 2024. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.27%, from US$562.5 million in 2020 to US$773.1 million in 2024, owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.
The Belgian homeland security expenditure valued US$4.4 billion in 2019 and is expected to reach US$5.5 billion by 2024, registering a CAGR of 4.90% over 2020-2024. This expenditure is primarily driven by Belgium’s focus on combating the rising incidences of cyber-crimes, terrorism and drug trafficking. As Belgium’s defense force is relatively small, it often cooperates with the Netherlands and Luxembourg regarding joint exercises and procuring high-cost equipment. Belgium’s defense force’s area of expertise is demining, with an emphasis on sea demining.
The report "Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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 -
Companies mentioned: Israel Aerospace Industries (IAI), Lockheed Martin, Embraer, Airbus, NH Industries, Leonardo (SIAI Marchetti), Dassault/Dornier, MOWAG/ General Dynamics European Land Systems, Steyr-Daimler-Puch , Spezialfahrzeuge (SSF)/ General Dynamics, Damen Schelde Naval Shipbuilding (DSNS), Mecar SA., Thales Belgium, Northrop Grumman Corp, Airbus Helicopters
Scope
Reasons to Buy
Summary
Belgium’s defense budget is to cumulatively value US$16.3 billion over 2020-2024. Belgium is streamlining its forces, and no longer has a separate army, air force and navy, but rather as a unified defense entity with land, air and sea components, served by a joint medical component. Opportunities related to the procurement of defense equipment in Belgium are expected to be in areas such as naval vessels, multirole aircraft, multirole aircraft MRO, transport aircraft, missiles and arms and ammunitions.
The country’s military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement. The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024. The country’s per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.
Belgium’s budget allocation for defense capital expenditure is expected to increase from 17% in 2019 to 22.7% in 2024. Capital expenditure over the forecast period is expected to increase at a CAGR of 8.27%, from US$562.5 million in 2020 to US$773.1 million in 2024, owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.
The Belgian homeland security expenditure valued US$4.4 billion in 2019 and is expected to reach US$5.5 billion by 2024, registering a CAGR of 4.90% over 2020-2024. This expenditure is primarily driven by Belgium’s focus on combating the rising incidences of cyber-crimes, terrorism and drug trafficking. As Belgium’s defense force is relatively small, it often cooperates with the Netherlands and Luxembourg regarding joint exercises and procuring high-cost equipment. Belgium’s defense force’s area of expertise is demining, with an emphasis on sea demining.
The report "Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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 Belgium defense industry market size and drivers: detailed analysis of the Belgian defense industry during 2020-2024, 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
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Belgian defense industry
Companies mentioned: Israel Aerospace Industries (IAI), Lockheed Martin, Embraer, Airbus, NH Industries, Leonardo (SIAI Marchetti), Dassault/Dornier, MOWAG/ General Dynamics European Land Systems, Steyr-Daimler-Puch , Spezialfahrzeuge (SSF)/ General Dynamics, Damen Schelde Naval Shipbuilding (DSNS), Mecar SA., Thales Belgium, Northrop Grumman Corp, Airbus Helicopters
Scope
- Belgium's military expenditure, which stands at US$3.1 billion in 2019, is anticipated to grow from US$3.1 billion in 2020 to value US$3.4 billion in 2024, registering a CAGR of 1.99% over the forecast period, primarily fueled by the ongoing military hardware procurement.
- Military expenditure, on a cumulative basis, is anticipated to be US$16.3 billion, which is higher than the US$14.4 billion spent during the historic period.
- Belgium is an active participant in joint operations with the European Union (EU) and peacekeeping operations with NATO and the United Nations (UN), and as such, seeks higher spending in terms of its defense sector.
- The defense budget as a percentage of GDP is expected to decrease marginally from an average of 0.56% during 2015-2019 to 0.49% over 2020-2024.
- The country’s per capita defense expenditure is expected to increase from US$268.3 in 2019 to US$288.9 in 2024.
Reasons to Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Belgian 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 Belgian defense industry covering sections including demand drivers, key trends and latest industry contracts.
Table of Contents
1. Introduction
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Market Entry Strategy
6. Competitive Landscape and Strategic Insights
7. Business Environment and Country Risk
8. Appendix
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Israel Aerospace Industries (IAI)
- Lockheed Martin
- Embraer
- Airbus
- NH Industries
- Leonardo (SIAI Marchetti)
- Dassault/Dornier
- MOWAG/ General Dynamics European Land Systems
- Steyr-Daimler-Puch
- Spezialfahrzeuge (SSF)/ General Dynamics
- Damen Schelde Naval Shipbuilding (DSNS)
- Mecar SA.
- Thales Belgium
- Northrop Grumman Corp
- Airbus Helicopters
