Future of the Danish Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
Russia's annexation of Crimea in 2014 and the country's increasing assertive behavior in Eastern Europe has led to Denmark paying more attention to deterrence in the Baltic region by adapting to NATO's new priorities with regards to the reinforcement of collective defense and deterrence. Also, growing instability in the Sahel-region, North Africa and the Middle East provides a breeding ground for Islamic militants that create the foundation for terrorism and illegal migration threating Denmark's sovereignty and security.
Denmark's military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019. Over the forecast period, the country's defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%. The country's defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
The country's homeland security (HLS) expenditure decreased from US$90.3 million in 2015 to US$66.9 million in 2019, at a CAGR of -7.23%. Over the forecast period, expenditure on HLS is projected to decrease further, from US$66.9 million in 2020 to US$64.9 million in 2024, at a CAGR of -0.78%. The decrease in HLS spending is a result of the country's increasing focus on military modernization and defense procurements. However, the HLS spending will be primarily driven by efforts to combat the rising number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend the country's borders.
While Denmark is majorly dependent on the US for its defense equipment, there was a considerable increase in the country's defense exports during 2014-2018. In 2012, the Danish government formulated the “Open to Business” initiative, under which the country aimed to boost its exports of military goods and services. The initiative also tasked the Ministry of Defense (MoD) with helping its domestic manufacturers to gain access to advanced technology through its offset programs.
The report "Future of the Danish 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: Systematic A/S, Terma A/S, Copenhagen Sensor Technology ApS, Danish Aerotech A/S, Falck Schmidt Defense Systems A/S, IFAD TS A/S
Scope
Reasons to buy
Summary
Russia's annexation of Crimea in 2014 and the country's increasing assertive behavior in Eastern Europe has led to Denmark paying more attention to deterrence in the Baltic region by adapting to NATO's new priorities with regards to the reinforcement of collective defense and deterrence. Also, growing instability in the Sahel-region, North Africa and the Middle East provides a breeding ground for Islamic militants that create the foundation for terrorism and illegal migration threating Denmark's sovereignty and security.
Denmark's military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019. Over the forecast period, the country's defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%. The country's defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
The country's homeland security (HLS) expenditure decreased from US$90.3 million in 2015 to US$66.9 million in 2019, at a CAGR of -7.23%. Over the forecast period, expenditure on HLS is projected to decrease further, from US$66.9 million in 2020 to US$64.9 million in 2024, at a CAGR of -0.78%. The decrease in HLS spending is a result of the country's increasing focus on military modernization and defense procurements. However, the HLS spending will be primarily driven by efforts to combat the rising number of internal security threats, terrorist attacks, cyber-crimes, and the need to defend the country's borders.
While Denmark is majorly dependent on the US for its defense equipment, there was a considerable increase in the country's defense exports during 2014-2018. In 2012, the Danish government formulated the “Open to Business” initiative, under which the country aimed to boost its exports of military goods and services. The initiative also tasked the Ministry of Defense (MoD) with helping its domestic manufacturers to gain access to advanced technology through its offset programs.
The report "Future of the Danish 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 defense industry market size and drivers: detailed analysis of the Danish 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
- Porter's Five Force analysis of the Danish 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
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Danish 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: Systematic A/S, Terma A/S, Copenhagen Sensor Technology ApS, Danish Aerotech A/S, Falck Schmidt Defense Systems A/S, IFAD TS A/S
Scope
- Denmark's military expenditure values US$3.8 billion in 2019 and registered an increasing CAGR of 7.44% during 2015-2019.
- Over the forecast period, the country's defense budget is expected to increase from US$4.0 billion in 2020 to US$4.3 billion in 2024, reflecting a CAGR of 1.61%.
- The country's defense expenditure is expected to further increase with regards to changing climatic conditions in the arctic, which is making the region more accessible for the extraction of natural resources, as well as intensified commercial activity. This in turn necessitates increased presence and monitoring of the region.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Danish 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 Danish 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
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
9. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Systematic A/S
- Terma A/S
- Copenhagen Sensor Technology ApS
- Danish Aerotech A/S
- Falck Schmidt Defense Systems A/S
- IFAD TS A/S
