Sri Lankan Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Sri Lankan Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

The Sri Lankan defense budget is anticipated to value US$2.1 billion by 2024, growing at a CAGR of 3.28%. Sri Lanka's military expenditure, which stands at US$1.8 billion in 2019, is anticipated to grow from US$1.9 billion in 2020 to value US$2.1 billion in 2024, registering a CAGR of 3.28% over the forecast period. The growth will primarily be fueled by rehabilitation initiatives by the country following the civil war; the threat of the re-emergence of LTTE affiliates, the growing influence of IS (Islamic State) and an increased focus on maritime security.

Military expenditure, on a cumulative basis, is anticipated to be US$9.9 billion over the forecast period, which is higher than the US$9.6 billion spent during the historic period. The defense budget as a percentage of GDP is expected to decrease from an average of 2.2% during 2015-2019 to 1.6% over 2020-2024. The country's per capita defense expenditure is expected to increase from US$83.8 in 2020 to US$91.2 in 2024.

Over the forecast period, the country's capital expenditure allocation is expected to average 10.5%, and revenue expenditure is expected to cap at an average of 89.5%. Capital expenditure over the forecast period is expected to increase at a CAGR of 2.81%, from US$198 million in 2020 to US$221.3 million in 2024. This is primarily due to the procurement of advanced defense equipment and a focus on indigenous defense manufacturing capabilities.

Sri Lankan homeland security expenditure valued US$485.8 million in 2020 and is expected to grow at a CAGR of 3.60% to reach US$559.6 million in 2024 over the forecast period. This expenditure is primarily driven by the country's efforts to build its internal security system to counter the growing problems of LTTE resurgence, communal violence, the growing influence of IS and the growing threats from humans, weapons, and drug traffickers.

The Sri Lankan defense industrial base is largely undeveloped and, as a result, the country is highly dependent on foreign suppliers to meet its military needs. During 2014-2018, India emerged as the largest supplier of defense equipment to the country, accounting for 49.7% of total arms imports, followed by the US with 36.2%. Naval vessels were the most imported military hardware during this period, with 89.3% of the total market share; this trend is expected to continue over the forecast period.

The report “Sri Lankan Defense 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.

This report offers detailed analysis of the Sri Lankan defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -

• The defense industry market size and drivers: detailed analysis of the Sri Lankan 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 Sri Lankan 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 Sri Lankan 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: Bharat Electronics India, Goa Shipyard Limited, Hongdu/Pakistan Aeronautical Complex (PAC) Kamra, Rosoboronexport, Xi'an Aircraft Industrial Corporation, Israel Aerospace Industries (IAI), Hindustan Aeronautics Limited (HAL), Colombo Dockyard Plc. (CDPLC)

Scope

• Sri Lanka's military expenditure, which stands at US$1.8 billion in 2019, is anticipated to grow from US$1.9 billion in 2020 to value US$2.1 billion in 2024, registering a CAGR of 3.28% over the forecast period.


• The growth will primarily be fueled by rehabilitation initiatives by the country following the civil war; the threat of the re-emergence of LTTE affiliates, the growing influence of IS (Islamic State) and an increased focus on maritime security.

Reasons to buy

• This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Sri Lankan 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 Sri Lankan defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.