Future of the Spain Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Market: Defense

Spain, 127 pages report, published by Strategic Defence Intelligence

Keywords : Defense, budget, offset, regulation, capital expenditure, homeland, drivers, market opportunities, procurement, entry route, key challenge, announcements, alliances, contract awards, financial analysis, business environment

Report ThumbnailJune-2017
Future of the Spain Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

The Future of Spain Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022, 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.

Synopsis

This report offers detailed analysis of Spain 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 -
- Spain defense industry market size and drivers: detailed analysis of Spain defense industry during 2018-2022, 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. It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of Spain 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 Spain defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Scope

- In 2017, the Spanish government allocated US$8.1 billion for the total defense budget, which recorded a CAGR of 0.79% between 2013 and 2017. The marginal growth in defense expenditure is primarily due to the aftershocks of the European debt crisis, which has greatly weakened the foundations of the Spanish economy and forced the country to rationalize and re-prioritize its defense spending. The country is expected to witness higher levels of budget allocations over the forecast period, during which the expenditure is anticipated to increase at a CAGR of 5.16%.
- During 2013-2017, revenue expenditure accounted for an average of 84.8% of the total Spanish defense expenditure. The remaining 15.2% was spent on procuring equipment and services. The implementation of budget cuts and reform measures, such as the reduction of troop sizes and no new procurement programs by the MoD, are expected to curtail overall expenditure. Over the forecast period, the country’s defense capital allocations are anticipated to increase marginally and average 16.1% of its defense budget, while revenue expenditure accounts for the remaining 83.9% of the budget.
- The MoD is expected to invest in fighters and Multi-role aircraft, Military-IT networking and transport and utility aircraft.


Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Spain 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 Spain defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
  • List of Figures
  • Figure 1: Spanish Defense Expenditure (EUR Billion), 2013-2022 26
  • Figure 2: Spanish Defense Expenditure (US$ Billion), 2013-2022 26
  • Figure 3: Spanish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022 30
  • Figure 4: Spanish - Defense Capital Expenditure (EUR Billion), 2013-2022 32
  • Figure 5: Spanish - Defense Capital Expenditure (US$ Billion), 2013-2022 32
  • Figure 6: Spanish GDP Growth vs. Defense Expenditure as Percentage of GDP, 2013-2022 34
  • Figure 7: Spanish Per Capita Defense Expenditure (US$), 2013-2022 35
  • Figure 8: Spanish Homeland Security Budget (EUR Billion), 2013-2022 37
  • Figure 9: Spanish Homeland Security Budget (US$ Billion), 2013-2022 37
  • Figure 10: SDI Terrorism Heat Map, 2017 39
  • Figure 11: Terrorism Index, 2017 42
  • Figure 12: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022 44
  • Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 & 2022 45
  • Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017 46
  • Figure 15: Military-IT Networking (US$ Million), 2017-2027 47
  • Figure 16: Fighter and Multi-Role Aircraft (US$ Million), 2017-2027 48
  • Figure 17: Transport & Utility Aircraft (US$ Million), 2017-2027 49
  • Figure 18: Spanish Defense Import Trend (US$ Million), 2012-2016 (TIV values) 51
  • Figure 19: Spanish Defense Imports by Country (%), 2012-2016 52
  • Figure 20: Spanish Defense Imports by Category (%), 2012-2016 53
  • Figure 21: Spanish Defense Exports (US$ Million), 2012-2016 (TIV values) 54
  • Figure 22: Spanish Defense Exports by Country (%), 2012-2016 55
  • Figure 23: Spanish Defense Exports by Category (%), 2012-2016 56
  • Figure 24: Industry Dynamics - Porter’s Five Forces Analysis 57
  • Figure 25: Thales - Revenue Trend Analysis (EUR Billion), 2012-2016 73
  • Figure 26: Thales - Operating Profit Trend Analysis (EUR Million), 2012-2016 73
  • Figure 27: Thales - Net Profit Trend Analysis (EUR Million), 2012-2016 74
  • Figure 28: Indra Sistemas S.A. - Revenue Trend Analysis (EUR Billion), 2012-2016 97
  • Figure 29: Indra Sistemas S.A. - Operating Profit Trend Analysis (EUR Million), 2012-2016 97
  • Figure 30: Indra Sistemas S.A. - Net Profit Trend Analysis (EUR Million), 2012-2016 98
  • Figure 31: Spanish GDP Per Capita at Constant Prices (US$), 2015-2025 111
  • Figure 32: Spain GDP at Current Prices (US$ Billion), 2015-2025 112
  • Figure 33: Spanish Exports of Goods and Services (US$ Billion), 2005-2014 113
  • Figure 34: Spanish Imports of Goods and Services (LCU Billion), 2005-2014 114
  • Figure 35: Spanish Gross National Disposable Income (US$ Billion), 2005-2013 115
  • Figure 36: Spain LCU per US$, 2015-2024 116
  • Figure 37: Spanish Market Capitalization of Listed Companies (US$ Billion), 2005-2012 117
  • Figure 38: Spanish Market Capitalization of Listed Companies (% of GDP), 2002-2011 118
  • Figure 39: Spanish Government Cash Surplus/Deficit as Percentage of GDP (LCU), 2005-2012 119
  • Figure 40: Spain- Goods Exports as a Percentage of GDP (%), 2005-2014 120
  • Figure 41: Spain- Goods Imports as a Percentage of GDP (%), 2002-2011 121
  • Figure 42: Spanish Services Imports as a Percentage of GDP (%), 2005-2014 122
  • Figure 43: Spanish Service Exports as a Percentage of GDP (%), 2005-2014 123
  • Figure 44: Spain - Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014 124
  • Figure 45: Spanish Net Foreign Direct Investment (% GDP) 2005-2014 125
  • Figure 46: Spanish Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 126
  • List of Tables
  • Table 1: The Spanish Army Strength 18
  • Table 2: Spanish Navy Strength 19
  • Table 3: Spanish Air Force Strength 20
  • Table 4: Spain - Ongoing Procurement Programs 21
  • Table 5: Spain - Future Procurement Programs 22
  • Table 6: Spanish Defense Expenditure (EUR Billion and US$ Billion), 2013-2022 25
  • Table 7: Spanish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022 29
  • Table 8: Spanish - Defense Capital Expenditure (EUR Billion and US$ Billion), 2013-2022 31
  • Table 9: Spanish - GDP Growth vs Defense Expenditure as a Percentage of GDP, 2013-2022 33
  • Table 10: Spanish Per Capita Defense Expenditure (US$), 2013-2022 35
  • Table 11: Spain’s - Homeland Security Expenditure (EUR Billion and US$ Billion), 2013-2022 36
  • Table 12: Terrorism Index, 2017 40
  • Table 13: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022 43
  • Table 14: Spanish Defense Offset Regulations 60
  • Table 15: Spanish Budget Formation Timetable 61
  • Table 16: Market Entry Strategies by Key Foreign Companies 63
  • Table 17: Competitive Landscape of the Spanish Defense Industry 66
  • Table 18: Thales - Product Focus 69
  • Table 19: Thales - Alliances 71
  • Table 20: Thales - Recent Contracts 72
  • Table 21: Iveco - Key Products and Services 75
  • Table 22: Iveco - Alliances 76
  • Table 23: Iveco - Recent Contract Wins 76
  • Table 24: Navantia - Key Products 77
  • Table 25: Navantia - Alliances 80
  • Table 26: Navantia - Recent Contract Wins 81
  • Table 27: General Dynamics European Land Systems (GDELS) - Key Products 83
  • Table 28: General Dynamics European Land Systems (GDELS) - Alliances 84
  • Table 29: General Dynamics European Land Systems (GDELS) - Recent Contract Wins 85
  • Table 30: Aernnova Aerospace S.A. - Key Products 87
  • Table 31: Aernnova Aerospace S.A - Alliances 88
  • Table 32: Aernnova Aerospace S.A. - Recent Contract Wins 88
  • Table 33: Aries Ingenieria Y Sistemas, S.A - Key Products and Services 90
  • Table 34: Aries Ingenieria Y Sistemas - Alliances 91
  • Table 35: Indra Sistemas SA - Key Products and Services 92
  • Table 36: Indra Sistemas S.A. - Alliances 94
  • Table 37: Indra Sistemas S.A. - Recent Contract Wins 95
  • Table 38: Sociedad Anonima De Electrónica Submarina, S.A. - Key Products and Services 99
  • Table 39: Sociedad Anonima De Electrónica Submarina, S.A. - Alliances 100
  • Table 40: Sociedad Anonima De Electrónica Submarina, S.A. - Recent Contract Wins 101
  • Table 41: Tecnobit - Key Products and Services 102
  • Table 42: Tecnobit - Alliances 104
  • Table 43: Tecnobit - Recent Contract Wins 105
  • Table 44: Uro Vehiculos Especiales S.A. - Key Products 106
  • Table 45: Uro Vehiculos Especiales S.A. - Recent Contract Wins 107
  • Table 46: Amper - Key Products and Services 108
  • Table 47: Amper - Alliances 109
  • Table 48: Amper - Recent Contract Wins 110
  • Table of Contents
  • 1. Introduction 9
  • 1.1. What is this Report About? 9
  • 1.2. Definitions 9
  • 1.3. Summary Methodology 11
  • 1.4. About Strategic Defence Intelligence 12
  • 2. Executive Summary 13
  • 3. Market Attractiveness and Emerging Opportunities 15
  • 3.1. Current Market Scenario 16
  • 3.1.1. Primary threat perception 16
  • 3.1.2. Military Doctrine and Strategy 17
  • 3.1.3. Military Fleet Size 18
  • 3.1.4. Procurement Programs 21
  • 3.1.4.1. Ongoing procurement programs 21
  • 3.1.4.2. Future procurement programs 22
  • 3.1.5. Social, Political and Economic Environment and Support for Defense Projects 23
  • 3.1.6. Political and Strategic Alliances 24
  • 3.2. Defense Market Size - Historical and Forecast 25
  • 3.2.1. Spanish defense budget is expected to increase at a CAGR of 5.16% during 2018-2022 25
  • 3.2.2. Territorial dispute with Morocco, security threats posed by terrorist organizations, and large equipment procurement programs will drive defense expenditure during the forecast period 27
  • 3.3. Analysis of Defense Budget Allocation 29
  • 3.3.1. Revenue expenditure accounts for the largest percentage share 29
  • 3.3.2. Capital expenditure expected to increase at a CAGR of 5.07% over 2018-2022 31
  • 3.3.3. Defense expenditure as a percentage of GDP is expected to reach 0.70% in 2022 33
  • 3.3.4. Per capita defense expenditure set to increase over the forecast period 35
  • 3.4. Homeland Security Market Size and Forecast 36
  • 3.4.1. Homeland security expenditure is expected to register a CAGR of 3.89% over the forecast period 36
  • 3.4.2. Border security and drug trafficking will drive homeland security expenditure in Spain 38
  • 3.4.3. Spain is at “some risk” of terrorism 39
  • 3.4.4. Spain faces some level of threat from foreign terrorist organizations 40
  • 3.4.5. Spain has a terrorism index score of 1.2 42
  • 3.5. Benchmarking with Key Global Markets 43
  • 3.5.1. Spanish defense expenditure expected to increase over the forecast period 43
  • 3.5.2. The country’s defense budget is moderate compared to other leading spenders 45
  • 3.5.3. Spanish defense expenditure as a percentage of GDP is expected to decrease over the forecast period 46
  • 3.6. Market Opportunities: Key Trends and Drivers 47
  • 3.6.1. Military-IT Networking 47
  • 3.6.2. Fighters and Multi-Role Aircraft 48
  • 3.6.3. Transport and Utility Aircraft 49
  • 4. Defense Procurement Market Dynamics 50
  • 4.1. Import Market Dynamics 51
  • 4.1.1. Spanish defense imports are expected to grow moderately during the forecast period 51
  • 4.1.2. Germany emerged as a significant arms supplier to Spain 52
  • 4.1.3. Missiles and armored vehicles dominate military hardware imports 53
  • 4.2. Export Market Dynamics 54
  • 4.2.1. Spain ranked seventh among the countries with the highest volume of defense exports 54
  • 4.2.2. Australia accounted for the largest percentage share of Spanish defense exports 55
  • 4.2.3. Aircraft and ships are the main exported defense products 56
  • 5. Industry Dynamics 57
  • 5.1. Five Forces Analysis 57
  • 5.1.1. Bargaining power of supplier: low 58
  • 5.1.2. Bargaining power of buyer: medium 58
  • 5.1.3. Barrier to entry: medium 58
  • 5.1.4. Intensity of rivalry: high 58
  • 5.1.5. Threat of substitution: high 58
  • 6. Market Entry Strategy 59
  • 6.1. Market Regulation 59
  • 6.1.1. Offset policy mandates suppliers invest 100% of the contract value into the Spanish economy 59
  • 6.1.2. FDI in defense subject to approval 60
  • 6.1.3. Unified Procurement Policy 60
  • 6.2. Market Entry Route 61
  • 6.2.1. Budgeting Process 61
  • 6.2.2. Procurement Policy and Process 62
  • 6.2.3. Foreign OEMs venture into the market by partnering with domestic defense firms 63
  • 6.2.4. Joint R&D provides an attractive entry route to foreign OEMs 64
  • 6.2.5. Collaborations provide market entry opportunities 64
  • 6.3. Key Challenges 65
  • 6.3.1. Defense budget cuts discourage investors from entering the industry 65
  • 6.3.2. Project delays deter defense industry growth 65
  • 7. Competitive Landscape and Strategic Insights 66
  • 7.1. Competitive Landscape Overview 66
  • 7.2. Key Foreign Companies 69
  • 7.2.1. Thales: Overview 69
  • 7.2.2. Thales: Defense Products 69
  • 7.2.3. Thales: Recent Announcements and Strategic Initiatives 70
  • 7.2.4. Thales: Alliances 71
  • 7.2.5. Thales: Recent Contract Wins 72
  • 7.2.6. Thales: Financial Analysis 73
  • 7.2.7. Iveco: Overview 75
  • 7.2.8. Iveco: Defense Products 75
  • 7.2.9. Iveco: Recent Announcements and Strategic Initiatives 75
  • 7.2.10. Iveco: Alliances 76
  • 7.2.11. Iveco: Recent Contract Wins 76
  • 7.3. Key Public Sector Companies 77
  • 7.3.1. Navantia: Overview 77
  • 7.3.2. Navantia: Defense Products 77
  • 7.3.3. Navantia: Recent Announcements and Strategic Initiatives 79
  • 7.3.4. Navantia: Alliances 80
  • 7.3.5. Navantia: Recent Contract Wins 81
  • 7.4. Key Private Sector Companies 83
  • 7.4.1. General Dynamics European Land Systems (GDELS): Overview 83
  • 7.4.2. General Dynamics European Land Systems (GDELS): Defense Products 83
  • 7.4.3. General Dynamics European Land Systems (GDELS): Recent Announcements and Strategic Initiatives 83
  • 7.4.4. General Dynamics European Land Systems (GDELS): Alliances 84
  • 7.4.5. General Dynamics European Land Systems (GDELS): Recent Contract Wins 85
  • 7.4.6. Aernnova Aerospace S.A.: Overview 87
  • 7.4.7. Aernnova Aerospace S.A.: Defense Products 87
  • 7.4.8. Aernnova Aerospace S.A.: Recent Announcements and Strategic Initiatives 88
  • 7.4.9. Aernnova Aerospace S.A: Alliances 88
  • 7.4.10. Aernnova Aerospace S.A.: Recent Contract Wins 88
  • 7.4.11. Aries Ingenieria Y Sistemas, S.A.: Overview 90
  • 7.4.12. Aries Ingenieria Y Sistemas, S.A.: Defense Products 90
  • 7.4.13. Aries Ingenieria Y Sistemas, S.A.: Recent Announcements and Strategic Initiatives 91
  • 7.4.14. Aries Ingenieria Y Sistemas, S.A: Alliances 91
  • 7.4.15. Indra Sistemas S.A.: Overview 92
  • 7.4.16. Indra Sistemas SA: Defense Products 92
  • 7.4.17. Indra Sistemas S.A.: Recent Announcements and Strategic Initiatives 93
  • 7.4.18. Indra Sistemas S.A.: Alliances 94
  • 7.4.19. Indra Sistemas S.A.: Recent Contract Wins 95
  • 7.4.20. Indra Sistemas S.A.: Financial Analysis 97
  • 7.4.21. Sociedad Anonima De Electrónica Submarina, S.A.: Overview 99
  • 7.4.22. Sociedad AnonimaDe Electrónica Submarina, S.A.: Defense Products 99
  • 7.4.23. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Announcements and Strategic Initiatives 99
  • 7.4.24. SociedadAnonima De Electrónica Submarina, S.A.: Alliances 100
  • 7.4.25. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Contract Wins 101
  • 7.4.26. Tecnobit: Overview 102
  • 7.4.27. Tecnobit: Defense Products 102
  • 7.4.28. Tecnobit: Recent Announcements and Strategic Initiatives 104
  • 7.4.29. Tecnobit: Alliances 104
  • 7.4.30. Tecnobit: Recent Contract Wins 105
  • 7.4.31. Uro Vehiculos Especiales S.A.: Overview 106
  • 7.4.32. Uro Vehiculos Especiales S.A.: Defense Products 106
  • 7.4.33. Uro Vehiculos Especiales S.A.: Recent Announcements and Strategic Initiatives 106
  • 7.4.34. Uro Vehiculos Especiales S.A.: Recent Contract Wins 107
  • 7.4.35. Amper: Overview 108
  • 7.4.36. Amper: Defense Products 108
  • 7.4.37. Amper: Recent Announcements and Strategic Initiatives 108
  • 7.4.38. Amper: Alliances 109
  • 7.4.39. Amper: Recent Contract Wins 110
  • 8. Business Environment and Country Risk 111
  • 8.1. Economic Performance 111
  • 8.1.1. GDP Per Capita at Constant Prices 111
  • 8.1.2. GDP at Current Prices (US$ Billion) 112
  • 8.1.3. Exports of Goods and Services (current US$ Billion) 113
  • 8.1.4. Imports of Goods and Services (current US$ Billion) 114
  • 8.1.5. Gross National Disposable Income (US$ Billion) 115
  • 8.1.6. LCU per US$ (period average) 116
  • 8.1.7. Market Capitalization of Listed Companies (US$ Billion) 117
  • 8.1.8. Market Capitalization of Listed Companies (% of GDP) 118
  • 8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU) 119
  • 8.1.10. Goods Exports as a Percentage of GDP 120
  • 8.1.11. Goods Imports as a Percentage of GDP 121
  • 8.1.12. Services Imports as a Percentage of GDP 122
  • 8.1.13. Service Exports as a Percentage of GDP 123
  • 8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion) 124
  • 8.1.15. Net Foreign Direct Investment as Percentage of GDP 125
  • 8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion) 126
  • 9. Appendix 127
  • 9.1. About SDI 127
  • 9.2. Disclaimer 127

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