The Future of the $16.3Bn Belgian Defense Industry to 2024 – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)-- The "Future of the Belgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

This report 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.

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in 2024, owing to the significant uptick in weapon procurement plans, as well as procuring defense equipment to replace outdated ones.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.

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

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.

Key Topics Covered

1. Introduction

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario

3.1.1. Equipment of Belgian Military

3.1.2. Procurement Programs

3.1.3. Ongoing procurement programs

3.1.4. Future procurement programs

3.1.5. Key Drivers and Challenges

3.2. Defense Market Size Historical and Forecast

3.2.1. Belgium's defense expenditure is anticipated to increase at a CAGR of 1.99% over the forecast period

3.2.2. Equipment procurement plans and joint operations expected to drive defense expenditure over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Belgium's defense expenditure as a percentage of GDP anticipated to decrease

3.3.2. Capital expenditure share to average 20.2% over the forecast period

3.3.3. Capital expenditure expected to increase at a CAGR of 8.27% over 2020-2024

3.3.4. Per capita defense expenditure set to increase over the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Belgium's homeland security expenditure expected to increase at a CAGR of 4.90% over the forecast period

3.4.2. Drug trafficking and cyber security are the country's main homeland security related concerns

3.5. Benchmarking with Key Global Markets

3.5.1. Belgium's defense budget is expected to increase at a lower rate than other European countries over the forecast period

3.5.2. Belgium's defense expenditure is low compared to other European nations

3.5.3. Belgium allocates a comparatively low share of GDP to defense

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports are expected to recover over the forecast period

4.1.2. Belgium sourced most its arms imports from its neighbors

4.1.3. Aircraft, naval vessels and sensors dominated military hardware imports

4.2. Export Market Dynamics

4.2.1. Arms exports to increase over the forecast period

4.2.2. Belgium's arms exports expected to reach new markets over the forecast period

4.2.3. Armored vehicles and aircraft are the main exported defense products

5. Market Entry Strategy

5.1. Market Regulation

5.1.1. Offset policy aids development of domestic defense industry

5.1.2. Belgium permits 100% FDI in the defense industry

5.2. Market Entry Route

5.2.1. Budgeting Process

5.2.2. Procurement Policy and Process

5.2.3. Joint weapons development program, a viable market entry route

5.2.4. Subsidiaries provide market entry opportunities

5.2.5. Acquisition of domestic companies enables entrance to market

6. Competitive Landscape and Strategic Insights

6.1. Competitive Landscape Overview

7. Business Environment and Country Risk

7.1. Economic Performance

7.1.1. Gross Domestic per Capita

7.1.2. Gross Domestic Product, current US$ Billion

7.1.3. Exports of Goods and Services

7.1.4. Imports of Goods and Services

7.1.5. Gross National Disposable Income

7.1.6. Local Currency Unit per US$

7.1.7. Market Capitalization of Listed Companies

7.1.8. Market Capitalization of Listed Companies as a Percentage of GDP

7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP

7.1.10. Goods Exports as a Percentage of GDP

7.1.11. Goods Imports as a Percentage of GDP

7.1.12. Services Imports as a Percentage of GDP

7.1.13. Services Exports as a Percentage of GDP

7.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)

7.1.15. Net Foreign Direct Investment as a Percentage of GDP

7.1.16. Mining, Manufacturing, Utilities Output

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 S.A.
• Thales Belgium
• Northrop Grumman Corp.
• Airbus Helicopters

For more information about this report visit https://www.researchandmarkets.com/research/b343bk/the_future_of_the?w=4

View source version on businesswire.com: https://www.businesswire.com/news/home/20190319005801/en/

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Related Topics: Military Aerospace and Defense

Source: Research and Markets