subject: The Indian Defense Sector Market Opportunities And Entry Strategies, Analyses And Forecasts To 2015 [print this page] Summary Summary
This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Indian defense industry. In
particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 20102015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Indian defense industry.
Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in India. It provides an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.
Scope
analysis of Defense industry market size from 2004 through 2009 and forecasts till 2015
analysis of defense budget allocation
Benchmarking with key global markets
Market opportunities
Defense procurement dynamics
Industry dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons To Buy
Gain insight into Indian defense industry with current, historic and forecast market values
Get insight on market opportunity and attractiveness
Get insight on industry procurement dynamics
Gain insight on industry structure
Gain insight into the regulations governing the Indian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Indian defense industry along with profiles of all those companies
Key Highlights
The Indian defense sector is one of the fastest growing markets globally, with an estimated US$13.9 billion of the annual administrative budget allocated for the acquisition of military hardware and technology in 2010. Defense expenditure which refers to the part of the budget that is spent on the acquisition of all types of military hardware and technology has grown at a CAGR of 12.14% from 200509. Defense expenditure is expected to record a CAGR of 6.59% during 2010-15, to reach an annual spend of US$42.6 billion by 2015. This is primarily due to ageing military hardware and technology, domestic insurgencies and hostility from neighboring countries. Strong growth in the sector is attracting foreign original equipment manufacturers (OEMs) and leading players from the domestic private sector to enter the market. Moreover, terrorism is leading to sharp increases in the defense budget and a shorter sales cycle, which translates as an attractive market for defense manufacturers.
The areas that are specifically expected to emerge over the short to medium-term include unmanned combat aerial vehicles (UCAVs), advanced electronic warfare systems, combat systems, rocket and missile systems, fighter and trainer aircraft, stealth frigates, and submarines. In addition, spend on IT and communications is expected to increase significantly, with a strong focus on enterprise applications, systems integration, and real-time mobile communications.
Keywords
Defense, India, Lockheed Martin, BAE Systems Plc, Rolls-Royce Group Plc, EADS N.V., General Dynamics, SAAB, General Electric, Thales SA , Honeywell International Inc, Raytheon, Hindustan Aeronautics Limited, Bharat Electronics Limited, Ordnance Factory, BEML, Bharat Dynamics Limited, Goa Shipyard Limited, Mazagon Dock Limited, Larsen and Toubro Ltd, Rolta India Limited, Wipro Limited, Godrej and Boyce Manufacturing Company Limited, Bharat Forge, Tata Motors, Tata Advanced Systems Limited, Punj Lloyd Ltd, Mahindra & Mahindra, Infosys Technologies Ltd, Tata Consultancy Services Ltd
Table of Contents :
1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Terrorism Index
1.5 About ICD Research Defense Intelligence Centre
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size and Forecast
3.1.1 Indias total defense expenditure to grow at a CAGR of 6.59% during 2010-15
List of Tables
"Table 1: Strategic Alliances in the Indian Homeland Security Market
Table 2: ICD Research Terrorism Index
Table 3: Offset Regulations in India
Table 4: Market Entry Strategies and Key Objectives of Foreign Companies in the Indian Defense Sector
Table 5: Key Players and their Operations in the Indian Defense Sector
Table 6: Competitive Landscape Scale of Operations of Domestic Public Sector Companies, Indian Defense Industry
Table 7: Lockheed Martin Alliances
Table 8: Lockheed Martin Recent Contract Wins
Table 9: BAE Systems Plc Alliances
Table 10: BAE Systems Plc Recent Contract Wins
Table 11: Rolls- Royce Group plc Alliances
Table 12: EADS N.V. Alliances
Table 13: EADS N.V Recent Contract Wins
Table 14: General Dynamics Alliances
Table 15: SAAB Alliances
Table 16: SAAB Recent Contract Wins
Table 17: General Electric Alliances
Table 18: General Electric Recent Contract Wins
Table 19: Thales Alliances
Table 20: Thales Recent Contract Wins
Table 21: Honeywell Alliances
Table 22: Honeywell Recent Contract Wins
Table 23: Raytheon Alliances
Table 24: Raytheon Recent Contract Wins
Table 25: HAL Alliances
List of Figures
"Figure 1: Indian Defense Market Size and Forecast (US$ billion), 2005-15F
Figure 2: Indian Defense Expenditure (% of GDP), 2005-15F
Figure 3: Revenue Expenditure and Capital Expenditure Share of Defense Budget (%), 2005-15F
Figure 4: India Defense Capital Expenditure (US$ billion), 2005-15F
Figure 5: Defense Budget vs. Capital Expenditure on Military Hardware and Technology (%), 2009
Figure 6: Homeland Security Budget Allocation Split for 2009
Figure 7: ICD Research Terrorism Heat Map
Figure 8: ICD Research Terrorism Index
Figure 9: Benchmarking with Key Global Markets Historical vs. Expected Defense Budget Growth
Figure 10: Defense Expenditure of Largest Military Spenders (US$ billion), 2009 and 2015
Figure 11: Defense Expenditure of Largest Military Spenders (% of GDP), 2009
Figure 12: FDI in India Defense, 2006-2009 (US$ 000)
Figure 13: Indian Defense Sector Key Areas to Target, 2009-2015
Figure 14: Indian Defense IT Expenditure (US$ billion), 2005-2015
Figure 15: Indian Defense Procurement Market Share Analysis by Value (%), 2009 and 15F
Figure 16: Indian Defense Procurement Trend (US$ billion), 2007-15F
Figure 17: Trend Indicator Values (TIV) of Indian Arms Exports by Category (%), 2004-09*
Figure 18: Indian Defense Exports Value (US$ million), 2006-09
Figure 19: TIV of Indian Arms Exports by Country (%), 200409*
Figure 20: Industry Dynamics Porters Five Forces Analysis
