Future of the Russian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019
NEW YORK, Feb. 25, 2014 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Future of the Russian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019
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Product Synopsis
This report is the result of SDI's extensive market and company research covering the Russian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Russian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Russian defense industry.
What is the current market landscape and what is changing?
Covering a large geographical area that is rich in natural resources, Russia places utmost importance on the protection of its borders and critical infrastructure. The country has the world's longest land border that it shares with 14 other countries, and shares maritime borders with Japan, via the Sea of Okhotsk, and the US state of Alaska, across the Bering Strait. Over the forecast period, Russia's total defense expenditure is estimated to record a CAGR of 12.84%, in accordance with the country's commitment towards the protection of its civilians and critical infrastructure. By 2019, defense expenditure is forecast to account for 4.5% of Russia's GDP, with an average per-capita defense expenditure of US$1,055.8 over the forecast period. Russia is the world's second largest arms exporter, with over 1,300 defense firms that also cater to the entire needs of the Russian armed forces. Funded by booming oil and gas profits, the country is in the midst of a huge equipment upgrade program that will witness an expenditure of US$650 billion over the period 2011-2020. Attractive market opportunities projected to emerge in the forecast period include areas such as ballistic missiles, surface ships, submarines, UAVs (unmanned aerial vehicles), T-90 tanks, helicopters, warplanes and satellites.
What are the key drivers behind recent market changes?
Certain factors pertaining to the security of Russia are expected to drive the defense expenditure of the nation in the coming years. These include ammunition modernization initiatives and high demand for Russian equipments in the export market.
What makes this report unique and essential to read?
The Future of the Russian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with their implications and impact on the Russian defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Russia. 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.
Key Market Issues
From the Soviet era onwards, Russia has traditionally developed its own defense technology in competition with Western nations. Following the disbandment of the Soviet Union, Russia's investment in the modernization of its defense systems reduced drastically, as funds were diverted towards the reconstruction of the country; since this disbanding, Russia has been reluctant to allow foreign companies into its defense industry, an attitude that has proved to be a strong entry barrier for foreign OEMs. Although the country is modernizing its armed forces under The Russian State Arms Program to 2020, only domestic companies are involved in the modernization process.
Key Highlights
Following the South Ossetia armed conflict with Georgia over a territorial dispute in 2008, Russia initiated a military equipment upgrade program in order to resolve the exposed shortcomings in its defense systems. Soviet era command, control, communications, and intelligence systems, coupled with aged vehicles and machinery, severely limited the country's armed forces' capabilities. In February 2013, Russian President Vladimir Putin declared plans to replace 30% of all its weapons with the latest models before 2015, and 70%-100% of all weapons in the forces to be renewed by 2020.
Russia has the world's longest border, with two thirds bound by water and the country sharing borders with 14 other countries. The country's Border Guard Service officials execute the responsibility of protecting the national border, including preventing the illegal cross-border movement of people and goods through land and sea routes. The unit is also engaged in protecting the economic interests of Russia and its natural resources. The country holds the world's largest natural gas reserves, second largest coal reserves, and eighth largest oil reserves. In order to enhance its homeland security, the Russian government intends to replace outdated protective installations such as barbed wire fences with advanced surveillance and monitoring equipment. Measures are being taken to bring in radars, laser control systems, UAVs, CCTV cameras, night vision equipment, and other automatic information collection devices to strengthen the border security. The Federal Security Service Board (FSB), the agency responsible for internal and border security, counter-terrorism, and surveillance, is planning to utilize ground effect vehicles (GEVs) for border control purposes as well as replace the old ageing vehicles used by the border guards by advanced four-wheelers and snowmobiles.
During 2008-2012, Russia was the world's second largest arms exporter behind the US. The low cost arms produced by the country and large amount of credit offered to countries such as Venezuela, increased arms sales over the review period, with India and China accounting for the highest share of defense exports. Of the respondents from Europe who participated in the SDI Business Outlook Survey 2012, 61% cite 'Asia' as the region having the maximum defense opportunities in the next five years.
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 SDI Terrorism Index
1.5 About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 Russia's annual defense expenditure is forecast to increase at a CAGR of 12.84%
3.1.2 Military modernization and defense exports to drive defense expenditure over the forecast period
3.1.3 Defense expenditure as a percentage of GDP forecast to rise to 4.5% by 2019
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure forecast to be allocated an average of 37% of the total defense budget over the forecast period
3.2.2 Russia's capital expenditure forecast to reach US$54.3 billion by 2019
3.2.3 Russia is forecast to spend US$298.5 billion on revenue expenses over the forecast period
3.2.4 Per capita defense expenditure expected to increase over the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Russian homeland security spending forecast to reach US$33.8 billion by 2019
3.3.2 Border security and fight against cyber attacks to factor growth in the homeland security market
3.3.3 Strategic Defense Initiative (SDI) Terrorism Index considers Russia a "highly affected" region
3.3.4 Russia faces a significant threat from terrorists
3.4 Benchmarking with Key Global Markets
3.4.1 Russian defense budget growth to be higher than the majority of large spenders during 2015-2019
3.4.2 Russia is world's third largest defense spender
3.4.3 Russia allocated 3.4% of its GDP to defense in 2014
3.4.4 Russia is "highly affected" from acts of terrorism
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 C4ISR
3.5.2 Infantry Fighting Vehicles
3.5.3 Transport Aircraft
3.5.4 Multi-role Aircraft
3.5.5 Aviation MRO
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 The country's defense imports are low owing to a developed indigenous sector
4.2 Export Market Dynamics
4.2.1 During 2008 to 2012, Russia was the world's second largest arms exporter
4.2.2 India, China and Algeria are Russia's main defense equipment purchasers
4.2.3 Aircraft and missiles account for the majority of Russia's defense exports
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to high
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: high
5.1.4 Intensity of rivalry: high
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Entry into defense sector is highly regulated
6.2 Market Entry Route
6.3 Key Challenges
6.3.1 Aversion of Russian government to Western defense technology
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.1.1 Domestic industry in the process of consolidation for better focus and fund allocation
7.1.2 Defense sector is dominated by domestic firms, with no foreign presence
7.2 Key Domestic Companies
7.2.1 Sukhoi: overview
7.2.2 Sukhoi: products
7.2.3 Sukhoi: recent announcements and strategic initiatives
7.2.4 Sukhoi: alliances
7.2.5 Sukhoi: recent contract awards
7.2.6 Splav - overview
7.2.7 Splav - major products and services
7.2.8 Tactical Missiles Corporation: overview
7.2.9 Tactical Missiles Corporation - major products and services
7.2.10 Tactical Missiles Corporation - recent announcements and strategic initiatives
7.2.11 Tactical Missiles Corporation - recent contract wins
7.2.12 Almaz-Antey - overview
7.2.13 Almaz-Antey - Major Products and Services
7.2.14 Almaz-Antey - recent announcements and strategic initiatives
7.2.15 Almaz-Antey - alliances
7.2.16 Almaz-Antey - recent contract wins
7.2.17 United Aircraft Corporation - overview
7.2.18 United Aircraft Corporation - major products and services
7.2.19 United Aircraft Corporation - recent announcements and strategic initiatives
7.2.20 United Aircraft Corporation - alliances
7.2.21 KBP Instrument Design Bureau - overview
7.2.22 KBP Instrument Design Bureau - major products and services
7.2.23 KBP Instrument Design Bureau - recent announcements and strategic initiatives
7.2.24 KBP Instrument Design Bureau - recent contract wins
7.2.25 V.A. Degtyarev Plant - overview
7.2.26 V.A. Degtyarev Plant - major products and services
7.2.27 Kurganmashzavod - overview
7.2.28 Kurganmashzavod - major products and services
7.2.29 Kurganmashzavod - recent announcements and strategic initiatives
7.2.30 Kurganmashzavod - alliances
7.2.31 Kurganmashzavod - recent contract wins
7.2.32 Uralvagonzavod - overview
7.2.33 Uralvagonzavod - major products and services
7.2.34 Uralvagonzavod - recent announcements and strategic initiatives
7.2.35 Uralvagonzavod - alliances
7.2.36 Uralvagonzavod - recent contract wins
7.2.37 Izhevsk Mechanical Works - overview
7.2.38 Izhevsk Mechanical Works - major products and services
7.2.39 Izhevsk Mechanical Works - recent announcements and strategic initiatives
7.2.40 Irkut Corporation - overview
7.2.41 Irkut Corporation - major products and services
7.2.42 Irkut Corporation - recent announcements and strategic initiatives
7.2.43 Irkut Corporation - alliances
7.2.44 Irkut Corporation - recent contract wins
7.2.45 Irkut Corporation - financial analysis
7.2.46 Oboronprom Corporation - overview
7.2.47 Oboronprom Corporation - major products and services
7.2.48 Oboronprom Corporation - recent announcements and strategic initiatives
7.2.49 Oboronprom Corporation - alliances
7.2.50 Oboronprom Corporation - recent contract wins
8 Business Environment and Country Risk
8.1 Demographic and Social Stats
8.1.1 Total Rural Population (In Mn)
8.1.2 Total Urban Population (In Mn)
8.1.3 Number of Households (In Mn)
8.2 Economic Performance
8.2.1 GDP Per Capita, USD
8.2.2 GDP (current USD Bn)
8.2.3 Exports of goods and services (current USD Bn)
8.2.4 Imports of goods and services (current USD Bn)
8.2.5 Gross National disposable income (USD Bn)
8.2.6 Manufacturing Output (USD Bn)
8.2.7 Consumer price Index
8.2.8 Wholesale Price Index
8.2.9 LCU per USD (period average)
8.2.10 LCU per EUR (period average)
8.2.11 Lending Rate (%)
8.2.12 Deposit Rate (%)
8.2.13 Real Interest Rate (%)
8.2.14 Market Capitalization of Listed Companies (USD Billion)
8.2.15 Market Capitalization of Listed Companies (% of GDP)
8.2.16 Total Government cash surplus/deficit (LCU Bn)
8.2.17 Government cash surplus/deficit as % of GDP (LCU)
8.2.18 Goods exports as a percentage of GDP
8.2.19 Goods imports as a percentage of GDP
8.2.20 Goods balance as a percentage of GDP
8.2.21 Services imports as a percentage of GDP
8.2.22 Services Exports as a percentage of GDP
8.2.23 Services balance as a percentage of GDP
8.2.24 Foreign direct investment, net (BoP, current US$ Billion)
8.2.25 Net Foreign direct investment as a percentage of GDP
8.2.26 International reserves, including gold (USD Billion)
8.3 Energy and Utilities
8.3.1 Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours)
8.3.2 Hydroelectricity Net Generation (Billion Kilowatt hours)
8.3.3 Nuclear Electricity Net Generation (Billion Kilowatt hours)
8.3.4 Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts)
8.3.5 Total Electricity Exports (Billion Kilowatt hours)
8.3.6 Total Electricity Imports (Billion Kilowatt hours)
8.3.7 Proved Reserves of Natural Gas (Trillion Cubic Feet)
8.3.8 Total Petroleum Consumption (Thousand Barrels Per Day)
8.3.9 Crude Oil Proved Reserves (Billion Barrels)
8.3.10 Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts)
8.4 Infrastructure Quality and Availability
8.4.1 Rail lines (total route - km)
8.4.2 Air transport, freight (million ton-km)
8.4.3 Overall construction (US$ Million)
8.5 Minerals
8.5.1 Mining, Manufacturing, and Utilities Output (USD Bn)
8.6 Technology
8.6.1 Research and development expenditure (Local Currency Thousands)
8.6.2 Patents granted
8.7 Telecommunication
8.7.1 Telephone lines (In Mn)
8.7.2 Telephone Lines Penetration Rate (per 100 people)
9 Appendix
9.1 About SDI
9.2 Disclaimer
List of Tables
Table 1: Russian Defense Expenditure, 2010-2014
Table 2: Russian Defense Expenditure, 2015-2019
Table 3: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Table 4: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Table 5: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2010-2014
Table 6: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2019
Table 7: Russian Capital Budget Allocation (US$ billion), 2010-2014
Table 8: Russian Capital Budget Allocation (US$ billion), 2015-2019
Table 9: Russian Revenue Budget Allocation (US$ billion), 2010-2014
Table 10: Russian Revenue Budget Allocation (US$ billion), 2015-2019
Table 11: Russian Per Capita Defense Expenditure (US$),, 2010-2014
Table 12: Russian Per Capita Defense Expenditure (US$), 2015-2019
Table 13: Russian Homeland Security Budget (US$ billion), 2010-2014
Table 14: Russian Homeland Security Budget (US$ billion), 2015-2019
Table 15: Benchmarking with Key Markets - 2010-2014 vs. 2015-2019
Table 16: SDI Terrorism Index
Table 17: Sukhoi - Major Products and Services
Table 18: Sukhoi - Alliances
Table 19: Sukhoi - Recent Contract Wins
Table 20: Splav - Major Products and Services
Table 21: Tactical Missiles Corporation - Major Products and Services
Table 22: Tactical Missiles Corporation - Recent Contract Wins
Table 23: Almaz-Antey - Major Products and Services
Table 24: Almaz-Antey - Alliances
Table 25: Almaz-Antey - Recent Contract Wins
Table 26: United Aircraft Corporation - Major Products and Services
Table 27: United Aircraft Corporation - Alliances
Table 28: KBP Instrument Design Bureau - Major Products and Services
Table 29: KBP Instrument Design Bureau - recent contract wins
Table 30: V.A. Degtyarev Plant - Major Products and Services
Table 31: Kurganmashzavod - Major Products and Services
Table 32: Kurganmashzavod - Alliances
Table 33: Kurganmashzavod - Recent Contract Wins
Table 34: Uralvagonzavod - Major Products and Services
Table 35: Uralvagonzavod - Alliances
Table 36: Uralvagonzavod - Recent Contract Wins
Table 37: Izhevsk Mechanical Works - Major Products and Services
Table 38: Irkut Corporation - Major Products and Services
Table 39: Irkut Corporation - Alliances
Table 40: Irkut Corporation - Recent Contract Wins
Table 41: Oboronprom Corporation - Major Products and Services
Table 42: Oboronprom Corporation - Alliances
Table 43: Oboronprom Corporation - Recent Contract Wins
List of Figures
Figure 1: Russian Defense Expenditure, 2010-2014
Figure 2: Russian Defense Expenditure, 2015-2019
Figure 3: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Figure 4: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Figure 5: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2010-2014
Figure 6: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2019
Figure 7: Russian Capital Budget Allocation (US$ billion), 2010-2014
Figure 8: Russian Capital Budget Allocation (US$ billion), 2015-2019
Figure 9: Russian Revenue Budget Allocation (US$ billion), 2010-2014
Figure 10: Russian Revenue Budget Allocation (US$ billion), 2015-2019
Figure 11: Russian Per Capita Defense Expenditure (US$), 2010-2014
Figure 12: Russian Per Capita Defense Expenditure (US$),, 2015-2019
Figure 13: Russian Homeland Security Budget (US$ billion), 2010-2014
Figure 14: Russian Homeland Security Budget (US$ billion), 2015-2019
Figure 15: SDI Terrorism Heat Map
Figure 16: SDI Terrorism Index
Figure 17: Benchmarking with Key Markets - 2010-2014 vs. 2015-2019
Figure 18: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2014 and 2019
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2014
Figure 20: C4ISR - Space Market Size (US$ Billion), 2014-2024
Figure 21: IFV Market Size (US$ Billion), 2014-2024
Figure 22: Transport Aircraft Market Size (US$ Billion), 2014-2024
Figure 23: Multi-Role Aircraft Market Size (US$ Billion), 2014-2024
Figure 24: Aviation MRO Market Size (US$ Billion), 2014-2024
Figure 25: Russian Defense Export Trend, 2008-2012 (TIV values)
Figure 26: Russian Defense Exports by Country (%), 2008-2012
Figure 27: Russian Defense Exports by Category (%), 2008-2012
Figure 28: Industry Dynamics Porter's Five Forces Analysis
Figure 29: Irkut Corporation - Revenue Trend Analysis (US$ Million), 2008-2012
Figure 30: Irkut Corporation - Operating Profit (US$ Million), 2008-2012
Figure 31: Irkut Corporation - Net Profit Trend Analysis (US$ Million), 2008-2012
Figure 32: Total Rural Population (In Mn), 2009-2018
Figure 33: Total Urban Population (In Mn) 2009-2018
Figure 34: Number of Households (In Mn), 2008-2017
Figure 35: GDP Per Capita in USD, 2008-2017
Figure 36: GDP (current USD Bn), 2008-2017
Figure 37: Exports of goods and services (current USD Bn), 2002-2011
Figure 38: Imports of goods and services (current USD Bn), 2002-2011
Figure 39: Gross National disposable income (USD Bn), 2002-2011
Figure 40: Manufacturing Output (USD Bn), 2003-2011
Figure 41: Consumer price Index, 2008-2017
Figure 42: Wholesale Price Index - 2002-2011
Figure 43: LCU per USD (period average) - 2009-2018
Figure 44: LCU per EUR (period average) - 2008-2017
Figure 45: Lending Rate (%) - 2002-2011
Figure 46: Deposit Rate (%) - 2002-2011
Figure 47: Real Interest Rate (%) - 2002-2011
Figure 48: Market Capitalization of Listed Companies - 2003-2012
Figure 49: Market Capitalization of Listed Companies (% of GDP)- 2002-2011
Figure 50: Total Government cash surplus/deficit (LCU Bn) - 2002-2011
Figure 51: Government cash surplus/deficit as % of GDP (LCU) - 2002-2011
Figure 52: Goods exports as a percentage of GDP - 2002-2011
Figure 53: Goods imports as a percentage of GDP - 2002-2011
Figure 54: Goods balance as a percentage of GDP - 2002-2011
Figure 55: Service imports as a percentage of GDP - 2002-2011
Figure 56: Services exports as a percentage of GDP - 2002-2011
Figure 57: Services balance as a percentage of GDP - 2002-2011
Figure 58: Foreign direct investment, net (BoP, current US$ Billion) - 2002-2011
Figure 59: Net Foreign direct investment as a percentage of GDP - 2002-2011
Figure 60: International reserves, including gold (USD Billion) - 2002-2011
Figure 61: Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours) - 2002-2011
Figure 62: Hydroelectricity Net Generation (Billion Kilowatt hours) - 2002-2011
Figure 63: Nuclear Electricity Net Generation (Billion Kilowatt hours) - 2002-2011
Figure 64: Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts) - 2001-2010
Figure 65: Total Electricity Exports (Billion Kilowatt hours) - 2002-2011
Figure 66: Total Electricity Imports (Billion Kilowatt hours) - 2002-2011
Figure 67: The Proved Reserves of Natural Gas (Trillion Cubic Feet) - 2004-2013
Figure 68: Total Petroleum Consumption (Thousand Barrels Per Day) - 2003-2012
Figure 69: The Proved Reserves of Crude Oil (Billion Barrels) - 2002-2011
Figure 70: Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts) - 2002-2011
Figure 71: Rail lines (total route - km) - 2004-2011
Figure 72: Air transport, freight (million ton-km) 2002-2011
Figure 73: Overall construction (US$ Million) 2007-2016
Figure 74: Mining, Manufacturing, Utilities Output (USD Bn), 2002-2011
Figure 75: Research and development expenditure (Local Currency Thousands) - 2001-2010
Figure 76: Patents granted - 2003-2012
Figure 77: Telephone Lines (In Mn), 2002-2011
Figure 78: Telephone lines Penetration Rate (per 100 people) 2002-2011
To order this report: Future of the Russian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019
http://www.reportlinker.com/p01139200/Future-of-the-Russian-Defense-Industry---Market-Attractiveness-Competitive-Landscape-and-Forecasts-to-2019.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Aerospace_and_Defense
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