The Israeli Defense Sector – Market Opportunity & Entry Strategy, Analyses and Forecasts to 2015

Date: June 1, 2010
Pages: 161
Price:
US$ 1,250.00
License [?]:
Publisher: iCD Research
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: I3A9B83691FEN
Leaflet:

Download PDF Leaflet

The Israeli Defense Sector – Market Opportunity & Entry Strategy, Analyses and Forecasts to 2015
SYNOPSIS
  • Top level overview of the Israeli defense industry
  • A breakdown of the Israeli defense industry by spend pattern valued from 2004 through 2009 and forecasted from 2010 through 2015
  • A breakdown of the markets by segment valued from 2004 through 2009 and forecasted from 2010 through 2015
  • Details of top companies active across the Israeli defense industry
  • Emerging trends and opportunities in the Israeli defense industry in the last 12 months
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 Israeli 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 2010–2015, 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 Israeli 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 Israel. 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 Israeli 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 Israeli defense industry and the potential market entry strategies with an expert analysis of the competitive structure
  • Identify top companies of the Israeli defense industry along with profiles of all those companies
KEY HIGHLIGHTS

The Israeli defense market, which has an estimated value of US$13.2 billion for 2010, has the third largest military expenditure in the Middle East. In fact, while Israeli defense expenditure has grown at a CAGR of 5.11% during the review period, and is expected to record a CAGR of 3.70% during the forecast period, the country is also scheduled to receive US$18.2 billion of military aid from the US in the next five years. With continued security threats from Iran, Syria and other neighboring Arab countries, Israel is forecast to spend US$15.8 billion on defense by 2015,

Moreover, in 2010, Israeli defense expenditure as a percentage of its gross domestic product (GDP) is estimated at 6.8%, which is expected to continue throughout the forecast period. This is due to the refusal of many countries in the Middle East to accept Israel as an independent state, and the subsequent threat posed to the security of the nation. Consequently, Israel is expected to focus its spending on the procurement of missile defense systems, fighter aircraft, submarines and armored vehicles during the next five years.
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 Center

2 EXECUTIVE SUMMARY

3 MARKET ATTRACTIVENESS AND EMERGING OPPORTUNITIES

3.1 Defense Market Size and Forecast
  3.1.1 Defense expenditure to grow at a CAGR of 3.70% during the forecast period
  3.1.2 Israel expected to receive US$18.2 billion of military aid from the US during the forecast period
  3.1.3 Israel received US$806 million of missile defense funding from the US during 2006–10
  3.1.4 Threat from Iran and Syria combined with a small population will continue to drive Israeli defense expenditure
3.2 Analysis of Defense Budget Allocation
  3.2.1 Israeli defense budget expected to continue to grow during the forecast period
  3.2.2 Capital expenditure to constitute majority of Israeli defense budget during the forecast period
  3.2.3 Israel expected to spend US$51.1 billion on acquisition of military hardware during the forecast period
3.3 Homeland Security Market Size and Forecast
  3.3.1 Israeli homeland security market expected to grow at a CAGR of 4.90% during the forecast period
  3.3.2 Security threats expected to increase homeland security expenditure
  3.3.3 Israel is “highly affected” by terrorism
  3.3.4 Israel is eighth most terror prone country in the world
3.4 Benchmarking with Key Global Markets
  3.4.1 Israel is one of the largest defense spenders in the Middle East
  3.4.2 US has the largest defense expenditure in the world
  3.4.3 Israel has second largest defense expenditure in proportion to GDP amongst leading global spenders
  3.4.4 Iraq, Pakistan and Afghanistan are the world’s three most terror prone countries
3.5 Market Opportunities: Key Trends and Growth Stimulators
  3.5.1 Missile defense systems expected to witness a surge in demand
  3.5.2 Arms upgrade program expected to create opportunities for land-based weapons
  3.5.3 Border fence will create demand for radars and surveillance equipment
  3.5.4 Modernization of air force will drive demand for fighter aircraft and attack helicopters
  3.5.5 Demand for maritime defense equipment expected to increase

4 DEFENSE PROCUREMENT MARKET DYNAMICS

4.1 Import Dynamics
  4.1.1 US accounts for over 90% of Israeli defense imports
  4.1.2 Israel expected to import US$2.8 billion of defense goods in 2010
  4.1.3 Air defense systems account for the majority of Israeli defense imports
4.2 Export Dynamics
  4.2.1 Israel exports 75% of its domestic defense production
  4.2.2 Missiles, sensors and armored vehicles are the most exported defense goods
  4.2.3 India emerges as the single largest consumer of Israeli defense goods

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: low to medium
  5.1.4 Intensity of rivalry: high
  5.1.5 Threat of substitution: medium

6 MARKET ENTRY STRATEGY

6.1 Market Regulation
  6.1.1 Offset policy requires foreign OEMs to invest 50% of contract value in Israel
  6.1.2 Defense sector remains closed to foreign direct investment
6.2 Market Entry Route
  6.2.1 Foreign companies penetrate the market by supplying arms
  6.2.2 Foreign OEMs form alliances to market products in the global defense industry
6.3 Key Challenges
  6.3.1 Israeli defense industry is highly dependent on the US
  6.3.2 Monopolistic competition

7 COMPETITIVE LANDSCAPE AND STRATEGIC INSIGHTS

7.1 Competitive Landscape: Overview
  7.1.1 Domestic companies fulfill majority of Israeli defense requirements
7.2 Key Foreign Companies
  7.2.1 General Dynamics: overview
  7.2.2 General Dynamics: products and services
  7.2.3 General Dynamics: recent announcements and strategic initiatives
  7.2.4 General Dynamics: alliances
  7.2.5 General Dynamics: recent contract wins
  7.2.6 General Dynamics: financial analysis
  7.2.7 Navistar Defense: overview
  7.2.8 Navistar Defense: products and services
  7.2.9 Navistar Defense: recent announcements and strategic initiatives
  7.2.10 Navistar Defense: alliances
  7.2.11 Navistar Defense: recent contract wins
  7.2.12 Navistar Defense: financial analysis
  7.2.13 Lockheed Martin: overview
  7.2.14 Lockheed Martin: products and services
  7.2.15 Lockheed Martin: recent announcements and strategic initiatives
  7.2.16 Lockheed Martin: alliances
  7.2.17 Lockheed Martin: recent contract wins
  7.2.18 Lockheed Martin: financial analysis
  7.2.19 Raytheon: overview
  7.2.20 Raytheon: products and services
  7.2.21 Raytheon: recent announcements and strategic initiatives
  7.2.22 Raytheon: alliances
  7.2.23 Raytheon: recent contract wins
  7.2.24 Raytheon: financial analysis
7.3 Key Public Companies
  7.3.1 Rafael Advanced Defense System: overview
  7.3.2 Rafael Advanced Defense System: products and services
  7.3.3 Rafael Advanced Defense System: recent announcements and strategic initiatives
  7.3.4 Rafael Advanced Defense System: alliances
  7.3.5 Rafael Advanced Defense System: recent contract wins
  7.3.6 Rafael Advanced Defense System: financial analysis
  7.3.7 Israel Aerospace Industries: overview
  7.3.8 Israel Aerospace Industries: products and services
  7.3.9 Israel Aerospace Industries: recent announcements and strategic initiatives
  7.3.10 Israel Aerospace Industries: alliances
  7.3.11 Israel Aerospace Industries: recent contract wins
  7.3.12 Israel Aerospace Industries: financial analysis
  7.3.13 Israel Military Industries: overview
  7.3.14 Israel Military Industries: products and services
  7.3.15 Israel Military Industries: recent announcements and strategic initiatives
  7.3.16 Israel Military Industries: alliances
  7.3.17 Israel Military Industries: recent contract wins
  7.3.18 Israel Military Industries: financial analysis
  7.3.19 Israel Shipyards: overview
  7.3.20 Israel Shipyards: products and services
  7.3.21 Israel Shipyards: recent announcements and strategic initiatives
  7.3.22 Israel Shipyards: alliances
  7.3.23 Israel Shipyards: recent contract wins
  7.3.24 Israel Shipyards: financial analysis
7.4 Domestic Private Companies
  7.4.1 Elbit Systems: overview
  7.4.2 Elbit Systems: products and services
  7.4.3 Elbit Systems: recent announcements and strategic initiatives
  7.4.4 Elbit Systems: alliances
  7.4.5 Elbit Systems: recent contract wins
  7.4.6 Elbit Systems: financial analysis
  7.4.7 Elisra Systems: overview
  7.4.8 Elisra Systems: products and services
  7.4.9 Elisra Systems: recent announcements and strategic initiatives
  7.4.10 Elisra Systems: alliances
  7.4.11 Elisra Systems: recent contract wins
  7.4.12 Elisra Systems: financial analysis
  7.4.13 Ness TSG: overview
  7.4.14 Ness TSG: products and services
  7.4.15 Ness TSG: recent announcements and strategic initiatives
  7.4.16 Ness TSG: alliances
  7.4.17 Ness TSG: recent contract wins
  7.4.18 Ness TSG: financial analysis
  7.4.19 Plasan: overview
  7.4.20 Plasan: products and services
  7.4.21 Plasan: recent announcements and strategic initiatives
  7.4.22 Plasan: alliances
  7.4.23 Plasan: recent contract wins
  7.4.24 Plasan: financial analysis
  7.4.25 SimiGon: overview
  7.4.26 SimiGon: products and services
  7.4.27 SimiGon: recent announcements and strategic initiatives
  7.4.28 SimiGon: alliances
  7.4.29 SimiGon: recent contract wins
  7.4.30 SimiGon: financial analysis

8 BUSINESS ENVIRONMENT AND COUNTRY RISK

8.1 Business Confidence
  8.1.1 Business Confidence Index
  8.1.2 Market Capitalization Trend – Tel-Aviv Stock Exchange, Israel
  8.1.3 Deployment of Credit by Sector
8.2 Economic Performance
  8.2.1 GDP at Constant Prices
  8.2.2 GDP per Capita at Constant Prices
  8.2.3 GDP at Current Prices
  8.2.4 GDP Per Capita at Current Prices
  8.2.5 GDP Split by Key Segments
  8.2.6 Agriculture – Agriculture Net Output Value at Current Prices (ILS billion)
  8.2.7 Agriculture – Agriculture Net Output Value at Current Prices (US Dollar)
  8.2.8 Agriculture – Agriculture Net Output at Current Prices as Percentage of GDP
  8.2.9 Manufacturing – Manufacturing Net Output at Current Prices (ILS)
  8.2.10 Manufacturing – Manufacturing Net Output at Current Prices (US Dollar)
  8.2.11 Manufacturing – Manufacturing Net Output-Current Prices as Percentage of GDP
  8.2.12 Manufacturing – Mining, Manufacturing, and Utilities at Current Prices (Local Currency)
  8.2.13 Manufacturing – Mining, Manufacturing, Utilities at Current Prices (US Dollars)
  8.2.14 Manufacturing – Mining, Manufacturing, Utilities at Current Prices, as Percentage of GDP
  8.2.15 Construction – Construction Net Output at Current Prices, (ILS)
  8.2.16 Construction – Construction Net Output-Current Prices (US Dollars)
  8.2.17 Construction – Construction Net Output-Current Prices as a % of GDP
  8.2.18 Industry - Crude Steel Production
  8.2.19 Inflation Rate
  8.2.20 Fiscal Deficit as a Percentage of GDP
  8.2.21 Trade Balance as a Percentage of GDP
  8.2.22 Exports as a Percentage of GDP
  8.2.23 Imports as a Percentage of GDP
  8.2.24 Exports Growth
  8.2.25 Imports Growth
  8.2.26 External Debt as Percentage of GDP
  8.2.27 Exchange Rate US$-ILS (Annual Average)
  8.2.28 Exchange Rate US$-AED (End of Fiscal)
  8.2.29 Debt Service Ratio
8.3 Infrastructure Quality and Availability
  8.3.1 Transport – Total Airports and Ports
  8.3.2 Transport - Automotive Components Export Trend
  8.3.3 Transport - Automotive Products Import Trend
  8.3.4 Transport - Passenger Car Penetration
  8.3.5 Utilities - Total Installed Capacity for Electricity Generation
  8.3.6 Utilities - Installed Capacity for Conventional Thermal Electricity Generation
  8.3.7 Utilities - Electricity Production
  8.3.8 Utilities - Electric Power Consumption
  8.3.9 Healthcare - Healthcare Expenditure
  8.3.10 Healthcare - Healthcare Expenditure as % GDP
  8.3.11 Healthcare - Healthcare Expenditure Per Capita
  8.3.12 Technology – R&D Expenditure as a percentage of GDP
  8.3.13 Communication - Total Internet Subscribers
  8.3.14 Communication - Broadband Internet Subscribers
  8.3.15 Communication – Mobile Phone Penetration Rate
8.4 Labor Force
  8.4.1 Labor Force
  8.4.2 Unemployment Rate
8.5 Demographics
  8.5.1 Annual Disposable Income
  8.5.2 Annual Per Capita Disposable Income
  8.5.3 Annual Consumer Expenditure on Food
  8.5.4 Annual Per Capita Consumer Expenditure on Food
  8.5.5 Urban and Rural Population
  8.5.6 Female as Percentage of Population
  8.5.7 Male as Percentage of Population
  8.5.8 Mean Age of Population
  8.5.9 Median Age of Population
  8.5.10 Population Density
  8.5.11 Age Distribution – Total Population
  8.5.12 Age Distribution-Male Population
  8.5.13 Age Distribution-Female Population
  8.5.14 No. of Households
8.6 Political and Social Risk
  8.6.1 Political Stability
  8.6.2 Terrorism Index
  8.6.3 Transparency Index

LIST OF TABLES

Table 1: ICD Research Terrorism Index
Table 2: Israeli Defense Offset Regulations
Table 3: Market Entry by Key Foreign OEMs
Table 4: Israel Defense Industry, Competitive Landscape
Table 5: General Dynamics - Alliances
Table 6: General Dynamics - Recent Contract Wins
Table 7: Navistar Defense - Alliances
Table 8: Navistar Defense - Recent Contract Wins
Table 9: Lockheed Martin - Alliances
Table 10: Lockheed Martin - Recent Contract Wins
Table 11: Raytheon - Alliances
Table 12: Raytheon - Recent Contract Wins
Table 13: Rafael Advanced Defense System - Alliances
Table 14: Rafael Advanced Defense System - Recent Contract Wins
Table 15: Israel Aerospace Industries - Alliances
Table 16: Israel Aerospace Industries – Recent Contract Wins
Table 17: Israel Military Industries - Alliances
Table 18: Israel Military Industries - Recent Contract Wins
Table 19: Elbit Systems - Alliances
Table 20: Elbit Systems - Recent Contract Wins
Table 21: Elisra Systems - Recent Contract Wins
Table 22: Ness TSG - Recent Contract Wins
Table 23: Plasan - Alliances
Table 24: Plasan - Recent Contract Wins
Table 25: SimiGon - Alliances
Table 26: SimiGon - Recent Contract Wins

LIST OF FIGURES

Figure 1: Israeli Defense Market Size and Forecast (US$ Billion), 2004–15F
Figure 2: US Military Aid, 2004–15F
Figure 3: Israeli Missile Defense Funding from US (US$ Billion), 2006–10
Figure 4 : Israeli Defense Expenditure as a Percentage of GDP (%), 2004–15F
Figure 5: Israeli Defense Budget (US$ Billion), 2004–15F
Figure 6 : Israeli Defense Budget Allocation for Capital and Revenue Expenditure, 2004–15F
Figure 7: Israeli Defense Expenditure Allocation including Military Aid (US$ Billion), 2004–15F
Figure 8: Israeli Homeland Security Market Size (US$ Billion), 2004–15F
Figure 9: ICD Research Terrorism Heat Map, 2009
Figure 10: ICD Research Terrorism Index, 2009
Figure 11: Benchmarking with Key Global Markets, 2004–09 vs. 2010–15F
Figure 12: Defense Expenditure of Israel compared to Largest Military Spenders (US$ Billion), 2009 and 2015F
Figure 13: Defense Expenditure as a Percentage of GDP of Israel and Largest Military Spenders, 2009
Figure 14 : Israeli Arms Imports by Country, 2004–09
Figure 15: Israeli Defense Imports by Value (US$ Billion), 2004–10
Figure 16 : Israeli Defense Imports by Category (%), 2004–09
Figure 17 : Israeli Defense Exports by Value (US$ Billion), 2004–09
Figure 18 : Israeli Defense Exports by Category (%), 2004–09
Figure 19 : Israel Defense Exports by Country (%), 2004–2009
Figure 20: Israeli Defense Industry Dynamics
Figure 21: Rafael Advanced Defense System Revenue Trend Analysis, FY2007–09
Figure 22: Rafael Advanced Defense System Net Profit Trend Analysis, FY2007–09
Figure 23: Ness TSG - Revenue Trend Analysis, FY2005–09
Figure 24: Ness TSG - Operating Profit Trend Analysis, FY2005–09
Figure 25: Ness TSG - Net Profit Trend Analysis, FY2005–09
Figure 26: SimiGon Revenue Trend Analysis, FY2005–09
Figure 27: SimiGon Operating Profit Trend Analysis, FY2005–09
Figure 28: SimiGon Net Profit Trend Analysis, FY2005–09
Figure 29: Israel Business Confidence Index, 2007-10
Figure 30: Tel-Aviv Stock Exchange Market Capitalization, 2003-09
Figure 31: Israel Deployment of Credit by Sector (US$ billion), 2003-09
Figure 32: Israel GDP Value at Constant Prices, 2003-15F
Figure 33: Israel GDP Per Capita at Constant Prices, 2003-15F
Figure 34: Israel GDP at Current Prices, 2003-15F
Figure 35: Israel GDP Per Capita at Current Prices, 2003-215F
Figure 36: Israel GDP Split by Key Segments 2003 Vs 2009
Figure 37: Israel Agriculture Net Output Value at Current Prices (Local Currency), 2003-15F
Figure 38: Israel Agriculture Net Output Value at Current Prices (US$), 2003-15F
Figure 39: Israel Agriculture Net Output at Current Prices as a percentage of GDP, 2003-15F
Figure 40: Israel Manufacturing Net Output at Current Prices (Local Currency), 2003-15F
Figure 41: Israel Manufacturing Net Output at Current Prices (US$), 2003-15F
Figure 42: Israel Manufacturing Net Output at Current Prices as a percentage of GDP, 2003-15F
Figure 43: Israel Mining, Manufacturing, Utilities Net Output, at Current Prices (Local Currency), 2003-15F
Figure 44: Israel Mining, Manufacturing, Utilities Net Output, at Current Prices (US$), 2003-15F
Figure 45: Israel Mining, Manufacturing, Utilities Output, at Current Prices as a percentage of GDP, 2003-15F
Figure 46: Israel Construction Net Output, at Current Prices (ILS), 2003-15F
Figure 47: Israel Construction Net Output, at Current Prices (US$), 2003-15F
Figure 48: Israel Construction Net Output, at Current Prices as a percentage of GDP, 2003-15F
Figure 49: Israel Crude Steel Production, 2003-15F
Figure 50: Israel Inflation Rate, 2003-15F
Figure 51: Israel Fiscal Deficit as a percentage of GDP, 2003-15F
Figure 52: Israel Trade Balance as a percentage of GDP, 2003-09
Figure 53: Israel Exports as a Percentage of GDP, 2003-15F
Figure 54: Israel Imports as a Percentage of GDP, 2003-15F
Figure 55: Israel Exports Growth, 2003-15F
Figure 56: Israel Imports Growth, 2003-15F
Figure 57: Israel External Debt as % GDP 2003-09
Figure 58: Israel Exchange Rate US$-AED (Annual Average), 2003-09
Figure 59: Israel Exchange Rate (End of Fiscal), 2003-09
Figure 60: Israel Debt Service Ratio, 2003-09
Figure 61: Israel Airports and Ports, 2009
Figure 62: Israel Automotive Components Exports, 2003-15F
Figure 63: Israel Automotive Components Imports, 2003-15F
Figure 64: Israel Passenger Car Penetration (per 1000 people), 2003-15F
Figure 65: Israel Total Installed Capacity for Electricity Generation, 2003-15F
Figure 66: Israel Installed Capacity for Conventional Thermal Electricity Generation, 2003-15F
Figure 67: Israel Electricity Production, 2003-15F
Figure 68: Israel Electric Power Consumption, 2003-15F
Figure 69: Israel Healthcare Expenditure, 2003-15F
Figure 70: Israel Healthcare Expenditure as % GDP, 2003-15F
Figure 71: Israel Per Capita Healthcare Expenditure, 2003-15F
Figure 72: Israel R&D Expenditure as a percentage of GDP, 2003-15F
Figure 73: Israel Internet Subscribers, 2003-15F
Figure 74: Israel Broadband Internet Subscribers, 2003-15F
Figure 75: Israel Mobile Phone Penetration (%), 2003-15F
Figure 76: Israel Size of Labor Force (in 15-59 age group), 2003-15F
Figure 77: Israel Unemployment Rate, 2003-15F
Figure 78: Israel Annual Disposable Income, 2003-15F
Figure 79: Israel Annual Per Capita Disposable Income, 2003-15F
Figure 80: Israel Consumer Expenditure on Food, 2003-15F
Figure 81: Israel Annual Per Capita Consumer Expenditure on Food, 2003-15F
Figure 82: Israel Urban and Rural Population, 2003-15F
Figure 83: Israel Female as Percentage of Population, 2003-15F
Figure 84: Israel Males as a percentage of Population, 2003-15F
Figure 85: Israel Mean Age of Population, 2003-15F
Figure 86: Israel Median Age of Population, 2003-15F
Figure 87: Israel Population Density, 2003-15F
Figure 88: Israel Age-wise Population Distribution, 2003-15F
Figure 89: Israel Age-wise Male Population Distribution, 2003-15F
Figure 90: Israel Age-wise Female Population Distribution, 2003-15F
Figure 91: Israel Number of Households, 2003-15F
Figure 92: ICD Research Terrorism Heat Map
Figure 93: Israel Transparency Index, 2003-09

COMPANIES MENTIONED

General Dynamics, Navistar Defense, Lockheed Martin, Raytheon, Rafael Advanced Defense System, Israel Aerospace Industries, Israel Military Industries, Israel Shipyards, Elbit Systems, Elisra Systems, Ness TSG, Plasan, SimiGon

Ask Your Question

The Israeli Defense Sector – Market Opportunity & Entry Strategy, Analyses and Forecasts to 2015
Company name*:
Contact person*:
Phone/fax*:
Email*:
Request invoice
Your enquiry: