Summary
The Future of the Philippines' Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021, 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 developments.
Key Findings
- Over the historic period, the Philippines' defense expenditure registered CAGR of -0.62%,decreasing from US$2.54billion in 2012 to US$2.47 billion in 2016
- The Philippines' military expenditure, estimated to value US$2.7billion in 2017, is expected to increase marginally to reachUS$3.4 billion by 2021, registering a CAGR of 5.75% over the forecast period
- The country's military expenditure will be driven by the modernization of its armed forces and rising tensions in the South China Sea
- The Defense Ministry is expected to procuremulti-role combat aircraft, submarines, and frigates
Synopsis
This report offers detailed analysis of the Philippines' 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:
- The Philippines' defense industry market size and drivers: detailed analysis of the Filipino defense industry during 2017-2021, 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 the army, navy, and air force. It also details the key challenges faced by defense market participants within the country
- Porter's Five Force analysis of the Filipino defense industry: analysis of 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 coming 10 years
- Competitive landscape and strategic insights: Competitive landscape analysis of the Philippines' defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Philippines' 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 the Philippines' defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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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. Philippines' defense budget to grow at an estimated CAGR of 4.79% during 2017-2021
3.1.2. Increased tensions in the South China Sea and the armed forces modernization drive the Philippines' defense industry
3.1.3. Defense budget as a percentage of GDP will remain at an average of 0.67% over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of capital expenditure is expected to increase during the forecast period
3.2.2. Capital expenditure is anticipated to record a CAGR of 7.2% during the forecast period
3.2.3. The army accounted for the largest percentage share of the overall Philippines' defense budget
3.2.4. Army defense expenditure is estimated to reach US$1.5 billion in 2021
3.2.5. Air force defense expenditure expected to grow at a CAGR of 6.37% during 2017-2021
3.2.6. Naval expenditure is estimated to register a CAGR of 5.65%over the forecast period
3.2.7. Other expenditure allocation is expected to increase over the forecast period
3.2.8. Philippines per-capita defense expenditure to increase during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. The homeland security market in the Philippines is expected to grow at a CAGR of 2.43% during the forecast period
3.3.2. Counter terrorism activities and illicit drug trade drives the Philippines' homeland security expenditure
3.3.3. The Philippines falls under "highly affected" category in the terrorism index
3.3.4. The Philippines faces threats from terrorist organizations
3.3.5. The Philippines has a terrorism index score of 7.3
3.4. Benchmarking with Key Global Markets
3.4.1. The Philippines ranks among the major global defense markets
3.4.2. The Philippines' defense expenditure is relatively smaller than other Asia countries
3.4.3. The Philippines' defense budget as a percentage of GDP is expected to decline over the forecast period
3.5. Market Opportunities: Key Trends and Drivers
3.5.1. Multi-role Aircraft
3.5.2. Diesel Electric Submarine
3.5.3. Infrastructure Construction
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities drives the country's defense imports
4.1.2. Aircraft and Ships accounted for a total share of 87.9% in the Philippines' defense imports
4.1.3. The US, Spain, and South Korea are the major suppliers for the Philippines
4.2. Export Market Dynamics
4.2.1. No defense exports for the Philippines
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: Medium
5.1.3. Barrier to entry: low to medium
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Countertrade/Offset policy aids development of domestic defense industry
6.1.2. Filipino Government unveils new procurement rules
6.2. Market Entry Route
6.2.1. Foreign military sales (FMS) to the Philippines
6.2.2. Collaborations provide market entry opportunities
6.3. Key Challenges
6.3.1. Increase in corruption and lack of transparency impedes the growth of the Philippines' defense industry
7 Competitive landscape and Strategic Insights
7.1. Competitive landscape Overview
7.2. Key Companies
7.2.1. United Defense Manufacturing Corporation: Overview
7.2.2. Untied Defense Manufacturing Corporation: Major Products
7.2.3. United Defense Manufacturing Corporation: Recent Announcements and Strategic Initiatives
7.2.4. Leonardo- Finmeccanica: Overview
7.2.5. Leonardo-Finmeccanica: Products and services
7.2.6. Leonardo-Finmeccanica: Recent Announcements and Strategic Initiatives
7.2.7. Leonardo-Finmeccanica: recent contract wins
7.2.8. Remington Arms Company, LLC. : Overview
7.2.9. Remington Arms Company, LLC. : Major Products and Services
7.2.10. Remington Arms Company, LLC: Recent Contract Wins
7.2.11. ELTA Systems Ltd: Overview
7.2.12. ELTA Systems Ltd: Major Products and Services
7.2.13. ELTA Systems Ltd: Recent Contract Wins
7.2.14. Raytheon: overview
7.2.15. Raytheon: products
7.2.16. Raytheon: Recent Contract Wins
8 Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per capita at constant prices (US$)
8.1.2. GDP at current prices (US$)
8.1.3. Exports of goods and services (LCU)
8.1.4. Imports of goods and services (LCU)
8.1.5. Gross national disposable income (US$ billions)
8.1.6. LCU per US$ (period average)
8.1.7. Market capitalization of listed companies (US$ billions)
8.1.8. Market capitalization of listed companies (% of GDP)
8.1.9. Government cash surplus/deficit as a percentage of GDP (LCU)
8.1.10. Goods exports and imports as a percentage of GDP
8.1.11. Services imports and exports as a percentage of GDP
8.1.12. Foreign direct investment, net (BoP, current US$ billions)
8.1.13. Net foreign direct investment as a percentage of GDP
8.2. Mineral
8.2.1. Mining, Manufacturing, Utilities Output (US$ billions)
9 Appendix
9.1. About SDI
9.2. Disclaimer
Table 1: Philippines Defense Expenditure (? billionand US$ billion), 2012-2021
Table 2: Philippines GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2012-2021
Table 3: Philippines Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2021
Table 4: Philippines Defense Capital Expenditure (? billion and US$ billion), 2012-2021
Table 5: Philippines Defense Budget Split Between Army, Navy, Air Force, and Other expenditure, 2012-2021
Table 6: Philippines Defense Expenditure for Army (?billion and US$ billion), 2012-2021
Table 7: Philippines Defense Expenditure for Air Force (? billion and US$ billion), 2012-2021
Table 8: Philippines Defense Expenditure for Navy (? billion and US$ billion), 2012-2021
Table 9: Philippines Other category expenditure (? billionand US$ billion), 2012-2021
Table 10: Philippines Per Capita Defense Expenditure (US$), 2012-2021
Table 11: Philippines Homeland Security Expenditure (? billionand US$ billion), 2012-2021
Table 12: SDI Terrorism Index
Table 13:Benchmarking with Key Markets, 2012-2016 vs. 2017-2021
Table 14: Countertrade/Offset Regulations in Philippines
Table 15: FMS deals to Philippines
Table 16: Leonardo-Finmeccanica - Recent Contract Wins
Table 17: Remington Arms Company, LLC. - Recent Contract Wins
Table 18: ELTA Systems Ltd - Recent Contract Wins
Table 19: Raytheon - Recent Contract Wins
Figure 1: Philippines Defense Expenditure (?billion), 2012-2021
Figure 2: Philippines Defense Expenditure (US$ Billion), 2012-2021
Figure 3: Philippines GDP Growth and Defense Expenditure as Percentage of GDP Growth,2012-2021
Figure 4: Philippines Defense Budget Split Between Capital and Revenue Expenditure (%),2012-2021
Figure 5: Philippines Defense Capital Expenditure (?billion), 2012-2021
Figure 6: Philippines Defense Capital Expenditure (US$ billion), 2012-2021
Figure 7: Philippines Defense budget Split Between Army, Navy, Air Force, and Other expenditure, 2012-2021
Figure 8: Philippines Army Expenditure (? billion), 2012-2021
Figure 9: Philippines Defense Expenditure for Army (US$ billion), 2012-2021
Figure 10: Philippines Defense Expenditure for Air Force (?billion), 2012-2021
Figure 11: Philippines Defense Expenditure for Air Force (US$ billion), 2012-2021
Figure 12: Philippines Defense Expenditure for Navy (?billion), 2012-2021
Figure 13: Philippines Defense Expenditure for Navy (US$ Billion), 2012-2021
Figure 14: Philippines Defense Expenditure for Other category(?billion), 2012-2021
Figure 15: Philippines Defense Expenditure for Other category (US$ Billion), 2012-2021
Figure 16: Philippines Per Capita Defense Expenditure (US$), 2012-2021
Figure 17: Philippines Homeland Security Expenditure (? billion), 2012-2021
Figure 18: Philippines Homeland Security Expenditure (US$ billion), 2012-2021
Figure 19: SDI Terrorism Heat Map, 2016
Figure 20: SDI Terrorism Index, 2016
Figure 21: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021
Figure 22: Defense Expenditure of the World's Largest Military Spenders (US$ billion),2016 and 2021
Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016
Figure 24: Multi-Role Aircraft Market Size (US$ Million), 2016-2026
Figure 25: Diesel Electric Submarine Market Size (US$ Million), 2016-2026
Figure 26: Infrastructure Construction Market Size (US$ Million), 2016-2026
Figure 27: Philippines Defense Import Trend (US$ Million), 2011-2015 (TIV values*)
Figure 28: Philippines Defense Imports by Category (%), 2011-2015
Figure 29: Philippines Defense Imports by Country (%), 2011-2015
Figure 30: Industry Dynamics - Porter's Five Forces Analysis
Figure 31: Philippines GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 32: Philippines GDP at Current Prices (US$ Billion), 2015-2025
Figure 33: Philippines Exports of goods and services (LCU), 2005-2014
Figure 34: Philippines Imports of goods and services (US$), 2005-2014
Figure 35: Philippines Gross national disposable income (US$ billion), 2009-2012
Figure 36: Philippines LCU per US$, 2015-2024
Figure 37: Philippines market capitalization of listed companies (US$ billion), 2005-2012
Figure 38: Philippines market capitalization of listed companies (% of GDP), 2005-2012
Figure 39: Philippines Government cash surplus/deficit as % of GDP (LCU), 2005-2012
Figure 40: Philippines- Goods exports and imports as a % of GDP (%), 2005-2014
Figure 41: Philippines Services imports and exports as a % of GDP (%), 2005-2014
Figure 42: Philippines Foreign direct investment, net (BoP, current US$ billion), 2005-2014
Figure 43: Philippines Net foreign direct investment as % of GDP, 2005-2014
Figure 44: Philippines Mining, Manufacturing, Utilities Output (US$ billion), 2005-2014
United Defense Manufacturing Corporation
Leonardo-Finmeccanica
Remington Arms Company
LLC
ELTA Systems Ltd
Raytheon.
