Summary
The Future of the Singaporean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, 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 news.
Synopsis
This report offers detailed analysis of the Singaporean 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 Singaporean defense industry market size and drivers: detailed analysis of the Singaporean defense industry during 2019-2023, 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
- Porter’s Five Force analysis of the Singaporean defense industry: analysis of the 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 next 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Singaporean defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Scope
- The Singaporean defense budget is valued at US$11 billion in 2018, and registered a CAGR of 2.99% during the historic period. The budget in the historic period was mainly driven by the threats posed by terrorist organizations such as the Al-Qaeda-linked Jemaah Islamiah (JI), and other regional terrorist groups.
- The capital expenditure allocation, which stood at an average of 3.7% during the historic period, is projected to increase to 4.0% over the forecast period. Although the Singapore Defense Force is considered to be the best equipped and well-trained force in Southeast Asia, the country plans to continue its procurement of advanced military hardware in order to counter the threats to national security.
- The MoD is expected to invest in land based C4ISR, infrastructure construction and physical security of critical infrastructure among others.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Singaporean 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 Singaporean 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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Table of Contents
1. Introduction 8
1.1. What is this Report About? 8
1.2. Definitions 8
1.3. Summary Methodology 10
1.4. About Strategic Defense Intelligence 11
2. Executive Summary 12
3. Market Attractiveness and Emerging Opportunities 14
3.1. Current Market Scenario 15
3.1.1. Primary Threat Perception 15
3.1.2. Military Doctrine and Strategy 16
3.1.3. Military Fleet Size 17
3.1.4. Procurement Programs 22
3.1.5. Social, Political and Economic Environment and Support for Defense Projects 24
3.1.6. Political and Strategic Alliances 25
3.2. Defense Market Size Historical and Forecast 26
3.2.1. Defense expenditure expected to grow at a CAGR of 3.14% during 2019-2023 26
3.2.2. Countering terrorist threats, acquiring sophisticated military equipment and overseas training requirements are expected to drive defense expenditure 28
3.2.3. Defense expenditure as a percentage of GDP is expected to average 3.0% during 2019-2023 30
3.3. Analysis of Defense Budget Allocation 32
3.3.1. Capital expenditure allocation is expected to increase over the forecast period 32
3.3.2. Singapore’s defense capital expenditure to value US$536.4 million in 2023 34
3.3.3. Per capita defense expenditure to increase over the forecast period 36
3.4. Homeland Security Market Size and Forecast 38
3.4.1. Homeland Security (HLS) is expected to grow at CAGR 8.27% over the forecast period 38
3.4.2. Border protection and cyber security are driving the country’s homeland security budget 40
3.4.3. Singapore considered at ‘some risk’ of terrorist attack 41
3.4.4. Singapore scores 0.0 on the Terrorism Index 42
3.4.5. Singapore faces a moderate threat from foreign terrorist organizations 43
3.5. Benchmarking with Key Global Markets 45
3.5.1. Singapore has the second highest defense expenditure in Southeast Asia 45
3.5.2. The country’s defense budget is high compared to other Southeast Asian countries 47
3.5.3. As a percentage of GDP, Singapore’s defense expenditure ranks among the top 20 in the world 48
3.6. Market Opportunities: Key Trends and Drivers 49
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023 49
3.6.2. Critical Infrastructure Protection (CIP) - Physical Security 50
3.6.3. C4ISR - Land-based 51
3.6.4. Military Infrastructure and Logistics - Infrastructure Construction 52
4. Defense Procurement Market Dynamics 53
4.1. Import Market Dynamics 54
4.1.1. Defense imports are expected to increase over the forecast period 54
4.1.2. The US dominated Singaporean defense imports from 2013-2017 55
4.1.3. Aircraft was the major defense import during 2013-2017 56
4.2. Export Market Dynamics 57
4.2.1. Arms’ export expected to increase over the forecast period 57
4.2.2. Oman emerged as the biggest importer of Singaporean defense equipment 58
4.2.3. Ships accounted for the majority of defense exports between 2013 and 2017 59
5. Industry Dynamics 60
5.1. Five Forces Analysis 60
5.1.1. Bargaining Power of Supplier: Low to Medium 61
5.1.2. Bargaining Power of Buyer: Medium to High 61
5.1.3. Barrier to Entry: Medium 61
5.1.4. Intensity of Rivalry: High 61
5.1.5. Threat of Substitution: High 61
6. Market Entry Strategy 62
6.1. Market Regulation 62
6.1.1. Defense policy requires investments in training and technology to develop domestic capabilities 62
6.1.2. Favorable FDI policies to attract foreign OEMs 62
6.2. Market Entry Route 63
6.2.1. Budgeting Process 63
6.2.2. Procurement Policy and Process 63
6.2.3. The transfer of technology is a key entry strategy for foreign OEMs 63
6.3. Key Challenges 65
6.3.1. Restricted availability of production discourages foreign investments 65
6.3.2. Limited defense budget discourages investors from entering market 65
7. Competitive Landscape and Strategic Insights 66
7.1. Competitive Landscape Overview 66
7.1.1. Singapore’s defense sector has a mix of domestic and foreign competitors 66
7.2. Key Foreign Companies 67
7.2.1. Boeing: Overview 67
7.2.2. Boeing: Products and Services 67
7.2.3. Boeing: Recent announcements and strategic initiatives 67
7.2.4. Boeing: Alliances 68
7.2.5. Boeing: Recent Contract Wins 68
7.2.6. ThyssenKrupp Marine Systems: Overview 69
7.2.7. ThyssenKrupp Marine Systems: Products 69
7.2.8. ThyssenKrupp Marine Systems: Recent Announcements and Strategic Initiatives 69
7.2.9. ThyssenKrupp Marine Systems: Recent Contract Wins 69
7.2.10. Thales: Overview 70
7.2.11. Thales: Products 70
7.2.12. Thales: Recent Announcements and Strategic Initiatives 70
7.2.13. Thales: Alliances 71
7.2.14. Thales: Recent Contract Wins 71
7.2.15. Singapore Technologies Aerospace: Overview 72
7.2.16. Singapore Technologies Aerospace: Products 72
7.2.17. Singapore Technologies Aerospace: Recent Announcements and Strategic Initiatives 72
7.2.18. Singapore Technologies Aerospace: Alliances 73
7.2.19. Singapore Technologies Aerospace: Recent Contract wins 74
7.2.20. Singapore Technologies Marine: Overview 75
7.2.21. Singapore Technologies Marine: Products 75
7.2.22. Singapore Technologies Marine: Recent Announcements and Strategic Initiatives 76
7.2.23. Singapore Technologies Marine: Alliances 76
7.2.24. Singapore Technologies Marine Recent Contract Wins 77
7.2.25. Singapore Technologies Electronics: Overview 78
7.2.26. Singapore Technologies Electronics: Products and Services 78
7.2.27. Singapore Technologies Electronics: Recent Announcements and Strategic Initiatives 79
7.2.28. Singapore Technologies Electronics: Alliances 79
7.2.29. Singapore Technologies Electronics: Recent contract wins 80
7.2.30. Singapore Technologies Kinetics: Overview 81
7.2.31. Singapore Technologies Kinetics: Products and Services 81
7.2.32. Singapore Technologies Kinetics: Recent Announcements and Strategic Initiatives 82
7.2.33. Singapore Technologies Kinetics: Alliances 83
7.2.34. Singapore Technologies Kinetics: Recent Contract Wins 84
8. Business Environment and Country Risk 85
8.1. Economic Performance 85
8.1.1. GDP per Capita 85
8.1.2. Gross Domestic Product 86
8.1.3. Exports of Goods and Services (LCU Billion) 87
8.1.4. Imports of Goods and Services (LCU Billion) 88
8.1.5. Gross National Disposable Income 89
8.1.6. LCU per US$ (Period Average) 90
8.1.7. Market Capitalization of Listed Companies 91
8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP 92
8.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP 93
8.1.10. Goods Exports as a Percentage of GDP 94
8.1.11. Goods Imports as a Percentage of GDP 95
8.1.12. Services Imports as a Percentage of GDP 96
8.1.13. Services Exports as a Percentage of GDP 97
8.1.14. Net Foreign Direct Investment 98
8.1.15. Net Foreign Direct Investment as a Percentage of GDP 99
8.1.16. Mining, Manufacturing, Utilities Output 100
9. Appendix 101
9.1. About SDI 101
9.2. Disclaimer 101
List of Tables
Table 1: Singapore - Army Strength, 2018 17
Table 2: Singapore - Air Force Strength, 2018 19
Table 3: Singapore - Navy Strength, 2018 20
Table 4: Singapore - Ongoing Development and Procurement Programs, 2018 22
Table 5: Singapore - Future Procurement Programs, 2018 22
Table 6: Singapore - Top Defense Procurement Programs by Value (US$ Million), 2018-2023 23
Table 7: Singapore - Defense Expenditure (SGD Billion & US$ Billion), 2014-2023 26
Table 8: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023 30
Table 9: Singapore - Defense Budget Allocation for Capital and Revenue Expenditure (%), 2014-2023 32
Table 10: Singapore - Defense Capital Expenditure, (SGD Billion & US$ Billion), 2014-2023 34
Table 11: Singapore - Defense Expenditure as Per Capita Defense Spend (US$), 2014-2023 36
Table 12: Singapore Homeland Security Expenditure (SGD Billion & US$ Billion), 2014-2023 38
Table 13: Terrorism Index, 2018 43
Table 14: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023 45
Table 15: Top Singapore Defense Sectors by Value (US$ Million), 2018-2023 49
Table 16: Singapore Budget Process 63
Table 17: Top Defense Suppliers in Singapore Defense Industry - By Value (US$ Million) 2018-2023 66
Table 18: Boeing. - Products 67
Table 19: Boeing - Alliances 68
Table 20: Boeing - Recent Contract Wins 68
Table 21: ThyssenKrupp Marine Systems - Product Focus 69
Table 22: ThyssenKrupp Marine Systems - Recent Contract Wins 69
Table 23: Thales - Products 70
Table 24: Thales - Alliances 71
Table 25: Thales - Recent Contract Wins 71
Table 26: Singapore Technologies Aerospace - Products and Services 72
Table 27: Singapore Technologies Aerospace - Alliances 73
Table 28: Singapore Technologies Aerospace - Recent Contract Wins 74
Table 29: Singapore Technologies Marine - Products 75
Table 30: Singapore Technologies Marine - Alliances 76
Table 31: Singapore Technologies Marine - Recent Contract Wins 77
Table 32: Singapore Technologies Electronics - Products and Services 78
Table 33: Singapore Technologies Electronics - Alliances 79
Table 34: Singapore Technologies Electronics - Recent Contract Wins 80
Table 35: Singapore Technologies Kinetics - Products and Services 81
Table 36: Singapore Technologies Kinetics - Alliances 83
Table 37: Singapore Technologies Kinetics - Recent Contract Wins 84
List of Figures
Figure 1: Singapore Defense Expenditure (SGD Billion), 2014-2023 27
Figure 2: Singapore Defense Expenditure (US$ Billion), 2014-2023 27
Figure 3: Singapore GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023 31
Figure 4: Singapore Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 33
Figure 5: Singapore Defense Capital Expenditure (SGD Million), 2014-2023 35
Figure 6: Singapore Defense Capital Expenditure (US$ Million), 2014-2023 35
Figure 7: Singapore Per Capita Defense Expenditure (US$), 2014-2023 37
Figure 8: Singapore’s Homeland Security Expenditure (SGD Billion), 2014-2023 39
Figure 9: Singapore’s Homeland Security Expenditure (US$ Billion), 2014-2023 39
Figure 10: Terrorism Heat Map, 2018 41
Figure 11: Terrorism Index, 2018 42
Figure 12: Benchmarking with Key Global Markets, 2014-2018 vs. 2019-2023 46
Figure 13: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2018 and 2023 47
Figure 14: Benchmarking with Large Defense Spenders as a Percentage of GDP - 2018 48
Figure 15: Critical Infrastructure Protection (CIP) - Physical Security Market Size (US$ Million), 2018-2023 50
Figure 16: C4ISR - Land Based Security Market Size (US$ Million), 2018-2023 51
Figure 17: Military Infrastructure and Logistics - Infrastructure Construction Market Size (US$ Million), 2018-2023 52
Figure 18: Top Singapore Defense Procurements in Terms of Supplier Relationships 53
Figure 19: Singapore Defense Import Trend, 2013-2017 (TIV values) 54
Figure 20: Singapore Defense Imports by Country (%), 2013-2017 55
Figure 21: Singapore Defense Imports by Weapon Category (%), 2013-2017 56
Figure 22: Singaporean Defense Exports by Value, 2013-2017 57
Figure 23: Singaporean Defense Exports by Country (US$ million), 2013-2017 58
Figure 24: Singaporean Defense Exports by Category (%), 2013-2017 59
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis 60
Figure 26: Singapore GDP per Capita (US$), 2015-2025 85
Figure 27: Singapore GDP (current US$ Billion), 2015-2025 86
Figure 28: Singapore Exports of Goods and Services (LCU Billion), 2005-2014 87
Figure 29: Singapore Imports of Goods and Services (LCU Billion), 2005-2014 88
Figure 30: Singapore Gross National Disposable Income (US$ Billion), 2005-2013 89
Figure 31: Singapore LCU per US$, 2015-2024 90
Figure 32: Singapore Market Capitalization of Listed Companies (US$ Billion), 2005-2012 91
Figure 33: Singapore Market Capitalization of Listed Companies (% of GDP), 2005-2012 92
Figure 34: Singapore Total Government Cash Surplus/Deficit (% of GDP), 2005-2012 93
Figure 35: Singapore Goods Exports (% of GDP), 2005-2014 94
Figure 36: Singapore Goods Imports (% of GDP), 2005-2014 95
Figure 37: Singapore Services Imports (% of GDP), 2005-2014 96
Figure 38: Singapore Services Exports (% of GDP), 2005-2014 97
Figure 39: Singapore Net Foreign Direct Investment (US$ Billion), 2005-2014 98
Figure 40: Singapore Net Foreign Direct Investment (% of GDP), 2005-2014 99
Figure 41: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 100
