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Future of the Algerian Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the Algerian Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2023

Publishing Date : Jun, 2018

License Type :
 

Report Code : 1200688

No of Pages : 97

Synopsis
Future of the Algerian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

"Future of the Algerian 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 Algerian 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.

With a defense budget of US$9.8 billion in 2018, Algeria is currently the largest military spender in the African region. Military expenditure is strongly supported by the presence of the oil and natural gas industry, where revenues are directed towards strengthening defense and security. The increased threat of terrorism from the Islamic group Al-Qaeda in the Islamic Maghreb (AQIM) operating in North Africa, an arms race with neighboring countries such as Morocco and Tunisia, and the ongoing modernization of its armed forces are key factors expected to drive military expenditure. The instability in neighboring Libya, coupled with the rapid spread of Islamic State (IS) in the country, has compelled Algeria to bolster its defenses and develop a robust defense posture. The Algerian defense industry is expected to grow from US$10 billion in 2019 to US$11.9 billion by 2023 at a CAGR of 4.31% over the forecast period.

Scope

In particular, it provides an in-depth analysis of the following -
- The Algerian defense industry market size and drivers: detailed analysis of the Algerian 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
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities:list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Algerian defense industry.

Reasons to buy

This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Algerian 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
- Profiles of the top domestic and foreign defense manufacturers. This will provide the user with a total competitive landscape of the sector.
- A deep qualitative analysis of the Algerian defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.

Companies Mentioned
Rosoboronexport
Entreprise Nationale des Véhicules Industriels Vehicles
NIMR-Algerie Joint Stock Company
Khenchela Mechanical Constructions Establishment
Seriana Company of Industrial Achievements
National Office of Explosive Substances

Geographical Area
Algeria
Index
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 Defence 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 19
3.1.4. Procurement Programs 25
3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023 27
3.1.6. Social, Political, and Economic Environment and Support for Defense Projects 28
3.1.7. Political and Strategic Alliances 29
3.2. Defense Market Size: Historical and Forecast 30
3.2.1. Algeria’s defense budget to grow at a CAGR of 4.31% over the forecast period 30
3.2.2. Rising threat of terrorism and an arms race in the region to drive Algeria’s defense expenditure 32
3.2.3. The defense budget as a percentage of GDP will remain at an average of 4.8% over the forecast period 34
3.3. Analysis of Defense Budget Allocation 36
3.3.1. Share of capital expenditure is expected to increase over the forecast period 36
3.3.2. Capital expenditure is expected to record a CAGR of 4.56% over the forecast period 38
3.3.3. Algeria’s per-capita defense expenditure is expected to increase over the forecast period 40
3.4. Homeland Security Market Size and Forecast 42
3.4.1. The homeland security market in Algeria is expected to grow at a CAGR of 1.64% over the forecast period 42
3.4.2. Human trafficking and drug trafficking form the main components of homeland security expenditure 44
3.4.3. Algeria faces “moderate risk” of terrorism 45
3.4.4. Algeria faces a moderate level of threat from foreign terrorist organizations 46
3.4.5. Algeria has a terrorism index score of 4.0 48
3.5. Benchmarking with Key Global Markets 49
3.5.1. Algerian defense expenditure is expected to remain low compared to leading spenders 49
3.5.2. Algeria will continue to dominate the arms market in the Africa region 51
3.5.3. Defense budget as a percentage of GDP is expected to remain low over the forecast period 52
3.6. Market Opportunities: Key Trends and Drivers 53
3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections 53
3.6.2. Land-based C4ISR 54
3.6.3. Transport Aircraft 55
3.6.4. Networking 56
4. Defense Procurement Market Dynamics 57
4.1. Import Market Dynamics 59
4.1.1. Defense imports increased during 2013−2017 59
4.1.2. Russia, China, Germany and Italy are the major defense equipment suppliers for Algeria 60
4.1.3. Aircraft, armored vehicles, and naval vessels accounted for a total share of 74% in Algerian defense imports 62
4.2. Export Market Dynamics 63
4.2.1. Algeria does not export arms due to an undeveloped domestic arms industry 63
5. Industry Dynamics 64
5.1. Five Forces Analysis 64
5.1.1. Bargaining Power of the Supplier: Low to Medium 65
5.1.2. Bargaining Power of the Buyer: Medium 65
5.1.3. Barriers to Entry: High 65
5.1.4. Intensity of Rivalry: Low to Medium 65
5.1.5. Threat of Substitution: High 65
6. Market Entry Strategy 67
6.1. Market Regulation 67
6.1.1. Formal offset policy to be drafted to ensure growth of the country’s domestic defense manufacturing industry 67
6.1.2. Foreign direct investment in defense 67
6.2. Market Entry Route 68
6.2.1. Budget Process 68
6.2.2. Defense procurement process 69
6.2.3. Collaborations provide market entry opportunities 70
6.2.4. Government-to-government agreements are the preferred market entry route for foreign OEMs 70
6.3. Key Challenges 71
6.3.1. Corruption and lack of transparency pose an obstacle for market entry 71
6.3.2. Lack of relevant defense procurement policy 71
7. Competitive Landscape and Strategic Insights 72
7.1. Competitive Landscape Overview 72
7.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Algeria 73
7.1.2. Rosoboronexport: Overview 74
7.1.3. Rosoboronexport: Products 74
7.1.4. Rosoboronexport: Recent Announcements and Strategic Initiatives 74
7.1.5. Rosoboronexport: Alliances 76
7.1.6. Rosoboronexport: Recent Contract Wins 76
7.2. Key Domestic Companies 77
7.2.1. Entreprise Nationale des Véhicules Industriels: Overview 77
7.2.2. Entreprise Nationale des Véhicules Industriels Vehicles: Products and Services 77
7.2.3. Entreprise Nationale des Véhicules Industriels: Recent Announcements and Strategic Initiatives 77
7.2.4. Entreprise Nationale des Véhicules Industriels: Alliances 78
7.2.5. NIMR-Algerie Joint Stock Company: Overview 79
7.2.6. NIMR-Algerie Joint Stock Company: Products 79
7.2.7. Khenchela Mechanical Constructions Establishment (ECMK): Overview 80
7.2.8. Khenchela Mechanical Constructions Establishment: Products 80
7.2.9. Khenchela Mechanical Constructions Establishment: Recent Announcements and Strategic Initiatives 80
7.2.10. Khenchela Mechanical Constructions Establishment: Alliances 80
7.2.11. Seriana Company of Industrial Achievements (ERIS): Overview 81
7.2.12. Seriana Company of Industrial Achievements: Products 81
7.2.13. National Office of Explosive Substances, EPE (ONEX): Overview 82
7.2.14. National Office of Explosive Substances: Products 82
8. Business Environment and Country Risk 83
8.1. Economic Performance 83
8.1.1. GDP Per-Capita at Constant Prices (US$) 83
8.1.2. GDP at Current Prices (US$ Billions) 84
8.1.3. Exports of Goods and Services, Local Currency Unit (LCU Billions) 85
8.1.4. Imports of Goods and Services, Local Currency Unit (LCU Billions) 86
8.1.5. Gross National Disposable Income (US$ Billions) 87
8.1.6. Local Currency Unit (LCU) per US$ (Period Average) 88
8.1.7. Government Cash Surplus/Deficit as a Percentage of GDP, Local Currency Unit (LCU) 89
8.1.8. Goods Exports as a Percentage of GDP 90
8.1.9. Goods Imports as a Percentage of GDP 91
8.1.10. Services Imports as a Percentage of GDP 92
8.1.11. Services Exports as a Percentage of GDP 93
8.1.12. Foreign Direct Investment, Net (Balance of Payments or BoP, Current US$ Billions) 94
8.1.13. Net Foreign Direct Investment as a Percentage of GDP 95
8.1.14. Mining, Manufacturing, Utilities Output (Local Currency Units or LCU, Billions) 96
9. Appendix 97
9.1. About SDI 97
9.2. Disclaimer 97
List of Tables
List of Tables
Table 1: Algerian Army Strength 19
Table 2: Algerian Navy Strength 22
Table 3: Algerian Air Force Strength 23
Table 4: Algeria - Ongoing Development and Procurement Programs 25
Table 5: Algerian - Future Procurement Programs 26
Table 6: Algerian - Defense Procurement Programs by Value (US$ Million) 2018-2023 27
Table 7: Algerian Defense Expenditure (DZD Billion & US$ Billion), 2014-2023 30
Table 8: Algerian GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2023 34
Table 9: Algerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 36
Table 10: Algerian Defense Capital Expenditure (DZD Billion and US$ Billion), 2014-2023 38
Table 11: Algerian Per Capita Defense Expenditure (US$), 2014-2023 40
Table 12: Algerian Homeland Security Expenditure (DZD Billion & US$ Billion), 2014-2023 42
Table 13: Terrorism Index, 2018 46
Table 14: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 49
Table 15: Algeria - 10 Leading Defense Market Categories by Value (US$ Million) - 2018-2023 53
Table 16: Algerian Budget Planning Process 68
Table 17: Algeria - Top 10 Defense Suppliers by Value (US$ Million), 2018-2023 72
Table 18: Competitive Landscape of the Algerian Defense Industry 73
Table 19: Rosoboronexport - Key Products 74
Table 20: Rosoboronexport - Alliances 76
Table 21: Rosoboronexport - Recent Contract Wins 76
Table 22: Entreprise Nationale des Véhicules Industriels - Key Products and Services 77
Table 23: Entreprise Nationale des Véhicules Industriels - Alliances 78
Table 24: NIMR-Algerie - Key Products 79
Table 25: Khenchela Mechanical Constructions Establishment - Key Products 80
Table 26: Khenchela Mechanical Constructions Establishment (ECMK) - Alliances 80
Table 27: Seriana Company of Industrial Achievements - Key Products 81
Table 28: National Office of Explosive Substances - Key Products 82

List of Figures
List of Figures
Figure 1: Algerian Defense Expenditure (DZD Billion), 2014-2023 31
Figure 2: Algerian Defense Expenditure (US$ Billion), 2014-2023 31
Figure 3: Algeria’s GDP Growth and Defense Expenditure as a % of GDP Growth, 2014-2023 35
Figure 4: Algerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 37
Figure 5: Algerian Defense Capital Expenditure (DZD Billion), 2014-2023 39
Figure 6: Algerian Defense Capital Expenditure (US$ Billion), 2014-2023 39
Figure 7: Algerian Per Capita Defense Expenditure (US$), 2014-2023 41
Figure 8: Algerian Homeland Security Expenditure (DZD Billion), 2014-2023 43
Figure 9: Algerian Homeland Security Expenditure (US$ Billion), 2014-2023 43
Figure 10: Terrorism Heat Map, 2018 45
Figure 11: Terrorism Index, 2018 48
Figure 12: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023 50
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023 51
Figure 14: Defense Expenditure as a Percentage of GDP of the Largest Military Spenders (%), 2018 52
Figure 15: Land-based C4ISR Market Size (US$ Million), 2018-2023 54
Figure 16: Transport Aircraft Market Size (US$ Million), 2018-2023 55
Figure 17: Networking Market Size (US$ Million), 2018-2023 56
Figure 18: Algeria - Defense Procurements in Terms of Supplier Relationships, 2018 58
Figure 19: Algeria Defense Import Trend (US$ Million), 2013-2017 (TIV Values*) 59
Figure 20: Algerian Defense Import by Country (%), 2013-2017 61
Figure 21: Algerian Defense Imports by Category (%), 2013-2017 62
Figure 22: Industry Dynamics - Porter’s Five Forces Analysis 64
Figure 23: Algeria’s GDP Per Capita at Constant Prices (US$), 2015-2025 83
Figure 24: Algeria’s GDP at Current Prices (US$ Billions), 2015-2025 84
Figure 25: Algeria’s Exports of Goods and Services (LCU Billions), 2005-2014 85
Figure 26: Algerian Imports of Goods and Services (LCU Billions), 2005-2014 86
Figure 27: Algeria’s Gross National Disposable Income (US$ Billions), 2005-2014 87
Figure 28: Algeria’s LCU per US$, 2015-2024 88
Figure 29: Algeria − Government Cash Surplus/Deficit as a % of GDP (LCU), 2005-2011 89
Figure 30: Algeria − Goods Exports as a Percentage of GDP (%), 2005-2014 90
Figure 31: Algeria − Goods Exports as a Percentage of GDP (%), 2005-2014 91
Figure 32: Algeria − Services Imports as a Percentage of GDP (%), 2005-2013 92
Figure 33: Algeria − Services Exports as a Percentage of GDP (%), 2005-2013 93
Figure 34: Algeria − Foreign Direct Investment, net (BoP, Current US$ Billions), 2005-2013 94
Figure 35: Algeria’s Net Foreign Direct Investment as a % of GDP, 2005-2013 95
Figure 36: Algeria’s Mining, Manufacturing, Utilities Output LCU Billions, 2005-2014 96