MarketResearchReports.com: Romanian Defense Industry – Forecasts, Market Attractiveness, Competitive Landscape to 2018

The Future of the Romanian 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 a market share in the Romanian defense industry.

For more information visit: Future of the Romanian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018

What is the current market landscape and what is changing?

Romanian defense expenditure increased at a CAGR of -6.59% during the review period and values US$1.7 billion in 2013. The focus of the Romanian government will be on modernization plans constituting the procurement of more advanced military equipment with improved technology; active participation in NATO (North Atlantic Treaty Organization) along with joint operations with other countries; participation in peacekeeping missions; and participation in border security measures.

What are the key drivers behind recent market changes?

Modernization of military equipment with improved technology; active participation in NATO (North Atlantic Treaty Organization) along with joint operations with other countries; participation in peacekeeping missions; and participation in border security measures.

What makes this report unique and essential to read?

The Future of the Romanian 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 Romanian 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 Romanian. 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

  • The Romanian economy went in to a deep recession in 2008 jeopardizing the growth it had witnessed in earlier years. Following the global financial crisis, EU and NATO countries decided to reduce their military spending. The crisis led European states to take measures such as decommissioning 160,000 soldiers during 2009-2011, to maintain effective armed forces in times of economic austerity. The Romanian government also announced various unpopular austerity measures including public sector restructuring, spending cuts for the interior and defense ministries, and expenditure cuts, including a 25% cut in public wages and 15% drop in pension and social benefits in the 2010 budget.
  • Eastern European countries, including Romania, have historically featured high levels of corruption. After gaining membership in the EU and NATO, Romania introduced important economic and legislative measures to attract foreign capital, and adopted legislation to reduce corruption, for example, legislation requiring politicians to disclose information about their assets, a law governing conflicts of interest for government officials, and a law regulating the financing of political parties.

Key Highlights

  • Many international defense equipment manufacturers enter the Romanian market through acquisitions and alliances. The privatization of the Romanian defense industry provides foreign OEMs with further opportunities to enter the market. Market entry through the acquisition of a domestic company is a popular entry route into the Romanian defense industry, and many companies have followed this route.
  • Since 2005, Romania has been a member of the EDA. The agency promotes arms co-operation and has created a common platform for the promotion of the European defense equipment market. The EDA provides an electronic bulletin board for government contracts and provides an opportunity for suppliers across Europe to bid for defense contracts advertised by subscribing member states. Defense companies from member nations are able to register and be the first to be notified of a potential purchase request from other member nations. In the circumstance that a defense company from a member nation wishes to make defense procurement, they advertise their requirements, ranging from technology to components, on the bulletin board, providing registered suppliers with market opportunities.
  • Romania imports the majority of its defense equipment from the US, Germany, Israel, and ltaly. The US held the highest share of the total arms imports during 2008-2012 with 41.6%. The other three major import partners: Germany, Israel, and Italy collectively accounted for 50% of Romania’s total arms imports during the review period. The remaining portion of imports is accounted for by Canada, Switzerland, France, Norway, and Spain.

Companies Covered –

CN Romarm, S.C. Uzina Mecanica Cugir S.A, Aerostar S.A., IAR S.A. Brasov, Turbomencanica S.A, Electromagnetica SA, Avioane Craiova S.A ,Elprof S.A ,IOR S.A. 

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MarketResearchReports.com: More investment is expected in Argentina’s USD 4.1 billion defense industry, reveals new report

Spanning over 111 pages and Market Attractiveness and Emerging Opportunities, Defense Procurement Market Dynamics, Industry Dynamics, Market Entry Strategy, Competitive Landscape and Strategic Insights, Business Environment and Country Risk (Demographics and Social Statistics, Economic Performance, Energy and Utilities, Infrastructure, Minerals, Technology, Telecommunication) figures, “Future of the Argentine Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018” report providing Argentine 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.

The Future of the Argentine 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 a market share in the Argentine defense industry.

What is the current market landscape and what is changing?

Argentine defense expenditure increased at a CAGR of 15.37% during the review period and values US$4.1 billion in 2013. The focus of the Argentine government will be on the modernization of its armed forces, participation in peacekeeping operations, and the Falkland Islands dispute with the UK.

What are the key drivers behind recent market changes?

Modernization of its armed forces, participation in peacekeeping operations, and the Falkland Islands dispute with the UK.

What makes this report unique and essential to read?

The Future of the Argentine 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 Argentine 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 Argentina. 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

  • The Argentine defense market has experienced a lack of investment due to the country’s budgetary constraints. Argentina’s armed forces are using obsolete defense equipment which needs to be replaced by more advanced equipment. There are many naval vessels that are not operational and need repair and maintenance, but the armed forces’ procurement plans are halted by a fluctuating defense budget. However, Argentina is receiving help from countries such as Russia and China, who are ready to replace the obsolete military equipment on credit terms. The country has also postponed many of its modernization plans such as the replacement of the Mirage III fighter in 2009, due to economic constraints. However, it is expected that the country will establish a strong defense force during the forecast period.
  • In October 2012 a naval training ship “ARA Liberated” was seized by court order from Ghana for its nonpayment of the loan to its creditors during 2001-2002. Argentina had a debt of US$100 billion in 2001 which had been restructured and 30% of the amount was paid during 2005-2010. This default background may deter many companies from investing their capital in Argentina’s defense market.

Key Highlights

  • Foreign defense companies can supply the Argentine defense market through FMS arrangements. For example, in September 2010, the Argentine government signed a contract with Russia to procure two Mi-17 helicopters for the Argentine air force. This was the first time the Argentine government purchased Russian equipment. The majority of defense purchases from the US, which is the largest supplier of arms to Argentina, are made through FMS. There are approximately US$ 25.79 million and $ 0.37 million of arms and equipment sold to Argentina through FMS in the year of 2010 and 2011 respectively.
  • Foreign defense companies can enter the Argentine defense market through technology transfers, sub-contracting agreements and long-term supply contracts, favored by Argentina’s offset policy. For example, in October 2010, Brazilian firm Embraer established a partnership with Argentina for the development of the KC-390 medium transport aircraft. Argentina is expected to join the program through the Fábrica Argentina de Aviones aerospace company and initially purchase six KC-390 aircraft. Additionally, Argentina signed an agreement with South Africa in 2010 to exchange their security technologies, participation in various joint training exercises, military health development initiatives and rescue operations in the Southern Atlantic Ocean. Moreover, the South African defense company, Paramount Group, and the Argentine company, Codesur signed an agreement in December 2012 to introduce Paramount Group’s security and land systems, and electronic and aerospace systems to Latin America.
  • With a limited domestic defense industry, Argentina imports advanced defense equipment from countries such as the US, Russia, Spain, China, Brazil, and Austria. During 2008-2012, the country imported the highest share of arms from the US, constituting 78.8% of the total arms imports. During the forecast period, the US is expected to continue to dominate the market, with China expected to enter the market through the sale of helicopters. Argentina is expected to acquire fighter aircraft, including the possibility of acquiring second-hand aircraft which would allow other European countries to enter the market.

For more information visit:  Future of the Argentine Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018

About Market Research Reports, Inc.

Market Research Reports, Inc. (www.MarketResearchReports.com) is the world’s leading source for market research reports and market data. We provide you with the latest market research reports on global markets, key industries, leading companies, new products and latest industry analysis & trends.