DUBLIN, Jan. 13, 2020 /PRNewswire/ — The “Philippines Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2024” report has been added to ResearchAndMarkets.com’s offering.

The Philippines’ defense expenditure recorded a CAGR of 14.25% over the historic period and stood at US$3.6 billion in 2019. Over the forecast period, it is anticipated to register a CAGR of 8.98% to value US$5.3 billion in 2024.

This report 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.

The report offers detailed analysis of the Philippines defense industry with market size forecasts covering the next five years. The report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, the report provides an in-depth analysis of the following:

• The defense industry market size and drivers: detailed analysis of the Philippines defense industry during 2020-2024, 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 Philippines 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
• Competitive landscape and strategic insights: analysis of the competitive landscape 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

Companies Mentioned

• Raytheon
• United Defense Manufacturing Corporation
• Leonardo
• Remington Arms Company
• ELTA Systems Ltd.

Capital expenditure allocation, which stood at an average of 19.2% during the historic period, will decrease to an average of 15.4% over the forecast period due to the procurement of fighter aircraft, corvettes, Multipurpose Attack Craft (MPAC), and infrastructure construction projects. The share of revenue expenditure increased from 80.8% during the historic period to 84.6% over the forecast period.

Population growth will inflate the per capita defense expenditure from US$33.6 in 2020 to US$45.4 in 2024, at a CAGR of 7.27%. Homeland security expenditure is valued at US$3.35 billion in 2019 and grow to US$4.8 billion in 2024, registering a CAGR of 11.33%. Expenditure will primarily be driven by efforts to counter terrorism, human trafficking and the illicit drug trade.

Air and Naval forces modernization is expected to be key objective of the Philippines Horizon II program. In Response to the perceived internal weakness and regional strategic challenges Philippines department of defense has embarked air force and naval transformation process to enhance their capabilities under Horizon II program.

The Air force accounts for highest share of 46.6% and has been allocated US$2.61 billion followed by navy which holds 25% share and has allocated close to US$1.44 billion; as compared to air force and navy army accounts for relatively less share of 15.89% and has allocated US$890 million for modernization under horizon phase II.

The US, Indonesia and South Korea are the major suppliers for The Philippines. During 2014-2018, South Korea emerged as the largest supplier of military hardware to The Philippines with a 28.8% share of defense imports, followed by Indonesia and the US with respective shares of 25.8% and 24.5%. South Korea, Indonesia and US has mainly supplied aircraft and naval vessels, a trend anticipated to continue over the forecast period due to the country’s dependence on these three countries as a defense supplier.

Key Highlights

• The Philippines’ defense expenditure recorded a CAGR of 14.25% over the historic-period and stood at US$3.6 billion in 2019. The growing strength and assertiveness of the Chinese Navy with regards to territorial claims in the South China Sea has spurred the government to enhance its military capabilities
• Capital expenditure allocation, which stood at an average of 19.2% during the historic period, will decrease to an average of 15.4%
• Over the forecast period due to the procurement of fighter aircraft, corvettes, Multipurpose Attack Craft (MPAC), and infrastructure construction projects.

Key Topics Covered

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Author

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military doctrine and strategy
3.1.3. Procurement Programs
3.1.4. Top Procurement Programs by Value (US$ Million) 2019-2024
3.1.6. Geopolitical, Social and Economic Scenario
3.1.7. Political and strategic alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. The Philippines’ defense budget to grow at a forecast-period CAGR of 8.98%
3.2.2. Tensions in the South China Sea and modernization initiatives to drive the defense industry
3.2.3. Defense budget as a percentage of GDP to increase to 1.0% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of capital expenditure will slightly decrease over the forecast period
3.3.2. Capital expenditure is anticipated to record a forecast-period CAGR of 10.50%
3.3.3. The army accounted for the largest percentage share of the overall Philippines’ defense budget
3.3.4. Army defense expenditure to reach US$2.45 billion in 2024
3.3.5. Per capita defense expenditure to rise over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. The homeland security market will record a forecast-period CAGR of 11.33%
3.4.2. Illicit drug trade and internal armed insurgencies drives homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. The Philippines defense budget expected to increase over the forecast period
3.5.2. The Philippines’ defense expenditure is lower than other Asia countries
3.5.3. The defense budget as a percentage of GDP will increase over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Airborne C4ISR
3.6.2. Multi-role aircraft
3.6.3. Maritime Surveillance and Detection

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities to drive the country’s defense imports
4.1.2. The South Korea, Indonesia and US are the major suppliers for The Philippines
4.1.3. Aircraft and naval vessels accounted for 88.6% of defense imports
4.2. Export Market Dynamics
4.2.1. The Philippines does not export any defense equipment

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of suppliers: low
5.1.2. Bargaining power of buyers: 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
5.2. Market Regulation
5.2.1. Countertrade/offset policy aids the development of the domestic defense industry
5.2.2. Government unveils new procurement rules
5.3. Market Entry Route
5.3.1. Budgeting process
5.3.2. Procurement Policy and Process
5.3.3. Foreign military sales (FMS)
5.3.4. Collaborations provide market entry opportunities
5.4. Key Challenges
5.4.1. Increase in corruption and lack of transparency impedes industry growth
5.4.2. Erosion in the value of Philippine Peso to adversely impact defense imports
5.4.3. Low defense capital expenditure may discourage several potential defense suppliers

6. Competitive landscape and Strategic Insights
6.1. Competitive landscape Overview
6.1.1. The Philippine Market Share Analysis, 2019-2024
6.2. Key Companies
6.2.1. Raytheon: overview
6.2.2. Raytheon: products
6.2.3. Raytheon: Recent announcements and strategic initiatives
6.2.4. Raytheon: Recent Contract Wins
6.2.5. United Defense Manufacturing Corporation: overview
6.2.6. United Defense Manufacturing Corporation: key products
6.2.7. United Defense Manufacturing Corporation: recent announcements and strategic initiatives
6.2.8. Leonardo: overview
6.2.9. Leonardo: products and services
6.2.10. Leonardo: recent announcements and strategic initiatives
6.2.11. Leonardo: recent contract wins
6.2.12. Remington Arms Company, LLC: overview
6.2.13. Remington Arms Company, LLC: key products and services
6.2.14. Remington: recent announcements and strategic initiatives
6.2.15. Remington Arms Company, LLC: Recent Contract Wins
6.2.16. ELTA Systems Ltd: overview
6.2.17. ELTA Systems Ltd: key products and services
6.2.18. ELTA Systems Ltd: recent announcements and strategic initiatives
6.2.19. ELTA Systems Ltd: Recent Contract Wins

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. GDP per capita at constant prices (US$)
7.1.2. GDP at current prices (US$)
7.1.3. Exports of goods and services
7.1.4. Imports of goods and services
7.1.5. Gross national disposable income (US$ billions)
7.1.6. LCU per US$ (period average)
7.1.7. Market capitalization of listed companies (US$ billions)
7.1.8. Market capitalization of listed companies (percentage of GDP)
7.1.9. Government cash surplus/deficit as a percentage of GDP (LCU)
7.1.10. Goods exports as a percentage of GDP
7.1.11. Goods imports as a percentage of GDP
7.1.12. Service imports as a percentage of GDP
7.1.13. Services exports as a percentage of GDP
7.1.14. Foreign direct investment (FDI), net (BoP, current US$ billions)
7.1.15. Net FDI as a percentage of GDP
7.1.16. Mining, manufacturing, utilities output (PHP trillion)

For more information about this report visit https://www.researchandmarkets.com/r/8dxkn4

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