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 (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Defense expenditure to grow at a CAGR of 2.97% during the forecast period
3.1.2. Threat from Iran and Syria, combined with a small population, will continue to drive Israeli defense expenditure
3.2. Analysis of Defense Budget Allocation
3.2.1. Capital expenditure to constitute majority of Israeli defense budget during the forecast period
3.2.2. Expenditure on weapons acquisition forecast to reach US$5.87 billion by 2017
3.2.3. Revenue expenditure expected to grow at a CAGR of 3.84% during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Israeli homeland security market expected to grow at a CAGR of 1.4% during the forecast period
3.3.2. Security threats expected to drive homeland security expenditure during the forecast period
3.3.3. Israel is “highly affected” by terrorism
3.3.4. Israel is the seventh most terror prone country in the world
3.4. Benchmarking with Key Global Markets
3.4.1. Israel is one of the largest defense spenders in the Middle East
3.4.2. US has the largest defense expenditure in the world
3.4.3. Israel has second largest defense expenditure in proportion to GDP amongst leading global spenders
3.4.4. Iraq, Pakistan, and Afghanistan are the world’s three most terror prone countries
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Missile defense systems expected to record a surge in demand
3.5.2. Arms upgrade program expected to create opportunities for land-based weapons
3.5.3. Border fence will create demand for radars and surveillance equipment
3.5.4. Modernization of air force will drive demand for fighter aircraft and attack helicopters
3.5.5. Demand for maritime defense equipment expected to increase
3.5.6. Demand for trainer aircraft will surge in demand
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. US accounts for over 93% of Israeli defense imports
4.1.2. Israel imported US$76 million of defense goods in 2011
4.1.3. Aircraft account for the majority of Israeli defense imports
4.2. Export Market Dynamics
4.2.1. Israel exports 75% of its domestic defense production
4.2.2. Sensors, armored vehicles, missiles are the most exported defense goods
4.2.3. Turkey and India emerge as the largest consumer of Israeli defense goods
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to high
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: low to medium
5.1.4. Intensity of rivalry: high
5.1.5. Threat of substitution: medium
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy requires foreign OEMs to invest 50% of contract value in Israel
6.1.2. Defense sector remains closed to foreign direct investment
6.2. Market Entry Route
6.2.1. Foreign companies penetrate the market by supplying arms
6.2.2. Foreign OEMs form alliances to market products in the global defense industry
6.3. Key Challenges
6.3.1. Israeli defense industry highly dependent on the US
6.3.2. Monopolistic competition
7 Competitive landscape and Strategic Insights
7.1. Competitive landscape Overview
7.1.1. Domestic companies fulfill majority of Israeli defense requirements
7.2. Key Foreign Companies
7.2.1. General Dynamics: overview
7.2.2. General Dynamics: products and services
7.2.3. General Dynamics: recent announcements and strategic initiatives
7.2.4. General Dynamics - alliances
7.2.5. General Dynamics - recent contract wins
7.2.6. Navistar Defense: overview
7.2.7. Navistar Defense: products and services
7.2.8. Navistar Defense - recent announcements and strategic initiatives
7.2.9. Navistar Defense: alliances
7.2.10. Navistar Defense: recent contract wins
7.2.11. Lockheed Martin: overview
7.2.12. Lockheed Martin: products and services
7.2.13. Lockheed Martin - recent announcements and strategic initiatives
7.2.14. Lockheed Martin - alliances
7.2.15. Lockheed Martin - recent contract wins
7.2.16. Raytheon: overview
7.2.17. Raytheon - products and services
7.2.18. Raytheon - recent announcements and strategic initiatives
7.2.19. Raytheon - alliances
7.2.20. Raytheon - recent contract wins
7.3. Key Public Companies
7.3.1. Rafael Advanced Defense System: overview
7.3.2. Rafael Advanced Defense System: products and services
7.3.3. Rafael Advanced Defense System - recent announcements and strategic initiatives
7.3.4. Rafael Advanced Defense System: alliances
7.3.5. Rafael Advanced Defense System: recent contract wins
7.3.6. Rafael Advanced Defense System: financial analysis
7.3.7. Israel Aerospace Industries: overview
7.3.8. Israel Aerospace Industries: products and services
7.3.9. Israel Aerospace Industries: recent announcements and strategic initiatives
7.3.10. Israel Aerospace Industries: alliances
7.3.11. Israel Aerospace Industries: recent contract wins
7.3.12. Israel Military Industries: overview
7.3.13. Israel Military Industries: products and services
7.3.14. Israel Military Industries: recent announcements and strategic initiatives
7.3.15. Israel Military Industries: alliances
7.3.16. Israel Military Industries: recent contract wins
7.3.17. Israel Shipyards: overview
7.3.18. Israel Shipyards: products and services
7.3.19. Israel Shipyards: recent announcements and strategic initiatives
7.3.20. Israel Shipyards: recent contract wins
7.4. Domestic Private Companies
7.4.1. Elbit Systems: overview
7.4.2. Elbit Systems: products and services
7.4.3. Elbit Systems: recent announcements and strategic initiatives
7.4.4. Elbit Systems: alliances
7.4.5. Elbit Systems: recent contract wins
7.4.6. Elbit Systems: financial analysis
7.4.7. Elisra Systems: overview
7.4.8. Elisra Systems: products and services
7.4.9. Elisra Systems: recent announcements and strategic initiatives
7.4.10. Elisra Systems: recent contract wins
7.4.11. Ness TSG: overview
7.4.12. Ness TSG: products and services
7.4.13. Ness TSG: recent announcements and strategic initiatives
7.4.14. Ness TSG: alliances
7.4.15. Ness TSG: recent contract wins
7.4.16. Ness TSG: financial analysis
7.4.17. Plasan: overview
7.4.18. Plasan: products and services
7.4.19. Plasan: recent announcements and strategic initiatives
7.4.20. Plasan: alliances
7.4.21. Plasan: recent contract wins
7.4.22. SimiGon: overview
7.4.23. SimiGon: products and services
7.4.24. SimiGon: recent announcement and strategic initiatives
7.4.25. SimiGon: alliances
7.4.26. SimiGon: recent contract wins
7.4.27. SimiGon: financial analysis
8 Business Environment and Country Risk
8.1. Demographics & Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Business Confidence index
8.2.2. Construction Output, Current Prices, Local Currency
8.2.3. Construction Output, Current Prices, US Dollars
8.2.4. Current Account Balance as Percentage of GDP
8.2.5. Deposit Interest Rate
8.2.6. Exports of goods and services, current prices
8.2.7. Fiscal Balance as a percentage of GDP
8.2.8. Foreign Direct Investment
8.2.9. GDP at Purchasing Power Parity
8.2.10. GDP, Constant Prices (Local Currency)
8.2.11. GDP at Constant Prices (US$)
8.2.12. GDP at Current Prices (Local Currency)
8.2.13. GDP at Current Prices (US$)
8.2.14. General Government Final Consumption Expenditure
8.2.15. Gross Fixed Capital Formation, Current Prices
8.2.16. Imports of goods and services
8.2.17. Inflation, average consumer prices
8.2.18. Interest Rate (Lending)
8.2.19. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.20. Manufacturing Output, Current Prices (US$ Billions)
8.2.21. US$- Exchange Rate (Annual Average)
8.2.22. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Installed Capacity
8.3.3. Hydroelectricity Installed Capacity
8.3.4. Net Conventional Thermal Electricity Generation
8.3.5. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.6. Net Hydroelectric Power Generation
8.3.7. Petroleum, Consumption
8.3.8. Petroleum, Production
8.4. Minerals
8.4.1. Coal Consumption
8.5. Social & Political Risk
8.5.1. Political Stability Index
8.5.2. Transparency Index
9 Appendix
9.1. Contact Us
9.2. About SDI
9.3. DisclaimerTable 1: Israeli defense Expenditure, 2008-2012
Table 2: Israeli defense Expenditure, 2013-2017
Table 3: Israeli GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2008-2012
Table 4: Israeli GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Table 5: Israeli defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Table 6: Israeli defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Table 7: Israeli Capital Budget Allocation (US$ billion), 2008-2012
Table 8: Israeli Capital Budget Allocation (US$ billion), 2013-2017
Table 9: Israeli Revenue Budget Allocation (US$ billion), 2008-2012
Table 10: Israeli Revenue Budget Allocation (US$ billion), 2013-2017
Table 11: Israeli Homeland Security Budget (US$ billion), 2008-2012
Table 12: Israeli Homeland Security Budget (US$ billion), 2013-2017
Table 13: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Table 14: SDI Terrorism Index
Table 15: Israeli Defense Offset Regulations
Table 16: Market Entry by Key Foreign OEMs
Table 17: General Dynamics - products and services
Table 18: General Dynamics - alliances
Table 19: General Dynamics - recent contract wins
Table 20: Navistar Defense - Products and Services
Table 21: Navistar Defense - alliances
Table 22: Navistar Defense - recent contract wins
Table 23: Lockheed Martin - products and services
Table 24: Lockheed Martin - alliances
Table 25: Lockheed Martin - recent contract wins
Table 26: Raytheon - products and services
Table 27: Raytheon - alliances
Table 28: Raytheon - recent contract wins
Table 29: Rafael Advanced Defense System - products and services
Table 30: Rafael Advanced Defense System - alliances
Table 31: Rafael Advanced Defense System - recent contract wins
Table 32: Israel Aerospace Industries - Key Products and Services
Table 33: Israel Aerospace Industries - alliances
Table 34: Israel Aerospace Industries - recent contract wins
Table 35: Israel Military Industries - Key Products and Services
Table 36: Israel Military Industries - alliances
Table 37: Israel Military Industries - recent contract wins
Table 38: Israel Shipyards - Key Products and Services
Table 39: Israel Shipyards: recent contract wins
Table 40: Elbit Systems - Key Products and Services
Table 41: Elbit Systems - alliances
Table 42: Elbit Systems - Recent Contract Wins
Table 43: Elisra Systems - products and services
Table 44: Elisra Systems : Recent Contract Wins
Table 45: Ness TSG - Key Products and Services
Table 46: Ness TSG - alliances
Table 47: Ness TSG : recent contract wins
Table 48: Plasan - Key Products and Services
Table 49: Plasan - alliances
Table 50: Plasan : recent contract wins
Table 51: SimiGon - Key Products and Services
Table 52: SimiGon - alliances
Table 53: SimiGon : recent contract winsFigure 1: Israeli defense Expenditure, 2008-2012
Figure 2: Israeli defense Expenditure, 2013-2017
Figure 3: Israeli GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2008-2012
Figure 4: Israeli GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Figure 5:Israeli defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Figure 6: Israeli defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Figure 7: Israeli Capital Budget Allocation (US$ billion), 2008-2012
Figure 8: Israeli Capital Budget Allocation (US$ billion), 2013-2017
Figure 9: Israeli Revenue Budget Allocation (US$ billion), 2008-2012
Figure 10: Israeli Revenue Budget Allocation (US$ billion), 2013-2017
Figure 11: Israeli Homeland Security Budget (US$ billion), 2008-2012
Figure 12:Israeli Homeland Security Budget (US$ billion), 2013-2017
Figure 13: SDI Terrorism Heat Map, 2011
Figure 14: SDI Terrorism Index
Figure 15: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2011 and 2016
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2011
Figure 18 : Israeli Arms Imports by Country, 2007-2011
Figure 19: Israel Defense Imports TIV Value (US$ Million), 2007-2011
Figure 20: Israeli Defense Imports by Category (%), 2007-2011
Figure 21 : Israeli Defense Exports by Value (US$ million), 2007-2011
Figure 22 : Israeli Defense Exports by Category (%), 2007-2011
Figure 23 : Israeli Defense Exports by Country (%), 2007-2011
Figure 24: Industry Dynamics - Porter’s Five Forces Analysis
Figure 25: Rafael Advanced Defense System, Revenue Trend Analysis, 2007-2011
Figure 26: Rafael Advanced Defense System, Net Profit Trend Analysis, 2007-2011
Figure 27: Elbit Systems, Revenue Trend Analysis, 2006-2010
Figure 28: Elbit Systems, Operating Profit Trend Analysis, 2006-2010
Figure 29: Elbit Systems, Net Profit Trend Analysis, 2006-2010
Figure 30: Ness TSG - Revenue Trend Analysis, FY2006-2010
Figure 31: Ness TSG - Operating Profit Trend Analysis, 2006-2010
Figure 32: Ness TSG - Net Profit Trend Analysis, 2006-2010
Figure 33: SimiGon Revenue Trend Analysis, 2007-2011
Figure 34: SimiGon Operating Profit Trend Analysis, 2007-2011
Figure 35: SimiGon Net Profit Trend Analysis, 2007-2011
Figure 36: Israel Population - Female (In Millions), 2008-2017
Figure 37: Israel Population - Male (In Millions), 2008-2017
Figure 38: Israel Business Confidence index, 2003-2012
Figure 39: Israel Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
Figure 40: Israel Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 41: Israel Current Account Balance as Percentage of GDP, 2008-2017
Figure 42: Israel Deposit Interest Rate, 2001-2010
Figure 43: Israel Exports of goods and services, current prices (US$ Billion), 2001- 2010
Figure 44: Israel Fiscal Balance as a percentage of GDP, 2001-2010
Figure 45: Israel Foreign Direct Investment (US$ Billion), 2001-2010
Figure 46: Israel GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 47: Israel GDP at Constant Prices (Local Currency Billion), 2006-2015
Figure 48: Israel GDP at Constant Prices (US$ Billion), 2006-2015
Figure 49: Israel GDP at Current Prices (Local Currency Billion), 2006-2015
Figure 50: Israel GDP at Current Prices (US$ Billion), 2006-2015
Figure 51: Israel General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 52: Israel Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 53: Israel Imports of goods and services (current US$ Billion), 2001-2010
Figure 54: Israel Inflation, average consumer prices, 2008-2017
Figure 55: Israel Lending Interest rate, 2001-2010
Figure 56: Israel Manufacturing Output, Current Prices (Local Currency Billion),2001-2010
Figure 57: Israel Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 58: Israel US$- Exchange Rate (Annual Average), 2002-2011
Figure 59: Israel Wholesale Price Index, 2000-2009
Figure 60: Israel Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009
Figure 61: Israel Electricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 62: Israel Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 63: Israel Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2010
Figure 64: Israel Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 65: Israel Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 66: Israel Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 67: Israel Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 68: Israel Coal Consumption (Thousand Short Tons), 2001-2010
Figure 69: Israel Political Stability Index, 2002-2010
Figure 70: Israel Transparency Index, 2002-2011