Table Of contents
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. German defense expenditure to decline at a CAGR of XX% during the forecast period
3.1.2. Defense expenditure driven by factors such as security of EU, peacekeeping initiatives, and A400M development program
3.1.3. German defense expenditure as a percentage of GDP expected to decrease
3.2. Analysis of Defense Budget Allocation
3.2.1. XX% of defense budget allocated for the acquisition of advanced technology and equipment
3.2.2. Per capita defense expenditure expected to decrease during the forecast period
3.2.3. Air force receives largest capital expenditure allocation
3.2.4. Capital expenditure for army is expected to decrease due to budget cuts
3.2.5. Air force capital expenditure is expected to decrease over the forecast period
3.2.6. Navy capital expenditure to decline during forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. German homeland security worth US$XX billion in 2012
3.3.2. Preventive defense measures used to counter terrorism threat
3.3.3. Germany falls under “some risk” of terrorism category
3.4. Benchmarking with Key Global Markets
3.4.1. Germany defense budget expected to be marginally decline over the forecast period
3.4.2. Germany has the ninth-largest defense budget in the world
3.4.3. Germany allocates lower share of GDP for defense compared to US and European countries
3.4.4. Germany faces some threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Surveillance technology and services market to boom in Germany
3.5.2. Demand for heavy lift helicopters to increase
3.5.3. Increased spending on Interactive Defense and Attack System for Submarines weapons
3.5.4. Demand for medium-altitude long-endurance (MALE) UAVs will increase
3.5.5. German plans to procure armored vehicles will increase business opportunities
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Network-centric warfare capability for peacekeeping initiatives drive defense imports
4.1.2. Defense imports are expected to remain low during the forecast period
4.1.3. US was Germany’s leading arms suppliers during 2007-2011
4.1.4. Missiles, armored vehicles and sensors are most imported military hardware
4.2. Export Market Dynamics
4.2.1. Superior defense technology and strong trade relationships with other countries will continue to drive defense exports
4.2.2. Arms exports to recover during the forecast period
4.2.3. Germany as the world’s third largest defense exporter after the US and Russia
4.2.4. Ships and armored vehicles are the main exported defense products
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low
5.1.2. Bargaining power of buyer: high
5.1.3. Barrier to entry: low
5.1.4. Intensity of rivalry: low
5.1.5. Threat of substitution: low
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Investment policy promotes XX% FDI in the defense industry
6.2. Market Entry Route
6.2.1. Foreign defense OEMs form large conglomerates to enter the market
6.2.2. Foreign OEMs establish subsidiaries or form JV to enter the industry
6.3. Key Challenges
6.3.1. The European debt crisis will negatively affect defense procurements
6.3.2. Modernization of military through downsizing existing systems and personnel
6.3.3. German arms exports to large defense markets outside EU are minimal
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Foreign OEMs have strong collaborations with domestic defense firms
7.2. Key Domestic Companies
7.2.1. Heckler and Koch: overview
7.2.2. Heckler and Koch: products and services
7.2.3. Heckler and Koch: recent announcement and strategic initiatives
7.2.4. Heckler and Koch: recent contract wins
7.2.5. MAN Truck and Bus AG: overview
7.2.6. MAN Truck and Bus AG: products and services
7.2.7. MAN Truck and Bus AG: recent announcement and strategic initiatives
7.2.8. MAN Truck and Bus AG: alliances
7.2.9. Eurocopter: overview
7.2.10. Eurocopter: products and services
7.2.11. Eurocopter: recent announcement and strategic initiatives
7.2.12. Eurocopter: alliances
7.2.13. Eurocopter: recent contract wins
7.2.14. ESG Elektroniksystem- und Logistik: overview
7.2.15. ESG Elektroniksystem- und Logistik: products and services
7.2.16. ESG Elektroniksystem- und Logistik: recent announcement and strategic initiatives
7.2.17. ESG Elektroniksystem- und Logistik: alliances
7.2.18. ESG Elektroniksystem- und Logistik: recent contract wins
7.2.19. Diehl Stiftung: overview
7.2.20. Diehl Stiftung: products and services
7.2.21. Diehl Stiftung: recent announcement and strategic initiatives
7.2.22. Diehl Stiftung: alliances
7.2.23. Diehl Stiftung: recent contract wins
7.2.24. ThyssenKrupp Marine Systems: overview
7.2.25. ThyssenKrupp Marine Systems: products and services
7.2.26. ThyssenKrupp Marine Systems: recent announcement and strategic initiatives
7.2.27. ThyssenKrupp Marine Systems: alliances
7.2.28. ThyssenKrupp Marine Systems: recent contract wins
7.2.29. Thales Deutschland: overview
7.2.30. Thales Deutschland: products and services
7.2.31. Thales Deutschland: recent announcement and strategic initiatives
7.2.32. Thales Deutschland: alliances
7.2.33. Thales Deutschland: recent contract wins
7.2.34. EADS: overview
7.2.35. EADS: products and services
7.2.36. EADS: recent announcement and strategic initiatives
7.2.37. EADS: alliances
7.2.38. EADS: recent contract wins
7.2.39. EADS: financial analysis
7.2.40. Airbus Military: overview
7.2.41. Airbus Military: products and services
7.2.42. Airbus Military: recent announcement and strategic initiatives
7.2.43. MBDA: overview
7.2.44. MBDA: products and services
7.2.45. MBDA: recent announcement and strategic initiatives
7.2.46. MBDA: alliances
7.2.47. MBDA: recent contract wins
7.2.48. Eurofighter Jagdflugzeug: overview
7.2.49. Eurofighter Jagdflugzeug: products and services
7.2.50. Eurofighter Jagdflugzeug: recent announcement and strategic initiatives
7.2.51. Eurofighter Jagdflugzeug: recent contract wins
7.2.52. Rheinmetall: overview
7.2.53. Rheinmetall: products and services
7.2.54. Rheinmetall: recent announcement and strategic initiatives
7.2.55. Rheinmetall: alliances
7.2.56. Rheinmetall: recent contract wins
7.2.57. Rheinmetall: financial analysis
8 Business Environment and Country Risk
8.1. Demographics and 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. Exports of goods and services, current prices
8.2.6. Fiscal Balance as a percentage of GDP
8.2.7. Foreign Direct Investment
8.2.8. GDP at Purchasing Power Parity
8.2.9. GDP, Constant Prices (Local Currency)
8.2.10. GDP, Constant Prices (US$)
8.2.11. GDP, Current Prices (Local Currency)
8.2.12. GDP, Current Prices (US$)
8.2.13. General Government Final Consumption Expenditure
8.2.14. Gross Fixed Capital Formation, Current Prices
8.2.15. Imports of goods and services
8.2.16. Inflation, average consumer prices
8.2.17. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.18. Manufacturing Output, Current Prices (US$ Billions)
8.2.19. US$- Exchange Rate (EoP)
8.2.20. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Exports
8.3.3. Electricity Imports
8.3.4. Electricity Installed Capacity
8.3.5. Fossil Fuels Proved natural gas reserves
8.3.6. Fossil Fuels- Proved oil reserves
8.3.7. Hydroelectricity Installed Capacity
8.3.8. Natural Gas Consumption
8.3.9. Natural Gas Imports
8.3.10. Natural Gas Production
8.3.11. Net Conventional Thermal Electricity Generation
8.3.12. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.13. Net Hydroelectric Power Generation
8.3.14. Nuclear Electricity Net Generation
8.3.15. Petroleum, Consumption
8.3.16. Petroleum, Production
8.4. Labour
8.4.1. People Employed in R and D
8.5. Minerals
8.5.1. Coal Consumption
8.5.2. Coal Production
8.6. Social and Political Risk
8.6.1. Political Stability Index
8.6.2. Transparency Index
8.7. Technology
8.7.1. Fixed Broadband Internet Subscribers
8.7.2. Gross Domestic Expenditure on Research and Development as % of GDP
8.7.3. Patents Granted
8.7.4. Software Patents
8.7.5. Fixed line calling cost local
8.7.6. Fixed Line Calling Cost National
9 Appendix
9.1. Contact Us
9.2. About SDI
9.3. Disclaimer
List Of Tables
Table 1: GermanDefense Expenditure (US$ Billion), 2008-2012
Table 2: GermanDefense Expenditure (US$ Billion),2013-2017
Table 3: GermanGDP Growth vs. Defense Expenditure Growth and Defense Expenditure asPercentage of GDP Growth, 2008-2012
Table 4: GermanGDP Growth vs. Defense Expenditure Growth and Defense Expenditure asPercentage of GDP Growth, 2013-2017
Table 5: German Defense Budget Split Between Capital and Revenue Expenditure (%),2008-2012
Table 6: German Defense Budget Split Between Capital and Revenue Expenditure (%),2013-2017
Table 7: German per capita defense expenditure (US$), 2008-2012
Table 8: German per capita defense expenditure (US$), 2013-2017
Table 9: German Defense Capital Expenditure Breakdown (%), 2008-2012
Table 10: German Defense Capital Expenditure Breakdown (%),2013-2017
Table 11: German Defense Capital Expenditure for Army (US$ million), 2008-2012
Table 12: German Defense Capital Expenditure for Army (US$ million), 2013-2017
Table 13: German Defense Capital Expenditure for Air Force (US$ million), 2008-2012
Table 14: German Defense Capital Expenditure for Air Force (US$ million), 2013-2017
Table 15: German Defense Capital Expenditure for Navy (US$ million), 2008-2012
Table 16: German Defense Capital Expenditure for Navy (US$ million), 2013-2017
Table 17: GermanHomeland Security Budget,2008-2012
Table 18: German Homeland Security Budget, 2013-2017
Table 19: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Table 20: SDI Terrorism Index
Table 21: Key Foreign Players and Operations in the German Defense Industry
Table 22: Heckler and Koch - Product focus
Table 23:Heckler and Koch - Recent Contract Wins
Table 24:MAN Truck and Bus AG - Product focus
Table 25:MAN Truck and Bus AG - Alliances
Table 26:Eurocopter- Product focus
Table 27:Eurocopter- Alliances
Table 28:Eurocopter- Recent Contract Wins
Table 29:ESG Elektroniksystem- und Logistik - Product focus
Table 30:ESG Elektroniksystem- und Logistik - Alliances
Table 31:ESG Elektroniksystem- und Logistik - Recent Contract Wins
Table 32:Diehl Stiftung - Product focus
Table 33:Diehl Stiftung- Alliances
Table 34:Diehl Stiftung- Recent Contract Wins
Table 35:ThyssenKrupp Marine Systems - Product focus
Table 36:ThyssenKrupp Marine Systems - Alliances
Table 37:ThyssenKrupp Marine Systems - Recent Contract Wins
Table 38:Thales Deutschland - Product focus
Table 39:Thales Deutschland - Alliances
Table 40:Thales Deutschland - Recent Contract Wins
Table 41:EADS - Product focus
Table 42:EADS - Alliances
Table 43:EADS - Recent Contract Wins
Table 44:Airbus Military - Product focus
Table 45:MBDA - Product focus
Table 46:MBDA - Alliances
Table 47:MBDA - Recent Contract Wins
Table 48:Eurofighter Jagdflugzeug - Product focus
Table 49:Eurofighter Jagdflugzeug - Recent Contract Wins
Table 50:Rheinmetall - Product focus
Table 51:Rheinmetall - Alliances
Table 52:Rheinmetall - Recent Contract Wins
List Of Figures
Figure 1: German Defense Expenditure (US$ Billion), 2008-2012
Figure 2: German Defense Expenditure (US$ Billion), 2013-2017
Figure 3: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditureas Percentage of GDP Growth, 2008-2012
Figure 4: German GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Figure 5:German Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Figure 6: German Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Figure 7: German per capita defense expenditure (US$), 2008-2012
Figure 8:German per capita defense expenditure (US$), 2013-2017
Figure 9: German Defense Capital Expenditure Breakdown (%), 2008-2012
Figure 10: German Defense Capital Expenditure Breakdown (%), 2013-2017
Figure 11: German Defense Capital Expenditure for Army (US$ million), 2008-2012
Figure 12: German Defense Capital Expenditure for Army (US$ million), 2013-2017
Figure 13: German Defense Capital Expenditure for Air Force (US$ million), 2008-2012
Figure 14: German Defense Capital Expenditure for Air Force (US$ million), 2013-2017
Figure 15: German Defense Capital Expenditure for Navy (US$ million), 2008-2012
Figure 16: German Defense Capital Expenditure for Navy (US$ million), 2013-2017
Figure 17: German Homeland Security Budget, 2008-2012
Figure 18: German Homeland Security Budget, 2013-2017
Figure 19: SDI Terrorism Heat Map, 2011
Figure 20: SDI Terrorism Index, 2011
Figure 21: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016
Figure 22: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2011 and 2016
Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2011
Figure 24: German Defense Import Trend, 2007-2011 (TIV values)
Figure 25: German Defense Imports by Country (%), 2007-2011
Figure 26: German Defense Imports by Category (%), 2007-2011
Figure 27: German Defense exports by Value (%),2007-2011
Figure 28: German Defense exports by Country (%), 2007-2011
Figure 29: German Defense Imports by Category (%),2007-2011
Figure 30: Industry Dynamics Porter’s Five Forces Analysis
Figure 31: EADS - Revenue Trend Analysis (EUR Billion), 2007-2011
Figure 32: EADS - Operating Profit Trend Analysis (EUR Million), 2007-2011
Figure 33: EADS - Net Profit Trend Analysis (EUR Million), 2007-2011
Figure 34: Rheinmetall - Revenue Trend Analysis (EUR Billion), 2007-2011
Figure 35: Rheinmetall - Operating Profit Trend Analysis (EUR Million), 2007-2011
Figure 36: Rheinmetall - Net Profit Trend Analysis (EUR Million), 2007-2011
Figure 37: Germany Population - Female (In Millions), 2008-2017
Figure 38: Germany Population - Male (In Millions), 2008-2017
Figure 39: Germany Business Confidence index, 2003-2012
Figure 40: Germany Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
Figure 41: Germany Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 42: Germany Current Account Balance as Percentage of GDP, 2008-2017
Figure 43: Germany Exports of goods and services, current prices (US$ Billion), 2001- 2010
Figure 44: Germany Fiscal Balance as a percentage of GDP, 2001-2010
Figure 45: Germany Foreign Direct Investment (US$ Billion), 2001-2010
Figure 46: Germany GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 47: Germany GDP at Constant Prices (Local Currency Billion), 2006-2015
Figure 48: Germany GDP at Constant Prices (US$ Billion), 2006-2015
Figure 49: Germany GDP at Current Prices (Local Currency Billion), 2006-2015
Figure 50: Germany GDP at Current Prices (US$ Billion), 2006-2015
Figure 51: Germany General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 52: Germany Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 53: Germany Imports of goods and services (current US$ Billion), 2001-2010
Figure 54: Germany Inflation, average consumer prices, 2008-2017
Figure 55: Germany Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010
Figure 56: Germany Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 57: Germany US$- Exchange Rate (EoP), 2002-2011
Figure 58: Germany Wholesale Price Index, 2000-2009
Figure 59: Germany Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009
Figure 60: Germany Electricity Exports (Billion Kilowatt hours), 2001-2010
Figure 61: Germany Imports (Billion Kilowatt hours), 2001-2010
Figure 62: Germany Electricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 63: Germany Fossil Fuels Proved Natural Gas Reserves (Trillion Cubic Feet), 2002-2011
Figure 64: Germany Fossil Fuels Proved Oil Reserves (Billion Barrels), 2002-2011
Figure 65: Germany Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 66: Germany Natural Gas Consumption (Million Kilowatts), 2001-2010
Figure 67: Germany Natural Gas Imports (Million Kilowatts), 2001-2010
Figure 68: Germany Natural Gas Production (Billion Cubic Feet), 2001-2010
Figure 69: Germany Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2010
Figure 70: Germany Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 71: Germany Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 72: Germany Nuclear Electricity Net Generation (Billion Kilowatt hours), 2001-2010
Figure 73: Germany Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 74: Germany Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 75: Germany People Employed in R and D (Number of researchers per million people), 2000-2009
Figure 76: Germany Coal Consumption (Thousand Short Tons), 2001-2010
Figure 77: Germany Coal Production (Thousand Short Tons), 2001-2010
Figure 78: Germany Political Stability Index, 2002-2010
Figure 79: Germany Transparency Index, 2002-2011
Figure 80: Germany Fixed Broadband Internet Subscribers (Thousands), 2001-2010
Figure 81: Gross Domestic Expenditure on Research and Development as % of GDP, 2000-2009
Figure 82: Patents Granted, 2002-2011
Figure 83: Software Patents, 2002-2011
Figure 84: Fixed line calling cost local, 2001-2010
Figure 85: Fixed Line Calling Cost National, 2001-2010