The Georgia Defense Sector Ã¢â‚¬â€œ Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015
This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Georgian defense industry. In
particular, it offers in-depth analysis of the following:
- Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2011–2015, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
- Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Georgian defense industry.
- Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
- Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
- Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Georgia 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.
- Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.
Analysis of Defense industry market size from 2006 through 2010 and forecasts till 2015
Analysis of defense budget allocation
Benchmarking with key global markets
Defense procurement dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons To Buy
- Gain insight into the Georgian defense industry with current, historic and forecast market values
- Get insight on market opportunity and attractiveness
- Get insight on industry procurement dynamics
- Gain insight on industry structure
- Gain insight into the regulations governing the Georgian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
- Identify top companies of the Georgian defense industry along with profiles of all those companies
Georgia’s small defense budget and the proposed arms embargo make the market unattractive
Georgia’s defense budget, which reached its peak of US$945.8 million in 2008, decreased to US$420.8 million in 2010 as the country is now focusing on economic development and will use the saved funds for economic stimulus projects. Defense expenditure recorded a CAGR of 4.52% during the review period. The country is expected to spend US$370.3 million in 2011 for defense-related activities and the budget is estimated to grow at a CAGR of 7.00% during the forecast period, stabilizing at 3.0% of GDP by 2014 to reach an estimated US$485.3 million by 2015. The defense budget is primarily driven by threats from Russia, NATO membership requirements and the Defense Ministry’s military modernization plans. During the review period an average of 33.0% of the total defense budget was allocated for capital expenditure while an average of 67% of the defense budget was allocated for revenue expenses. Capital expenditure, estimated to be an average of 23.0% of the total defense budget in 2011, is expected to increase to 31.0% of the total defense budget by 2015. Cumulatively during the forecast period the country’s Defense Ministry is expected to spend US$559.7 million on capital expenditure.
Georgia’s homeland security expenditure, which is estimated at US$317.5 million in 2011, is expected to grow at a CAGR of 8.15% during the forecast period to reach US$434.5 million by 2015. Homeland security expenditure is primarily driven by internal territorial disputes, along with drug and human trafficking. To curb these crimes, the government is expected to procure advanced computer systems, biometric systems, x-ray machines, alarm systems and advanced communication systems. The Defense Ministry of Georgia is also expected to procure fighter aircraft, missile defense systems, anti-tank and anti-aircraft capabilities and advanced communication systems, along with spending on training of its armed forces.