Future of the Portuguese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction 8

• 1.1. What is this Report About? 8
• 1.2. Definitions 8
• 1.3. Summary Methodology 10
• 1.4. About GlobalData 11

2. Executive Summary 12

3. Market Attractiveness and Emerging Opportunities 14

• 3.1. Current Market Scenario 15
  • 3.1.1. Primary Threat Perception 15
  • 3.1.2. Military Doctrine and Strategy 16
  • 3.1.3. Military Fleet Size 17
  • 3.1.4. Procurement Programs 20
  • 3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023 22
  • 3.1.6. Social, Political and Economic Environment and Support for Defense Projects 23
  • 3.1.7. Political and Strategic Alliances 24
• 3.2. Defense Market Size Historical and Forecast 25
  • 3.2.1. Portuguese defense budget is expected to record a CAGR of 1.48% over the forecast period 25
  • 3.2.2. International peacekeeping operations expected to drive defense expenditure over the forecast period 27
  • 3.2.3. Portuguese defense expenditure as a percentage of GDP is expected to decline over the forecast period 28
• 3.3. Analysis of Defense Budget Allocation 30
  • 3.3.1. Share of capital expenditure expected to remain constant over the forecast period 30
  • 3.3.2. Capital expenditure is anticipated to record a CAGR of 2.71% over the forecast period 32
  • 3.3.3. Army is expected to receive the highest allocation over the forecast period 34
  • 3.3.4. Army expenditure is anticipated to have the major share of expenditure over the forecast period 36
  • 3.3.5. Per capita defense expenditure is projected to increase over the forecast period 40
• 3.4. Homeland Security Market Size and Forecast 41
  • 3.4.1. Portuguese homeland security budget anticipated to record a CAGR of 2.44% over the forecast period 41
  • 3.4.2. Cyber-attacks and maritime security set to drive homeland security expenditure over the forecast period 43
  • 3.4.3. Portugal falls under “some risk” of terrorism 44
  • 3.4.4. Portugal faces little threat from terrorist organizations 45
  • 3.4.5. Portugal has a terrorism index score of 0.0 47
• 3.5. Benchmarking with Key Global Markets 48
  • 3.5.1. Portuguese defense budget expected to remain low compared to the leading spenders 48
  • 3.5.2. Portuguese defense expenditure to remain low compared to major spenders in Europe 50
  • 3.5.3. Portugal allocates lower share of GDP to defense compared to the US and other European countries 51
• 3.6. Market Opportunities: Key Trends and Growth Stimulators 52
  • 3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections 52
  • 3.6.2. Physical Security 53
  • 3.6.3. Land-based C4ISR 54
  • 3.6.4. Frigates MRO 55

4. Defense Procurement Market Dynamics 56

• 4.1. Import Market Dynamics 58
  • 4.1.1. Defense imports are expected to increase marginally over 2019-2023 58
  • 4.1.2. Portugal sourced the majority of its arms imports from Denmark and Austria 59
  • 4.1.3. Naval vessels and armored vehicles accounted for the majority of military imports 60
• 4.2. Export Market Dynamics 61
  • 4.2.1. Defense exports expected to rise during the forecast period 61
  • 4.2.2. Romania accounted for the majority of Portuguese defense exports 62
  • 4.2.3. Aircraft are the main exported defense products 63

5. Industry Dynamics 64

• 5.1. Five Forces Analysis 64
  • 5.1.1. Bargaining Power of Supplier: High to Medium 66
  • 5.1.2. Bargaining Power of Buyer: Medium to Low 66
  • 5.1.3. Barrier to Entry: Low to Medium 67
  • 5.1.4. Intensity of Rivalry: Medium to High 67
  • 5.1.5. Threat of Substitution: Medium to High 67

6. Market Entry Strategy 68

• 6.1. Market Regulation 68
  • 6.1.1. Offset policy aids development of domestic defense industry and research activities 68
  • 6.1.2. Offset policy aids development of domestic defense industry and research activities 70
• 6.2. Market Entry Route 71
  • 6.2.1. Budgeting Process 71
  • 6.2.2. Procurement Policy and Process 72
  • 6.2.3. Setting up subsidiaries offers a market entry opportunity 72
  • 6.2.4. Technology transfer, sub-contracts, and long-term supply contracts open new market entry strategy choices 73
• 6.3. Key Challenges 74
  • 6.3.1. Domestic defense companies facing challenges from foreign companies 74
  • 6.3.2. Budget cuts due to austerity measures challenging defense companies 74
  • 6.3.3. Corrupt practices in the Portuguese government challenges the industry 74

7. Competitive Landscape and Strategic Insights 75

• 7.1. Competitive Landscape Overview 75
• 7.2. Key Domestic Companies 78
  • 7.2.1. OGMA - Indústria Aeronáutica de Portugal SA: Overview 78
  • 7.2.2. OGMA - Indústria Aeronáutica de Portugal SA: Products 78
  • 7.2.3. OGMA - Indústria Aeronáutica de Portugal SA: Recent Announcements and Strategic Initiatives 79
  • 7.2.4. OGMA - Indústria Aeronáutica de Portugal SA: Alliances 80
  • 7.2.5. OGMA - Indústria Aeronáutica de Portugal SA: Recent Contract Wins 81
  • 7.2.6. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Overview 82
  • 7.2.7. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Products 82
  • 7.2.8. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Recent Announcements and Strategic Initiatives 82
  • 7.2.9. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Alliances 84
  • 7.2.10. EID - Empresa de Investigação e Desenvolvimento de Electrónica SA: Recent Contract Wins 84
  • 7.2.11. Edisoft: Overview 86
  • 7.2.12. Edisoft: Products 86
  • 7.2.13. Edisoft: Recent Announcements and Strategic Initiatives 86
  • 7.2.14. Edisoft: Alliances 88
  • 7.2.15. Edisoft: Recent Contract Wins 88
  • 7.2.16. EMPORDEF TI Inc.: Overview 89
  • 7.2.17. EMPORDEF TI Inc.: Products 89
  • 7.2.18. EMPORDEF TI Inc.: Recent Announcements and Strategic Initiatives 89
  • 7.2.19. EMPORDEF TI Inc.: Alliances 90
  • 7.2.20. EMPORDEF TI Inc.: Recent Contract Wins 90
  • 7.2.21. Indra Sistemas Portugal: Overview 91
  • 7.2.22. Indra Sistemas Portugal: Products and Services 91
  • 7.2.23. Indra Sistemas Portugal: Recent Announcements and Strategic Initiatives 91
  • 7.2.24. Indra Sistemas Portugal: Alliances 92
  • 7.2.25. Indra Sistemas Portugal: Recent Contract Wins 92
  • 7.2.26. Leonardo - Società per azioni: Overview 93
  • 7.2.27. Leonardo - Società per azioni: Products 93
  • 7.2.28. Leonardo - Società per azioni: Recent Announcements and Strategic Initiatives 94
  • 7.2.29. Leonardo - Società per azioni: Alliances 94
  • 7.2.30. Leonardo - Società per azioni: Recent Contract Wins 94
  • 7.2.31. Arsenal Alfeite: Overview 95
  • 7.2.32. Arsenal Alfeite: Products and Services 95
  • 7.2.33. Arsenal Alfeite: Recent Announcements and Strategic Initiatives 95
  • 7.2.34. Arsenal Alfeite: Recent Contract Wins 96
  • 7.2.35. Fabrequipa: Overview 97
  • 7.2.36. Fabrequipa: Products 97
  • 7.2.37. Fabrequipa: Recent Announcements and Strategic Initiatives 97
  • 7.2.38. Fabrequipa: Alliances 97
  • 7.2.39. Fabrequipa: Recent Contract Wins 98
  • 7.2.40. Critical Software: Overview 99
  • 7.2.41. Critical Software: Products 99
  • 7.2.42. Critical Software: Recent Announcements and Strategic Initiatives 100
  • 7.2.43. Critical Software: Alliances 101
  • 7.2.44. Critical Software: Recent Contract Wins 101

8. Business Environment and Country Risk 102

• 8.1. Economic Performance 102
  • 8.1.1. Gross Domestic per Capita (US$) 102
  • 8.1.2. Gross Domestic Product, Current US$ Billion 103
  • 8.1.3. Exports of Goods and Services 104
  • 8.1.4. Imports of Goods and Services 105
  • 8.1.5. Gross National Disposable Income 106
  • 8.1.6. Local Currency Unit per US$ 107
  • 8.1.7. Market Capitalization of Listed Companies 108
  • 8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP 109
  • 8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP 110
  • 8.1.10. Goods Imports as a Percentage of GDP 111
  • 8.1.11. Goods Exports as a Percentage of GDP 112
  • 8.1.12. Services Imports as a Percentage of GDP 113
  • 8.1.13. Services Exports as a Percentage of GDP 114
  • 8.1.14. Net Foreign Direct Investment 115
  • 8.1.15. Net FDI as a Percentage of GDP 116
  • 8.1.16. Mining, Manufacturing, Utilities Output 117

9. Appendix 118

• 9.1. About GlobalData 118