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 Defense Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Japan to cumulatively invest US$220.9 billion in the defense sector over the forecast period 16
3.1.2.Nuclear missile development programs of North Korea, strategic challenges from China, and a territorial issue with Russia are the main factors driving the Japanese defense industry 18
3.1.3.Defense budget as a percentage of GDP expected to average
0.96% over the forecast period 20
3.2. Analysis of Defense Budget Allocation
3.2.1. The Ministry of Defense is expected to allocate an average of
18.9% towards capital expenditure during the forecast period
3.2.2. Procurement of equipment is expected to pick up over the forecast period 23
3.2.3.The Japanese Army accounts for the largest percentage share of the overall defense budget 25
3.2.4.Army defense expenditure expected to increase over the forecast period 27
3.2.5. Air Force expenditure to cumulatively value US$48.7 billion over the forecast period 30
3.2.6.Japanese Naval defense expenditure to grow at a CAGR of
1.59% over the forecast period 32
3.2.7.Per capita defense expenditure expected to increase over the forecast period 34
3.3. Homeland Security Market Size and Forecast
3.3.1. Intrusion in coastal areas, organized crime, and natural disasters are expected to drive Japanese homeland security expenditure
3.3.2. Japan faces "some risk" of terrorism
3.4. Benchmarking with Key Global Markets
3.4.1. Japan is the seventh-largest defense spender globally
3.4.2. Japan's defense expenditure is low compared to the US, China, and Russia
3.4.3. Japanese defense budget as a percentage of GDP is expected to remain constant at 1% over the forecast period
3.4.4. Japan has a score of
0.0on the SDI Research Intelligence Terrorism Index
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Transport Aircraft
3.5.2. Destroyer
3.5.3. Multi-role Aircraft
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Japan to sign new defense import programs with foreign countries
4.1.2. Procurement of F-35 aircraft to increase defense imports marginally over the forecast period
4.1.3. The US was the key defense supplier to Japan
4.1.4. Aircraft and missiles were the key defense imports during 2011-2015
4.2. Export Market Dynamics
4.2.1. Relaxation in export policies to boost the Japanese exports
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: high
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. No offset policy in Japan
6.1.2. Restrictive defense policies to prevent increase in foreign investment
6.2. Market Entry Route
6.2.1. Affiliation with Japanese defense companies can be used as an entry strategy
6.2.2. Foreign military sales to Japan
6.2.3. Entry through technology transfer program
6.2.4. Relaxation in existing policy can be used as an entry route
6.3. Key Challenges
6.3.1. Domestic companies fail to achieve economies of scale
6.3.2. Japanese export policy still poses a challenge for domestic defense companies
6.3.3. Opposition by Japanese ccivilians
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Foreign Competitors
7.2.1. Lockheed Martin: overview
7.2.2. Lockheed Martin: products
7.2.3. Lockheed Martin: recent announcements and strategic initiatives
7.2.4. Lockheed Martin: alliances
7.2.5. Lockheed Martin: recent contract wins
7.2.6. Lockheed Martin: financial analysis
7.2.7. Raytheon: overview
7.2.8. Raytheon: products
7.2.9. Raytheon: recent announcements and strategic initiatives
7.2.10. Raytheon: alliances
7.2.11. Raytheon: recent contract wins
7.2.12. Raytheon: financial analysis
7.2.13. BAE Systems: overview
7.2.14. BAE Systems: products
7.2.15. BAE Systems: recent announcements and strategic initiatives
7.2.16. BAE Systems: alliances
7.2.17. BAE Systems: recent contract wins
7.2.18. BAE Systems: financial analysis
7.2.19. Airbus Group: overview
7.2.20. Airbus Group: defense products and services
7.2.21. Airbus Group: recent announcements and strategic initiatives
7.2.22. Airbus Group: recent contract wins
7.3. Key Domestic Companies
7.3.1. NEC Corporation: overview
7.3.2. NEC Corporation: products and services
7.3.3. NEC Corporation: recent contracts and strategic initiatives
7.3.4. NEC Corporation: alliances
7.3.5. NEC Corporation: recent contract wins
7.3.6. NEC Corporation: financial analysis
7.3.7. Toshiba Corporation: overview
7.3.8. Toshiba Corporation: defense products
7.3.9. Toshiba Corporation: recent announcements and strategic initiatives
7.3.10. Toshiba Corporation: alliances
7.3.11. Toshiba Corporation: recent contract wins
7.3.12. Toshiba: financial analysis
7.3.13. Mitsubishi Heavy Industries: overview
7.3.14. Mitsubishi Heavy Industries: defense products
7.3.15. Mitsubishi Heavy Industries: recent announcements and strategic initiatives
7.3.16. Mitsubishi Heavy Industries: alliances
7.3.17. Mitsubishi Heavy Industries: recent contract wins
7.3.18. Mitsubishi Heavy Industries: financial analysis
7.3.19. Kawasaki Heavy Industries: overview
7.3.20. Kawasaki Heavy Industries: defense products
7.3.21. Kawasaki Heavy Industries: recent announcements and strategic initiatives
7.3.22. Kawasaki Heavy Industries: alliances
7.3.23. Kawasaki Heavy Industries: recent contract wins
7.3.24. Kawasaki Heavy Industries: financial analysis
7.3.25. Ishikawajima-Harima Heavy Industries Co. Ltd.: overview
7.3.26. Ishikawajima-Harima Heavy Industries Co. Ltd.: products
7.3.27. Ishikawajima-Harima Heavy Industries Co. Ltd.: recent announcements and strategic initiatives
7.3.28. Ishikawajima-Harima Heavy Industries Co. Ltd.: alliances
7.3.29. Ishikawajima-Harima Heavy Industries Co. Ltd.: recent contract wins
7.3.30. Mitsubishi Electric Corporation: overview
7.3.31. Mitsubishi Electric Corporation: products
7.3.32. Mitsubishi Electric Corporation: recent announcements and strategic initiatives
7.3.33. Mitsubishi Electric Corporation: alliances
7.3.34. Mitsubishi Electric Corporation: recent contract wins
7.3.35. Mitsubishi Electric Corporation: financial analysis
8 Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per capita at constant prices
8.1.2. GDP at current prices (US$)
8.1.3. Exports of goods and services (current LCU billion)
8.1.4. Imports of goods and services (current LCU billion)
8.1.5. Gross national disposable income (US$ billion)
8.1.6. LCU per US$ (period average)
8.1.7. Market capitalization of listed companies (US$ billion)
8.1.8. Market capitalization of listed companies (% of GDP)
8.1.9. Government cash surplus/deficit as % of GDP (LCU)
8.1.10. Goods exports as a % of GDP
8.1.11. Goods imports as a % of GDP
8.1.12. Services imports as a % of GDP
8.1.13. Service exports as a % of GDP
8.1.14. Foreign direct investment, net (BoP, current US$ billions)
8.1.15. Net foreign direct investment as % of GDP
8.2. Mineral
8.2.1. Mining, Manufacturing, Utilities Output (US$ billion)
9 Appendix
9.1. About SDI
9.2. Disclaimer