Table of Contents
1. Introduction 9
1.1. What is this Report About? 9
1.2. Definitions 9
1.3. Summary Methodology 11
1.4. About Strategic Defense Intelligence 12
2. Executive Summary 13
3. Market Attractiveness and Emerging Opportunities 15
3.1. Current Market Scenario 16
3.1.1. Primary threat perception 16
3.1.2. Military Doctrine and Strategy 17
3.1.3. Military Fleet Size 18
3.1.4. Procurement Programs 22
3.1.5. Ongoing procurement programs 22
3.1.6. Future procurement programs 23
3.1.7. Top Procurement Programs by Value (US$ Million) 2018-2023 24
3.1.8. Social, Political and Economic Environment and Support for Defense Projects 25
3.1.9. Political and Strategic Alliances 26
3.2. Defense Market Size – Historical and Forecast 27
3.2.1. Spanish defense budget is expected to grow at a CAGR of
7.09% over the forecast period 27
3.2.2. Territorial dispute with Morocco, security threats posed by terrorist organizations, and large equipment procurement programs will drive defense expenditure over the forecast period 29
3.3. Analysis of Defense Budget Allocation 31
3.3.1. Revenue expenditure accounts for the largest percentage share 31
3.3.2. Capital expenditure expected to increase at a CAGR of
9.22% over 2019-2023 33
3.3.3. Defense expenditure as a percentage of GDP is expected to reach
0.75% in 2023 35
3.3.4. Per capita defense expenditure set to increase over the forecast period 37
3.4. Homeland Security Market Size and Forecast 38
3.4.1. Homeland security expenditure is expected to register a CAGR of
2.28% over the forecast period 38
3.4.2. Border security and drug trafficking will drive homeland security expenditure in Spain 40
3.4.3. Spain is at “some risk” of terrorism 41
3.4.4. Spain faces some level of threat from foreign terrorist organizations 42
3.4.5. Spain has a terrorism index score of
1.7 44
3.5. Benchmarking with Key Global Markets 45
3.5.1. Spanish defense expenditure expected to increase over the forecast period 45
3.5.2. The country’s defense budget is relatively small compared to other leading spenders 47
3.5.3. Spanish defense expenditure as a percentage of GDP is expected to increase over the forecast period 48
3.6. Market Opportunities: Key Trends and Drivers 49
3.6.1. Top 10 Defense Market Categories by Value (US$ Million) – Forecast-Period Projections 49
3.6.2. Land-based C4ISR 50
3.6.3. Physical Security 51
3.6.4. Multirole Aircraft 52
4. Defense Procurement Market Dynamics 53
4.1. Import Market Dynamics 55
4.1.1. Spanish defense imports are expected to grow moderately over the forecast period 55
4.1.2. Germany emerged as a significant arms supplier to Spain 56
4.1.3. Missiles and aircraft dominate military hardware imports 57
4.2. Export Market Dynamics 58
4.2.1. Spain ranked seventh among the countries with the highest volume of defense exports 58
4.2.2. Australia accounted for the largest percentage share of Spanish defense exports 59
4.2.3. Aircraft and naval vessels are the main exported defense products 60
5. Industry Dynamics 61
5.1. Five Forces Analysis 61
5.1.1. Bargaining Power of Supplier: Low 62
5.1.2. Bargaining Power of Buyer: Medium 62
5.1.3. Barrier to Entry: Medium 62
5.1.4. Intensity of Rivalry: High 62
5.1.5. Threat of Substitution: High 62
6. Market Entry Strategy 63
6.1. Market Regulation 63
6.1.1. Offset policy mandates suppliers invest 100% of the contract value into the Spanish economy 63
6.1.2. FDI in defense subject to approval 64
6.1.3. Unified Procurement Policy 64
6.2. Market Entry Route 65
6.2.1. Budgeting Process 65
6.2.2. Procurement Policy and Process 66
6.2.3. Foreign OEMs venture into the market by partnering with domestic defense firms 67
6.2.4. Joint R&D provides an attractive entry route to foreign OEMs 68
6.2.5. Collaborations provide market entry opportunities 68
6.3. Key Challenges 69
6.3.1. Defense budget cuts discourage investors from entering the industry 69
6.3.2. Project delays deter defense industry growth 69
7. Competitive Landscape and Strategic Insights 70
7.1. Competitive Landscape Overview 70
7.2. Competitive Landscape Overview 73
7.3. Key Foreign Companies 74
7.3.1. Thales: Overview 74
7.3.2. Thales: Key Products 74
7.3.3. Thales: Recent Announcements and Strategic Initiatives 75
7.3.4. Thales: Alliances 76
7.3.5. Thales: Recent Contract Wins 77
7.3.6. Thales: Financial Analysis 79
7.3.7. Iveco: Overview 81
7.3.8. Iveco: Key Products 81
7.3.9. Iveco: Recent Announcements and Strategic Initiatives 81
7.3.10. Iveco: Alliances 82
7.3.11. Iveco: Recent Contract Wins 82
7.4. Key Public Sector Companies 83
7.4.1. Navantia: Overview 83
7.4.2. Navantia: Key Products 83
7.4.3. Navantia: Recent Announcements and Strategic Initiatives 85
7.4.4. Navantia: Alliances 86
7.4.5. Navantia: Recent Contract Wins 87
7.5. Key Private Sector Companies 89
7.5.1. General Dynamics European Land Systems (GDELS): Overview 89
7.5.2. General Dynamics European Land Systems (GDELS): Key Products 89
7.5.3. General Dynamics European Land Systems (GDELS): Recent Announcements and Strategic Initiatives 89
7.5.4. General Dynamics European Land Systems (GDELS): Alliances 90
7.5.5. General Dynamics European Land Systems (GDELS): Recent Contract Wins 91
7.5.6. Aernnova Aerospace S.A.: Overview 93
7.5.7. Aernnova Aerospace S.A.: Key Products 93
7.5.8. Aernnova Aerospace S.A.: Recent Announcements and Strategic Initiatives 94
7.5.9. Aernnova Aerospace S.A: Alliances 94
7.5.10. Aernnova Aerospace S.A.: Recent Contract Wins 95
7.5.11. Aries Ingenieria Y Sistemas, S.A.: Overview 96
7.5.12. Aries Ingenieria Y Sistemas, S.A.: Key Products 96
7.5.13. Aries Ingenieria Y Sistemas, S.A.: Recent Announcements and Strategic Initiatives 97
7.5.14. Aries Ingenieria Y Sistemas, S.A: Alliances 97
7.5.15. Indra Sistemas S.A.: Overview 98
7.5.16. Indra Sistemas SA: Key Products 98
7.5.17. Indra Sistemas S.A.: Recent Announcements and Strategic Initiatives 99
7.5.18. Indra Sistemas S.A.: Alliances 100
7.5.19. Indra Sistemas S.A.: Recent Contract Wins 101
7.5.20. Indra Sistemas S.A.: Financial Analysis 103
7.5.21. Sociedad Anonima De Electrónica Submarina, S.A.: Overview 105
7.5.22. Sociedad Anonima De Electrónica Submarina, S.A.: Key Products 105
7.5.23. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Announcements and Strategic Initiatives 106
7.5.24. Sociedad Anonima De Electrónica Submarina, S.A.: Alliances 106
7.5.25. Sociedad Anonima De Electrónica Submarina, S.A.: Recent Contract Wins 107
7.5.26. Tecnobit: Overview 108
7.5.27. Tecnobit: Key Products 108
7.5.28. Tecnobit: Recent Announcements and Strategic Initiatives 110
7.5.29. Tecnobit: Alliances 110
7.5.30. Tecnobit: Recent Contract Wins 111
7.5.31. Uro Vehiculos Especiales S.A.: Overview 112
7.5.32. Uro Vehiculos Especiales S.A.: Key Products 112
7.5.33. Uro Vehiculos Especiales S.A.: Recent Announcements and Strategic Initiatives 112
7.5.34. Uro Vehiculos Especiales S.A.: Recent Contract Wins 113
7.5.35. Amper S.A.: Overview 114
7.5.36. Amper S.A.: Key Products 114
7.5.37. Amper S.A.: Recent Announcements and Strategic Initiatives 115
7.5.38. Amper S.A.: Alliances 115
7.5.39. Amper S.A.: Recent Contract Wins 116
7.5.40. Amper S.A.: Financial Analysis 117
8. Business Environment and Country Risk 119
8.1. Economic Performance 119
8.1.1. GDP Per Capita at Constant Prices 119
8.1.2. GDP at Current Prices (US$ Billion) 120
8.1.3. Exports of Goods and Services (current LCU Billion) 121
8.1.4. Imports of Goods and Services (current LCU Billion) 122
8.1.5. Gross National Disposable Income (US$ Billion) 123
8.1.6. LCU per US$ (period average) 124
8.1.7. Market Capitalization of Listed Companies (US$ Billion) 125
8.1.8. Market Capitalization of Listed Companies (% of GDP) 126
8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU) 127
8.1.10. Goods Exports as a Percentage of GDP 128
8.1.11. Goods Imports as a Percentage of GDP 129
8.1.12. Services Imports as a Percentage of GDP 130
8.1.13. Service Exports as a Percentage of GDP 131
8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion) 132
8.1.15. Net Foreign Direct Investment as a Percentage of GDP 133
8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion) 134
9. Appendix 135
9.1. About SDI 135
9.2. Disclaimer 135