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. US defense expenditure is expected to increase at a CAGR of
0.71% over the forecast period
3.1.2. Initiatives to retain military superiority, equipment modernization programs, turbulence in the Middle East, rising tension with China, and Research and Development activities are expected to drive defense spending
3.1.3. Defense expenditure as a percentage of GDP is estimated to decline over the forecast period
3.1.4. Per capita defense spending projected to decline over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Total DoD budget forecasted to grow at a CAGR of
0.71%
3.2.2. Share of revenue expenditure expected to increase over the forecast period
3.2.3. Navy to receive the major allocation of the defense budget over the forecast period
3.2.4. Allocation for defense expenditure on army expected to increase over the forecast period
3.2.5. Naval defense budget is expected to grow at a CAGR of
1.55% over the forecast period
3.2.6. Air Force expenditure expected to increase over the forecast period
3.2.7. Expenditure on the defense-wide category of armed forces is projected to grow at a CAGR of
0.26% over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. The US homeland security expenditure to reach US$67.5 billion by 2021
3.3.2. Prevention of terrorism, securing and managing borders, safeguarding cyberspace and disaster management to drive homeland security expenditure over the forecast period
3.3.3. The nation is at "highly affected" category of terrorism
3.3.4. The US has a terrorism index score of
4.6
3.4. Benchmarking with Key Global Markets
3.4.1. The US will dominate global military spending over the forecast period
3.4.2. US defense budget is much higher than other leading spenders
3.4.3. US is one of the top defense spenders in terms of expenditure as a percentage of GDP
3.4.4. The US faces some threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Networking
3.5.2. Multi-role Aircraft
3.5.3. IT Software
3.5.4. Multi Role Aircraft MRO
3.5.5. Hardware
3.5.6. Transport Aircraft MRO
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. US primarily imports defense equipment to build strategic relations
4.1.2. Defense imports expected to increase over the forecast period
4.1.3. Germany and the UK dominated the US defense imports during the historic period
4.1.4. Aircraft account for majority of arms imports
4.2. Export Market Dynamics
4.2.1. US arms exports are driven by political and economic factors
4.2.2. Arms exports expected to increase in the period 2016-2020
4.2.3. US defense exports to increase during the forecast period
4.2.4. Aircraft are the most exported defense equipment
4.2.5. The US maintains controlled defense export policy
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Supplier: Low to Medium
5.1.2. Bargaining power of Buyer: High
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low to high
5.1.5. Threat of Substitution: Low to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. The US defense industry is open to FDI
6.1.2. No offset policy exists in the US
6.1.3. US arms trade is heavily regulated
6.2. Market Entry Route
6.2.1. Foreign OEMs enter the market through the acquisition of domestic defense companies
6.2.2. Joint product development programs, an attractive market entry route
6.2.3. Formation of partnerships with domestic defense firms provide good market entry opportunities
6.2.4. Direct sale of defense equipment provides foreign OEMs with an opportunity to enter the market
6.3. Key Challenges
6.3.1. Sequestration and budget cuts
6.3.2. Decreasing economies of scale and defense inflation
6.3.3. Declining profit margins deter growth of domestic defense companies
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Domestic Public Companies
7.2.1. Lockheed Martin Corp.: overview
7.2.2. Lockheed Martin Corp.: products
7.2.3. Lockheed Martin Corp.: recent announcements and strategic initiatives
7.2.4. Lockheed Martin Corp.: alliances
7.2.5. Lockheed Martin Corp.: recent contract wins
7.2.6. Lockheed Martin Corp.: 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. General Dynamics: overview
7.2.14. General Dynamics: products
7.2.15. General Dynamics: recent announcements and strategic initiatives
7.2.16. General Dynamics: alliances
7.2.17. General Dynamics: recent contract wins
7.2.18. General Dynamics: financial analysis
7.2.19. Boeing: overview
7.2.20. Boeing: products
7.2.21. Boeing: recent announcements and strategic initiatives
7.2.22. Boeing: alliances
7.2.23. Boeing: recent contract wins
7.2.24. Boeing: financial analysis
7.2.25. L-3 Communications Corp.: overview
7.2.26. L-3 Communications Corp.: products
7.2.27. L-3 Communications Corp.: recent announcements and strategic initiatives
7.2.28. L-3 Communications Corp.: alliances
7.2.29. L-3 Communications Corp.: recent contract wins
7.2.30. L-3 Communications Corp.: financial analysis
7.2.31. Northrop Grumman Corp.: overview
7.2.32. Northrop Grumman Corp.: products
7.2.33. Northrop Grumman Corp.: recent contracts and strategic initiatives
7.2.34. Northrop Grumman Corporation: alliances
7.2.35. Northrop Grumman Corp.: recent contract wins
7.2.36. Northrop Grumman Corp.: financial analysis
7.2.37. Science Application International Corp. (SAIC): overview
7.2.38. Science Application International Corp. (SAIC): products
7.2.39. Science Application International Corp. (SAIC): recent contracts and strategic initiatives
7.2.40. Science Application International Corp. (SAIC): alliances
7.2.41. Science Application International Corp. (SAIC): recent contract wins
7.2.42. Science Application International Corp. (SAIC): financial analysis
7.2.43. Honeywell International Inc.: overview
7.2.44. Honeywell International Inc.: products and services
7.2.45. Honeywell International Inc.: recent announcements and strategic initiatives
7.2.46. Honeywell International Inc.: alliances
7.2.47. Honeywell International Inc.: recent contract wins
7.2.48. Honeywell International Inc.: financial analysis
7.3. Domestic Private Companies
7.3.1. Sikorsky Aircraft: overview
7.3.2. Sikorsky Aircraft: products
7.3.3. Sikorsky Aircraft: recent announcements and strategic initiatives
7.3.4. Sikorsky Aircraft: alliances
7.3.5. Sikorsky Aircraft: recent contract wins
7.3.6. General Electric Aviation: overview
7.3.7. General Electric Aviation: products
7.3.8. General Electric Aviation: recent contracts and strategic initiatives
7.3.9. General Electric Aviation: alliances
7.3.10. General Electric Aviation: recent contract wins
7.3.11. Bell Helicopter Textron, Inc.: overview
7.3.12. Bell Helicopter Textron, Inc.: products and services
7.3.13. Bell Helicopter Textron, Inc.: recent announcements and strategic initiatives
7.3.14. Bell Helicopter Textron, Inc.: alliances
7.3.15. Bell Helicopter Textron, Inc.: recent contract wins
7.3.16. Textron Marine and Land Systems: overview
7.3.17. Textron Marine and Land Systems: products
7.3.18. Textron Marine and Land Systems: recent announcements and strategic initiatives
7.3.19. Textron Marine and Land Systems: alliances
7.3.20. Textron Marine and Land Systems: recent contract wins
8 Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices
8.1.3. Exports of goods and services in local currency
8.1.4. Imports of goods and services in local currency
8.1.5. Gross National Disposable Income (US$ Billion)
8.1.6. Market Capitalization of Listed Companies
8.1.7. Market Capitalization of Listed Companies (% of GDP)
8.1.8. Government Cash Surplus/Deficit as % of GDP
8.1.9. Goods exports as % of GDP
8.1.10. Goods imports as % of GDP
8.1.11. Service Imports as % of GDP
8.1.12. Service Exports as % of GDP
8.1.13. Foreign Direct Investment
8.1.14. Net foreign direct investment as % of GDP
8.2. Minerals
8.2.1. Mining, Manufacturing, Utilities Output
9 Appendix
9.1. About SDI
9.2. Disclaimer