Russian Defense Market – Attractiveness, Competitive Landscape And Forecast To 2024

This report offers detailed analysis of the Russian defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

Russian Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2024, published by GlobalData, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

In particular, it provides an in-depth analysis of the following –

– The Russian defense industry market size and drivers: detailed analysis of the Russian defense industry during 2019–2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns

– Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country

– Porter’s Five Force analysis of the Russian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

– Market opportunities: details of the top five defense investment opportunities over the next 10 years

– Competitive landscape and strategic insights: analysis of the competitive landscape of the Russian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Scope

– Russia’s defense expenditure in 2019 values US$46.4 billion, recording a CAGR of -3.11% during the historic period, and is expected to cumulatively value US$268.4 billion over the forecast period. Russia, as the largest country in the world, spans across an area of 17.1 million km² and therefore has the longest land border in the world. The country shares its land borders with 16 different countries, and also shares maritime borders with Japan, via the sea of Okhotsk, and the US state of Alaska, across the Bering Strait. The country remains deeply distrustful of the expansion of the NATO alliance and perceives it to intrude within its sphere of influence. The need to deter NATO is anticipated to fuel investments in the Russian defense sector and the country is expected to progressively increase defense spending.

– During the historic period, the Russian government allocated an average of 47.4% of its total defense budget to capital expenditure and the remaining 52.6% to revenue expenditure. Capital expenditure is expected to increase over the forecast period to an average of 51%, owing to the Russian government’s decision to speed up its defense modernization program under its new State Armaments Program (SAP) 2027.

– The MoD is expected to mainly invest in Critical Infrastructure Protection (CIP), land based C4ISR, and airborne C4ISR capabilities.

Reasons to buy

– This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Russian defense industry market trends for the coming five years

– The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period

– Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector

– A deep qualitative analysis of the Russian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts

Companies mentioned

United Aircraft Corporation (UAC)

Sukhoi

Irkut Corporation

Rostec

Uralvagonzavod (UVZ)

Splav

KBP Instrument Design Bureau

V.A.Degtyarev Plant

Kalashnikov Concern

Oboronprom Corporation

United Engine Corporation (UEC)

Tactical Missiles Corporation,Almaz-Antey

Kurganmashzavod

and United Shipbuilding Corporation (USC)

Table of Contents

Table of Contents

LIST OF FIGURES

LIST OF TABLES

1. Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About GlobalData

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario

3.1.1. Primary Threat Perception

3.1.2. Military Doctrine and Strategy

3.1.3. Procurement Programs

3.1.4. Top Procurement Programs by Value (US$ Million) over 2019–2024

3.1.5. Social, Political and Economic Environment and Support for Defense Projects

3.1.6. Political and Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Russia’s defense budget to grow at a CAGR of

5.46% to value US$59.3 billion by 2024

3.2.2. Military modernization and defense exports to drive defense expenditure over the forecast period

3.2.3. Defense expenditure as a percentage of GDP is expected to average

3.6% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. The majority of Russia’s defense budget is expected to be allocated to revenue expenditure

3.3.2. Capital expenditure is expected to record a CAGR of

5.33% over the forecast period

3.3.3. Status of critical projects in key sectors:

3.3.4. Per capita defense expenditure expected to increase over the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Russian homeland security expenditure forecast to reach US$39.4 billion by 2024

3.4.2. Border security and the fight against cyber-attacks are the main factors encouraging growth in the homeland security market

3.5. Benchmarking with Key Global Markets

3.5.1. Russia’s defense budget is expected to grow significantly over the forecast period

3.5.2. Russia is among the world’s largest defense spenders

3.5.3. Russia allocated

2.8% of its GDP to defense in 2019

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top Defense Market Sectors by Value (US$ Million) – Projections over 2018-2023

3.6.2. Critical Infrastructure Protection (CIP) – Physical Security

3.6.3. Land-based C4ISR

3.6.4. Airborne C4ISR

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. The country’s defense imports are low owing to a developed indigenous sector

4.1.2. Ukraine was the key defense supplier to Russia

4.1.3. Aircraft and engines were the key defense imports during 2014–2018

4.2. Export Market Dynamics

4.2.1. Russia’s exports witnessed an increasing trend during 2014–2018

4.2.2. India, China, and Algeria are Russia’s main defense equipment purchasers

4.2.3. Aircraft and ships account for the majority of Russia’s defense exports

5. Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining Power of Supplier: Medium to High

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: High

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Entry into the defense sector is highly regulated

6.2. Market Entry Route

6.2.1. Budgeting Process

6.2.2. Procurement Policy and Process

6.3. Key Challenges

6.3.1. Russian government’s aversion to Western defense technology

6.3.2. Sanctions on Russian defense entities constrains market opportunities

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Russian Market Share Analysis, 2019–2024

7.1.2. The domestic industry is consolidating to provide better focus and fund allocation

7.1.3. Defense sector is dominated by domestic firms, with no foreign presence

7.2. Key Domestic Companies

7.2.1. United Aircraft Corporation – Overview

7.2.2. United Aircraft Corporation – Products

7.2.3. United Aircraft Corporation – Recent Announcements and Strategic Initiatives

7.2.4. United Aircraft Corporation – Alliances

7.2.5. United Aircraft Corporation (UAC) – Recent Contract Awards

7.2.6. United Aircraft Corporation (UAC) – Financial Analysis

7.2.7. Sukhoi – Overview

7.2.8. Sukhoi – Products

7.2.9. Sukhoi – Recent Announcements and Strategic Initiatives

7.2.10. Sukhoi – Alliances

7.2.11. Sukhoi – Recent Contract Awards

7.2.12. Irkut Corporation – Overview

7.2.13. Irkut Corporation – Products

7.2.14. Irkut Corporation – Recent Announcements and Strategic Initiatives

7.2.15. Irkut Corporation – Alliances

7.2.16. Irkut Corporation – Recent Contract Wins

7.2.17. Irkut Corporation – Financial Analysis

7.2.18. Rostec – Overview

7.2.19. Rostec – Products

7.2.20. Rostec– Recent Announcements and Strategic Initiatives

7.2.21. Rostec – Alliances

7.2.22. Rostec – Recent Contract Awards

7.2.23. Uralvagonzavod – Overview

7.2.24. Uralvagonzavod – Products

7.2.25. Uralvagonzavod – Recent Announcements and Strategic Initiatives

7.2.26. Uralvagonzavod – Alliances

7.2.27. Uralvagonzavod – Recent Contract Wins

7.2.28. Splav – Overview

7.2.29. Splav – Products

7.2.30. Splav – Recent Announcements and Strategic Initiatives

7.2.31. Splav – Alliances

7.2.32. KBP Instrument Design Bureau – Overview

7.2.33. KBP Instrument Design Bureau – Products

7.2.34. KBP Instrument Design Bureau – Recent Announcements and Strategic Initiatives

7.2.35. KBP Instrument Design Bureau – Recent Contract Wins

7.2.36. VV.A.Degtyarev Plant – Overview

7.2.37. V.A.Degtyarev Plant – Products

7.2.38. Kalashnikov Concern – Overview

7.2.39. Kalashnikov Concern – Products

7.2.40. Kalashnikov Concern – Recent Announcements and Strategic Initiatives

7.2.41. Kalashnikov Concern – Alliances

7.2.42. Oboronprom Corporation – Overview

7.2.43. Oboronprom Corporation – Products

7.2.44. Oboronprom Corporation – Recent Announcements and Strategic Initiatives

7.2.45. Oboronprom Corporation – Alliances

7.2.46. Oboronprom Corporation – Recent Contract Wins

7.2.47. United Engine Corporation (UEC) – Overview

7.2.48. United Engine Corporation (UEC) – Products

7.2.49. United Engine Corporation (UEC) – Recent Announcements and Strategic Initiatives

7.2.50. Tactical Missiles Corporation: Overview

7.2.51. Tactical Missiles Corporation – Products

7.2.52. Tactical Missiles Corporation – Recent Announcements and Strategic Initiatives

7.2.53. Tactical Missiles Corporation – Alliances

7.2.54. Tactical Missiles Corporation – Recent Contract Wins

7.2.55. Almaz-Antey – Overview

7.2.56. Almaz-Antey – Products

7.2.57. Almaz-Antey – Recent Announcements and Strategic Initiatives

7.2.58. Almaz-Antey – Alliances

7.2.59. Almaz-Antey – Recent Contract Wins

7.2.60. Kurganmashzavod – Overview

7.2.61. Kurganmashzavod – Products and Services

7.2.62. Kurganmashzavod – Recent Announcements and Strategic Initiatives

7.2.63. Kurganmashzavod – Alliances

7.2.64. Kurganmashzavod – Recent Contract Wins

7.2.65. United Shipbuilding Corporation – Overview

7.2.66. United Shipbuilding Corporation (USC) – Products and Services

7.2.67. United Shipbuilding Corporation (USC) – Recent Announcements and Strategic Initiatives

7.2.68. United Shipbuilding Corporation – Recent Contract Wins

8. Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP Per Capita, US$

8.1.2. GDP (Current US$ Billion)

8.1.3. Exports of Goods and Services (LCU Billion)

8.1.4. Imports of Goods and Services (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 a Percentage of GDP (LCU)

8.1.10. Goods Exports as a Percentage of GDP

8.1.11. Goods Imports as a Percentage of GDP

8.1.12. Services Imports as a Percentage of GDP

8.1.13. Services Exports as a Percentage of GDP

8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)

8.1.15. Net Foreign Direct Investment as a Percentage of GDP

8.1.16. Mining, Manufacturing, and Utilities Output (LCU Billion)

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

List of Tables

List of Tables

Table 1: Russian – On-going Development and Procurement Programs

Table 2: Russian – Future Procurement Programs

Table 3: Top Russian Defense Procurement Programs by Value (US$ Million), 2019–2024

Table 4: Russian Defense Cooperation

Table 5: Russian Military Training Exercises

Table 6: Russian Defense Expenditure (RUB Billion and US$ Billion), 2015–2024

Table 7: Percentage Share of Modern Defense Equipment within Russian Inventories, 2013–2020

Table 8: Russian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015–2024

Table 9: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2024

Table 10: Russian Defense Capital Expenditure (RUB Billion and US$ Billion), 2015–2024

Table 11: Key Electronic Warfare Systems

Table 12: Key Long Range Ballistic Missile Programs

Table 13: Ongoing Nuclear Delivery Platform Programs

Table 14: Ongoing Naval Modernization Programs

Table 15: Key Tactical Attack Weapon Systems and Precision Guided Munitions Projects

Table 16: Key Air Force Modernization Programs

Table 17: Key Air Defense Programs

Table 18: Key Air Force Transport Aircraft Modernization Programs

Table 19: Key Programs for Development of Unmanned Systems

Table 20: Key Army Modernization Programs

Table 21: Russian Per Capita Defense Expenditure (US$), 2015–2024

Table 22: Russian Homeland Security Expenditure (RUB Trillion and US$ Billion), 2015–2024

Table 23: Benchmarking with Key Markets – 2015–2019 vs 2020–2024

Table 24: Top Russian Defense Market Sectors by Value (US$ Million) – 2018–2023

Table 25: Russian Budget Formation Timetable

Table 26: Top Defense Suppliers in the Russian Defense Industry By Value (US$ Million), 2019–2024

Table 27: Competitive Landscape of the Russian Defense Industry

Table 28: United Aircraft Corporation – Products

Table 29: United Aircraft Corporation – Alliances

Table 30: United Aircraft Corporation (UAC) – Recent Contract Wins

Table 31: Sukhoi – Products

Table 32: Sukhoi – Alliances

Table 33: Sukhoi – Recent Contract Wins

Table 34: Irkut Corporation – Products

Table 35: Irkut Corporation – Alliances

Table 36: Irkut Corporation – Recent Contract Wins

Table 37: Rostec – Products

Table 38: Sukhoi – Alliances

Table 39: Rostec – Recent Contract Wins

Table 40: Uralvagonzavod – Products

Table 41: Uralvagonzavod – Alliances

Table 42: Uralvagonzavod – Recent Contract Wins

Table 43: Splav – Products

Table 44: Splav – Alliances

Table 45: KBP Instrument Design Bureau – Products

Table 46: KBP Instrument Design Bureau – Recent Contract Wins

Table 47: V.A.Degtyarev Plant – Products

Table 48: Kalashnikov Concern – Products

Table 49: Kalashnikov Concern – Alliances

Table 50: Oboronprom Corporation – Products

Table 51: Oboronprom Corporation – Alliances

Table 52: Oboronprom Corporation – Recent Contract Wins

Table 53: United Engine Corporation (UEC) – Products

Table 54: Tactical Missiles Corporation – Products

Table 55: Tactical Missiles Corporation – Alliances

Table 56: Tactical Missiles Corporation – Recent Contract Wins

Table 57: Almaz-Antey – Products

Table 58: Almaz-Antey – Alliances

Table 59: Almaz-Antey – Recent Contract Wins

Table 60: Kurganmashzavod – Products and Services

Table 61: Kurganmashzavod – Alliances

Table 62: Kurganmashzavod – Recent Contract Wins

Table 63: United Shipbuilding Corporation (USC) – Products and Services

Table 64: United Shipbuilding Corporation – Recent Contract Wins

List of Figures

List of Figures

Figure 1: Russian Analysis of Defense Budget: 2020 and 2024

Figure 2: Russian Defense Imports/Exports: 2014 and 2018

Figure 3: Russian Top Five Prospective Procurements/Developments

Figure 4: Russian National Security Threats

Figure 5: Russia Partner Countries for Defense Cooperation and Military Training

Figure 6: Russian Defense Expenditure (RUB Trillion), 2015–2024

Figure 7: Russian Defense Expenditure (US$ Billion), 2015–2024

Figure 8: Russian GDP Growth vs Defense Expenditure as a Percentage of GDP Growth, 2015–2024

Figure 9: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2024

Figure 10: Russian Defense Capital Expenditure (RUB Trillion), 2015–2024

Figure 11: Russian Defense Capital Expenditure (US$ Billion), 2015–2024

Figure 12: Russian Per Capita Defense Expenditure (US$), 2015–2024

Figure 13: Russian Homeland Security Budget (RUB Trillion), 2015–2024

Figure 14: Russian Homeland Security Budget (US$ Billion), 2015–2024

Figure 15: Benchmarking with Key Markets – 2015–2019 vs 2020–2024

Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024

Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019

Figure 18: Critical Infrastructure Protection (CIP) – Physical Security Market Size (US$ Million), 2019–2024

Figure 19: Land-based C4ISR Market Size (US$ Million), 2019–2024

Figure 20: Airborne C4ISR Market Size (US$ Million), 2019–2024

Figure 21: Top Russian Defense Procurements in Terms of Their Supplier Relationships

Figure 22: Russian Defense Import Trend, 2014–2018 (TIV Values)

Figure 23: Russian Defense Imports by Country (%), 2014–2018

Figure 24: Russian Defense Imports by Category (%), 2014–2018

Figure 25: Russian Defense Export Trend, 2014–2018 (TIV Values)

Figure 26: Russian Defense Exports by Country (%), 2014–2018

Figure 27: Russian Defense Exports by Category (%), 2014–2018

Figure 28: Industry Dynamics – Porter’s Five Forces Analysis

Figure 29: Russian Market Challenges

Figure 30: Russian Market Share Analysis, 2019–2024

Figure 31: United Aircraft Corporation (UAC) – Revenue Trend Analysis (RUB Billion), 2012–2016

Figure 32: United Aircraft Corporation (UAC) – Operating Profit Trend Analysis (RUB Billion), 2012–2016

Figure 33: United Aircraft Corporation (UAC) – Net Profit Trend Analysis (RUB Million), 2012–2016

Figure 34: Irkut Corporation – Revenue Trend Analysis (RUB Billion), 2014–2018

Figure 35: Irkut Corporation – Operating Profit (RUB Million), 2014–2018

Figure 36: Irkut Corporation – Net Profit Trend Analysis (RUB Million), 2014–2018

Figure 37: GDP Per Capita in US$, 2015–2025

Figure 38: GDP (Current US$ Billion), 2015–2025

Figure 39: Exports of Goods and Services (LCU Billion), 2005–2014

Figure 40: Imports of Goods and Services (LCU Billion), 2005–2014

Figure 41: Gross National Disposable Income (US$ Billion), 2008–2013

Figure 42: LCU Per US$ (Period Average), 2015–2024

Figure 43: Market Capitalization of Listed Companies (US$ Billion), 2005–2012

Figure 44: Market Capitalization of Listed Companies (% of GDP), 2005–2012

Figure 45: Government Cash Surplus/Deficit as a Percentage of GDP (LCU), 2005–2012

Figure 46: Goods Exports as a Percentage of GDP, 2005–2014

Figure 47: Goods Imports as a Percentage of GDP, 2005–2014

Figure 48: Service Imports as a Percentage of GDP, 2005–2014

Figure 49: Services Exports as a Percentage of GDP, 2005–2012

Figure 50: Foreign Direct Investment, Net (BoP, Current US$ Billion), 2005–2014

Figure 51: Net Foreign Direct Investment as a Percentage of GDP, 2005–2014

Figure 52: Mining, Manufacturing, Utilities Output (LCU Billion), 2005–2014

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