United Kingdom Defense Market – Attractiveness, Competitive Landscape and Forecast to 2024

Pages: 168 Published: January 31, 2020 Report Code: GDDF0614MR

The Future of the UK Defense Industry – 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.

This report offers detailed analysis of the UK defense industry 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.

In particular, it provides an in-depth analysis of the following –
– The UK defense industry market size and drivers: detailed analysis of the UK defense industry during 2020-2024, 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
– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
– Market opportunities:list of the top ten defense investment opportunities over the next 5 years
– Competitive landscape and strategic insights: analysis of the competitive landscape of the UK defense industry.


– Driven by the need to counter a resurgent Russia, the UK’s defense expenditures are anticipated to increase from US$50.3 billion in 2019 to US$52.6 billion in 2020. Over the forecast period the country’s defense budget is anticipated to post a CAGR of 4.13%.Aside Russia and traditional geopolitical threats, the Centre for the Protection of National Infrastructure (CPNI) defines the primary threats to UK’s national security to be terrorism, espionage, proliferation of Weapons of Mass Destruction (WMD) and cyber threats, all of which have the potential to be detrimental to the safety of the UK’s national infrastructure of critical importance.

Reasons to Buy

– This report will give the user confidence to make the correct business decisions based on a detailed analysis of the UK 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

– Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector

– A deep qualitative analysis of the UK defense industry covering sections including demand drivers, Key Trends , and latest industry contracts

Key Players

BAE Systems Plc.
Rolls-Royce Plc.
GKN Aerospace Services
Babcock International Group Plc
Thales UK
General Dynamics UK Ltd
Boeing UK
Lockheed Martin UK Ltd
L-3 Communications Group Plc
Northrop Grumman Corporation
Airbus S.A.S

Table of Contents

Table of Contents



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. Geopolitical, Social and Economic Scenario

3.1.5. Political and Strategic Alliances

3.1.6. Key Drivers and Challenges

3.2. Defense Market Size Historical and Forecast

3.2.1. The UK’s defense expenditure is anticipated to increase at a CAGR of

4.13% over the forecast period

3.2.2. Counter-terrorism activities, procurements, and peacekeeping operations are the primary factors driving defense expenditure

3.2.3. Defense budget as a percentage of GDP is anticipated to decrease over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. The allocation towards capital expenditure will remain constant

3.3.2. Capital expenditure is anticipated to record CAGR of

3.41% over the forecast period

3.3.3. Per capita defense expenditure to increase over the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. The Homeland Security market in UK is expected to grow at a CAGR of

4.20% over the forecast period

3.4.2. Border security and cyber-security will be the key drivers for homeland security

3.5. Benchmarking with Key Global Markets

3.5.1. The UK ranks among major Global Defense Markets

3.5.2. The UK is expected to be among the top 10 defense spending countries in the world

3.5.3. The UK allocates a significant percentage of GDP towards defense

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Top 10 Defense market sectors by value (US$ Million) – Projections over period 2019-2024

3.6.2. Critical Infrastructure Protection (CIP) – Physical Security

3.6.3. Land Based – C4ISR

3.6.4. Multirole Aircraft

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports are expected to remain consistent with the historic trends

4.1.2. The US is the leading arms exporter to UK, a trend expected to continue in the coming years

4.1.3. Aircraft, Missiles, and Engines account for more than three-quarters of UK arms imports

4.2. Export Market Dynamics

4.2.1. UK Defense Exports are anticipated to increase over the historic period

4.2.2. Saudi Arabia, Oman, and Indonesia are the main buyers of UK defense exports

4.2.3. Aircraft make up the majority of the UK’s defense exports

5. Industry Dynamics

5.1.1. Five Forces Analysis

5.1.2. Bargaining power of supplier: low

5.1.3. Bargaining power of buyer: medium to high

5.1.4. Barrier to entry: medium

5.1.5. Intensity of rivalry: medium

5.1.6. Threat of substitution: medium

6. Market Entry Strategy

6.1. Market Regulation

6.1.1. Offset policy discarded in order to maintain competitiveness of domestic suppliers

6.1.2. The UK permits 100% FDI in its defense industry

6.1.3. Government initiatives to boost the defense industry

6.2. Market Entry Route

6.2.1. Budgeting Process

6.2.2. Procurement Policy and Process

6.2.3. Joint weapons development programs are a viable market entry opportunity

6.2.4. Joint ventures open up new market entry strategy choices

6.2.5. Forming subsidiaries in the UK and the acquisition of domestic companies provide good market entry opportunities

6.3. Key Challenges

6.3.1. Inconsistency defense budget policy have negative implications for defense companies

6.3.2. Dominance of domestic and EU defense companies impede the progress of non-European firms

7. Competitive landscape and Strategic Insights

7.1. Competitive landscape Overview

7.2. Key Domestic Companies

7.3. Key Foreign Companies

8. Business Environment and Country Risk

8.1. Economic Performance

9. Appendix

9.1. About GlobalData

9.2. Disclaimer

List of Tables

List of Tables

Table 1: The UK- Ongoing Development and Procurement Programs

Table 2: The UK- Ongoing Development and Procurement Programs

Table 3: Top UK Defense Procurement Programs by Value (US$ Million) 2019-2024

Table 4: The UK Defense Cooperation

Table 5: The UK Military Training Exercises

Table 6: UK Defense Expenditure (GBP Billion & US$ Billion), 2015-2024

Table 7: UK Defense Expenditure (GBP Billion & US$ Billion), 2015-2024

Table 8: UK Defense Budget Split between Capital and Revenue Expenditure (%), 2015-2024

Table 9: Capital Expenditure (GBP Billion and US$ Billion), 2015-2024

Table 10: The UK- Planned spend on Equipment and Support between 2017-18 to 2026-27

Table 11: UK – Per Capita Defense Expenditure (US$), 2015-2024

Table 12: UK Homeland Security Expenditure (GBP Billion & US$ Billion), 2015-2024

Table 13: Benchmarking with Key Markets – 2015-2019 vs 2020-2024

Table 14: Top 10 UK Defense Market Sectors by Value (US$ Million) – 2019-2024

Table 15: The UK Budget Formation Timetable

Table 16: UK's Participation in International Defense Development Programs

Table 17: Top Defense Suppliers in The UK Defense Industry – By Value (US$ Million) 2019-2024

Table 18: Competitive Landscape of the UK Defense Industry

Table 19: BAE Systems Plc. – Product Focus

Table 20: BAE Systems Plc. – Alliances

Table 21: BAE Systems Plc. – Recent Contract Wins

Table 22: GKN Aerospace Services – Product Focus

Table 23: GKN Aerospace Services – Alliances

Table 24: GKN Aerospace Services – Recent Contract Wins

Table 25: Rolls-Royce Plc. – Product Focus

Table 26: Rolls-Royce Plc. – Alliances

Table 27: Rolls-Royce Plc. – Recent Contract Wins

Table 28: Babcock International Group Plc. – Product Focus

Table 29: Babcock International Group Plc. – Alliances

Table 30: Babcock International Group Plc. – Recent Contract Wins

Table 31: Leonardo UK – Product Focus

Table 32: Leonardo UK – Alliances

Table 33: Leonardo UK – Recent Contract Wins

Table 34: Thales UK – Product Focus

Table 35: Thales UK – Alliances

Table 36: Thales UK – Recent Contract Wins

Table 37: General Dynamics UK Ltd – Product Focus

Table 38: General Dynamics UK Ltd – Alliances

Table 39: General Dynamics UK Ltd – Recent Contract Wins

Table 40: Boeing UK – Product Focus

Table 41: Boeing UK – Alliances

Table 42: Boeing UK – Recent Contract Wins

Table 43: L-3 TRL – Product Focus

Table 44: L-3 TRL – Alliances

Table 45: Northrop Grumman UK – Product Focus

Table 46: Northrop Grumman UK – Alliances

Table 47: Northrop Grumman UK – Recent Contract Wins

Table 48: Lockheed Martin UK Ltd – Product Focus

Table 49: Lockheed Martin UK Ltd – Alliances

Table 50: Lockheed Martin UK Ltd – Recent Contract Wins

Table 51: Airbus S.A.S. – Service Focus

Table 52: EADS UK – Alliances

Table 53: EADS UK – Recent Contract Wins

List of Figures

List of Figures

Figure 1: The UK Defense Budget: 2020 and 2024

Figure 2: The UK Defense Imports/ Exports 2014 and 2018

Figure 3 : The UK Top Prospective Procurements/Developments

Figure 4: The UK National Security Threats

Figure 5: The UK Fusion Doctrine

Figure 6: The UK’s Partner Countries for Defense Cooperation and Military Training

Figure 7: UK Defense Expenditure (GBP Billion), 2015-2024

Figure 8: UK Defense Expenditure (US$ Billion), 2015-2024

Figure 9: UK GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2015-2024

Figure 10: UK Defense Budget Split between Capital and Revenue Expenditure (%), 2015-2024

Figure 11: Capital Expenditure (GBP Billion), 2015-2024

Figure 12: Capital Expenditure (US$ Billion), 2015-2024

Figure 13: UK – Per Capita Defense Expenditure (US$), 2015-2024

Figure 14: UK Homeland Security Expenditure (GBP Billion), 2015-2024

Figure 15: UK Homeland Security Expenditure (US$ Billion), 2015-2024

Figure 16: Benchmarking with Key Markets – 2015-2019 vs. 2020-2024

Figure 17: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024

Figure 18: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019

Figure 19: Critical Infrastructure Protection (CIP) – Physical Security Market Size (US$ Million), 2019-2024

Figure 20: Land Based C4ISR Market Size (US$ Million), 2019-2024

Figure 21: Multirole Aircraft Market Size (US$ Billion), 2019-2024

Figure 22: UK Defense Imports 2014-2018

Figure 23: The UK Defense Imports by Country (%), 2014-2018

Figure 24: UK Defense Imports by Category (%), 2014-2018

Figure 25: UK Defense Exports 2014-2018

Figure 26: The UK’s Defense Exports by Country (%), 2014-2018

Figure 27: UK Defense Exports by Category (%), 2014-2018

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

Figure 29: The UK Defense Market Share Analysis, 2019-2024

Figure 30: BAE Systems – Revenue Trend Analysis (GBP billion), 2014-2018

Figure 31: BAE Systems – Operating Profit (GBP billion), 2014-2018

Figure 32: BAE Systems – Net Profit Trend Analysis (GBP billion), 2014-2018

Figure 33: UK GDP Per Capita, 2015-2025

Figure 34: UK GDP (in US$ Billion) , 2015-2025

Figure 35: UK Exports of goods, (LCU Billion), 2005-2014

Figure 36: UK Imports of goods and services (LCU Billion), 2005-2014

Figure 37: UK Gross National Disposable Income, current prices (US$ Billion), 2005-2012

Figure 38: UK GBP per US$, 2015-2024

Figure 39: UK Market Capitalization of listed companies (US$ Billion), 2005-2012

Figure 40: UK Market Capitalization of listed companies(%GDP), 2005-2012

Figure 41: UK Government Cash surplus/deficit (LCU Billion), 2005-2012

Figure 42: UK Goods exports as % of GDP, 2005-2014

Figure 43: UK Goods imports as % of GDP, 2005-2014

Figure 44: UK Services Imports as a % of GDP, 2005-2014

Figure 45: UK Services exports as a % of GDP, 2005-2014

Figure 46: UK FDI, net (BoP, Current US$ Billion), 2005-2014

Figure 47: UK Net FDI as a % of GDP, 2005-2014

Figure 48: UK Mining, manufacturing and Utilities Output (US$ Billion), 2005-2014


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