The Danish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016
- The Danish Defence Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 is now available at ASDReports.com!
Danish defense expenditure, estimated to be US$4.1 bn in 2012, registered a CAGR of -1.32% during the review period, and is expected to register a CAGR of -3.04% during the forecast period to reach US$3.63 bn in 2016. The country’s cumulative defense expenditure over the forecast period is expected to be US$19.53 bn, of which US$14.65 bn is expected to be spent on personnel and others, and the remaining US$4.88 bn on equipment and infrastructure (reference see graph).
Denmark has a small defense budget when compared to other European countries such as the UK, Germany and France, and is likely to register negative growth over the forecast period. Moreover, the country spends less on advanced technology and research and development, resulting in lower export capacities. Consequently, the country’s low defense budget has become a barrier to entry for foreign companies.
The Danish Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017
During 2009, Danish defense imports demonstrated significant growth before recording a sharp decline in 2010 and 2011 due to the financial crisis and subsequent reduction in total defense expenditure. Indeed, the MoD increased the budget spend in 2011, imports of defense equipment are expected to register a negative growth due to the country’s plan to reduce the defense budget for the forecast period.
Danish expenditure on procurement is likely to decrease and register a CAGR of -2.74% during the forecast period. Equipment expenditure declined in 2008 and 2009 due to the global financial crisis and rose in 2010. It is expected to decrease from US$868.16 m in 2011 to US$735.76 m in 2016 due to the MoD plans to reduce the total defense expenditure.
Denmark is a member of the Nordic Council, which was formed in 1952 with the purpose of enhancing economic co-operation among the Nordic countries. Also, as Denmark has signed a defense co-operation treaty with the US, the country is giving preference to US companies while purchasing defense materials. As a consequence, it has become challenging for companies from countries other than the US and Nordic region to enter the Danish defense market.
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Source : ASDReports - Market Research