The Future of the $11.9 Billion Algerian Defense Industry: 2018-2023 - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Jul 2, 2018--The “Future of the Algerian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023” report has been added to ResearchAndMarkets.com’s offering.
This report offers detailed analysis of the Algerian 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.
Algeria’s sudden rise as a major military force in Africa can be attributed to its burgeoning economy and a desire to establish its military superiority in the region. With a defense budget of US$9.8 billion in 2018, Algeria is currently the largest military spender in the African region. Military expenditure is strongly supported by the presence of the oil and natural gas industry, where revenues are directed towards strengthening defense and security.
The country’s capital expenditure is expected to increase from US$1.9 billion in 2019 to US$2.3 billion in 2023, growing at a robust CAGR of 4.56% over the forecast period. The increased threat of terrorism from the Islamic group Al-Qaeda in the Islamic Maghreb (AQIM) operating in North Africa, an arms race with neighboring countries such as Morocco and Tunisia, and the ongoing modernization of its armed forces are key factors expected to drive military expenditure. Furthermore, the instability in neighboring Libya, coupled with the rapid spread of Islamic State (IS) in the country, has compelled Algeria to bolster its defenses and develop a robust defense posture. The Algerian defense industry is expected to grow to US$11.9 billion by 2023 at a CAGR of 4.31%.
Algeria has observed a marked decline in instances of violent attacks perpetuated by armed insurgent groups. The country’s political and economic measures to de-radicalize its population have succeeded to a great extent, and the country has managed to significantly limit the influence of foreign terrorist organizations such as Al-Qaeda in the Islamic Maghreb (AQIM). As such, Algeria does not face any urgent internal threats to justify expansive spending on the homeland security sector. As its homeland security (HLS) expenditure stands at US$3.7 billion in 2019 and is expected to increase at a minimal CAGR of 1.64% over the forecast period to reach US$4 billion in 2023.
Historically, Russian defense firms have entered the Algerian defense industry through government initiated foreign military sales. The country is increasing its efforts to reduce its military dependency on foreign suppliers and, therefore, is largely concentrating on the joint development of defense systems to strengthen its domestic defense manufacturing capabilities. Furthermore, Algeria has witnessed a number of JVs with Algerian, Russian, French, and Serbian companies in areas such as armored vehicles, unmanned aircraft, military healthcare, and counter-terrorism equipment
Companies FeaturedRosoboronexport Entreprise Nationale des Vhicules Industriels Vehicles NIMR-Algerie Joint Stock Company Khenchela Mechanical Constructions Establishment Seriana Company of Industrial Achievements National Office of Explosive Substances
Key Topics Covered
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
For more information about this report visit https://www.researchandmarkets.com/research/ggmqz2/the_future_of_the?w=4
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Related Topics:Military Aerospace and Defense
KEYWORD: AFRICA ALGERIA
INDUSTRY KEYWORD: TRANSPORT AIR DEFENSE CONTRACTS OTHER DEFENSE
SOURCE: Research and Markets
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PUB: 07/02/2018 06:16 AM/DISC: 07/02/2018 06:16 AM