Summary
Bangladesh government has been steadily increasing its defense budget 2015 - 2017. Defense expenditure registered a CAGR of 13.10% over 2013-2017. This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces. During the forecast period, the defense budget is projected to increase at a CAGR of 10.36%.

Bangladeshi armed forces, accounts for the majority of total defense expenditure, with an average share of 50.5% over 2013-2017. Of the rest, 14.3% was allocated to the air force, 14.5% was assigned to the navy, and other defense functions controlled the remaining 20.8%. Over the forecast period, the average allocated share for the army, air force, navy, and other defense functions is forecast to be 50.6%, 13.9%, 15.2%, and 20.3% respectively.

Bangladesh homeland security (HLS) expenditure increased from US$1.4 Billion in 2013 to US$2.3 Billion in 2017, registering a CAGR of 12.57%. Expenditure was mainly directed towards arms and drug trafficking and terrorism issues; a trend expected to continue over the forecast period. Bangladesh’s homeland security budget is estimated to grow at a CAGR of 11.99% over the forecast period to 2022.

The report “Future of the Bangladesh Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Bangladeshi 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 Bangladeshi defense industry market size and drivers: Detailed analysis of the Bangladeshi defense industry during 2018-2022, 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 Bangladeshi 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 Bangladeshi defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Bangladesh Ordnance Factories (BOF), Leonardo, Bangladesh Machine Tools Factory (BMTF) and The Airbus Helicopters SAS.

Scope

  • The Bangladeshi government has been steadily increasing its defense budget 2015 - 2017. Defense expenditure registered a CAGR of 13.10% over 2013-2017. The country allocated US$2.0 billion to its defense sector in 2013, which increased to US$3.3 billion in 2017. This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces.
  • Revenue expenditure allocation increased from 69.3% in 2013 to 76.1% in 2017 due to the country’s defense modernization efforts. Conversely, the country’s capital expenditure declined from 30.7% to 23.9% during the historic period. Over the forecast period, Bangladesh is expected to allocate an average of 25.5% of its defense budget to capital expenditure, while the remainder will be assigned to revenue expenditure.
  • The MoD is expected to invest in acquisition of frigates and corvettes.

Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Bangladeshi 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 Bangladeshi defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts