Summary
South African military expenditure, which stands at US$3.9 billion in 2018, declined at a CAGR of -0.62% during 2014-2018. However, it is anticipated to register a CAGR of 4.80% over the forecast period, to value US$4.9 billion in 2023. As a percentage of GDP, the country’s defense expenditure is expected to average 1.1% over the forecast period. The country is an active participant in stability and peacekeeping operations governed by the UN (United Nations), African Union, and the Southern African Development Community (SADC), and, as such, seeks higher expenditure for the defense sector.

Although the South African defense market is relatively small, many foreign companies enter the country with the aim of establishing manufacturing facilities that will cater to their global supply chain. In turn, South African companies receive technology transfers and funding for expansion and product innovation. Saab AB, an aerospace and defense company based out of Sweden, and Rheinmetall AG, an automotive and defense company based out of Germany, are examples of foreign manufacturers that have entered into joint ventures in order to enter the South African defense market.

Furthermore, as the South African Government to replace its aging military equipment and improve border security and surveillance, which are further expected to drive defense expenditure, many foreign defense companies, such as Boeing and Thales, have entered the market by offering technologically advanced weapons as part of technology transfer agreements.

The Future of the South African Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, 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, the report provides an in-depth analysis of the following -

  • The South African defense industry market size and drivers: detailed analysis of the South African defense industry during 2019-2023, 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 South African defense industry.

Companies Mentioned: Denel, Ansys Limited, Reutech, Saab Grintek, IVEMA, Aerosud, Global Armour, Milkor (Pty) Ltd, Paramount Advanced Technologies, Tellumat Defense.

Scope

  • South African military expenditure, which stands at US$3.9 billion in 2018, declined at a CAGR of -0.62% during 2014-2018.
  • However, it is anticipated to register a CAGR of 4.80% over the forecast period, to value US$4.9 billion in 2023.
  • The country is an active participant in stability and peacekeeping operations governed by the UN (United Nations), African Union, and the Southern African Development Community (SADC), and, as such, seeks higher expenditure for the defense sector.
  • The country also seeks to replace its aging military equipment and improve border security and surveillance, which are further expected to drive defense expenditure over the forecast period.
  • As a percentage of GDP, the country’s defense expenditure is expected to average 1.1% over the forecast period.

Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the South African 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 over the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country over 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 South African defense industry covering sections including demand drivers, Key Trends , and latest industry contracts