COVID-19 update included
The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic


Summary

Estonia is well known for its multi-vector foreign policy, with which it manages to maintain stable relations with all of its neighbors and is known for placing solidarity as the pillar of its national security doctrine. Estonia has become one of the most economically successful of the European Union’s newer members. It is a relatively peaceful country compared to other Central European nations, which encounter frequent turbulence. Estonia was also one of the few NATO member states which agreed to spend at least 2% of their GDP on defense, starting from 2013. Estonia is also an active participant in the NATO Partnership for Peace Program. It is also one of the most advanced countries in the world when it comes to use of the Internet and related technologies.

Growth in the Estonian defense market is primarily driven by the need to modernize the country’s defense arsenal and Russia’s military aggression in Ukraine, which had brought about the possibility of an armed conflict in Europe. The country’s participation in peacekeeping operations and counter terrorism also fueled defense expenditure growth during the historic period. The Estonian government aims to increase the salaries of military personnel and boost military procurement, with the latter category making up as much as 40% of defense expenditure, according to the 2019 budget.

With this trend expected to continue over the forecast period, Estonia’s defense expenditure is anticipated to register a CAGR of 7.16% to value US$968.2 million in 2024. As a percentage of GDP, the country’s defense expenditure is expected to average 2.2% over the forecast period, compared to the 2.1% recorded during the historic period. The increase in defense spending in the 2019 defense budget is also in accordance with the 2019–2022 State Budget Strategy.

During the historic period, the Estonian government allocated an average of 26.4% of its defense budget to capital expenditure, which includes both the purchase of new equipment and upgrade programs for existing equipment. The rest of the budget was allocated to revenue expenditure, which includes salaries, planning, administration, and training expenditure. On a cumulative basis, Estonia allocated US$740.5 million to capital expenditure over the historic period, which is anticipated to reach US$1.1 billion over the forecast period. Capital expenditure is anticipated to increase at a CAGR of 11%, while revenue expenditure will increase at a CAGR of 5.78%.

Estonian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024, 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 Estonian 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.

Key findings of the report:

  • Growth in the Estonian defense market is primarily driven by the need to modernize the country’s defense arsenal and Russia’s military aggression in Ukraine, which had brought about the possibility of an armed conflict in Europe.
  • The country’s participation in peacekeeping operations and counter terrorism also fueled defense expenditure growth during the historic period. The Estonian government aims to increase the salaries of military personnel and boost military procurement, with the latter category making up as much as 40% of defense expenditure, according to the 2019 budget.
  • With this trend expected to continue over the forecast period, Estonia’s defense expenditure is anticipated to register a CAGR of 7.16% to value US$968.2 million in 2024.
  • As a percentage of GDP, the country’s defense expenditure is expected to average 2.2% over the forecast period, compared to the 2.1% recorded during the historic period. The increase in defense spending in the 2019 defense budget is also in accordance with the 2019–2022 State Budget Strategy.




Scope

  • The Estonian defense industry market size and drivers: detailed analysis of the Estonian 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 Estonian defense industry.




Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Estonian 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 Estonian defense industry covering sections including demand drivers, key trends and latest industry contracts.