Bulgarian defense expenditure is projected to register a CAGR of 10.57% over the forecast period to value US$1.7 billion in 2024. Bulgaria’s defense budget is valued at US$1.1 billion in 2019 and registered a CAGR of 13.88% during the historic period. The country plans to increase its defense expenditure to 2% of GDP by 2024, as mentioned in their national plan to modernize their military in line with NATO standards. Due to this arms modernization process, the country’s defense expenditure is anticipated to cumulatively value US$6.7 billion over 2020–2024.
The defense budget as a percentage of GDP is expected to increase slightly, from an average of 1.4% during the historic period to an average of 1.8% over the forecast period, and is expected to post a CAGR of 10.57% to value US$1.7 billion by 2024. The “National Plan”, published by the Bulgarian Defense Ministry, highlights various procurements which are expected to be completed by 2024, which includes the replacement of MiG-29s, and the acquisition of corvettes and armored vehicles.
Bulgaria’s homeland security is expected to witness robust investment due to a number of measures planned by the government, such as the procurement of modern equipment for border surveillance, increasing border patrols along Bulgarian-Turkish borders, and the procurement of other equipment to curb threats posed by terrorist organizations and cross border insurgents. Bulgaria’s homeland security (HLS) expenditure stands at US$1.1 billion in 2019 and is projected to reach US$1.2 billion in 2024, registering a CAGR of 4.42% over 2020–2024.
Bulgaria’s domestic defense industry is developed to a moderate degree, which helps the country to maintain a decent rank in the global arms suppliers list. The country recorded marginal imports during 2014–2018. However, over the forecast period, as part of the national plan, a number of procurements are expected, such as fighter aircraft, armored vehicles and corvettes. In fact, the Bulgarian government has already started talks with other suppliers regarding the procurement of the equipment required to strengthen its armed forces in line with NATO standards.
Capital expenditure stood at an average of 16.1% during the historic period, but is expected to significantly increase to an average of 27.0% over 2020–2024 owing to the government’s focus on increasing its defense budget to 2% of the country’s GDP, which will enable additional capital expenditure funding. Over the forecast period, capital expenditure will be driven by the procurement of aircraft, armored vehicles and advanced naval vessels as part of the country’s modernization plans.
The report “Bulgarian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” offers detailed analysis of the Bulgarian 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 defense industry market size and drivers: detailed analysis of the Bulgarian 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
- Porter’s Five Force analysis of the Bulgarian 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
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Bulgarian 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: Airbus Helicopters, Textron Marine & Land Systems, Leonardo, Rolls-Royce plc.
- Bulgaria’s defense budget is valued at US$1.1 billion in 2019 and registered a CAGR of 13.88% during the historic period. The country plans to increase its defense expenditure to 2% of GDP by 2024, as mentioned in their national plan to modernize their military in line with NATO standards. Due to this arms modernization process, the country’s defense expenditure is anticipated to cumulatively value US$6.7 billion over 2020-2024.
- The defense budget as a percentage of GDP is expected to increase slightly, from an average of 1.4% during the historic period to an average of 1.8% over the forecast period, and is expected to post a CAGR of 10.57% to value US$1.7 billion by 2024.
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Bulgarian 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 Bulgarian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts