Summary

New Zealand’s isolated geographic location has benefited the country strategically and the country has traditionally maintained a basic defense posture with specific emphasis on surveillance and reconnaissance. This is demonstrated by the fact that the country’s air force lacks aerial combat capabilities and the New Zealand Air Force does not possess any fighter aircraft within its inventory. As a member of the Australia, New Zealand, United States Security Treaty (ANZUS or ANZUS Treaty), the country’s security is guaranteed by its security alliance with Australia. However, over the years the treaty has increasingly adopted a global posture and thus has come to relate to global conflicts spread across the world. As per the provisions of the treaty, an attack on any of the three participant countries is considered an attack on all members, and as such each of the countries will take action to counter the common threat.

As a part of the New Zealand Defense Capability Plan, the country is anticipated to invest a cumulative total of NZ$20 billion (~US$13.24 billion), through 2030, in modernizing the country’s defense capability. The country’s total defense expenditure for 2019 stands at US$2.86 billion in 2019 and is forecasted to increase from US$2.88 billion in 2020, to US$3.90 billion in 2024, reflecting a CAGR of 7.88%.

Although New Zealand has historically been well insulated from terrorist threats, the country is increasingly being forced to deal with rising instances of radicalism and terrorist incidences. The 2019 Christchurch mosque shooting exposed the presence of deep-seated animosity and prejudice against certain communities. The country is wary of intentional acts of sabotage to its communication and ICT infrastructure, and is likely to increase investments in policing and cyber security to safeguard its strategic interests. Against this backdrop, New Zealand’s homeland security (police) spending is valued at US$1.3 billion in 2019, and is anticipated to increase from US$1.4 billion in 2020 to US$1.7 billion by 2024, reflecting a CAGR of 5.74%.

New Zealand’s defense imports are fairly low, and between 2014-2018 the country’s cumulative defense imports were valued at just US$181 million. The US emerged as the single largest defense supplier to the country and accounted for a 78.5% share of New Zealand’s defense market. The country also acquired defense equipment from other countries such as Australia, France, Canada, and Israel.

The report “The Future of the New Zealand’s Defense Industry - 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.

In particular, it provides an in-depth analysis of the following -

  • The New Zealand’s defense industry market size and drivers - detailed analysis of the New Zealand’s 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 the army, navy, and air force. It also details the key challenges faced by defense market participants within the country
  • Porter’s Five Force analysis of the New Zealand’s 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 New Zealand’s defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis




Scope

  • As an Island nation, it is prudent for New Zealand to ensure free-sea lanes of communication and New Zealand’s navy is expected to cooperate closely with the US to secure its maritime boundaries and safeguard its strategic interests. As a part of the New Zealand Defense Capability Plan, the country is anticipated to invest a cumulative total of NZ$20 billion (~US$13.24 billion), through 2030, in modernizing the country’s defense capability. Some of the high priority acquisition projects include the Maritime Helicopter Replacement program
  • On a cumulative basis, the country is expected to invest US$16.9 billion for defense purposes, of which US$5.2 billion is earmarked for capital expenditure to fund defense procurements. The government’s well-defined military modernization plans are expected to stimulate the expenditure over the next few years
  • The MoD is expected to invest in transport aircraft, maritime patrol aircraft, C4ISR-Network and auxillary vessels among others.




Reasons To Buy

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