Synopsis
This report is the result of SDI’s extensive market and company research covering the Finnish defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
SUMMARY
Why was the report written?
The Finnish defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Finnish defense industry.
What is the current market landscape and what is changing?
The Finnish defense budget stood at US$3.60 billion in 2012 and recorded a CAGR of 0.28% during 2008–2012. Finnish defense expenditure is expected to decline at a CAGR of -1.47% in 2013–2017 as a result of the Eurozone crisis and the consequent Economy Management Plan by the government. The high ratio of debt to GDP will lead to a decline in capital expenditure along with the lay-off of defense personnel to control revenue expenses. Military spending is expected to be driven by threats from Russia on the eastern border, the procurement of advanced air defense systems, and participation in international peacekeeping missions.
What are the key drivers behind recent market changes?
Finnish defense expenditure is expected to grow significantly during the forecast period, driven by international peacekeeping missions, the acquisition of advanced defense systems, and a perceived security threat from Russia. Currently, over 1000 personnel are participating in nine different operations across the globe, primarily as a part of United Nations (UN), European Union (EU), Organization for Security and Cooperation in Europe (OSCE), and North Atlantic Treaty Organization (NATO) operations. The Finnish armed forces have failed to embark on a defense modernization plan in the past decade, resulting in obsolete hardware. Even though the country has enjoyed peaceful diplomatic relations with Russia since the collapse of the USSR in 1991, it perceives Russia as a potential threat to its security due to pre-1991 violent relations and increased Russian defense expenditure.
What makes this report unique and essential to read?
The Finnish Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
SCOPE
The report provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with their implications and impact on the Finnish defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Finland. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
REASON TO BUY
Finland has been perceived as a country with low levels of corruption; however, since 2006, three alleged instances of bribery and corruption involving the country’s defense sector have been highlighted, and as a result, the country’s ranking in the Transparency International Corruption Perceptions Index has dropped since 2007.
The Finnish defense budget deficit in 2011 stood at US$10.6 billion, due to which the country was compelled to reduce its defense budget in the next ten years. Currently, the Ministry of Defense is contemplating reductions of US$300 million in its defense budget for 2012-13, which may eventually lead to the cancellation of defense-related projects and air defense modernization projects. A potential cut to Finland’s defense budget is an area of concern for foreign investors and deters their entry into the nation’s defense sector.
List Of Content
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 SDI Terrorism Index
1.5 About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 Finnish defense budget to decline at a CAGR of XX% during the forecast period
3.1.2 Modernization initiatives, international peacekeeping missions, and a perceived security threat from Russia will drive Finnish defense expenditure
3.1.3 Defense expenditure as a percentage of GDP to reach XX% by 2017
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation expected to increase during the forecast period
3.2.2 Share of Defense expenditure in GDP would reduce to XX% in 2017
3.2.3 Finnish Defense expenditure to decline with weak growth of Finnish economy in 2013–2017
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security market to register a growth with CAGR of XX% during 2013–2017
3.3.2 Homeland security spending is expected to increase
3.3.3 Finland considered a low risk country for terror activities
3.3.4 Interesting trends in budget allocation of Ministry of Interior (MoI)
3.4 Benchmarking with Key Global Markets
3.4.1 Finnish defense budget to decrease at a low CAGR of XX% during 2013–2017
3.4.2 Finnish defense expenditure is the small compared to leading spenders
3.4.3 Finland behind on NATO specifications in defense spending
3.4.4 Finland ranked twenty-second among top global arms exporters during 2007–2011
3.5 Market Opportunities: Key Trends and Drivers
3.5.1 Increasing offensive strength through higher imports of advanced missile systems
3.5.2 Air Force modernization with special focus on securing Finnish airspace
3.5.3 Finland to develop offensive strength of Cyber Defense Unit (CDU)
3.5.4 Defense communication system will witness a surge in demand.
3.5.5 Ban on land mines will open new opportunity for cluster bombs during the forecast period
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Defense imports expected to increase during the forecast period
4.1.2 Sweden is the major supplier to Finland
4.1.3 Aircraft and missiles constitute the majority of Finnish arms imports
4.2 Export Market Dynamics
4.2.1 Finnish exports recovering from fall in 2009
4.2.2 EU countries account for a majority of Finnish defense exports
4.2.3 Armored vehicles are the largest exported defense hardware
5 Industry Dynamics
5.1.1 Bargaining power of supplier: low to high
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: medium
5.1.4 Intensity of rivalry: low to high
5.1.5 Threat of substitution: low to high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Government encourages offsets in order to order to develop domestic defense industrial base
6.1.2 Finnish defense sector is open to foreign direct investments
6.2 Market Entry Route
6.2.1 Partnerships with domestic defense firms offer attractive market entry route
6.2.2 Foreign OEMs gain industry access through joint R&D programs
6.3 Key Challenges
6.3.1 Defense budget fluctuations challenging the domestic defense industry
6.3.2 Defense budget deficit may lead to a reduction in the overall military budget
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Foreign Companies
7.2.1 Elektrobit Corporation: overview
7.2.2 Elektrobit Corporation: products and services
7.2.3 Elektrobit Corporation: recent announcements and strategic initiatives
7.2.4 Elektrobit Corporation: alliances
7.2.5 Elektrobit Corporation: recent contract wins
7.2.6 Elektrobit Corporation: financial analysis
7.2.7 Kiitokori Oy: overview
7.2.8 Kiitokori Oy: products and services
7.2.9 Kiitokori Oy: recent announcements and strategic initiatives
7.2.10 Millog Oy: overview
7.2.11 Millog Oy: products and services
7.2.12 Millog Oy: recent announcements and strategic initiatives
7.2.13 Millog Oy: alliances
7.2.14 Millog Oy: recent contract wins
7.2.15 Nammo Lapua Oy: overview
7.2.16 Nammo Lapua Oy: products and services
7.2.17 Nammo Lapua Oy: recent announcements and strategic initiatives
7.2.18 Nammo Lapua Oy: recent contract wins
7.2.19 Patria Aviation Oy: overview
7.2.20 Patria Aviation Oy: products and services
7.2.21 Patria Aviation Oy: recent announcements and strategic initiatives
7.2.22 Patria Aviation Oy: alliances
7.2.23 Patria Aviation Oy: recent contract wins
7.2.24 Patria Land Services Oy: overview
7.2.25 Patria Land Services Oy: products and services
7.2.26 Patria Land Services Oy: recent announcements and strategic initiatives
7.2.27 Patria Land Services Oy: recent contract wins
7.2.28 Patria Oyj: overview
7.2.29 Patria Oyj: products and services
7.2.30 Patria Oyj: recent announcements and strategic initiatives
7.2.31 Patria Oyj: alliances
7.2.32 Patria Oyj: recent contract wins
7.2.33 Patria Oyj: financial analysis
7.2.34 Patricomp Oy: overview
7.2.35 Patricomp Oyj: products and services
7.2.36 Patricomp Oy: recent announcements and strategic initiatives
7.2.37 Patricomp Oy: recent contract wins
7.2.38 TEMET Oy: overview
7.2.39 TEMET Oy: products and services
8 Business Environment and Country Risk
8.1 Demographics & Social Statistics
8.1.1 Population – Female
8.1.2 Population - Male
8.2 Economic Performance
8.2.1 Construction Output, Current Prices, Local Currency
8.2.2 Construction Output, Current Prices, US Dollars
8.2.3 Current Account Balance as Percentage of GDP
8.2.4 Exports of goods and services, current prices
8.2.5 Exports of services, current prices
8.2.6 Fiscal Balance as a percentage of GDP
8.2.7 Foreign Direct Investment
8.2.8 GDP at Purchasing Power Parity
8.2.9 GDP, Constant Prices (Local Currency)
8.2.10 GDP, Constant Prices (US$ Billion)
8.2.11 GDP, Current Prices (Local Currency)
8.2.12 GDP, Current Prices (US$ Billion)
8.2.13 General Government Final Consumption Expenditure
8.2.14 Gross Fixed Capital Formation, Current Prices
8.2.15 Imports of goods and services
8.2.16 Imports of services
8.2.17 Inflation, average consumer prices
8.2.18 Manufacturing Output, Current Prices (Local Currency Bn)
8.2.19 Manufacturing Output, Current Prices (US$ Billions)
8.2.20 Wholesale Price Index
8.3 Energy and Utilities
8.3.1 Crude Oil Distillation Capacity
8.3.2 Electricity Exports
8.3.3 Electricity Imports
8.3.4 Electricity Installed Capacity
8.3.5 Hydroelectricity Installed Capacity
8.3.6 Natural Gas Consumption
8.3.7 Natural Gas Imports
8.3.8 Net Conventional Thermal Electricity Generation
8.3.9 Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.10 Net Hydroelectric Power Generation
8.3.11 Nuclear Electricity Net Generation
8.3.12 Petroleum, Consumption
8.3.13 Petroleum, Production
8.4 Labor
8.4.1 People Employed in R & D
8.5 Minerals
8.5.1 Coal Consumption
8.6 Social & Political Risk
8.6.1 Political Stability Index
8.6.2 Transparency Index
8.7 Technology
8.7.1 Fixed Broadband Internet Subscribers
8.7.2 Gross Domestic Expenditure on Research and Development as % of GDP
8.7.3 Patents Granted
8.7.4 Software Patents
8.7.5 Software and Computer Related Services, Value Added
8.7.6 Fixed line calling cost local
8.7.7 Fixed Line Calling Cost National
9 Appendix
9.1 Contact Us
9.2 About SDI
9.3 Disclaimer
List Of Table
Table 1: Finnish Defense Expenditure, 2008–2012
Table 2: Finnish Defense Expenditure, 2013–2017
Table 3: Finnish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008–2012
Table 4: Finnish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013–2017
Table 5: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2008–2012
Table 6: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013–2017
Table 7: Finnish Defense Budget as Percentage of GDP, 2008–2012
Table 8: Finnish Defense Budget as Percentage of GDP, 2013–2017
Table 9: Finnish Defense Expenditure and Economic Growth (%), 2008–2012
Table 10: Finnish Defense Expenditure and Economic Growth (%), 2013–2017
Table 11: Finnish Homeland Security Budget (US$ billion), 2008–2012
Table 12: Finnish Homeland Security Budget (US$ billion), 2013–2017
Table 13: Benchmarking with Key Markets, 2008–2012 vs. 2013–2017
Table 14: Top Country Ranking by Arms Exports, 2007–2011*
Table 15: Offset Regulations in Finland
Table 16: Offset multiplier categories
Table 17: Market Entry Strategies by Key Foreign Companies
Table 18: Elektrobit Corporation – Product Focus
Table 19: Elektrobit Corporation – Alliances
Table 20: Elektrobit Corporation – Recent Contract Wins
Table 21: Kiitokori Oy– Product Focus
Table 22: Millog Oy – Product Focus
Table 23: Millog Oy – Alliances
Table 24: Millog Oy – Recent Contract Wins
Table 25: Nammo Lapua Oy – Product Focus
Table 26: Nammo Lapua Oy – Recent Contract Wins
Table 27: Patria Aviation Oy – Product Focus
Table 28: Patria Aviation Oy – Alliances
Table 29: Patria Aviation Oy – Recent Contract Wins
Table 30: Patria Land Services Oy – Product Focus
Table 31: Patria Land Services Oy – Recent Contract Wins
Table 32: Patria Oyj – Product Focus
Table 33: Patria Oyj – Alliances
Table 34: Patria Oyj – Recent Contract Wins
Table 35: Patricomp Oy – Product Focus
Table 36: Patricomp Oy – Recent Contract Wins
Table 37: TEMET Oy – Product Focus
List Of Figures
Figure 1: Finnish Defense Expenditure, 2008–2012
Figure 2: Finnish Defense Expenditure, 2013–2017
Figure 3: Finnish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008–2012
Figure 4: Finnish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013–2017
Figure 5: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2008–2012
Figure 6: Finnish Defense Budget Split Between Capital and Revenue Expenditure (%), 2013–2017
Figure 7: Finnish Defense Budget as Percentage of GDP, 2008–2012
Figure 8: Finnish Defense Budget as Percentage of GDP, 2013–2017
Figure 9: Finnish Defense Expenditure and Economic Growth (%), 2008–2012
Figure 10: Finnish Defense Expenditure and Economic Growth (%), 2013–2017
Figure 11: Finnish Homeland Security Budget (US$ billion), 2008–2012
Figure 12: Finnish Homeland Security Budget (US$ billion), 2013–2017
Figure 13: SDI Terrorism Heat Map, 2011
Figure 14: SDI Terrorism Index, 2011
Figure 15: Benchmarking with Key Markets, 2008–2012 vs. 2013–2017
Figure 16: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2012 and 2017
Figure 17: Benchmarking with Large Defense Spenders as % of GDP – 2012
Figure 18: Finnish Defense Imports (US$ million), 2007–2011
Figure 19: Finnish Defense Imports by Country (%), 2007–2011
Figure 20: Finnish Defense Imports by Category, 2007–2011
Figure 21: Finnish Defense Export Trend (US$ Million), 2007–2011
Figure 22: Finnish Defense Exports by Country (%), 2007–2011
Figure 23: Finnish Defense Exports by Category, 2007–2011
Figure 24: Industry Dynamics - Porter’s Five Forces Analysis
Figure 25: Elektrobit Corporation – Revenue Trend Analysis, 2007–2011
Figure 26: Elektrobit Corporation – Operating Profit Analysis, 2007–2011
Figure 27: Elektrobit Corporation – Net Profit Analysis, 2007–2011
Figure 28: Patria Oyj – Revenue Trend Analysis (EUR Million), 2007–2011
Figure 29: Patria Oyj – Operating Profit Trend Analysis (EUR Million), 2007–2011
Figure 30: Finnish Population – Female (In Millions), 2008–2017
Figure 31: Finnish Population – Male (In Millions), 2008–2017
Figure 32: Finnish Construction Output, Current Prices, Local Currency (In Billions), 2001–2010
Figure 33: Finnish Construction Output, Current Prices, US Dollars (In Billions), 2001–2010
Figure 34: Finnish Current Account Balance as Percentage of GDP, 2008–2017
Figure 35: Finnish Exports of goods and services, current prices (US$ Billion), 2001– 2010
Figure 36: Finnish Exports of services, current prices (US$ Billion), 2003– 2012
Figure 37: Finnish Fiscal Balance as a percentage of GDP, 2001–2008
Figure 38: Finnish Foreign Direct Investment (US$ Billion), 2001–2010
Figure 39: Finnish GDP at Purchasing Power Parity (US$ Billion), 2006–2015
Figure 40: Finnish GDP at Constant Prices (Local Currency Billion), 2006–2015
Figure 41: Finnish GDP at Constant Prices (US$ Billion), 2006–2015
Figure 42: Finnish GDP at Current Prices (Local Currency Billion), 2006–2015
Figure 43: Finnish GDP at Current Prices (US$ Billion), 2006–2015
Figure 44: Finnish General Government Final Consumption Expenditure (US$ Billion), 2001–2010
Figure 45: Finnish Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001–2010
Figure 46: Finnish Imports of goods and services (current US$ Billion), 2001–2010
Figure 47: Finnish Imports of services (current US$ Billion), 2003–2012
Figure 48: Finnish Inflation, average consumer prices, 2008–2017
Figure 49: Finnish Manufacturing Output, Current Prices (Local Currency Billion), 2001–2010
Figure 50: Finnish Manufacturing Output, Current Prices (US$ Billion), 2001–2010
Figure 51: Finnish Wholesale Price Index, 2000–2009
Figure 52: Finnish Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000–2009
Figure 53: Finnish Electricity Installed Capacity (Billion Kilowatt hours), 2001–2010
Figure 54: Finnish Electricity Installed Capacity (Billion Kilowatt hours), 2001–2010
Figure 55: Finnish Electricity Installed Capacity (Million Kilowatts), 2000–2009
Figure 56: Finnish Hydroelectricity Installed Capacity (Million Kilowatts), 2000–2009
Figure 57: Finnish Natural Gas Consumption (Million Kilowatts), 2001–2010
Figure 58: Finnish Natural Gas Consumption (Million Kilowatts), 2001–2010
Figure 59: Finnish Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001–2010
Figure 60: Finnish Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt hours), 2001–2010
Figure 61: Finnish Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001–2010
Figure 62: Finnish Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001–2010
Figure 63: Finnish Petroleum Consumption (Thousand Barrels Per Day), 2002–2011
Figure 64: Finnish Petroleum Production (Thousand Barrels Per Day), 2002–2011
Figure 65: Finnish People Employed in R & D (Number of researchers per million people), 2000–2009
Figure 66: Finnish Coal Consumption (Thousand Short Tons), 2001–2010
Figure 67: Finnish Political Stability Index, 2002–2010
Figure 68: Finnish Transparency Index, 2002–2011
Figure 69: Finnish Fixed Broadband Internet Subscribers (Thousands), 2001–2010
Figure 70: Gross Domestic Expenditure on Research and Development as % of GDP, 2000–2009
Figure 71: Patents Granted, 2002–2011
Figure 72: Software Patents, 2002–2011
Figure 73: Software and Computer – Related Services, Value Added, 2006–2015
Figure 74: Fixed line calling cost local, 2001–2010
Figure 75: Fixed Line Calling Cost National, 2001–2010
