Tuesday 23 July 2013

Future of the Bruneian Defense Industry - Market Attractiveness

Researchmoz presents this most up-to-date research on" Future of the Bruneian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
".The report focuses primarily on quantitative market metrics in order to characterize the growth and evolution of the Remote Patient Monitoring Market.

Product Synopsis
This report is the result of SDI's extensive market and company research covering the Bruneian 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.



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Introduction and Landscape
Why was the report written?
The Future of the Bruneian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Bruneian defense industry.

What is the current market landscape and what is changing?
Bruneian defense expenditure registered a CAGR of 10.3% during the review period and values US$0.5 billion in 2013. The focus of the Bruneian government will be on modernization initiatives, border disputes, and the prevention of international terrorism.

What are the key drivers behind recent market changes?
Modernization initiatives, border disputes, and the prevention of international terrorism.

What makes this report unique and essential to read?
The Future of the Bruneian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, 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.

Key Features and BenefitsThe report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and 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 Bruneian 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 Brunei. 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.

Key Market Issues
Brunei's defense budget is small compared to large defense spenders and even its neighboring countries. With US$0.5 billion set aside for its 2013 defense budget and projected figures of US$0.6 billion for 2018, the country will find it hard to convince investors and suppliers to treat Brunei as a preferred destination for investment. Moreover, the moderate security threat to the nation and a relatively small population do not warrant large capital or revenue defense expenditure. Consequently, the purchase of military equipment and hi-tech arms and ammunition gets affected.]

[Brunei's foreign investment policies are unclear, in particular, the limits on foreign equity participation and the sectors in which investment is restricted. In addition, military procurement is a closed process with no clear cut criteria to be met in order to secure an order. This creates uncertainty among investors and poses a serious challenge to foreign direct investment in the sector.]

[The Brunei defense industry is mainly managed by RBTS which is a semi-government-owned firm and the participation from other domestic private companies is negligible. Therefore, the majority of its military equipment is purchased through import channels. Due to the lack of manufacturing capabilities, the nation has no export contracts. Furthermore, the country is still in its nascent stage and is expected to explore better procurement opportunities and to prioritize other major areas in order to enhance the country's defense capabilities.





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Key Highlights
The country hosts the Brunei International Defense Exhibition (BRIDEX) biennially. Beginning in 2007, the event provided a platform for global defense equipment manufacturers to showcase their products and strengthen their defense capabilities. In the 2011 event, 166 companies representing 31 countries participated. Exhibitors included Bell Helicopter, BAE Systems, EADS, General Dynamics, Harris Corporation, Northrop Gruman, Raytheon Company, SAAB AB and others. The next BRIDEX event is scheduled to take place on 3-7 December 2013. With the country embarking on a defense modernization plan, foreign OEMs have an opportunity to enter Brunei's defense market. Supply opportunities include airborne coastal surveillance, early warning radars for the air force, support helicopters, infantry fighting vehicles, larger patrol vessels for maritime security, and a ground based air defense system.]

[As a consequence of low levels of defense expenditure in the past and demand to modernize its armed forces, Brunei has procured arms directly from foreign suppliers. For instance, in January 2010, Northrop Grumman Corporation was awarded a contract to provide a joint operations center command and control capability, in February 2011 CAE won a contract to develop a state-of-the-art national modeling and simulation center. Additionally, in May 2013, Harris Corp was awarded a US$40 million contract to supply its Falcon III family of tactical communication systems to the Royal Brunei Armed Forces.]

[Brunei's arms imports are dominated by Germany mainly due to the purchase of four Corvette and three offshore patrol vessels by the Brunei Naval forces in 2010 and 2011 respectively. During 2008-2012, 81.7% of the country's arms imports were from Germany, 6.4% from France, 4.5% each from Denmark and the Netherlands, and 2.9% from Sweden. Additionally, Brunei imported military trucks from Malaysia and rocket launchers from Singapore during the review period. Brunei is now looking to forge defense procurement deals with other countries such as the US, China, Ukraine and Indonesia. The country has also shown interest in purchasing air defense systems and naval equipment from Russia.



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