Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2020

Future of the Moroccan Defense Industry - Market Attractiveness, Competitive Landscape, and Forecasts to 2020
Gouvernement et Secteur public
Décembre 2015
Type de Produit
Forecast report
Description du rapport

Morocco's defense spending capability is expected to increase over the forecast period, at a CAGR of 3.57%. The defense budget, which is projected to be US$3.3 billion in 2016, is expected to reach US$3.8 billion by 2020. This growth is primarily due to the government's steps to combat internal and external terrorist attacks, fortify border security, and procure new defense systems.

Key Findings

- Moroccan defense expenditure recorded a CAGR of -0.48% between 2011 and 2015, and valuesUS$3.3 billion in 2015

- The country's total defense expenditure during the forecast period is expected to be US$18.0 billion

- The average share of capital expenditure is expected to be 33.2% over the forecast period, compared to an average share of 32.8% during 2011-2015

- Over the forecast period, the country's budget for homeland security is expected to be US$2.9 billion

- The key areas of investment are expected to be aircraft MRO, submarine, naval vessels, and surveillance equipment


Table des matières

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

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

3.1. Defense Market Size Historical and Forecast

3.1.1. Moroccan defense budget is expected to register a CAGR of 3.57% over the forecast period

3.1.2. Counter-terrorism, border security, and the need to modernize outdated defense equipment to drive Morocco's defense expenditure

3.1.3. Defense expenditure as a percentage of GDP is expected to average 2.8% over the forecast period

3.2. Analysis of Defense Budget Allocation

3.2.1. Share of capital expenditure expected to increase over the forecast period

3.2.2. Capital expenditure expected to grow at a CAGR of 4.04% over the forecast period

3.2.3. Moroccan revenue expenditure expected to cumulatively value US$12.0 billion during the forecast period

3.2.4. Per capita defense expenditure expected to increase during the forecast period

3.3. Homeland Security Market Size and Forecast

3.3.1. Homeland security budget projected to increase over the forecast period

3.3.2. Human trafficking, drug smuggling, and cybercrime form the major components of homeland security expenditure

3.3.3. Morocco is at some risk from external and internal threats

3.4. Benchmarking with Key Global Markets

3.4.1. Morocco is the fourth largest defense spender in the North African region

3.4.2. Morocco's military expenditure is low when compared to the largest defense spenders but on par in comparison to the other African countries

3.4.3. Morocco allocates a moderate percentage of GDP to defense

3.4.4. Morocco faces some threat of terrorism

3.5. Market Opportunities: Key Trends and Growth Stimulators

3.5.1. Diesel Electric Submarine

3.5.2. Frigates

3.5.3. Aviation MRO

4 Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports to be driven by modernization initiatives over the forecast period

4.1.2. Morocco imports majority of arms from Europe

4.1.3. Aircraft accounted for the majority of defense imports during 2010-2014

4.2. Export Market Dynamics

4.2.1. Morocco does not export arms due to its under-developed domestic arms industry

5 Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of the supplier: medium to high

5.1.2. Bargaining power of the buyer: low to medium

5.1.3. Barrier to entry: medium to high

5.1.4. Intensity of rivalry: medium

5.1.5. Threat of substitution: medium

6 Market Entry Strategy

6.1. Market Regulation

6.1.1. Morocco does not disclose any offset obligations imposed by the country

6.1.2. Foreign direct investment (FDI) is determined on a case-to-case basis

6.2. Market Entry Route

6.2.1. Government-to-government agreements are the preferred market entry route for foreign OEMs

6.2.2. Joint venture and license manufacturing agreements provide an attractive market entry route

6.3. Key Challenges

6.3.1. Corruption and lack of transparency characterize the Moroccan defense industry

6.3.2. Domination of companies from the US and Europe poses a challenge to other foreign firms

7 Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Morocco

7.2. Key Domestic Companies

7.2.1. Lockheed Martin Corp.: overview

7.2.2. Lockheed Martin Corp.: products and services

7.2.3. Lockheed Martin Corp.: recent announcements and strategic initiatives

7.2.4. Lockheed Martin Corp.: recent contract wins

7.2.5. Raytheon: overview

7.2.6. Raytheon: products and services

7.2.7. Raytheon: recent announcements and strategic initiatives

7.2.8. Raytheon: recent contract wins

7.2.1. Damen Schelde Naval Shipbuilding: Overview

7.2.2. Damen Schelde Naval Shipbuilding: products and services

7.2.3. Damen Schelde Naval Shipbuilding: recent announcements and strategic initiatives

7.2.4. Damen Schelde Naval Shipbuilding: recent contract wins

8 Business Environment and Country Risk

8.1. Demographics and Social Statistics

8.1.1. Total Rural Population

8.1.2. Total Urban Population

8.1.3. Number of households

8.2. Economic Performance

8.2.1. GDP Per Capita

8.2.2. GDP, Current Prices

8.2.3. Exports of goods and services (current USD Bn)

8.2.4. Imports of goods and services (current USD Bn)

8.2.5. Gross National disposable income (USD Bn)

8.2.6. Manufacturing Output (USD Bn)

8.2.7. Consumer Price Index

8.2.8. Local Currency Unit per US Dollars

8.2.9. Local Currency Unit per Euro

8.2.10. Deposit Rate

8.2.11. Market capitalization of listed companies (USD Bn)

8.2.12. Market capitalization of listed companies (% of GDP)

8.2.13. Total Government cash surplus/deficit (LCU Bn)

8.2.14. Government cash surplus/deficit as % of GDP (LCU)

8.2.15. Goods exports as a % of GDP

8.2.16. Goods imports as a % of GDP

8.2.17. Goods balance as a % of GDP

8.2.18. Services imports as a % of GDP

8.2.19. Service exports as a % of GDP

8.2.20. Services balance as a % of GDP

8.2.21. Foreign direct investment, net (BoP, current US$ Bn)

8.2.22. Net foreign direct investment as % of GDP

8.2.23. International reserves, including gold

8.2.24. External Debt as % of GDP

8.3. Energy and Utilities

8.3.1. Conventional Thermal Electricity Net Generation

8.3.2. Hydroelectricity Net Generation

8.3.3. Conventional Thermal Electricity Installed Capacity

8.3.4. Electricity Imports

8.3.5. Proved Natural Gas Reserves

8.3.6. Petroleum Consumption

8.3.7. Crude Oil Proved Reserves

8.3.8. Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts)

8.4. Infrastructure

8.4.1. Roads, total network (km)

8.4.2. Rail lines (total route-km)

8.4.3. Overall construction (US$ Million)

8.5. Minerals

8.5.1. Mining, Manufacturing, Utilities Output

8.6. Technology

8.6.1. Patents Granted

8.7. Telecommunication

8.7.1. Telephone Lines

8.7.2. Telephone Lines Penetration Rate

9 Appendix

9.1. About SDI

9.2. Disclaimer

Description de l'éditeur

About Strategic Defence Intelligence

Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defence industry. Strategic Defence Intelligence's unique monitoring platform tracks global defence activity for over 2,500 companies and 65 product categories in real time and in a highly structured manner, giving a comprehensive and easily-searchable picture of all defence industry activity.


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                 Sunil Sethia ssethia@globaldata.com