The Future of the $11.9 Billion Algerian Defense Industry: 2018-2023 - ResearchAndMarkets.com
The "Future
of the Algerian Defense Industry - Market Attractiveness, Competitive
Landscape and Forecasts to 2023" report has been added to ResearchAndMarkets.com's
offering.
This report offers detailed analysis of the Algerian 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.
Algeria's sudden rise as a major military force in Africa can be
attributed to its burgeoning economy and a desire to establish its
military superiority in the region. With a defense budget of US$9.8
billion in 2018, Algeria is currently the largest military spender in
the African region. Military expenditure is strongly supported by the
presence of the oil and natural gas industry, where revenues are
directed towards strengthening defense and security.
The country's capital expenditure is expected to increase from US$1.9
billion in 2019 to US$2.3 billion in 2023, growing at a robust CAGR of
4.56% over the forecast period. The increased threat of terrorism from
the Islamic group Al-Qaeda in the Islamic Maghreb (AQIM) operating in
North Africa, an arms race with neighboring countries such as Morocco
and Tunisia, and the ongoing modernization of its armed forces are key
factors expected to drive military expenditure. Furthermore, the
instability in neighboring Libya, coupled with the rapid spread of
Islamic State (IS) in the country, has compelled Algeria to bolster its
defenses and develop a robust defense posture. The Algerian defense
industry is expected to grow to US$11.9 billion by 2023 at a CAGR of
4.31%.
Algeria has observed a marked decline in instances of violent attacks
perpetuated by armed insurgent groups. The country's political and
economic measures to de-radicalize its population have succeeded to a
great extent, and the country has managed to significantly limit the
influence of foreign terrorist organizations such as Al-Qaeda in the
Islamic Maghreb (AQIM). As such, Algeria does not face any urgent
internal threats to justify expansive spending on the homeland security
sector. As its homeland security (HLS) expenditure stands at US$3.7
billion in 2019 and is expected to increase at a minimal CAGR of 1.64%
over the forecast period to reach US$4 billion in 2023.
Historically, Russian defense firms have entered the Algerian defense
industry through government initiated foreign military sales. The
country is increasing its efforts to reduce its military dependency on
foreign suppliers and, therefore, is largely concentrating on the joint
development of defense systems to strengthen its domestic defense
manufacturing capabilities. Furthermore, Algeria has witnessed a number
of JVs with Algerian, Russian, French, and Serbian companies in areas
such as armored vehicles, unmanned aircraft, military healthcare, and
counter-terrorism equipment
Companies Featured
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Rosoboronexport
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Entreprise Nationale des Vhicules Industriels Vehicles
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NIMR-Algerie Joint Stock Company
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Khenchela Mechanical Constructions Establishment
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Seriana Company of Industrial Achievements
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National Office of Explosive Substances
Key Topics Covered
1. Introduction
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
9. Appendix
For more information about this report visit https://www.researchandmarkets.com/research/ggmqz2/the_future_of_the?w=4
View source version on businesswire.com: https://www.businesswire.com/news/home/20180702005418/en/
Copyright Business Wire 2018
Source: Business Wire
(July 2, 2018 - 6:16 AM EDT)
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