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The Romanian Defense Industry
The Romanian Defense Industry
Bharatbook.com included a new research report on "The Romanian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017" This report is the result of SDI’s extensive market and company research covering the Romanian defense industry.
Product Synopsis
This report is the result of SDI’s extensive market and company research covering the Romanian defense industry. It 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.
Introduction and Landscape
Why was the report written?
The Romanian 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 Romanian defense industry. http://www.bharatbook.com/defense-market-research-reports/the-romanian-defense-industry-market-opportunities-and-entry-strategies-analyses-and-forecasts-to-2017.html
What ...
... is the current market landscape and what is changing?
During the review period, the Romanian defense budget recorded a CAGR of -16.08%, as a consequence of the global financial crisis and fiscal pressures in Romania. The defense budget, which stands at 0.8% of GDP in 2012, is expected to decrease to 0.7% by 2017, as the country’s GDP growth rate is expected to outpace its defense expenditure growth rate. However, the defense budget is expected to increase during the forecast period due to economic recovery, relatively higher budget allocation for defense, and a lack of significant security threats to national security. During the review period, the country’s capital expenditure allocation stood at 14.7% of the total defense budget and is expected to increase to 18.5% over the forecast period, due to lower equipment purchase allocations. Consequently, the share of revenue expenditure of the total defense budget is expected to decline from an average of 85.3% during the review period to an average of 82.6% during the forecast period.
What are the key drivers behind recent market changes?
Participation in peacekeeping missions, joint operations and border control measures will support defense expenditure. The defense expenditure of Romania is primarily driven by the country’s participation in various international peacekeeping missions, joint operations with the police force for the internal security of the country, and modernization of the armed forces, primarily by acquiring second-hand equipment. Romania actively participates in various peacekeeping missions around the world. In 2011, Romania participated in NATO’s Operation Unified Protector and imposed an arms embargo towards Libya, which contributed towards its liberation from the Gaddafi government. Romania has increased its border control during 2011 in a bid to gain entry to the Schengen area. Romanian police and anticorruption prosecutors raided custom checkpoints to demonstrate to the EU that Romania is making its border firm and attempting to stop illegal immigration.
What makes this report unique and essential to read?
The Romanian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017provides detailed analysis of the current industry size and growth expectations from 2013to 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.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2013to 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 Romanian 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 Romania. 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
Following the global financial crisis, the Romanian economy went in to a deep recession in 2008 jeopardizing the growth it had witnessed in earlier years. The crisis led the government to take various unpopular austerity measures including public sector restructuring, spending cuts for the interior and defense ministries, and expenditure cuts, including a 25% cut in public wages and 15% drop in pension and social benefits in the 2010 budget. This resulted in a lower allocation for defense equipment acquisition, making market entry unviable for foreign defense companies. However, the economy posted growth in GDP in 2011 and is expected to emerge from recession by the end of 2012.
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