Forecast Future of the Algeria Defense Industry – Market Attractiveness, Competitive Landscape, Detailed Analysis to 2022

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The Future of the Algerian Defense Industry Market Attractiveness, Competitive Landscape and Forecasts to 2022, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

Synopsis

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.

In particular, it provides an in-depth analysis of the following

  • The Algerian defense industry market size and drivers: detailed analysis of the Algerian defense industry during 2018-2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
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  • Porter’s Five Force analysis of the Algerian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities over the next 10 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Algerian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis
Scope

With a defense budget of US$10.3 billion in 2017, Algeria is currently the largest military spender in the African region and the world’s tenth largest defense importer of military goods. Military expenditure is strongly supported by the presence of the oil and natural gas industry, where the revenues are directed towards strengthening defense and security. 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 the armed forces are key factors to drive military expenditure. The instability in neighboring Libya, coupled with the rapid spread of the Islamic State (IS) in the country, has compelled Algeria to bolster its defenses and develop a robust defense posture.

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Table of Contents

1. Introduction 7
1.1. What is this Report About? 7
1.2. Definitions 7
1.3. Summary Methodology 9
1.4. About Strategic Defence Intelligence 10

2. Executive Summary 11

3. Market Attractiveness and Emerging Opportunities 13
3.1. Current Market Scenario 14
3.1.1. Primary Threat Perception 14
3.1.2. Military Doctrine and Strategy 15
3.1.3. Military Fleet Size 18
3.1.4. Procurement Programs 23
3.1.5. Social, Political, and Economic Environment and Support for Defense Projects 25
3.1.6. Political and Strategic Alliances 26
3.2. Defense Market Size: Historical and Forecast 27
3.2.1. Algeria’s defense budget to grow at an expected CAGR of 7.25% during 2018-2022 27
3.2.2. Rising threat of terrorism and an arms race in the region to drive Algeria’s defense expenditure 30
3.2.3. The defense budget as a percentage of GDP will remain at an average of 8.6% over the forecast period 32
3.3. Analysis of Defense Budget Allocation 34
3.3.1. Share of capital expenditure is expected to increase during the forecast period 34
3.3.2. Capital expenditure is expected to record a CAGR of 9.48% during the forecast period 36
3.3.3. Algeria’s per-capita defense expenditure is expected to increase during the forecast period 38

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