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Summary

The Future of the Czech Republic Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019 published by Strategic Defence Intelligence, provides readers with a detailed analysis of both historic and forecast Czech Republic defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

Key Findings

- Over the review period, the Czech Republic defense expenditure registered a growth rate of -4.37%, to reach US$2.10 billion in 2014, from US$2.51 billion in 2010

- Czech Republic's military expenditure, valued at US$2.10 billion in 2014, is expected to increase to US$2.55 billion by 2019, registering a CAGR of 3.99% over the forecast period.

- The country's military expenditure will be driven by the country's focus on protecting its interests in the Ukraine region in light of growing Russian assertiveness country's participation in peacekeeping missions and counter terrorism.

- The Defense Ministry is expected to procure upgrades for leased Gripens, multipurpose helicopters, MRAP armored vehicles, electronic identification documents, automated border crossing systems, and CCTV systems.

Synopsis

- This report offers detailed analysis of the Czech Republic's 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:

- Czech Republic defense industry market size and drivers: detailed analysis of the Czech Republic defense industry during 2015-2019, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's spending patterns 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 the army, navy, and air force. It also details the key challenges faced by the defense market participants within the country

- Porter's Five Force analysis of the Czech Republic defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, tthreat of substitutions, intensity of rivalry, and barrier 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 coming 10 years

- Competitive landscape and strategic insights: analysis of the competitive landscape of the Czech Republic defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Reasons To Buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Czech Republic defense industry market trends for the coming five years

- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period

- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector

- A deep qualitative analysis of the Czech Republic defense industry covering sections including demand drivers, Porter's Five Force Analysis, Key Trends and Growth Stimulators, and latest industry contracts.

Table Of Contents

Future of the Czech Republic Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019
Table of Contents
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
2.1. Market Attractiveness and Emerging Opportunities
3 Defense Market Size Historical and Forecast
3.1.1. Czech defense expenditure to be US$11.8 billion over the forecast period
3.1.2. Peacekeeping operations and counter-terrorism are expected to drive the Czech defense expenditure
3.1.3. Defense expenditure as a percentage of GDP expected to fall during the forecast period
3.2. Analysis of Defense Budget Allocations
3.2.1. Capital expenditure allocation is expected to increase over the forecast period
3.2.2. Capital expenditure expected to increase over the forecast period
3.2.3. Central support and administration expenditure account for the majority of the Czech defense budget
3.2.4. Army expenditure to increase over the forecast period
3.2.5. Air Force capital expenditure is expected to increase in forecast period
3.2.6. Central support and administration expenditure to remain consistent over the forecast period
3.2.7. Per capita defense expenditure expected to increase over 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. Extremism, drug trafficking, espionage, and illegal immigration are forecast to drive the homeland security market
3.3.3. The Czech Republic considered at ‘some risk' of terrorist attack
3.3.4. The Czech Republic experienced low terror activity during the review period
3.4. Benchmarking with Key Global Markets
3.4.1. Czech defense budget expected to register marginal growth over the forecast period
3.4.2. Czech military expenditure is expected to remain low compared to other leading spenders
3.4.3. The country allocates a lower percentage of GDP towards defense than other NATO members
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. MRAP Vehicles
3.5.2. Upgrades for leased Gripen rise over the forecast period
3.5.3. Multipurpose Helicopters expected to create new market opportunities
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports registered a decline during 2009-2013
4.1.2. Spain and Austria were the major exporters to the country
4.1.3. Aircraft and armored vehicles are the largest imported military hardware
4.2. Export Market Dynamics
4.2.1. Czech defense industry witnessed declining trend in exports during the review period
4.2.2. Afghanistan and Russia were the key importers of Czech defense goods
4.2.3. Aircraft accounts for the highest portion of Czech defense exports
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to medium
5.1.2. Bargaining power of buyer: medium
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: low to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids the development of the domestic defense industry
6.1.2. The Czech Republic allows 100% foreign direct investment in the defense sector
6.2. Market Entry Route
6.2.1. Subsidiaries and branch offices provide attractive market entry routes
6.2.2. Foreign OEMs enter the market through the acquisition of domestic defense companies
6.2.3. Foreign OEMs enter into the market through the formation of consortiums and product development agreements
6.3. Key Challenges
6.3.1. Limited defense budget limits the market entry of foreign companies
6.3.2. Corruption acts as an obstacle for market entry
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Aero Vodochody A.S..: overview
7.2.2. Aero Vodochody A.S.: products and services
7.2.3. Aero Vodochody A.S.: recent announcements and strategic initiatives
7.2.4. Aero Vodochody A.S.: alliances
7.2.5. Aero Vodochody A.S.: recent contract wins
7.2.6. Aero Vodochody A.S.: financial analysis
7.2.7. Lom Praha s.p.: overview
7.2.8. Lom Praha s.p.: products and services
7.2.9. Lom Praha s.p.: recent announcements and strategic initiatives
7.2.10. Lom Praha s.p.: alliances
7.2.11. Lom Praha s.p.: recent contract wins
7.2.12. VOP 025 Nový Ji?ín, s.p.: overview
7.2.13. VOP 025 Nový Ji?ín, s.p.: product and services
7.2.14. VOP 025 Nový Ji?ín, s.p.: recent announcements and strategic initiatives
7.2.15. VOP 025 Nový Ji?ín, s.p.: recent contract wins
7.2.16. Omnipol a.s.: overview
7.2.17. Omnipol a.s.: product and services
7.2.18. Omnipol a.s.: recent announcements and strategic initiatives
7.2.19. Omnipol a.s.: alliances
7.2.20. Omnipol a.s.: recent contract wins
7.2.21. Aura s.r.o.: overview
7.2.22. Aura s.r.o.: product and services
7.2.23. Aura s.r.o.: recent announcements and strategic initiatives
7.2.24. Aura s.r.o.: recent contract wins
7.2.25. Dicom, spol. s.r.o.: overview
7.2.26. Dicom, spol. s.r.o.: product and services
7.2.27. Dicom, spol. s.r.o.: recent announcements and strategic initiatives
7.2.28. Dicom, spol. s.r.o.: recent contract wins
7.2.29. Quittner and Schimek s.r.o.: overview
7.2.30. Quittner and Schimek s.r.o.: product and services
7.2.31. Quittner and Schimek s.r.o.: recent contract wins
7.2.32. ?eská zbrojovka a.s.: overview
7.2.33. ?eská zbrojovka a.s.: product and services
7.2.34. ?eská zbrojovka a.s.: recent announcements and strategic initiatives
7.2.35. ?eská zbrojovka a.s.: recent contract wins
7.2.36. Tesla, akciova spolecnost: overview
7.2.37. Tesla, akciova spolecnost: product and services
7.2.38. Tesla, akciova spolecnost: recent announcements and strategic initiatives
7.2.39. Tatra a.s.: overview
7.2.40. Tatra a.s.: product and services
7.2.41. Tatra a.s.: recent announcements and strategic initiatives
7.2.42. Tatra a.s.: alliances
7.2.43. Tatra a.s.: recent contract wins
7.3. Key Foreign Companies.
7.3.1. Letov Letecká Výroba s.r.o.: overview
7.3.2. Letov Letecká Výroba s.r.o.: product and services
7.3.3. Letov Letecká Výroba s.r.o.: alliances
8 Business Environment and Country Risk
8.1. Demographics
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 at constant prices
8.2.2. GDP at current prices (US$)
8.2.3. Exports of goods and services (current US$ Billions)
8.2.4. Imports of goods and services (current US$ Billions)
8.2.5. Gross national disposable income (US$ Billions)
8.2.6. Manufacturing output (US$ Billions)
8.2.7. Consumer price index
8.2.8. Wholesale price index
8.2.9. CZK per US$ (period average)
8.2.10. Market capitalization of listed companies (US$ Billions)
8.2.11. Market capitalization of listed companies (% of GDP)
8.2.12. Total Government cash surplus/deficit (CZK Billion)
8.2.13. Government cash surplus/deficit as a percentage of GDP (CZK)
8.2.14. Central government debt (CZK Billion)
8.2.15. Central government debt as a percentage of GDP (CZK)
8.2.16. Goods exports as a percentage of GDP
8.2.17. Goods imports as a percentage of GDP
8.2.18. Services imports as a percentage of GDP
8.2.19. Service exports as a percentage of GDP
8.2.20. Services balance as a percentage of GDP
8.2.21. Foreign direct investment, net (Bop, current US$ Billions)
8.2.22. International reserves, including gold (US$ Billions)
8.3. Energy and utilities
8.3.1. Total Conventional Thermal Electricity Net Generation (Billion kWh)
8.3.2. Hydroelectricity Net Generation (Billion kWh)
8.3.3. Nuclear Electricity Net Generation (Billion kWh)
8.3.4. Total Conventional Thermal Electricity Installed Capacity (Million kW)
8.3.5. Total Petroleum Consumption (Thousand Barrels Per Day)
8.3.6. Total Non-Hydro Renewable Electricity Net Generation (Billion kW)
8.4. Infrastructure Quality and Availability
8.4.1. Air transport, freight (Million ton-km)
8.5. Mineral
8.5.1. Mining, Manufacturing, Utilities Output (US$ Billions)
8.6. Technology
8.6.1. Research and development expenditure (CZK thousands)
8.6.2. Patents Granted
8.7. Telecommunication
8.7.1. Telephone lines (in Millions)
8.7.2. Telephone lines Penetration Rate (per 100 people)
9 Appendix
9.1. About SDI
9.2. Disclaimer

List of Tables

Table 1: Czech Defense Expenditure (US$ Billion), 2010-2014
Table 2: Czech Defense Expenditure (US$ Billion), 2015-2019
Table 3: Czech Defense Expenditure (CZK Billion), 2010-2014
Table 4: Czech Defense Expenditure (CZK Billion), 2015-2019
Table 5: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Table 6: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Table 7: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Table 8: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Table 9: Czech Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2010-2014
Table 10: Czech Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2015-2019
Table 11: Czech Defense Capital Expenditure (US$ Million), 2010-2014
Table 12: Czech Defense Capital Expenditure (US$ Million), 2015-2019
Table 13: Czech Defense Capital Expenditure (CZK Billion), 2010-2014
Table 14: Czech Defense Capital Expenditure (CZK Billion), 2015-2019
Table 15: Czech Defense budget breakdown (%), 2010-2014
Table 16: Czech Defense budget breakdown (%), 2015-2019
Table 17: Czech Republic's Defense Expenditure budget for Army (US$ Million),
Table 18: Czech Republic's Defense Expenditure budget for Army (US$ Million),
Table 19: Czech Republic's Defense Expenditure budget for Army (CZK Bn), 2010-2014
Table 20: Czech Republic's Defense Expenditure budget for Army (CZK Bn), 2015-2019
Table 21: Czech Air Force Spending Allocation (US$ Billion), 2010-2014
Table 22: Czech Air Force Spending Allocation (US$ Million), 2015-2019
Table 23: Czech Air Force Spending Allocation (CZK Billion), 2010-2014
Table 24: Czech Air Force Spending Allocation (CZK Billion), 2015-2019
Table 25: Czech Defense Budget Allocation for Central Support and Administration (US$ billion), 2010-2014
Table 26: Czech Defense Budget Allocation for Central Support and Administration (US$ Billion), 2015-2019
Table 27: Czech Defense Budget Allocation for Central Support and Administration (CZK billion), 2010-2014
Table 28: Czech Defense Budget Allocation for Central Support and Administration (CZK Billion), 2015-2019
Table 29: Czech Republic per capita defense expenditure (US$), 2010-2014
Table 30: Czech Republic per capita defense expenditure (US$), 2015-2019
Table 31: Czech Homeland Security Budget (US$ Billion), 2010-2014
Table 32: Czech Homeland Security Budget (US$ Billion), 2015-2019
Table 33: Czech Homeland Security Budget (CZK Billion), 2010-2014
Table 34: Czech Homeland Security Budget (CZK Billion), 2015-2019
Table 35: Strategic Defence Intelligence Terrorism Index
Table 36: Offset Regulations in the Czech Republic
Table 37: Aero Vodochody A.S. - Product Focus
Table 38: Aero Vodochody A.S.: Alliances
Table 39: Aero Vodochody A.S.: Recent Contract Wins
Table 40: Lom Praha s.p. - Product Focus
Table 41: Lom Praha s.p.: Alliances
Table 42: Lom Praha s.p.: Recent Contract Wins
Table 43: VOP 025 Nový Ji?ín, s.p.- Product Focus
Table 44: VOP 025 Nový Ji?ín, s.p. : Recent Contract Wins
Table 45: Omnipol a.s. - Product Focus
Table 46: Omnipol a.s.: Alliances
Table 47: Omnipol a.s.: Recent Contract Wins
Table 48: Auro s.r.o. - Product Focus
Table 49: Auro s.r.o.: Recent Contract Wins
Table 50: Dicom, spol. s.r.o. - Product Focus
Table 51: Dicom, spol. s.r.o.: Recent Contract Wins
Table 52: Quittner and Schimek s.r.o. - Product Focus
Table 53: Quittner and Schimek s.r.o.: Recent Contract Wins
Table 54: ?eská zbrojovka a.s. - Product Focus
Table 55: ?eská zbrojovka a.s.: Recent Contract Wins
Table 56: Tesla, akciova spolecnost - Product Focus
Table 57: Tatra a.s. - Product Focus
Table 58: Tatra a.s.: Alliances
Table 59: Tatra a.s.: Recent Contract Wins
Table 60: Letov Letecká Výroba s.r.o. - Product Focus
Table 61: Letov Letecká Výroba s.r.o.: Alliances

List of Figures

Figure 1: Czech Defense Expenditure (US$ Billion), 2010-2014
Figure 2: Czech Defense Expenditure (US$ Billion), 2015-2019
Figure 3: Czech Defense Expenditure (CZK Billion), 2010-2014
Figure 4: Czech Defense Expenditure (CZK Billion), 2015-2019
Figure 5: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Figure 6: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Figure 7: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010-2014
Figure 8: Czech GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2019
Figure 9: Czech Defense Expenditure Allocation for Capital and Revenue Expenditure(%), 2010-2014
Figure 10: Czech Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2015-2019
Figure 11: Czech Defense Capital Expenditure (US$ Million), 2010-2014
Figure 12: Czech Defense Capital Expenditure (US$ Million), 2015-2019
Figure 13: Czech Defense Capital Expenditure (CZK Billion), 2010-2014
Figure 14: Czech Defense Capital Expenditure (CZK Billion), 2015-2019
Figure 15: Czech Defense budget breakdown (%), 2010-2014
Figure 16: Czech Defense budget breakdown (%), 2015-2019
Figure 17: Czech Republic's Defense Expenditure budget for Army (US$ Mn), 2010-2014
Figure 18: Czech Republic's Defense Expenditure budget for Army (US$ Million),
Figure 19: Czech Republic's Defense Expenditure budget for Army (CZK Bn), 2010-2014
Figure 20: Czech Republic's Defense Expenditure budget for Army (CZK Bn), 2015-2019
Figure 21: Czech Air Force Spending Allocation (US$ Billion), 2010-2014
Figure 22: Czech Air Force Spending Allocation (US$ Million), 2015-2019
Figure 23: Czech Air Force Spending Allocation (CZK Billion), 2010-2014
Figure 24: Czech Air Force Spending Allocation (CZK Billion), 2015-2019
Figure 25: Czech Republic's Defense Budget Allocation for Central Support and Administration (US$ Billion), 2010-2014
Figure 26: Czech Republic's Defense Budget Allocation for Central Support and Administration (US$ Billion), 2015-2019
Figure 27: Czech Republic's Defense Budget Allocation for Central Support and Administration (CZK Billion), 2010-2014
Figure 28: Czech Republic's Defense Budget Allocation for Central Support and Administration (CZK Billion), 2015-2019
Figure 29: Czech Republic per capita defense expenditure (US$), 2010-2014
Figure 30: Czech Republic per capita defense expenditure (US$), 2015-2019
Figure 31: Czech Homeland Security Budget (US$ Billion), 2010-2014
Figure 32: Czech Homeland Security Budget (US$ Billion), 2015-2019
Figure 33: Czech Homeland Security Budget (CZK Billion), 2010-2014
Figure 34: Czech Homeland Security Budget (CZK Billion), 2015-2019
Figure 35: SDI Terrorism Heat Map, 2014
Figure 36: SDI Terrorism Index, 2014
Figure 37: Benchmarking with Key Global Markets: 2010-2014 vs. 2015-2019
Figure 38: Defense Expenditure of Countries with the Largest Global Military Expenditure (US$ Billion), 2014 and 2019
Figure 39: Defense Expenditure as percentage of GDP of Countries with the Largest Military Expenditure (%), 2014
Figure 40: MRAP Armored Vehicle Market Size (US$ Million), 2014-2024
Figure 41: Czech Defense Imports (US$ Million*), 2009-2013
Figure 42: Czech Defense Imports by Country (US$ Million), 2009-2013
Figure 43: Czech Defense Imports by Category (US$ Million), 2009-2013
Figure 44: Czech Defense Exports (US$ Million), 2009-2013
Figure 45: Czech Defense Exports by Country (US$ Million), 2009-2013
Figure 46: Czech Defense Exports by Category (US$ Million), 2009-2013
Figure 47: Industry Dynamics - Porter's Five Forces Analysis
Figure 48: Aero Vodochody A.S.: Revenue Trend Analysis (CZK Billion), 2007-2011
Figure 49: Aero Vodochody A.S.: Operating Profit Trend Analysis (CZK Billion), 2007-2011
Figure 50: Aero Vodochody A.S.: Net Profit Trend Analysis (CZK Billion), 2007-2011
Figure 51: Czech Rural population (Million), 2010-2019
Figure 52: Czech Urban population (Million), 2010-2019
Figure 53: Czech Republic - Number of Households (Million), 2008-2017
Figure 54: Czech GDP Per Capita at Constant Prices (US$), 2005-2014
Figure 55: Czech GDP at Current Prices (US$ Billion), 2010-2019
Figure 56: Czech Exports of goods and services (US$), 2003-2012
Figure 57: Czech Imports of goods and services (US$ Billion), 2003-2012
Figure 58: Czech Gross national disposable income (US$ Billion), 2002-2011
Figure 59: Czech Manufacturing output (US$ Billion), 2003-2012
Figure 60: Czech Consumer price index, 2008-2017
Figure 61: Czech Wholesale price index, 2003-2012
Figure 62: Czech Republic CZK per US$, 2008-2017
Figure 63: Czech market capitalization of listed companies (US$ Billion), 2003-2012
Figure 64: Czech market capitalization of listed companies (% of GDP), 2002-2011
Figure 65: Czech Total Government cash surplus/deficit (CZK Billion), 2002-2011
Figure 66: Czech Government cash surplus/deficit as % of GDP (CZK), 2002-2011
Figure 67: Czech Central government debt (CZK Billion), 2002-2011
Figure 68: Czech Central government debt as % of GDP (CZK), 2002-2011
Figure 69: Czech Republic- Goods exports as a % of GDP (%), 2002-2011
Figure 70: Czech Republic- Goods imports as a % of GDP (%), 2002-2011
Figure 71: Czech Services imports as a % of GDP (%), 2002-2011
Figure 72: Czech Service exports as a % of GDP (%), 2002-2011
Figure 73: Czech Republic- Services balance as a % of GDP (%), 2002-2011
Figure 74: Czech Republic- Foreign direct investment, net (BoP, current US$ Billion), 2002-2011
Figure 75: Czech International reserves, including gold (US$ Billion), 2002-2011
Figure 76: Czech Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2001-2010
Figure 77: Czech Hydroelectricity Net Generation (Billion Kilowatt hours), 2003-2012
Figure 78: Czech Nuclear Electricity Net Generation (Billion Kilowatt hours), 2003-2012
Figure 79: Czech Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001-2010
Figure 80: Czech Total Petroleum Consumption (Thousand Barrels Per Day), 2003-2012
Figure 81: Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2003-2012
Figure 82: Czech Air transport, freight (million ton-km), 2002-2011
Figure 83: Czech Mining, Manufacturing, Utilities Output (US$ Billion), 2003-2012
Figure 84: Czech RandD expenditure (CZK thousands), 2001-2010
Figure 85: Czech Patents Granted, 2003-2012
Figure 86: Czech Telephone lines, 2003-2012 (Million)
Figure 87: Czech Telephone lines Penetration Rate (per 100 people), 2003-2012

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