Future of the Myanmar Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Myanmar Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

Myanmar defense budget is valued at US$2.4 Billion in 2017, and registered a CAGR of 0.05% during the historic period. The country is currently in the midst of a political transformation as historically; Myanmar was ruled by the army but is now being run by a civilian government. Moreover, the country’s involvement in the longest lasting civil war and ethnic conflicts along with its increasing capital expenditure on modernization of the Myanmar Navy is expected to drive the country’s defense expenditure during the forecast period.

Myanmar defense industrial base is relatively underdeveloped and, as a result, the country is largely dependent on foreign suppliers to fulfill its military needs. The country’s under-developed indigenous defense manufacturing is reliant on foreign technology transfers, mainly from China, Russia and more recently from India. Myanmar does not export any arms to foreign countries, as its domestic defense industry is still in a nascent stage, and this is expected to remain so over the forecast period.

China and Russia have consistently been the largest suppliers of arms to Myanmar over the last decade and constituted 89% of the total Myanmar defense industry during 2012-2016. China emerged as the largest supplier of defense equipment, accounting for 70% of the country’s total defense imports, followed by Russia with 19% during 2012–2016.

Being under an autocratic army rule for almost half a century, Myanmar has recently elected its first civilian-led government. However, the defense sector is still closed to any form of foreign direct investment (FDI), with direct government-to-government contracts and military-co-operations being the preferred mode of entry. Moreover, even though the country’s defense market presents opportunities for foreign suppliers, the budget allocation for capital procurements is much lower compared to its neighbors and other South East Asian countries.

The report “Future of the Myanmar Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Myanmar defense industry with market size forecasts covering the next five years.

In particular, this report provides an in-depth analysis of the following -
- The Myanmar defense industry market size and drivers: Detailed analysis of the Myanmar 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. It also details the key challenges faced by defense market participants within the country.
- 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 Myanmar defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Myanmar Defense Industries (DI)

Scope

- The Myanmar’s defense budget values US$2.15 billion in 2017, and registered a CAGR of 0.76% during the historic period. The urgent need to modernize the country’s defense arsenal, especially in the wake of the current European migration crisis and Russia military aggression in Ukraine has woken the concerned authorities to the possibility of an armed conflict in Europe. Coupled with the country’s participation in peacekeeping operations and counter terrorism, this has driven the Myanmar defense expenditure during the historic period.
- The capital expenditure allocation, which declined at an average of -5.2% during the historic period, is expected to increase significantly by an average of 12.4% during the forecast period. Key opportunities for equipment suppliers are expected in sectors such as military radar, transport aircraft, infantry vehicles, and military helicopters.
- The MoD expected to invets in ammunition, weaponry, and equipment including new types of armament, new multi-role helicopters, infantry fighting vehicles, and air defense systems

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Myanmar 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 Myanmar defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts