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https://www.reportscorner.com/reports/21354/Future-of-the-Georgian-Defense-Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/
Product Synopsis
This report is the result of SDI’s extensive market and company research covering the Georgian defense industry, and 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 Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Georgian defense industry.
What is the current market landscape and what is changing?
Georgian defense expenditure increased at a CAGR of 6.03% during the review period and valued US$-7.19 billion in 2013. The focus of the Georgian government will be on counter terrorism activities, modernization programs and threats posed by Russia.
What are the key drivers behind recent market changes?
NATO membership, threats posed by Russia and Terrorism and modernization plans are the major drivers of the Georgian defense industry
What makes this report unique and essential to read?
The Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, 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 2014 to 2018, including highlights of key growth stimulators, and 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 Georgian 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 Georgia. 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
Russia, being the main trading partner of Georgia started imposing embargoes since 2005. It started with restricting entry of agricultural produce and then targeted the main industries like mineral water and wine. In August 2008 Georgia fought a war with its separatist regions, South Ossetia and Abkhazia, which gained complete de facto control of their territories with the help of Russian forces. When the war ended, Russia proposed an arms embargo against Georgia, which is currently under review by the UN. This has restricted the entry of other nations to cater to the requirement by the Georgian Defense industry in order to maintain cordial relationship with Russia It’s military power is also an important factor, as foreign countries want to maintain cordial relations with Russia. Israel, for example, which had been an exporter of arms to Georgia, stopped doing so when Russia began exporting advanced equipment to Iran and Syria, both of which have conflicting relations with Israel.]
Georgia’s defense budget is small and does not attract many companies. The country’s budget reached its peak in 2008, at US$945.95 million. During the review period, an average of 23% of the defense budget was allocated for capital expenditure on defense equipment. This small size of the budget does not attract many companies to supply arms to, or invest in, the country. The proposed arms embargo against Georgia further increases the challenges, as defense contractors might not find it feasible to violate the embargo to cater for a small market.
Key Highlights
The domestic defense industry of Georgia is undeveloped and is mainly dependent on imports for its arms requirements. Foreign defense companies can directly sell defense equipment to the Georgian Defense Ministry, either through direct commercial sales (DCS) or foreign military sales (FMS). Georgia received arms from the US prior to the proposal of the arms embargo on the country. During 2002–2006 the country received arms worth US$77.5 million through DCS and US$82.2 million through FMS. Historically, FMS and DCS have been the most effective entry routes to cater to the Georgian markets.
With FDI playing an important role in boosting the economy in Georgia, avenues in defense are also open, subject to approval from the Georgian Parliament. The policy which allows full profit proliferation acts as a booster for foreign investors. Foreign defense companies can enter the Georgian defense market by establishing subsidiaries, and maintenance and support facilities in Georgia to manufacture defense equipment. There is an urgent need for investment in the sector for achieving the objectives of modernization of the army, professional training to the personnel, technology collaboration and developing the domestic manufacturing capacity in defense sector. Finding partners willing to invest in the country’s defense sector, however, is a challenge.
Ukraine is the key supplier of arms and defense equipment to Georgia. It is followed by Turkey, Czech Republic, Bulgaria, Poland and Israel. Post August 2008,, an embargo was proposed by Russia to UN against Georgia, However, the proposition is still under review but this has led to many European countries ceasing its supplies to Georgia in order to maintain peace with, Russia. The year 2011 and 2012 have seen a slack in the imports primarily due to the grim economic scenario and others priorities. The US for the moment has limited its supply of arms to Georgia to maintain cordial ties with Russia, and to avoid it from supplying arms onwards to countries such as Iran and Syria. Also, the small size of Georgia’s defense budget does not attract many countries to the market. During the forecast period, provided the arms embargo is not approved by the UN, Ukraine is expected to remain the largest arms exporter to Georgia
https://www.reportscorner.com/reports/21354/Future-of-the-Georgian-Defense-Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/
Product Synopsis
This report is the result of SDI’s extensive market and company research covering the Georgian defense industry, and 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 Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Georgian defense industry.
What is the current market landscape and what is changing?
Georgian defense expenditure increased at a CAGR of 6.03% during the review period and valued US$-7.19 billion in 2013. The focus of the Georgian government will be on counter terrorism activities, modernization programs and threats posed by Russia.
What are the key drivers behind recent market changes?
NATO membership, threats posed by Russia and Terrorism and modernization plans are the major drivers of the Georgian defense industry
What makes this report unique and essential to read?
The Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, 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 2014 to 2018, including highlights of key growth stimulators, and 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 Georgian 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 Georgia. 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
Russia, being the main trading partner of Georgia started imposing embargoes since 2005. It started with restricting entry of agricultural produce and then targeted the main industries like mineral water and wine. In August 2008 Georgia fought a war with its separatist regions, South Ossetia and Abkhazia, which gained complete de facto control of their territories with the help of Russian forces. When the war ended, Russia proposed an arms embargo against Georgia, which is currently under review by the UN. This has restricted the entry of other nations to cater to the requirement by the Georgian Defense industry in order to maintain cordial relationship with Russia It’s military power is also an important factor, as foreign countries want to maintain cordial relations with Russia. Israel, for example, which had been an exporter of arms to Georgia, stopped doing so when Russia began exporting advanced equipment to Iran and Syria, both of which have conflicting relations with Israel.]
Georgia’s defense budget is small and does not attract many companies. The country’s budget reached its peak in 2008, at US$945.95 million. During the review period, an average of 23% of the defense budget was allocated for capital expenditure on defense equipment. This small size of the budget does not attract many companies to supply arms to, or invest in, the country. The proposed arms embargo against Georgia further increases the challenges, as defense contractors might not find it feasible to violate the embargo to cater for a small market.
Key Highlights
The domestic defense industry of Georgia is undeveloped and is mainly dependent on imports for its arms requirements. Foreign defense companies can directly sell defense equipment to the Georgian Defense Ministry, either through direct commercial sales (DCS) or foreign military sales (FMS). Georgia received arms from the US prior to the proposal of the arms embargo on the country. During 2002–2006 the country received arms worth US$77.5 million through DCS and US$82.2 million through FMS. Historically, FMS and DCS have been the most effective entry routes to cater to the Georgian markets.
With FDI playing an important role in boosting the economy in Georgia, avenues in defense are also open, subject to approval from the Georgian Parliament. The policy which allows full profit proliferation acts as a booster for foreign investors. Foreign defense companies can enter the Georgian defense market by establishing subsidiaries, and maintenance and support facilities in Georgia to manufacture defense equipment. There is an urgent need for investment in the sector for achieving the objectives of modernization of the army, professional training to the personnel, technology collaboration and developing the domestic manufacturing capacity in defense sector. Finding partners willing to invest in the country’s defense sector, however, is a challenge.
Ukraine is the key supplier of arms and defense equipment to Georgia. It is followed by Turkey, Czech Republic, Bulgaria, Poland and Israel. Post August 2008,, an embargo was proposed by Russia to UN against Georgia, However, the proposition is still under review but this has led to many European countries ceasing its supplies to Georgia in order to maintain peace with, Russia. The year 2011 and 2012 have seen a slack in the imports primarily due to the grim economic scenario and others priorities. The US for the moment has limited its supply of arms to Georgia to maintain cordial ties with Russia, and to avoid it from supplying arms onwards to countries such as Iran and Syria. Also, the small size of Georgia’s defense budget does not attract many countries to the market. During the forecast period, provided the arms embargo is not approved by the UN, Ukraine is expected to remain the largest arms exporter to Georgia
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