Lebanon Defense Market Report 2019 - Attractiveness, Competitive Landscape and Forecasts to 2024 - ResearchAndMarkets.com

DUBLIN--()--The "Lebanese Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

Lebanese Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024 offers detailed analysis of the Lebanese 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.

Lebanon's defense and security expenditure is expected to register a CAGR of 5.69% over the forecast period to reach US$3.6 billion in 2024. Lebanon's military and security expenditure is valued at US$2.7 billion in 2019, registering at CAGR of 5.08% during 2015-2019, and the country is anticipated to record a CAGR of 5.69% over the forecast period to value US$3.6 billion in 2024. As a percentage of GDP, the country's defense and security expenditure averaged 4.7% over the historic period and is expected to remain the same at an average of 4.7% over the forecast period.

The country faces sectarian violence, threats of militancy, homegrown extremism and unrest at refugee camps. The Syrian civil war and the Israeli-Lebanon conflict have resulted in a large number of refugees' crossing the border into Lebanon, which has burdened the Lebanese economy, led to sectarian violence, and complicated its internal security. Lebanon is rife with sectarian violence and is also heavily impacted by the problem of drug trafficking, hence there is a need to protect the country against communal violence and narcotics smuggling. The modernization of the police force and developing domestic infrastructure are the primary areas that the country is expected to invest in over the forecast period.

The country's capital expenditure allocation stood at an average of 33% during the historic period and is expected to decrease to 32.5% over the forecast period. Lebanon is not endowed with oil reserves and lacks the economic ability to invest in expansive defense capabilities, unlike its neighboring Middle Eastern countries.

Missiles, aircraft and armored vehicles cumulatively accounted for 81.4% of imports during 2014-2018, with the US being the biggest supplier with 76.9%. Other significant import partners include Brazil, Canada, France, Italy, Jordan and the UAE. The country's small defense budget and lack of military manufacturing capability forces the Lebanese armed, naval and air forces to rely on imports. The country is not expected to export any arms to foreign countries, as Lebanese domestic defense is under-developed.

The Lebanese government does not allow foreign direct investment in its military and security sector. The country's small defense capital expenditure does not equip it with the bargaining power to impose offsets on procurement deals. Participating in government-to-government deals is the preferred route for foreign defense manufacturers and equipment suppliers to enter the Lebanese defense market.

Scope

  • Plagued by sectarian violence, the country faces increasing threats of militancy, homegrown extremism, and unrest in refugee camps. In addition, the Syrian civil war has resulted in a large number of refugees' crossing over to Lebanon to live in camps. As a consequence, these refugee camps have increased the burden on the Lebanese economy by fuelling sectarian violence in the country and complicating its internal security. Lebanon's military expenditure, which is valued at US$2.7 billion in 2019, registered a CAGR of 5.08% during 2015-2019.
  • Moreover, the country is anticipated to record a CAGR of 5.69% over the forecast period to value US$3.6 billion in 2024. As a percentage of GDP, the country's defense and security expenditure is estimated to average 4.7% and is the same over the historic period and forecast period.

Key Topics Covered:

1. Introduction

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Conditions

3.1.1. Procurement Programs

3.1.2. Key Drivers and Challenges

3.2. Defense and Security Market Size Historical and Forecast

3.2.1. Lebanese defense and security expenditure expected to grow at a CAGR of 5.69% over the forecast period

3.2.2. Cross border violence expected to be a key factor driving defense expenditure

3.2.3. Defense budget as a percentage of GDP expected to remain the same, on average, over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Capital expenditure allocation to average 32.5% of the total budget over the forecast period

3.3.2. Capital expenditure to grow at a CAGR of 5.67% over the forecast period

3.3.3. Per capita defense expenditure expected to increase over the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Sectarian violence and drug trafficking will be the key factors driving homeland security

3.5. Benchmarking with Key Global Markets

3.5.1. Lebanon to remain low down on the top defense spenders list

3.5.2. The country's defense budget is low compared to other leading spenders

3.5.3. Lebanon's defense expenditure as a percentage of GDP to average 4.7% over the forecast period

3.6. Market Opportunities: Key Trends and Drivers

3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense industry heavily relies on imports from foreign countries

4.1.2. The US is Lebanon's key defense supplier

4.1.3. Missiles, aircraft and armored vehicles dominated Lebanese defense imports during the historic period

4.2. Export Market Dynamics

4.2.1. Lebanon's defense export market is negligible

5. Market Entry Strategy

5.1. Market Regulation

5.1.1. The Lebanese government prohibits FDI in the defense industry

5.1.2. Lebanon has not disclosed any offset obligations

5.2. Market Entry Route

5.2.1. Government-to-government deals are the preferred market entry route for foreign OEMs

6. Competitive Landscape and Strategic Insights

6.1. Competitive Landscape Overview

6.1.1. The Lebanese defense sector is dominated by foreign competitors

7. Business Environment and Country Risk

7.1. Economic Performance

7.1.1. GDP Per Capita

7.1.2. Gross Domestic Product

7.1.3. Gross National Disposal Income (US$ Billion)

7.1.4. Exports of Goods and Services

7.1.5. Imports of Goods and Services

7.1.6. LCU per US$ (Period Average)

7.1.7. Market Capitalization of Listed Companies

7.1.8. Market Capitalization of Listed Companies as a Percentage of GDP

7.1.9. Government Cash Surplus/Deficit as a Percentage of GDP

7.1.10. Goods Exports as a Percentage of GDP

7.1.11. Goods Imports as a Percentage of GDP

7.1.12. Services Imports as a Percentage of GDP

7.1.13. Services Exports as a Percentage of GDP

7.1.14. Net Foreign Direct Investment

7.1.15. Net Foreign Direct Investment as a Percentage of GDP

7.1.17. Mining, Manufacturing, Utilities Output

Companies Mentioned

  • Bell Helicopter Textron, Inc.
  • MBDA

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900