Future of the US Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019

“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 US 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 US. 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.”

Lockheed Martin, Raytheon , General Dynamics, Boeing, L-3 Communications, Northrop Grumman, Science Application International ,Honeywell International ,Sikorsky Aircraft.
“1 Introduction
1.1. What is this Report bout?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. US defense expenditure expected to increase at a CAGR of 1.93% over the forecast period
3.1.2. Initiatives to retain military superiority, equipment modernization program and turbulence in Middle East are expected to drive defense spending
3.1.3. Defense expenditure as a percentage of GDP estimated to decline over the forecast period
3.1.4. Per capita defense spending forecast to grow over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Total DoD budget forecasted to grow at a CAGR of 1.64%
3.2.2. Share of revenue expenditure expected to increase over the forecast period
3.2.3. Navy to receive the major allocation of the defense budget over the forecast period
3.2.4. Allocation for revenue expenditure of the army expected to increase over the forecast period
3.2.5. Naval defense budget expected to grow at a CAGR of 1.73% over forecast period
3.2.6. Air Force expenditure expected to increase at a CAGR of 2.04% over the forecast period
3.2.7. Expenditure on the defense-wide category of armed forces projected to grow at a CAGR of 2.01% over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. The US homeland security expenditure to reach US$66.2 billion by 2019
3.3.2. Prevention of terrorism, securing and managing borders, and safeguarding cyberspace to drive homeland security expenditure over the forecast period
3.3.3. The nation is at “some risk” of terrorism
3.3.4. The US has a terrorism index score of 0.02
3.4. Benchmarking with Key Global Markets
3.4.1. The US will dominate global military spending over the forecast period
3.4.2. US defense budget is much higher than other leading spenders
3.4.3. US is one of the top defense spenders in terms of expenditure as a percentage of GDP
3.4.4. The US faces some threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. C4ISR – Land based
3.5.2. Networking
3.5.3. Multi-role Aircraft
3.5.4. Software Infrastructure
3.5.5. Missile Defense Systems
3.5.6. SSN Submarines
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. US primarily imports defense equipment to build strategic relations
4.1.2. Defense imports grew at a CAGR of 10.1% during 2008–2012
4.1.3. The UK supplies the majority of US defense imports
4.1.4. Aircraft account for majority of arms imports
4.2. Export Market Dynamics
4.2.1. US arms exports are driven by political and economic factors
4.2.2. Arms exports expected to increase in the period 2015-2019
4.2.3. US defense exports to increase during the forecast period
4.2.4. Aircraft are the most exported defense equipment
4.2.5. The US maintains controlled defense export policy
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Supplier: Medium to low
5.1.2. Bargaining power of Buyer: High
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low to high
5.1.5. Threat of Substitution: Low to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. The US defense industry is open to FDI
6.1.2. No offset policy exists in the US
6.1.3. US arms trade is heavily regulated
6.2. Market Entry Route
6.2.1. Foreign OEMs enter the market through the acquisition of domestic defense companies
6.2.2. Joint product development programs, an attractive market entry route
6.2.3. Formation of partnerships with domestic defense firms provide good market entry opportunities
6.2.4. Direct sale of defense equipment provides foreign OEMs with an opportunity to enter the market
6.3. Key Challenges
6.3.1. Sequestration and budget cuts
6.3.2. Decreasing economies of scale and defense inflation
6.3.3. Declining profit margins deter growth of domestic defense companies
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Domestic Public Companies
7.2.1. Lockheed Martin Corp.: overview
7.2.2. Lockheed Martin Corp.: products and services
7.2.3. Lockheed Martin Corp.: recent announcements and strategic initiatives
7.2.4. Lockheed Martin Corp.: alliances
7.2.5. Lockheed Martin Corp.: recent contract wins
7.2.6. Lockheed Martin Corp.: financial analysis
7.2.7. Raytheon: overview
7.2.8. Raytheon: products and services
7.2.9. Raytheon: recent announcements and strategic initiatives
7.2.10. Raytheon: alliances
7.2.11. Raytheon: recent contract wins
7.2.12. Raytheon: financial analysis
7.2.13. General Dynamics: overview
7.2.14. General Dynamics: products and services
7.2.15. General Dynamics: recent announcements and strategic initiatives
7.2.16. General Dynamics: alliances
7.2.17. General Dynamics: recent contract wins
7.2.18. General Dynamics: financial analysis
7.2.19. Boeing: overview
7.2.20. Boeing: products and services
7.2.21. Boeing: recent announcements and strategic initiatives
7.2.22. Boeing: alliances
7.2.23. Boeing: recent contract wins
7.2.24. Boeing: financial analysis
7.2.25. L-3 Communications Corp.: overview
7.2.26. L-3 Communications Corp.: products and services
7.2.27. L-3 Communications Corp.: recent announcements and strategic initiatives
7.2.28. L-3 Communications Corp.: alliances
7.2.29. L-3 Communications Corp.: recent contract wins
7.2.30. L-3 Communications Corp.: financial analysis
7.2.31. Northrop Grumman Corp.: overview
7.2.32. Northrop Grumman Corp.: products and services
7.2.33. Northrop Grumman Corp.: recent contracts and strategic initiatives
7.2.34. Northrop Grumman Corporation: alliances
7.2.35. Northrop Grumman Corp.: recent contract wins
7.2.36. Northrop Grumman Corp.: financial analysis
7.2.37. Science Application International Corp. (SAIC): overview
7.2.38. Science Application International Corp. (SAIC): products and services
7.2.39. Science Application International Corp. (SAIC): recent contracts and strategic initiatives
7.2.40. Science Application International Corp. (SAIC): alliances
7.2.41. Science Application International Corp. (SAIC): recent contract wins
7.2.42. Science Application International Corp. (SAIC): financial analysis
7.2.43. Honeywell International Inc.: overview
7.2.44. Honeywell International Inc.: products and services
7.2.45. Honeywell International Inc.: recent announcements and strategic initiatives
7.2.46. Honeywell International Inc.: alliances
7.2.47. Honeywell International Inc.: recent contract wins
7.2.48. Honeywell International Inc.: financial analysis
7.3. Domestic Private Companies
7.3.1. Sikorsky Aircraft: overview
7.3.2. Sikorsky Aircraft: products and services
7.3.3. Sikorsky Aircraft: recent announcements and strategic initiatives
7.3.4. Sikorsky Aircraft: alliances
7.3.5. Sikorsky Aircraft: recent contract wins
7.3.6. General Electric Aviation: overview
7.3.7. General Electric Aviation: products and services
7.3.8. General Electric Aviation: recent contracts and strategic initiatives
7.3.9. General Electric Aviation: alliances
7.3.10. General Electric Aviation: recent contract wins
7.3.11. Bell Helicopter Textron, Inc.: overview
7.3.12. Bell Helicopter Textron, Inc.: products and services
7.3.13. Bell Helicopter Textron, Inc.: recent announcements and strategic initiatives
7.3.14. Bell Helicopter Textron, Inc.: alliances
7.3.15. Bell Helicopter Textron, Inc.: recent contract wins
7.3.16. Textron Marine and Land Systems: overview
7.3.17. Textron Marine and Land Systems: products and services
7.3.18. Textron Marine and Land Systems: recent announcements and strategic initiatives
7.3.19. Textron Marine and Land Systems: alliances
7.3.20. Textron Marine and Land Systems: recent contract wins
8 Business Environment and Country Risk
8.1. Demographics & Social Statistics
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
8.2.2. GDP, Current Prices
8.2.3. Consumer Price Index
8.2.4. Wholesale Price Index
8.2.5. Local Currency Unit per Euro
8.2.6. Lending Rate
8.2.7. Real Interest Rate
8.2.8. Market Capitalization of Listed Companies
8.2.9. Market Capitalization of Listed Companies (% of GDP)
8.2.10. Government Cash Surplus/Deficit
8.2.11. Government Cash Surplus/Deficit as % of GDP
8.2.12. Central Government Debt
8.2.13. Central Government Debt as % of GDP
8.2.14. Goods exports as % of GDP
8.2.15. Goods imports as % of GDP
8.2.16. Goods Trade Surplus/Deficit as % of GDP
8.2.17. Service Imports as % of GDP
8.2.18. Service Exports as % of GDP
8.2.19. Service Trade Surplus/Deficit as % of GDP
8.2.20. Foreign Direct Investment
8.2.21. Net foreign direct investment as % of GDP
8.2.22. International reserves, including gold
8.3. Energy and Utilities
8.3.1. Conventional Thermal Electricity Net Generation
8.3.2. Hydroelectricity Net Generation
8.3.3. Nuclear Electricity Net Generation
8.3.4. Conventional Thermal Electricity Installed Capacity
8.3.5. Electricity Exports
8.3.6. Electricity Imports
8.3.7. Proved Natural Gas Reserves
8.3.8. Petroleum Consumption
8.3.9. Crude Oil Proved Reserves
8.3.10. Total Non-Hydro Renewable Electricity Net Generation
8.4. Infrastructure
8.4.1. Rail Lines
8.4.2. Air transport, freight
8.4.3. Overall Construction
8.5. Minerals
8.5.1. Mining, Manufacturing, Utilities Output
8.6. Technology
8.6.1. Research and Development Expenditure
8.6.2. Patents Granted
8.7. Telecommunication
8.7.1. Telephone Lines
8.7.2. Telephone Lines Penetration Rate
9 Appendix
9.1. About SDI
9.2. Disclaimer
“
“Table 1: US Defense Expenditure (US$ Billion), 2010–2014 
Table 2: US Defense Expenditure (US$ Billion), 2015–2019 
Table 3: US GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as Percentage of GDP, 2010–2014 
Table 4: US GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015–2019 
Table 5: US Per Capita Defense Expenditure, 2010–2014 
Table 6: US Per Capita Defense Expenditure, 2015–2019 
Table 7: US Defense Budget Split by Base Budget, OCO, and Other Funds (US$ Billion), 2010–2014 
Table 8: US Defense Budget Split by Base Budget, OCO, and Other Funds (US$ Billion), 2010–2014 
Table 9: US Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014 
Table 10: US Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019 
Table 11: US Defense Expenditure Allocation for Army, Air Force, Navy, and Defense-wide (%), 2010–2014 
Table 12: US Defense Expenditure Allocation for Army, Air Force, Navy, and Defense-wide (%), 2015–2019 
Table 13: US Defense Budget Allocation for Army (US$ billion), 2010–2014 
Table 14: US Defense Budget Allocation for Army (US$ billion), 2015–2019 
Table 15: US Defense Budget Allocation for Navy (US$ billion), 2010–2014 
Table 16: US Defense Budget Allocation for Navy (US$ billion), 2015–2019 
Table 17: US Defense Budget Allocation for Air Force (US$ billion), 2010–2014 
Table 18: US Defense Budget Allocation for Air Force (US$ billion), 2015–2019 
Table 19: US Defense Budget Allocation for Defense-Wide Expenditure (US$ billion), 2010–2014 
Table 20: US Defense Budget Allocation for Defense-wide Expenditure (US$ billion), 2015–2019 
Table 21: US Homeland Security Expenditure (US$ billion), 2010–2014 
Table 22: US Homeland Security Expenditure (US$ billion), 2015–2019 
Table 23: Benchmarking with Key Markets – 2010–2014 vs. 2015–2019 
Table 24: SDI Terrorism Index 
Table 25: Lockheed Martin Corp – product focus 
Table 26: Lockheed Martin Corp. – Alliances 
Table 27: Lockheed Martin Corp. – Recent Contract Wins 
Table 28: Raytheon – Product Focus 
Table 29: Raytheon – Alliances 
Table 30: Raytheon – Recent Contract Wins 
Table 31: General Dynamics – product focus 
Table 32: General Dynamics – Alliances 
Table 33: General Dynamics – Recent Contract Wins 
Table 34: Boeing – product focus 
Table 35: Boeing – Alliances 
Table 36: Boeing – Recent Contract Wins 
Table 37: L-3 Communications Corp. – Product Focus 
Table 38: L-3 Communications Corp. – Alliances 
Table 39: L-3 Communications Corp. – Recent Contract Wins 
Table 40: Northrop Grumman Corp.– Product Focus 
Table 41: Northrop Grumman Corporation – Alliances 
Table 42: Northrop Grumman Corp. – Recent Contract Wins 
Table 43: Science Application International Corp. (SAIC) – Product Focus 
Table 44: Science Application International Corp. (SAIC) – Alliances 
Table 45: Science Application International Corp. (SAIC) – Recent Contract Wins 
Table 46: Honeywell International Inc. – product focus 
Table 47: Honeywell International Inc. – Alliances 
Table 48: Honeywell International Inc.– Recent Contract Wins 
Table 49: Sikorsky Aircraft – Product Focus 
Table 50: Sikorsky Aircraft – Alliances 
Table 51: Sikorsky Aircraft – Recent Contract Wins 
Table 52: General Electric Aviation – Product Focus 
Table 53: General Electric Aviation – Alliances 
Table 54: General Electric Aviation – Recent Contract Wins 
Table 55: Bell Helicopter Textron, Inc. – Product Focus 
Table 56: Bell Helicopter Textron, Inc. – Alliances 
Table 57: Bell Helicopter Textron, Inc. – Recent Contract Wins 
Table 58: Textron Marine and Land Systems – Product Focus 
Table 59: Textron Marine and Land Systems – Alliances 
Table 60: Textron Marine and Land Systems – Recent Contract Wins 
“
“Figure 1: US Defense Expenditure (US$ Billion), 2010–2014 
Figure 2: US Defense Expenditure (US$ Billion), 2015–2019 
Figure 3: US GDP Growth vs. Defense Expenditure Growth vs. Defense Expenditure as Percentage of GDP, 2010–2014 
Figure 4: US GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as  Percentage of GDP, 2015–2019 
Figure 5: US Per Capita Defense Expenditure, 2010–2014 
Figure 6: US Per Capita Defense Expenditure, 2015–2019 
Figure 7:US Defense Budget Split by Base Budget, OCO, and Other Funds (US$ Billion), 2010–2014 
Figure 8: US Defense Budget Split by Base Budget, OCO, and Other Funds (US$ Billion), 2015–2019 
Figure 9: US Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014 
Figure 10: US Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019 
Figure 11: US Defense Expenditure Allocation for Army, Air Force, Navy, and Defense-wide (%), 2010–2014 
Figure 12:US Defense Expenditure Allocation for Army, Air Force, Navy, and Defense-wide (%), 2015–2019 
Figure 13: US Defense Budget Allocation for Army (US$ billion), 2010–2014 
Figure 14: US Defense Budget Allocation for Army (US$ billion), 2015–2019 
Figure 15: US Defense Budget Allocation for Navy (US$ billion), 2010–2014 
Figure 16: US Defense Budget Allocation for Navy (US$ billion), 2015–2019 
Figure 17: US Defense Budget Allocation for Air Force (US$ billion), 2010–2014 
Figure 18: US Defense Budget Allocation for Air Force (US$ billion), 2015–2019 
Figure 19: US Defense Budget Allocation for Defense-Wide Expenditure (US$ billion), 2010–2014 
Figure 20: US Defense Budget Allocation for Defense-wide Expenditure (US$ billion), 
Figure 21: US Homeland Security Expenditure (US$ billion), 2010–2014 
Figure 22: US Homeland Security Expenditure (US$ billion), 2015–2019 
Figure 23: SDI Terrorism Heat Map, 2013 
Figure 24: SDI Terrorism Index, 2013 
Figure 25: Benchmarking with Key Markets – 2010–2014 vs. 2015–2019 
Figure 26: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2014 and 2019 
Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2014 
Figure 28: C4ISR – Land based Market Size (US$ Billion), 2014–2024 
Figure 29: Networking Market Size (US$ Billion), 2014–2024 
Figure 30: Multi-role Aircraft Market Size (US$ Billion), 2014–2024 
Figure 31: Software Infrastructure Market Size (US$ Billion), 2014–2024 
Figure 32: Missile Defense Systems Market Size (US$ Billion), 2014–2024 
Figure 33: SSN submarines Market Size (US$ Billion), 2014–2024 
Figure 34: US Defense Import Trend (US$ Million), 2008–2012 
Figure 35: US Defense Imports by Country (%),2008–2012 
Figure 36: US Defense Imports by Category (%), 2008–2012 
Figure 37: US Defense exports (US$ Million),2008–2012 
Figure 38: US Defense Exports by Country (%), 2008–2012 
Figure 39: US Defense Exports by Category (%),2008–2012 
Figure 40: Industry Dynamics – Porter’s Five Forces Analysis 
Figure 41: Lockheed Martin Corp. – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 42: Lockheed Martin Corp. – Operating Profit Trend Analysis (US$ billion), 2009–2013 
Figure 43: Lockheed Martin Corp. – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 44: Raytheon – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 45: Raytheon – Operating Profit Trend Analysis (US$ billion), 2009–2013 
Figure 46: Raytheon – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 47: General Dynamics – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 48: General Dynamics – Operating Profit Trend Analysis (US$ billion), 2009–2013 
Figure 49: General Dynamics – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 50: Boeing – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 51: Boeing – Operating Profit Trend Analysis (US$ billion), 2009–2013 
Figure 52: Boeing – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 53: L-3 Communications Corp. – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 54: L-3 Communications Corp. – Operating Profit Trend Analysis (US$ billion),  2009–2013 
Figure 55: L-3 Communications Corp. – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 56: Northrop Grumman Corp. – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 57: Northrop Grumman Corp. – Operating Profit Trend Analysis (US$ billion), 2009–2013 
Figure 58: Northrop Grumman Corp. – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 59: Science Application International Corp. (SAIC) – Revenue Trend Analysis  (US$ billion), 2009–2013 
Figure 60: Science Application International Corp. (SAIC) – Operating Profit Trend Analysis (US$ million), 2009–2013 
Figure 61: Science Application International Corp. (SAIC) – Net Profit Trend Analysis (US$ million), 2009–2013 
Figure 62: Honeywell International Inc. – Revenue Trend Analysis (US$ billion), 2009–2013 
Figure 63: Honeywell International Inc. – Operating Profit Trend Analysis (US$ billion),  2009–2013 
Figure 64: Honeywell International Inc. – Net Profit Trend Analysis (US$ billion), 2009–2013 
Figure 65: US Rural Population (In Millions), 2010–2019 
Figure 66: US Urban Population (In Millions), 2010–2019 
Figure 67: US Number of Households (In Millions), 2008–2017 
Figure 68: US GDP Per Capita, 2010–2019 
Figure 69: US GDP, Current Prices (US$ Billion), 2010–2019 
Figure 70: US Consumer Price Index, 2010–2019 
Figure 71: US Wholesale Price Index, 2003–2012 
Figure 72: Local Currency per Euro, 2010–2019 
Figure 73: Lending Rate, 2003–2012 
Figure 74: Real Interest Rate, 2003–2012 
Figure 75: US Market Capitalization of Listed Companies (US$ Billion), 2003–2012 
Figure 76: US Market Capitalization of Listed Companies (% of GDP), 2002–2011 
Figure 77: US Government Cash Surplus/Deficit (LCU Billion), 2002–2011 
Figure 78: US Government Cash Surplus/Deficit as % of GDP, 2002–2011 
Figure 79: US Central Government Debt (LCU Bn), 2002–2011 
Figure 80: US Central Government Debt as % of GDP, 2003–2011 
Figure 81: US Goods Exports as % of GDP, 2002–2011 
Figure 82: US Goods Imports as % of GDP, 2002–2011 
Figure 83: US Goods Trade Surplus/Deficit as % of GDP, 2002–2011 
Figure 84: US Service Imports as % of GDP, 2002–2011 
Figure 85: US Service Exports as % of GDP, 2002–2011 
Figure 86: US Service Trade Surplus/Deficit as % of GDP, 2002–2011 
Figure 87: US Foreign Direct Investment (US$ Billion), 2002–2011 
Figure 88: US Net foreign direct investment as % of GDP, 2002–2011 
Figure 89: US International reserves, including gold (US$ Billion), 2002–2011 
Figure 90: US Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002–2011 
Figure 91: US Hydroelectricity Net Generation (Billion Kilowatt hours), 2002–2011 
Figure 92: US Nuclear Electricity Net Generation (Billion Kilowatt hours), 2003–2012 
Figure 93: US Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001–2010 
Figure 94: US Electricity Exports (Billion Kilowatt hours), 2002–2011 
Figure 95: US Electricity Imports (Billion Kilowatt hours), 2003–2012 
Figure 96: US Proved Natural Gas Reserves (Trillion Cubic Feet), 2003–2012 
Figure 97: US Petroleum Consumption (Thousand Barrels Per Day), 2003–2012 
Figure 98: US Crude Oil Proved Reserves (Billion Barrels), 2002–2011 
Figure 99: US Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2002–2011 
Figure 100: US Rail Lines (kms), 2003–2011 
Figure 101: US Air transport freight (million ton-km), 2002–2011 
Figure 102: US Overall Construction (US$ Billion), 2007–2017 
Figure 103: US Mining, Manufacturing, Utilities Output (US$ Billion), 2002–2011 
Figure 104: US Research and Development Expenditure, 2001–2009 
Figure 105: US Patents Granted, 2003–2012 
Figure 106: US Telephone Lines (In Million), 2003–2012 
Figure 107: US Telephone Lines Penetration Rate (Per 100 People), 2003–2012 
“