An ICD Research report: The Israeli defense market, which has an estimated value of US$13.2 billion for 2010, has the third largest military expenditure in the Middle East. In fact, while Israeli defense expenditure has grown at a CAGR of 5.11% during the review period (2004-2009), and is expected to record a CAGR of 3.70% during the forecast period (2010-2015), the country is also scheduled to receive US$18.2 billion of military aid from the US in the next five years. With continued security threats from Iran, Syria and other neighboring Arab countries, Israel is forecast to spend US$15.8 billion on defense by 2015.
Moreover, in 2010, Israeli defense expenditure as a percentage of its gross domestic product (GDP) is estimated at 6.8%, which is expected to continue throughout the forecast period. This is due to the refusal of many countries in the Middle East to accept Israel as an independent state, and the subsequent threat posed to the security of the nation. Consequently, Israel is expected to focus its spending on the procurement of missile defense systems, fighter aircraft, submarines and armored vehicles during the next five years.
The Israeli homeland security market alone is expected to grow at a CAGR of 4.90% from US$2.7 billion in 2010 to US$3.4 billion in 2015, driven by the need to protect the nation from potential terrorist attacks from Palestinian terrorist organizations, and growing crime rates. Consequently, the demand for surveillance equipment, radars and sensors is expected to increase. In addition to domestic distribution, Israeli defense firms also export homeland security equipment to countries in Central Europe, the Far East and Asia, Latin America, South Africa, Western Europe and the US.
Israel has built a self-reliant defense industry, in which 70% of the nation's defense needs are met by domestic procurement. Despite this, the government assigned US$2.8 billion for the import of defense goods in 2010, the majority of which were air defense systems. Currently, the US accounts for over 90% of the Israeli defense imports, while, in 2009, Asia emerged as the greatest consumer of Israeli defense goods, with the expenditure for India alone reaching US$3 billion. During the review period, the three major Israeli arms export categories were missiles, sensors and armored vehicles. Reasons to buy: - Gain insight into the Israeli defense industry with current, historic and forecast market values
- Get insight on market opportunity and attractiveness
- Gain insight into the regulations governing the Israeli defense industry and the potential market entry strategies with an expert analysis of the competitive structure
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