1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 ICD Research Terrorism Index
1.5 About ICD Research
1.6 About Strategic Defense Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 German annual defense expenditure to reach US$XX billion by 2016
3.1.2 Defense expenditure driven by factors such as security of EU, peacekeeping initiatives and A400M development program
3.1.3 Defense expenditure as a percentage of GDP expected to decrease
3.2 Analysis of Defense Budget Allocation
3.2.1 Majority of defense budget allocated for the acquisition of advanced technology and equipment
3.2.2 Air force receives largest capital expenditure allocation
3.2.3 Capital expenditure for army is expected to increase
3.2.4 Capital expenditure of air force is expected to decrease
3.2.5 Naval capital expenditure is set to increase
3.2.6 R&D expenditure is expected to increase
3.3 Homeland Security Market Size and Forecast
3.3.1 Homeland security budget US$XX billion for 2010
3.3.2 Preventive defense measures used to counter terrorism threat
3.3.3 Germany has a moderate threat of terrorism
3.4 Benchmarking with Key Global Markets
3.4.1 German defense budget growth expected to be negligible over the forecast period
3.4.2 Germany's rank of the sixth-largest defense spender set to decline
3.4.3 Germany allocates XX% of its GDP for defense expenditure
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Demand for heavy lift helicopters to increase
3.5.2 Increased spending on Interactive Defense and Attack System for Submarines weapons
3.5.3 Demand for medium-altitude long-endurance (MALE) UAVs will increase
3.5.4 Germany plan to procure armored vehicles will increase business opportunities
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Network centric warfare capability for peacekeeping initiatives drive defense imports
4.1.2 Netherlands and the US are Germany's main arms suppliers
4.2 Export Market Dynamics
4.2.1 Superior defense technology and strong trade relationships with other countries will continue to drive defense exports
4.2.2 Germany's arms exports grew during 2005-2010
4.2.3 Germany is the third-largest arms exporter globally
4.2.4 Ships and armored vehicles are the main exported defense products
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: low
5.1.4 Intensity of rivalry: low
5.1.5 Threat of substitution: low
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Investment policy promotes XX% FDI in the defense industry
6.2 Market Entry Route
6.2.1 Foreign defense OEMs form large conglomerates to enter the market
6.2.2 Foreign OEMs establish subsidiaries or form JV to enter the industry
6.3 Key Challenges
6.3.1 The European debt crisis will negatively affect defense procurements
6.3.2 Modernization of military through downsizing existing systems and personnel
6.3.3 German arms exports to large defense markets outside EU are minimal
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.1.1 Foreign OEMs have strong collaborations with domestic defense firms
7.2 Key Domestic Companies
7.2.1 Heckler & Koch: overview
7.2.2 Heckler & Koch: products and services
7.2.3 Heckler & Koch: recent announcements and strategic initiatives
7.2.4 Heckler & Koch: alliances
7.2.5 Heckler & Koch: recent contract wins
7.2.6 Heckler & Koch: financial analysis
7.2.7 MAN Nutzfahrzeuge: overview
7.2.8 MAN Nutzfahrzeuge: products and services
7.2.9 MAN Nutzfahrzeuge: recent announcements and strategic initiatives
7.2.10 MAN Nutzfahrzeuge: alliances
7.2.11 MAN Nutzfahrzeuge: recent contract wins
7.2.12 MAN Nutzfahrzeuge: financial analysis
7.2.13 Eurocopter: overview
7.2.14 Eurocopter: products and services
7.2.15 Eurocopter: recent announcements and strategic initiatives
7.2.16 Eurocopter: alliances
7.2.17 Eurocopter: recent contract wins
7.2.18 Eurocopter: financial analysis
7.2.19 ESG Elektroniksystem- und Logistik: overview
7.2.20 ESG Elektroniksystem- und Logistik: products and services
7.2.21 ESG Elektroniksystem- und Logistik: recent announcements and strategic initiatives
7.2.22 ESG Elektroniksystem- und Logistik: alliances
7.2.23 ESG Elektroniksystem- und Logistik: recent contract wins
7.2.24 ESG Elektroniksystem- und Logistik: financial analysis
7.2.25 Diehl Stiftung: overview
7.2.26 Diehl Stiftung: products and services
7.2.27 Diehl Stiftung: recent announcements and strategic initiatives
7.2.28 Diehl Stiftung: alliances
7.2.29 Diehl Stiftung: recent contract wins
7.2.30 Diehl Stiftung: financial analysis
7.2.31 ThyssenKrupp Marine Systems: overview
7.2.32 ThyssenKrupp Marine Systems: products and services
7.2.33 ThyssenKrupp Marine Systems: recent announcements and strategic initiatives
7.2.34 ThyssenKrupp Marine Systems: alliances
7.2.35 ThyssenKrupp Marine Systems: recent contract wins
7.2.36 ThyssenKrupp Marine Systems: financial analysis
7.2.37 Thales Deutschland: overview
7.2.38 Thales Deutschland: products and services
7.2.39 Thales Deutschland: recent announcements and strategic initiatives
7.2.40 Thales Deutschland: alliances
7.2.41 Thales Deutschland: recent contract wins
7.2.42 Thales Deutschland: Financial Analysis
7.2.43 EADS: overview
7.2.44 EADS: product and services
7.2.45 EADS: recent announcements and strategic initiatives
7.2.46 EADS: alliances
7.2.47 EADS: recent contract wins
7.2.48 EADS: financial analysis
7.2.49 Airbus Military: overview
7.2.50 Airbus Military: products and services
7.2.51 Airbus Military: recent announcements and strategic initiatives
7.2.52 Airbus Military: alliances
7.2.53 Airbus Military: recent contract wins
7.2.54 Airbus Military: financial analysis
7.2.55 MBDA: overview
7.2.56 MBDA: products and services
7.2.57 MBDA: recent announcements and strategic initiatives
7.2.58 MBDA: alliances
7.2.59 MBDA: recent contract Wins
7.2.60 MBDA: financial analysis
7.2.61 Eurofighter Jagdflugzeug: overview
7.2.62 Eurofighter Jagdflugzeug: products and services
7.2.63 Eurofighter Jagdflugzeug: recent announcements and strategic initiatives
7.2.64 Eurofighter Jagdflugzeug: alliances
7.2.65 Eurofighter Jagdflugzeug: recent contract wins
7.2.66 Eurofighter Jagdflugzeug: financial analysis
7.2.67 Rheinmetall: overview
7.2.68 Rheinmetall AG: products and services
7.2.69 Rheinmetall: recent announcements and strategic initiatives
7.2.70 Rheinmetall: alliances
7.2.71 Rheinmetall: recent contract wins
7.2.72 Rheinmetall: financial analysis
8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 business confidence index
8.1.2 Market capitalization trend - The Frankfurt Stock Exchange (FWB), Germany
8.1.3 FDI inflows by industry
8.1.4 Deployment of credit by industry
8.2 Economic Performance
8.2.1 GDP at constant prices
8.2.2 GDP per capita at constant prices
8.2.3 GDP at current prices
8.2.4 GDP per capita at current prices
8.2.5 GDP split by key industries
8.2.6 Agriculture - agriculture net output at current prices (local currency)
8.2.7 Agriculture - agriculture net output at current prices (us dollar)
8.2.8 Agriculture - agriculture net output at current prices as a percentage of gdp
8.2.9 Manufacturing - manufacturing net output at current prices (local currency)
8.2.10 Manufacturing - manufacturing net output at current prices (us dollar)
8.2.11 Manufacturing - manufacturing net output-current prices as a percentage of gdp
8.2.12 Manufacturing - mining, manufacturing and utilities net output at current prices (local currency)
8.2.13 Manufacturing - mining, manufacturing and utilities at current prices (us dollars)
8.2.14 Manufacturing - mining, manufacturing and utilities at current prices, as a percentage of gdp
8.2.15 Construction - construction net output at current prices, (local currency)
8.2.16 Construction - construction net output at current prices (us dollar)
8.2.17 Construction - construction output-current prices as a percentage of GDP
8.2.18 Industry - crude steel production
8.2.19 Industry - crude oil consumption
8.2.20 Inflation rate
8.2.21 Fiscal deficit as a percentage of GDP
8.2.22 Trade balance as a percentage of GDP
8.2.23 Exports as a percentage of GDP
8.2.24 Imports as a percentage of GDP
8.2.25 Exports growth
8.2.26 Imports growth
8.2.27 Exchange rate US$-EUR (annual average)
8.2.28 Exchange rate US$-EUR (end of fiscal)
8.3 Infrastructure Quality and Availability
8.3.1 Transport - total airports and ports
8.3.2 Transport - railways system
8.3.3 Transport - passenger vehicle production volume
8.3.4 Transport - commercial vehicle production volume
8.3.5 Transport - automotive components export trend
8.3.6 Transport - automotive products import trend
8.3.7 Transport - passenger vehicle export trend
8.3.8 Transport - commercial vehicle export trend
8.3.9 Transport - passenger car penetration
8.3.10 Utilities - total installed capacity for electricity generation
8.3.11 Utilities - installed capacity for conventional thermal electricity generation
8.3.12 Utilities - electricity production
8.3.13 Utilities - installed capacity for hydro-electricity generation
8.3.14 Utilities - installed capacity for renewable electricity generation
8.3.15 Utilities - electric power consumption
8.3.16 Utilities - electricity exports
8.3.17 Utilities - electricity imports
8.3.18 Healthcare - healthcare expenditure
8.3.19 Healthcare - healthcare expenditure as a percentage of GDP
8.3.20 Healthcare - healthcare expenditure per capita
8.3.21 Technology - R&D expenditure as a percentage of GDP
8.3.22 Communication - total internet subscribers
8.3.23 Communication - broadband internet subscribers
8.3.24 Communication - personal computer penetration
8.3.25 Communication - mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Annual per capita consumer expenditure on food
8.5.5 Urban and rural population
8.5.6 Females as a percentage of the population
8.5.7 Males as a percentage of the population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age distribution - total population
8.5.12 Age distribution-of male population
8.5.13 Age distribution of female population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political Stability
8.6.2 Terrorism Index
8.6.3 Transparency Index
9 Appendix
9.1 Contact Us
9.2 About ICD Research
9.3 Disclaimer
List of Tables
Table 1: German Defense Expenditure, 2007-2011
Table 2: German Defense Expenditure, 2012-2016
Table 3: German Defense Expenditure as a Percentage of GDP, 2007-2011
Table 4: German Defense Expenditure as a Percentage of GDP, 2012-2016
Table 5: German Defense Budget Split Between Capital and Revenue Expenditure, 2007-2011
Table 6: German Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Table 7: German Defense Capital Expenditure Breakdown (%), 2007-2011
Table 8: German Defense Capital Expenditure Breakdown (%), 2012-2016
Table 9: German Defense Capital Expenditure for Army (US$ million), 2007-2011
Table 10: German Defense Capital Expenditure for Army (US$ million), 2012-2016
Table 11: German Defense Capital Expenditure for Air Force (US$ million), 2007-2011
Table 12: German Defense Capital Expenditure for Air Force (US$ million), 2012-2016
Table 13: German Defense Capital Expenditure for Navy (US$ million), 2007-2011
Table 14: German Defense Capital Expenditure for Navy (US$ million), 2012-2016
Table 15: German Defense Capital Expenditure for R&D (US$ million), 2007-2011
Table 16: German Defense Capital Expenditure for R&D (US$ million), 2012-2016
Table 17: ICD Research Terrorism Index
Table 18: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
Table 19: Benchmarking with World's Largest Defense Spenders - 2011 and 2016
Table 20: Key Foreign Players and Operations in the German Defense Industry
Table 21: Heckler & Koch - product focus
Table 22: Heckler & Koch - Recent Contract Wins
Table 23: MAN Nutzfahrzeuge - product focus
Table 24: MAN Nutzfahrzeuge - alliances
Table 25: Eurocopter - product focus
Table 26: Eurocopter - Alliances
Table 27: Eurocopter - Recent Contract Wins
Table 28: ESG Elektroniksystem- und Logistik - product focus
Table 29: ESG Elektroniksystem- und Logistik - Alliances
Table 30: ESG Elektroniksystem- und Logistik - Recent Contract Wins
Table 31: Diehl Stiftung - product focus
Table 32: Diehl Stiftung - Alliances
Table 33: Diehl Stiftung - Recent Contract Wins
Table 34: ThyssenKrupp Marine Systems - product focus
Table 35: ThyssenKrupp Marine Systems - Alliances
Table 36: ThyssenKrupp Marine Systems - Recent Contract Wins
Table 37: Thales Deutschland - product focus
Table 38: Thales Deutschland - Alliances
Table 39: Thales Deutschland - Recent Contract Wins
Table 40: EADS - product focus
Table 41: EADS - Alliances
Table 42: EADS - Recent Contract Wins
Table 43: Airbus Military - product focus
Table 44: MBDA - product focus
Table 45: MBDA - Alliances
Table 46: MBDA - Recent Contract Wins
Table 47: Eurofighter Jagdflugzeug - product focus
Table 48: Eurofighter Jagdflugzeug - Recent Contract Wins
Table 49: Rheinmetall AG - product focus
Table 50: Rheinmetall - Alliances
Table 51: Rheinmetall - Recent Contract Wins
List of Figures
Figure 1: German Defense Expenditure, 2007-2011
Figure 2: German Defense Expenditure, 2012-2016
Figure 3: German Defense Expenditure as a Percentage of GDP, 2007-2011
Figure 4: German Defense Expenditure as a Percentage of GDP, 2012-2016
Figure 5: German Defense Budget Split Between Capital and Revenue Expenditure, 2007-2011
Figure 6: German Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Figure 7: German Defense Capital Expenditure Breakdown (%), 2007-2011
Figure 8: German Defense Capital Expenditure Breakdown (%), 2012-2016
Figure 9: German Defense Capital Expenditure for Army (US$ million), 2007-2011
Figure 10: German Defense Capital Expenditure for Army (US$ million), 2012-2016
Figure 11: German Defense Capital Expenditure for Air Force (US$ million), 2007-2011
Figure 12: German Defense Capital Expenditure for Air Force (US$ million), 2012-2016
Figure 13: German Defense Capital Expenditure for Navy (US$ million), 2007-2011
Figure 14: German Defense Capital Expenditure for Navy (US$ million), 2012-2016
Figure 15: German Defense Capital Expenditure for R&D (US$ million), 2007-2011
Figure 16: German Defense Capital Expenditure for R&D (US$ million), 2012-2016
Figure 17: ICD Research Terrorism Heat Map
Figure 18: ICD Research Terrorism Heat Index
Figure 19: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
Figure 20: Benchmarking with World's Largest Defense Spenders - 2011 and 2016
Figure 21: Benchmarking with Large Defense Spenders as Percentage of GDP - 2011
Figure 22: German Defense Imports by Supplier Country (%), 2005-2010
Figure 23: German Defense Imports by Category (%), 2005-2010
Figure 24: German Defense Exports (US$ Million), 2005-2010
Figure 25: Global Top Ten Arms Suppliers(%), 2005-2010
Figure 26: Top German Arms Importers by Country (%), 2005-2010
Figure 27: German Defense Exports by Category (%), 2005-2010
Figure 28: Industry Dynamics - Porter's Five Forces Analysis
Figure 29: Rheinmetall - Revenue Trend Analysis (EUR Million), 2005-2009
Figure 30: Rheinmetall - Operating Profit Trend Analysis (EUR Million), 2005-2009
Figure 31: Rheinmetall - Net Profit Trend Analysis (EUR Million), 2005-2009
Figure 32: German Business Confidence Index, 2008-2010
Figure 33: The Frankfurt Stock Exchange (FWB) Market Capitalization, 2003-2009
Figure 34: German FDI Inflows by Sector, 2003-2008
Figure 35: German Deployment of Credit by Sector, 2003-2009
Figure 36: German GDP Value at Constant Prices, 2003-2015
Figure 37: German GDP Per Capita at Constant Prices, 2003-2015
Figure 38: German GDP at Current Prices, 2003-2015
Figure 39: German GDP Per Capita at Current Prices, 2003-2015
Figure 40: German GDP Split by Key Industries, 2003 Vs 2009
Figure 41: German Agriculture Net Output at Current Prices (Local Currency), 2003-2015
Figure 42: German Agriculture Net Output at Current Prices (US Dollar), 2003-2015
Figure 43: German Agriculture Net Output at Current Prices (% of GDP), 2003-2015
Figure 44: German Manufacturing Net Output at Current Prices (Local Currency), 2003-2015
Figure 45: German Manufacturing Net Output at Current Prices (US Dollar), 2003-2015
Figure 46: German Manufacturing Net Output at Current Prices (% of GDP), 2003-2015
Figure 47: German Mining, Manufacturing and Utilities Net Output at Current Prices (Local Currency), 2003-2015
Figure 48: German Mining, Manufacturing and Utilities Output at Current Prices (US Dollar), 2003-2015
Figure 49: German Mining, Manufacturing, Utilities Output at Current Prices (% of GDP), 2003-2015
Figure 50: German Construction Net Output, at Current Prices (Local Currency), 2003-2015
Figure 51: German Construction Net Output, at Current Prices (US Dollar), 2003-2015
Figure 52: German Construction Output, at Current Prices (% of GDP), 2003-2015
Figure 53: German Crude Steel Production, 2003-2015
Figure 54: German Crude Oil Consumption, 2003-2015
Figure 55: German Inflation Rate, 2003-2015
Figure 56: German Fiscal Deficit as a percentage of GDP, 2003-2015
Figure 57: German Trade Balance as a percentage of GDP, 2003-2009
Figure 58: German Exports as a Percentage of GDP, 2003-2015
Figure 59: German Imports as a Percentage of GDP, 2003-2015
Figure 60: German Exports Growth, 2003-2015
Figure 61: German Imports Growth, 2003-2015
Figure 62: German Exchange Rate US$-EUR (Annual Average), 2003-2009
Figure 63: German Exchange Rate (End of Fiscal ), 2003-2009
Figure 64: German Airports and Ports, 2009
Figure 65: German Railways, 2009
Figure 66: German Passenger Vehicle Production, 2003-2015
Figure 67: German Commercial Vehicle Production, 2003-2015
Figure 68: German Automotive Components Exports, 2003-2015
Figure 69: German Automotive Components Imports, 2003-2015
Figure 70:German Passenger Vehicle Exports, 2003-2015
Figure 71: German Commercial Vehicle Exports, 2003-2015
Figure 72: German Passenger Car Penetration (per 1000 people), 2003-2015
Figure 73: German Total Installed Capacity for Electricity Generation, 2003-2015
Figure 74: German Installed Capacity for Conventional Thermal Electricity Generation, 2003-2015
Figure 75: German Electricity Production, 2003-2015
Figure 76: German Installed Capacity for Hydro-electricity Generation, 2003-2015
Figure 77: German Installed Capacity for Renewable Electricity Generation, 2003-2015
Figure 78: German Electric Power Consumption, 2003-2015
Figure 79: German Electricity Exports, 2003-2015
Figure 80: German Electricity Imports, 2003-2015
Figure 81: German Healthcare Expenditure, 2003-2015
Figure 82: German Healthcare Expenditure as a Percentage (%) of GDP, 2003-2015
Figure 83: German Per Capita Healthcare Expenditure, 2003-2015
Figure 84: German R&D Expenditure as a percentage of GDP, 2003-2015
Figure 85: German Internet Subscribers, 2003-2015
Figure 86: German Broadband Internet Subscribers, 2003-2015
Figure 87: German Personal Computer Usage (per 100 people), 2003-2015
Figure 88: German Mobile Phone Penetration (per 100 people), 2003-2015
Figure 89: German Size of Labor Force (in 15-59 Age Group), 2003-2015
Figure 90: German Unemployment Rate, 2003-2015
Figure 91: German Annual Disposable Income, 2003-2015
Figure 92: German Annual Per Capita Disposable Income, 2003-2015
Figure 93: German Consumer Expenditure on Food, 2003-2015
Figure 94: German Annual Per Capita Consumer Expenditure on Food, 2003-2015
Figure 95: German Urban and Rural Population, 2003-2015
Figure 96: German Females as a Percentage of Population, 2003-2015
Figure 97: German Males as a Percentage of the Population, 2003-2015
Figure 98: German Mean Age of Population, 2003-2015
Figure 99: German Median Age of Population, 2003-2015
Figure 100: German Population Density, 2003-2015
Figure 101: German Population Distribution by Age, 2003-2015
Figure 102: German Male Population Distribution by Age, 2003-2015
Figure 103: German Female Population Distribution by Age, 2003-2015
Figure 104: German Number of Households, 2003-2015
Figure 105: Global Terrorism Heat Map, 2011
Figure 106: German Transparency Index, 2003-2009
