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Future of the Bangladeshi Defense Industry

– Market Attractiveness, Competitive

Landscape and Forecasts to 2019

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

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Summary

―Future of the Bangladeshi Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts

to 2019‖ report offers the reader detailed analysis of the defense budget over the next five years. Alongside

it offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original

equipment manufacturers) to gain a market share in the Bangladeshi defense industry.

The report provides detailed analysis of the current industry size and growth expectations during 2015-2019,

including highlights of the key growth stimulators. It also benchmarks the industry against key global markets

and provides detailed understanding of emerging opportunities in specific areas.

Key Findings

Bangladesh — a country that came into existence only a few decades ago following a war of liberation in

1971 — has a defense budget that registered a CAGR of 7.86% over 2010–2014. The country allocated

US$1.6 billion to the defense sector in 2010, which increased to US$2.2 billion in2014. This trend is

expected to continue during the forecast period, owing to the government’s well-defined military

modernization plans and the country’s active and consistent participation in various peacekeeping missions.

During the forecast period, the defense budget is projected to increase from US$2.3 billion in 2015 to

US$3.2 billion in 2019, at a CAGR of 8.71%. Despite a rapidly growing population, the country’s per capita

defense expenditure is also expected to increase from US$13.7 in 2014 to US$19.4 in 2019.

Key Features and Benefits

The report provides detailed analysis of the Bangladeshi defense industry during 2010–2019, including the

factors that influence the military expenditure. It provides detailed expectations of growth rates and projected

total expenditure.

It provides the manufacturers with insights on market opportunities along with industry structure and

dynamics prevalent in the country. In addition, the report focuses on the regulations governing the

Bangladeshi defense industry and the potential market entry strategies with an expert analysis of the

competitive structure.


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1. Market Attractiveness and Emerging Opportunities

1.1. Defense Market Size Historical and Forecast

1.1.1. Bangladeshi defense budget to grow at a CAGR of XX% over the forecast period

The Bangladeshi defense budget increased from US$XX billion in 2010 to US$XX billion in 2014, at a CAGR

of XX%. Modernizing the armed forces remains the government’s prime commitment, and it is working out a

well-defined military hardware procurement plan in support of this. Between 2010 and 2014, the government

added a range of advanced equipment to its fleet; including anti-tank and anti-ship missile systems, fighter

aircraft, patrol boats, armored vehicles, and helicopters. Over the forecast period, Bangladesh’s defense

budget is projected to increase from US$XX billion in 2015 to US$XX billion in 2019, reflecting a CAGR of

XX%. Owing to the nation’s extensive modernization goals, the government is expected to collaborate with

foreign partners and purchase tanks, radars, various aircraft, air defense systems, survey ships, and self-

propelled guns.

The following table and figure show the Bangladeshi defense expenditure between 2010 and 2014:

Table 1: Bangladeshi Defense Expenditure (US$ Billion), 2010-2014

Year Defense expenditure (US$ bn)

Defense growth percentage

2010

2011

2012

2013

2014

CAGR 2010-2014

Source: Ministry of Finance and SDI analysis © SDI

Figure 1: Bangladeshi Defense Expenditure (US$ Billion), 2010-2014


-5%

0%

5%

10%

15%

20%

0.0

0.5

1.0

1.5

2.0

2.5

2010 2011 2012 2013 2014

Def

ense

exp

end

itu

re g

row

th r

ate

(%)

Def

ense

bu

dg

et (

US

$ B

illi

on

)

Defense Expenditure (US$ bn) Growth Rate (%)


4

The following table and figure show projected defense expenditure of Bangladesh over the forecast period:

Table 2: Bangladeshi Defense Expenditure (US$ Billion), 2015-2019

Year Defense expenditure (US$ bn)

Defense growth percentage

2015

2016

2017

2018

2019

CAGR 2015-2019


Figure 2: Bangladeshi Defense Expenditure (US$ Billion), 2015-2019


0%

2%

4%

6%

8%

10%

12%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2015 2016 2017 2018 2019

Defe

nse e

xp

en

dit

ure

gro

wth

rate

(%

)

Defe

nse b

ud

get

(US

$ B

illi

on

)

Defence Expenditure (US$ bn) Defense expenditure growth %


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1.2. Analysis of Defense Budget Allocation

1.2.1. Share of capital expenditure to average XX% over 2015–2019

Of the total defense budget, the capital expenditure allocation increased from XX% in 2010 to XX% in 2014

due to the country’s defense modernization efforts. Conversely, the country’s defense revenue expenditure,

which is directed towards salaries, repairs, maintenance and rehabilitation, supplies, services and subsidies,

pensions, and gratuities, declined from XX% in 2010 to XX% in 2014. Over the forecast period, Bangladesh

is expected to allocate an average of XX% of the defense budget to capital expenditure, while the remaining

will be assigned to revenue expenditure.

The following table and chart display Bangladesh’s defense budget share of capital and revenue expenditure

between 2010 and 2014:

Table 3: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014

Year Capital Expenditure Share Revenue Expenditure Share

2010

2011

2012

2013

2014

Source: Ministry of Finance, Bangladesh and SDI analysis © SDI

Figure 3: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2010-2014


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

Defe

nse B

ud

get

Sp

lit

(%)

Capital Expenditure Revenue Expenditure


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The following table and chart display Bangladesh’s defense budget share of capital and revenue expenditure

over the forecast period:

Table 4: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019

Year Capital Expenditure Share Revenue Expenditure Share

2015

2016

2017

2018

2019


Figure 4: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%),

2015-2019


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

Defe

nse B

ud

get

Sp

lit

(%)

Capital Expenditure Revenue Expenditure


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1.3. Homeland Security Market Size and Forecast

1.3.1. Bangladeshi homeland security expected to be US$XX billion over the forecast period

Between 2010 and 2014, the country’s homeland security expenditure grew at a CAGR of XX% to value

US$XX billion in 2014 and is expected to record a CAGR of XX% over the forecast period. The nation’s

homeland security expenditure is expected to be driven by the need to counter internal security threats posed

by smugglers, and to lend support to its military network. Furthermore, the government plans to construct a

number of new police stations and outposts. Cumulatively, the country is projected to invest US$XX billion on

its internal security over 2015–2019.

The table and chart below show Bangladesh’s homeland security expenditure between 2010 and 2014:

Table 5: Bangladeshi Homeland Security Expenditure (US$ million), 2010-2014

Year Homeland expenditure (US$ million)

% Growth

2010

2011

2012

2013

2014


Figure 5: Bangladeshi Homeland Security Expenditure (US$ million), 2010-2014


0%

5%

10%

15%

20%

25%

30%

35%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2010 2011 2012 2013 2014

Gro

wth

rat

e (%

)

Ho

mel

and

Sec

uri

ty E

xpen

dit

ure

(U

S$

Bn

)

Homeland Security Expenditure (US$ Bn) Growth Rate (%)


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2. Industry Dynamics - Porter’s Five Forces Analysis

Figure 4: Industry Dynamics – Porter’s Five Forces Analysis

Source: SDI analysis © SDI

Intensity of Rivalry Bargaining Power of Supplier

Bargaining Power of Buyer

Barrier to Entry

Threat of Substitute


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Report Methodology

SDI’s dedicated research and analysis teams consist of experienced professionals with a background in

industry research and consulting in the defense sector. The following research methodology is followed for all

databases and reports:

Secondary Research

The research process begins with exhaustive secondary research to source reliable qualitative and

quantitative information related to the defense market. The secondary research sources that are typically

referred to include, but are not limited to:

Industry associations

National government documents and statistical databases

Company websites, annual reports, financial reports, broker reports, investor presentations

Industry trade journals and other literature

Internal and external proprietary databases

News articles, press releases, and webcasts specific to the companies operating in the market

Primary Research

SDI conducts hundreds of primary interviews a year with industry participants and commentators in order to

validate its data and analysis. A typical research interview fulfills the following functions:

Provides first-hand information on market size, market trends, growth trends, competitive landscape,

and future outlook

Helps to validate and strengthen secondary research findings

Further develops the analysis team’s expertise and market understanding

Primary research involves e-mail interactions, telephone interviews, and face-to-face interviews for

each market category, division, and sub-division across geographies

The participants who typically take part in such a process include, but are not limited to:

Industry participants: CEOs, VPs, business development managers, market intelligence managers,

and national sales managers

External experts: investment bankers, valuation experts, research analysts, and key opinion leaders

specializing in defense markets

Conventions

Currency conversions are performed on the basis of average annual conversion rate format

calculations

All the values in tables, with the exception of compounded annual growth rate (CAGR) and

compounded annual rate of change (CARC), are displayed to one decimal place; therefore, due to

this rounding method, growth rates may appear inconsistent with absolute values

The forecasted values are projected on the basis of nominal values; the inflation was not taken into account


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TABLE OF CONTENTS

1. Introduction ........................................................................................................................... 9

1.1. What is this Report About? ........................................................................................................... 9

1.2. Definitions ...................................................................................................................................... 9

1.3. Summary Methodology .................................................................................................................11

1.4. SDI Terrorism Index ......................................................................................................................12

1.5. About Strategic Defence Intelligence ..........................................................................................12

2. Executive Summary ............................................................................................................ 13

3. Market Attractiveness and Emerging Opportunities ........................................................ 15

3.1. Defense Market Size Historical and Forecast..............................................................................16

3.1.1. Bangladeshi defense budget to grow at a CAGR of XX% over the forecast period ................................ 16

3.1.2. Military modernization and peacekeeping missions are expected to drive defense expenditure over the

forecast period ...................................................................................................................................................... 20

3.1.3. Bangladeshi defense expenditure as a percentage of GDP set to decrease over the forecast period.... 21

3.2. Analysis of Defense Budget Allocation .......................................................................................23

3.2.1. Share of capital expenditure to average XX%over 2015–2019................................................................ 23

3.2.2. Need to replace obsolete equipment to drive defense capital expenditure .............................................. 25

3.2.3. The Army accounts for the majority share of defense expenditure .......................................................... 29

3.2.4. The country is expected to invest US$XX billion in its army during the forecast period .......................... 31

3.2.5. Air force defense budget projected to grow at a CAGR of XX% during the forecast period .................... 35

3.2.6. Navy expenditure expected to register CAGR of XX% during the forecast period .................................. 39

3.2.7. Per capita defense expenditure expected to increase over the forecast period ...................................... 43

3.3. Homeland Security Market Size and Forecast ............................................................................45

3.3.1. Bangladeshi homeland security expected to be US$XX billion over the forecast period ......................... 45

3.3.2. Efforts to combat drug smuggling and human trafficking are expected to stimulate Bangladeshi

homeland security expenditure ............................................................................................................................. 49

3.3.3. Bangladesh falls under the ―some risk‖ category ..................................................................................... 50

3.4. Benchmarking with Key Global Markets .....................................................................................52

3.4.1. Bangladeshi defense budget expected to increase at a CAGR of XX% over the forecast period ........... 52

3.4.2. Bangladeshi military expenditure remains very low compared to other Asian countries ......................... 54

3.4.3. The country allocates a low percentage of its GDP towards defense sector ........................................... 55

3.4.4. Bangladesh faces some threat from terrorist organizations ..................................................................... 56

3.5. Market Opportunities: Key Trends and Growth Stimulators ......................................................58

3.5.1. Patrolling crafts are forecast to experience an increase in demand ........................................................ 58

3.5.2. Demand for aircraft expected to surge during the forecast period ........................................................... 58


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3.5.3. Demand for helicopters to mount in the coming years ............................................................................. 59

4. Defense Procurement Market Dynamics ........................................................................... 60

4.1. Import Market Dynamics ...............................................................................................................61

4.1.1. Defense imports are expected to increase over the period 2015–2019 ................................................... 61

4.1.2. Weapons manufactured in China comprised the majority of imports for Bangladesh.............................. 62

4.1.3. Armored vehicles and ships dominated military hardware imports .......................................................... 63

4.2. Export Market Dynamics ..............................................................................................................64

4.2.1. The country exported negligible defense goods during 2010–2013 ........................................................ 64

5. Industry Dynamics .............................................................................................................. 65

5.1. Five Forces Analysis.....................................................................................................................65

5.1.1. Bargaining power of supplier: high ........................................................................................................... 66

5.1.2. Bargaining power of buyer: low ................................................................................................................ 66

5.1.3. Barrier to entry: medium ........................................................................................................................... 66

5.1.4. Intensity of rivalry: low to high .................................................................................................................. 66

5.1.5. Threat of substitution: medium to high ..................................................................................................... 66

6. Market Entry Strategy ......................................................................................................... 67

6.1. Market Regulation .........................................................................................................................67

6.1.1. Bangladesh does not disclose any offset obligations imposed by the country ........................................ 67

6.1.2. Foreign direct investment (FDI) in the defense sector not disclosed by the government ........................ 67

6.2. Market Entry Route .......................................................................................................................67

6.2.1. Equipment manufacturers enter the market through government-to-government deals ......................... 67

6.2.2. Joint venture and license manufacturing agreements provide an attractive market entry route .............. 67

6.3. Key Challenges .............................................................................................................................68

6.3.1. Limited defense budget deters investors from market entry .................................................................... 68

6.3.2. Corruption hinders growth of the Bangladeshi defense sector................................................................. 68

6.3.3. Chinese companies dominate the market, creating a challenge for other foreign firms .......................... 68

7. Competitive Landscape and Strategic Insights ................................................................ 69

7.1. Competitive Landscape Overview ...............................................................................................69

7.2. Key Companies .............................................................................................................................69

7.2.1. Bangladesh Ordnance Factories: overview .............................................................................................. 69

7.2.2. Bangladesh Ordnance Factories: products .............................................................................................. 69

7.2.3. Bangladesh Machine Tools Factory (BMTF) Ltd: overview ...................................................................... 70

7.2.4. Bangladesh Machine Tools Factory: products ......................................................................................... 70

7.2.5. AgustaWestland: overview ....................................................................................................................... 71

7.2.6. AgustaWestland: products ........................................................................................................................ 71

7.2.7. AgustaWestland: recent contract wins ..................................................................................................... 72

7.2.8. Eurocopter: overview ................................................................................................................................ 73


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7.2.9. Eurocopter: products ................................................................................................................................ 73

7.2.10. Eurocopter: recent contract wins .............................................................................................................. 73

8. Business Environment and Country Risk ......................................................................... 74

8.1. Demographics & Social Statistics ................................................................................................74

8.1.1. Population – Rural .................................................................................................................................... 74

8.1.2. Population - Urban .................................................................................................................................... 75

8.1.3. Population – Number of Households ........................................................................................................ 76

8.2. Economic Performance ................................................................................................................77

8.2.1. Gross Domestic per Capita....................................................................................................................... 77

8.2.2. Gross Domestic Product, current US$ ..................................................................................................... 78

8.2.3. Exports of Goods and Services ................................................................................................................ 79

8.2.4. Imports of Goods and Services ................................................................................................................ 80

8.2.5. Gross National Disposable Income .......................................................................................................... 81

8.2.6. Manufacturing Output ............................................................................................................................... 82

8.2.7. Consumer Price Index .............................................................................................................................. 83

8.2.8. Local Currency Unit per US$ .................................................................................................................... 84

8.2.9. Local Currency Unit per EUR ................................................................................................................... 85

8.2.10. Lending Rate (%) ...................................................................................................................................... 86

8.2.11. Deposit Rate (%) ...................................................................................................................................... 87

8.2.12. Real Interest Rate (%) .............................................................................................................................. 88

8.2.13. Market Capitalization of Listed Companies .............................................................................................. 89

8.2.14. Market Capitalization of Listed Companies as a % of GDP ..................................................................... 90

8.2.15. Total Government cash surplus/deficit (LCU Bn) ..................................................................................... 91

8.2.16. Government cash surplus/deficit as % of GDP (LCU) .............................................................................. 92

8.2.17. Goods Exports as a % of GDP ................................................................................................................. 93

8.2.18. Goods Imports as a % of GDP ................................................................................................................. 94

8.2.19. Goods Trade Surplus/Deficit as a % of GDP............................................................................................ 95

8.2.20. Services Imports as a % of GDP .............................................................................................................. 96

8.2.21. Services Exports as a % of GDP .............................................................................................................. 97

8.2.22. Services surplus/deficit as a % of GDP .................................................................................................... 98

8.2.23. Net Foreign Direct Investment .................................................................................................................. 99

8.2.24. Net FDI as a % of GDP ........................................................................................................................... 100

8.2.25. International reserves, including Gold .................................................................................................... 101

8.3. Energy and Utilities ..................................................................................................................... 102

8.3.1. Total Conventional Thermal Electricity Net Generation ......................................................................... 102

8.3.2. Hydroelectricity Net Generation .............................................................................................................. 103

8.3.3. Total Conventional Thermal Electricity Installed Capacity ..................................................................... 104

8.3.4. Proved Reserves of Natural Gas (Trillion Cubic Feet) ........................................................................... 105


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8.3.5. Total Petroleum Consumption ................................................................................................................ 106

8.3.6. Crude Oil Proved Reserves (Billion Barrels) .......................................................................................... 107

8.3.7. Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts) ............................................ 108

8.4. Infrastructure Quality and Availability ....................................................................................... 109

8.4.1. Rail lines (total route-km) ........................................................................................................................ 109

8.5. Minerals ....................................................................................................................................... 110

8.5.1. Mining, Manufacturing, Utilities Output ................................................................................................... 110

8.6. Telecommunication .................................................................................................................... 111

8.6.1. Telephone lines ...................................................................................................................................... 111

8.6.2. Telephone lines Penetration Rate .......................................................................................................... 112

9. Appendix ............................................................................................................................ 113

9.1. About SDI ..................................................................................................................................... 113

9.2. Disclaimer .................................................................................................................................... 113


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LIST OF FIGURES

Figure 1: Bangladeshi Defense Expenditure (US$ Billion), 2010–2014 ............................................................................................................... 16 Figure 2: Bangladeshi Defense Expenditure (US$ Billion), 2015–2019 ............................................................................................................... 17 Figure 3: Bangladeshi Defense Expenditure (BDT Billion), 2010–2014 ............................................................................................................... 18 Figure 4: Bangladeshi Defense Expenditure (BDT Billion), 2015–2019 ............................................................................................................... 19 Figure 5: Bangladeshi GDP Growth vs. Defense Expenditure Growth and Defense Expenditures Percentage of GDP Growth, 2010–2014 ...... 21 Figure 6: Bangladeshi GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015–2019 ... 22 Figure 7:Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014 .......................................................... 23 Figure 8:Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019 .......................................................... 24 Figure 9: Bangladeshi Defense Capital Expenditure (US$ million), 2010–2014 .................................................................................................. 25 Figure 10: Bangladeshi Defense Capital Expenditure (US$ million), 2015–2019 ................................................................................................ 26 Figure 11: Bangladeshi Capital Expenditure (BDT Billion), 2010–2014 ............................................................................................................... 27 Figure 12: Bangladeshi Capital Expenditure (BDT Billion), 2015–2019 ............................................................................................................... 28 Figure 13: Bangladeshi Defense Budget Allocation (%),2010–2014 ................................................................................................................... 29 Figure 14: Bangladeshi Defense Budget Allocation (%),2015–2019 ................................................................................................................... 30 Figure 15: Bangladeshi Defense Budget Allocation for Army (US$ Million), 2010–2014 .................................................................................... 31 Figure 16: Bangladeshi Defense Budget Allocation for Army (US$ Million), 2015–2019 .................................................................................... 32 Figure 17: Bangladeshi Expenditure for Army (BDT Billion), 2010–2014 ............................................................................................................ 33 Figure 18: Bangladeshi Defense Expenditure for Army (BDT Billion), 2015–2019.............................................................................................. 34 Figure 19: Bangladeshi Defense Budget Allocation for Air Force (US$ Million), 2010–2014 .............................................................................. 35 Figure 20: Bangladeshi Defense Budget Allocation for Air Force (US$ Million), 2015–2019 .............................................................................. 36 Figure 21: Bangladeshi Expenditure for Air Force (BDT Billion), 2010–2014....................................................................................................... 37 Figure 22: Bangladeshi Expenditure for Air Force (BDT Billion), 2015–2019....................................................................................................... 38 Figure 23: Bangladeshi Defense Budget Allocation for Navy (US$ Million), 2010–2014 ...................................................................................... 39 Figure 24: Bangladeshi Defense Budget Allocation for Navy (US$ Million), 2015–2019 ...................................................................................... 40 Figure 25: Bangladeshi Expenditure for Navy (BDT Billion), 2010–2014 ............................................................................................................. 41 Figure 26: Bangladeshi Expenditure for Navy (BDT Billion), 2015–2019 ............................................................................................................. 42 Figure 27: Bangladeshi Per Capita Defense Expenditure (US$), 2010–2014 ...................................................................................................... 43 Figure 28: Bangladeshi Per Capita Defense Expenditure (US$), 2015–2019 ...................................................................................................... 44 Figure 29: Bangladeshi Homeland Security Budget (US$ Billion),2010–2014 ..................................................................................................... 45 Figure 30: Bangladeshi Homeland Security Budget (US$ Billion), 2015–2019 .................................................................................................... 46 Figure 31: Bangladeshi Homeland Security Budget (BDT Billion), 2010–2014 .................................................................................................... 47 Figure 32: Bangladeshi Homeland Security Budget (BDT Billion), 2015–2019 .................................................................................................... 48 Figure 33: SDI Terrorism Heat Map, 2014 .......................................................................................................................................................... 50 Figure 34: SDI Terrorism Index, 2014 ................................................................................................................................................................. 51 Figure 35: Benchmarking with Key Markets – 2010–2014 vs. 2015–2019 .......................................................................................................... 53 Figure 36: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2014 and 2019 ............................................................ 54 Figure 37: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2014 ..................................................................... 55 Figure 38: Bangladeshi Defense Import Trend, 2010–2013 (TIV values) ............................................................................................................ 61 Figure 39: Bangladeshi Defense Imports by Country (%), 2010–2013 ................................................................................................................ 62 Figure 40: Bangladeshi Defense Imports by Category (%), 2010–2013 .............................................................................................................. 63 Figure 41: Industry Dynamics - Porter’s Five Forces Analysis............................................................................................................................. 65 Figure 42: Bangladeshi Population – Rural (In Millions), 2014–2023 .................................................................................................................. 74 Figure 43: Bangladeshi Population – Urban (In Millions), 2014–2023 ................................................................................................................. 75 Figure 44: Bangladeshi Population – Number of Households (In Millions), 2008–2017 ....................................................................................... 76 Figure 45: Bangladeshi GDP per capita at Constant Prices (US$), 2014–2023 .................................................................................................. 77 Figure 46: Bangladeshi Gross Domestic Product (current US$ Bn),2014–2023 .................................................................................................. 78 Figure 47: Bangladeshi Exports of goods and services (current US$ Bn), 2003–2012 ........................................................................................ 79 Figure 48: Bangladeshi Imports of goods and services (current US$ Bn), 2003–2012 ........................................................................................ 80 Figure 49: Bangladeshi Gross National Disposable Income (US$ Bn), 2002–2011 ............................................................................................. 81 Figure 50: Bangladeshi Manufacturing Output (US$ Bn), 2003–2012 ................................................................................................................. 82 Figure 51: Bangladeshi Consumer Price Index, 2014–2023 ............................................................................................................................... 83 Figure 52: Bangladeshi LCU per US$, 2014–2023 ............................................................................................................................................. 84 Figure 53: Bangladeshi LCU per EUR, 2014–2023 ............................................................................................................................................. 85 Figure 54: Bangladeshi Lending Rate (%), 2003–2012 ....................................................................................................................................... 86 Figure 55: Bangladeshi Deposit Rate (%), 2003–2012 ....................................................................................................................................... 87 Figure 56: Bangladeshi Real Interest Rate (%), 2003–2012 ............................................................................................................................... 88


15

Figure 57: Bangladeshi Market Capitalization of listed Companies (US$ Bn), 2003–2012 .................................................................................. 89 Figure 58: Bangladeshi Market Capitalization of listed Companies as a % of GDP, 2002–2011 ......................................................................... 90 Figure 59: Bangladeshi Total Government cash surplus/deficit (LCU Bn), 2002–2011 ........................................................................................ 91 Figure 60: Bangladeshi Government cash surplus/deficit as % of GDP (LCU), 2002–2011 ................................................................................ 92 Figure 61: Bangladeshi Goods Exports as a % of GDP, 2002–2011 ................................................................................................................... 93 Figure 62: Bangladeshi Goods Imports as a % of GDP,2002–2011 .................................................................................................................... 94 Figure 63: Bangladeshi Goods Trade Surplus/Deficit as a % of GDP, 2003–2011 .............................................................................................. 95 Figure 64: Bangladeshi Services Imports as a % of GDP, 2002–2011 ................................................................................................................ 96 Figure 65: Bangladeshi Services Exports as a % of GDP, 2003–2011 ................................................................................................................ 97 Figure 66: Bangladeshi Services surplus/deficit as a % of GDP, 2002–2011 ...................................................................................................... 98 Figure 67: Bangladeshi Net Foreign Direct Investment (current US$ BN), 2002–2011 ........................................................................................ 99 Figure 68: Bangladeshi Net FDI as a % of GDP, 2002–2011 .............................................................................................................................100 Figure 69: Bangladeshi International reserves, including Gold (US$ Bn), 2002–2011 ........................................................................................101 Figure 70: Bangladeshi Total Conventional Thermal Electricity Net Generation (Bn KWH), 2002–2011 .............................................................102 Figure 71: Bangladeshi Hydroelectricity Net Generation (Bn KWH), 2002–2011 ................................................................................................103 Figure 72: Bangladeshi Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001–2010 .............................................104 Figure 73: Bangladeshi Proved Reserves of Natural Gas (Trillion Cubic Feet), 2004–2013 ...............................................................................105 Figure 74: Bangladeshi Total Petroleum Consumption (Thousand Barrels per Day), 2003–2012 ......................................................................106 Figure 75: Bangladeshi Crude Oil Proved Reserves (Billion Barrels), 2004–2013 ..............................................................................................107 Figure 76: Bangladeshi Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2002–2011 ................................................108 Figure 77: Bangladeshi Rail lines (total route-km), 2002–2011 ..........................................................................................................................109 Figure 78: Bangladeshi Mining, Manufacturing, Utilities Output(US$ Bn), 2003–2012 .......................................................................................110 Figure 79: Bangladeshi Telephone lines, 2003–2012 ........................................................................................................................................111 Figure 80: Bangladeshi Telephone lines Penetration Rate (per 100 people), 2002–2011 ..................................................................................112


16

LIST OF TABLES

Table 1: Bangladeshi Defense Expenditure (US$ Billion), 2010–2014 ................................................................................................................ 16 Table 2: Bangladeshi Defense Expenditure (US$ Billion), 2015–2019 ................................................................................................................ 17 Table 3: Bangladeshi Defense Expenditure (BDT Billion), 2010–2014 ................................................................................................................ 18 Table 4: Bangladeshi Defense Expenditure (BDT Billion), 2015–2019 ................................................................................................................ 19 Table 5: Bangladeshi GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2010–2014 ..... 21 Table 6: Bangladeshi GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2015–2019 ..... 22 Table 7: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2010–2014 .......................................................... 23 Table 8: Bangladeshi Defense Budget Split Between Capital and Revenue Expenditure (%), 2015–2019 .......................................................... 24 Table 9: Bangladeshi Defense Capital Expenditure (US$ million), 2010–2014.................................................................................................... 25 Table 10: Bangladeshi Defense Capital Expenditure (US$ million), 2015–2019 .................................................................................................. 26 Table 11: Bangladeshi Capital Expenditure (BDT Billion), 2010–2014 ................................................................................................................ 27 Table 12: Bangladeshi Capital Expenditure (BDT Billion), 2015–2019 ................................................................................................................ 28 Table 13: Bangladeshi Defense Budget Allocation (%), 2010–2014 .................................................................................................................... 29 Table 14: Bangladeshi Defense Budget Allocation (%),2015–2019..................................................................................................................... 30 Table 15: Bangladeshi Defense Budget Allocation for Army (US$ Million), 2010–2014 ...................................................................................... 31 Table 16: Bangladeshi Defense Budget Allocation for Army (US$ Million), 2015–2019 ...................................................................................... 32 Table 17: Bangladeshi Expenditure for Army (BDT Billion), 2010–2014 ............................................................................................................. 33 Table 18: Bangladeshi Defense Expenditure for Army (BDT Billion), 2015–2019 ............................................................................................... 34 Table 19: Bangladeshi Defense Budget Allocation for Air Force (US$ Million), 2010–2014 ................................................................................ 35 Table 20: Bangladeshi Defense Budget Allocation for Air Force (US$ Million), 2015–2019 ................................................................................ 36 Table 21: Bangladeshi Expenditure for Air Force (BDT Billion), 2010–2014 ........................................................................................................ 37 Table 22: Bangladeshi Expenditure for Air Force (BDT Billion), 2015–2019 ........................................................................................................ 38 Table 23: Bangladeshi Defense Budget Allocation for Navy (US$ Million), 2010–2014 ....................................................................................... 39 Table 24: Bangladeshi Defense Budget Allocation for Navy (US$ Million), 2015–2019 ....................................................................................... 40 Table 25: Bangladeshi Expenditure for Navy (BDT Billion), 2010–2014 .............................................................................................................. 41 Table 26: Bangladeshi Expenditure for Navy (BDT Billion), 2015–2019 .............................................................................................................. 42 Table 27: Bangladeshi Per Capita Defense Expenditure (US$), 2010–2014 ....................................................................................................... 43 Table 28: Bangladeshi Per Capita Defense Expenditure (US$), 2015–2019 ....................................................................................................... 44 Table 29: Bangladeshi Homeland Security Budget (US$ Billion),2010–2014 ...................................................................................................... 45 Table 30: Bangladeshi Homeland Security Budget (US$ Billion), 2015–2019 ..................................................................................................... 46 Table 31: Bangladeshi Homeland Security Budget (BDT Billion), 2010–2014 ..................................................................................................... 47 Table 32: Bangladeshi Homeland Security Budget (BDT Billion), 2015–2019 ..................................................................................................... 48 Table 33: Benchmarking with Key Markets – 2010–2014 vs. 2015–2019............................................................................................................ 52 Table34: SDI Terrorism Index ............................................................................................................................................................................. 56 Table 35: Bangladesh Ordnance Factories – Key Products and Services ........................................................................................................... 69 Table 36: Bangladesh Machine Tools Factory – Key Products and Services ...................................................................................................... 70 Table 37: AgustaWestland – Key Products and Services.................................................................................................................................... 71 Table 38: AgustaWestland – Recent Contracts ................................................................................................................................................... 72 Table 39: Eurocopter– Key Products and Services ............................................................................................................................................. 73 Table 40: Eurocopter – Recent Contracts ........................................................................................................................................................... 73

Future of the Bangladeshi Defense Industry Market ... · equipment manufacturers) to gain a market...

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