The Danish Defense Industry Report to 2016 · Future of the Danish Defense Industry – Market...

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Future of the Danish Defense Industry –

Market Attractiveness, Competitive

Landscape and Forecasts to 2020

Future of the Danish Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2020

2

Summary

“Future of the Danish Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to

2020” 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 Danish defense industry.

The report provides detailed analysis of the current industry size and growth expectations during 2016-2020,

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

Denmark’s military expenditure, which is valued at US$XX billion in 2015, registered a declining growth rate

of XX% during 2011–2015. The weak national fiscal condition and Europe’s sluggish recovery from the

economic slowdown has affected the growth rate of the market; and is expected to do so for the next couple

of years. The Danish Defense Agreement 2013–2017 mandates the Ministry of Defense (MoD) to save

US$XX billion annually, on military expenditure during 2015–2017, in an effort to reduce the country’s debt.

Over the forecast period, the country’s defense budget is expected to increase from US$XX billion in 2016 to

US$XX billion in 2020, reflecting a CAGR of XX%. Defense expenditure as a percentage of GDP is expected

to decrease from XX% in 2015 to XX% in 2020.

Key Features and Benefits

The report provides detailed analysis of the Danish defense industry during 2011–2020, 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 Danish

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. Danish defense expenditure expected to register a CAGR of XX% over the forecast period

The Danish defense market registered a declining CAGR of XX% between 2011 and 2015, to value US$XX

billion in 2015. Although the country remains focused on protecting its interests in the Arctic region, in light of

growing Russian assertiveness, and contributions to NATO and UN peacekeeping missions, financial

constraints and slow economic recovery led to a decline in the defense budget. However, with economic

conditions expected to stabilize over the next few years, the country is projected to increase its defense

budget towards the end of the decade. Over the forecast period, the budget is expected to increase at a

CAGR of XX% from US$XX billion in 2016 to US$XX billion in 2020.

The following table and figure show the Danish defense expenditure during the historic period:

Table 1: Danish Defense Expenditure (US$ billion), 2011-2015

Year Defense expenditure (US$ bn)

Defense growth percentage

2011

2012

2013

2014

2015

CAGR 2011-2015

Ministry of Finance, Denmark and SDI analysis © SDI

Figure 1: Danish Defense Expenditure (US$ billion), 2011-2015


-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

3.5

3.6

3.7

3.8

3.9

4.0

4.1

4.2

2011 2012 2013 2014 2015

Defe

nse e

xp

en

dit

ure

gro

wth

rate

(%

)

Defe

nse E

xp

en

dit

ure

(U

S$ B

illi

on

)

Defense Expenditure (US$ bn) Defense Growth Percentage


4

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

Table 2: Danish Defense Expenditure (US$ billion), 2016-2020

Year Defense expenditure (US$ bn)

Defense growth percentage

2016

2017

2018

2019

2020

CAGR 2016-2020


Figure 2: Danish Defense Expenditure (US$ billion), 2016-2020


-4%

-2%

0%

2%

4%

6%

8%

10%

3.50

3.55

3.60

3.65

3.70

3.75

3.80

3.85

3.90

3.95

4.00

4.05

2016 2017 2018 2019 2020

Defe

nse e

xp

en

dit

ure

gro

wth

rate

(%

)

Defe

nse E

xp

en

dit

ure

(U

S$ B

illi

on

)

Defence Expenditure (US$ bn) Defense expenditure growth %


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1.2. Analysis of Defense Budget Allocation

1.2.1. Capital expenditure expected to account for XX% of the defense budget over 2016–2020

Between 2011 and 2015, the Danish Ministry of Defense (MoD) allocated an average of XX% of its budget to

capital expenditure and the rest to revenue expenditure. However, it has undertaken operational streamlining

measures such as the centralization of procurement activities, restructure of the armed forces into fewer but

bigger battalions, and the implementation of comprehensive measures to improve the efficiency of the

military as mandated by the Defense Agreement 2013–2017. Consequently, the share of capital expenditure

is projected to decrease to an average of XX% over the forecast period.

The following table and chart display Denmark’s defense budget share of capital and revenue during the

historic period:

Table 3: Denmark’s Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015

Year Capital Expenditure Share Revenue Expenditure Share

2011

2012

2013

2014

2015

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

Figure 3: Denmark’s Defense Budget Split Between Capital and Revenue Expenditure (%), 2011-2015

Source: Ministry of Defense and SDI analysis © SDI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

Defe

nse B

ud

get

Sp

lit

(%)

Capital Expenditure Revenue Expenditure


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

over the forecast period:

Table 4: Denmark’s Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020

Year Capital Expenditure Share Revenue Expenditure Share

2016

2017

2018

2019

2020


Figure 4: Denmark’s Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2020

Source: Ministry of Defense and SDI analysis © SDI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

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. Danish homeland security expenditure expected to increase at a CAGR of XX%

The Danish homeland security (HLS) market is represented by the budgets of the police services, fire

protection services, law courts, prisons, and others. The home guard has to contribute in the area of maritime

and personnel, and also needs to provide a capacity-structuring unit. The country’s HLS budget registered a

CAGR of XX% over the historic period to reach US$XX billion in 2015. The Danish government’s focus on

combating cyber-attacks and its counterterrorism measures are expected to drive HLS expenditure over the

forecast period. Denmark’s HLS expenditure is expected to increase from US$XX billion in 2016 to US$XX

billion by 2020, at a CAGR of XX% over the forecast period.

The table and chart below show Denmark’s homeland security expenditure during the historic period:

Table 5: Danish Homeland Security Expenditure (US$ Billion), 2011-2015

Year Homeland expenditure (US$ Bn)

Growth Rate (%)

2011

2012

2013

2014

2015


Figure 5: Danish Homeland Security Expenditure (US$ Billion), 2011-2015


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2.8

2.9

3.0

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

2011 2012 2013 2014 2015

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 ......................................................................................................................... 10

1.1. What is this Report About? ..........................................................................................................10

1.2. Definitions .....................................................................................................................................10

1.3. Summary Methodology .................................................................................................................12

1.4. SDI Terrorism Index ......................................................................................................................13

1.5. About Strategic Defence Intelligence ..........................................................................................13

2. Executive Summary ............................................................................................................ 14

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

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

3.1.1. Danish defense expenditure expected to register a CAGR of XX% over the forecast period ................. 16

3.1.2. Growing Russian assertiveness and participation in NATO peacekeeping operations expected to drive

defense expenditure over the forecast period ...................................................................................................... 20

3.1.3. Denmark’s defense expenditure as a percentage of GDP expected to decrease ................................... 21

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

3.2.1. Capital expenditure expected to account for XX% of the defense budget over 2016–2020 .................... 23

3.2.2. Capital expenditure to increase at a CAGR of XX% over 2016–2020 ..................................................... 25

3.2.3. Revenue expenditure expected to increase over forecast period ............................................................ 29

3.2.4. Per capita defense expenditure set to decrease over the forecast period ............................................... 33

3.3. Homeland Security Market Size and Forecast ............................................................................35

3.3.1. Danish homeland security expenditure expected to increase at a CAGR of XX% .................................. 35

3.3.2. Cyber security and counter terrorism are main homeland security concerns .......................................... 39

3.3.3. Denmark falls under “some risk” of terrorism category ............................................................................ 40

3.4. Benchmarking with Key Global Markets .....................................................................................42

3.4.1. Denmark defense budget expected to decline over the forecast period .................................................. 42

3.4.2. Danish defense budget expected to remain low compared to other European countries ........................ 44

3.4.3. Denmark allocates lower share of GDP for defense compared to most European countries .................. 45

3.4.4. Denmark faces some threat from foreign terrorist organizations ............................................................. 46

3.5. Market Opportunities: Key Trends and Growth Stimulators ......................................................48

3.5.1. Fighters Aircraft ........................................................................................................................................ 48

3.5.2. Multi-mission and Maritime Helicopter ...................................................................................................... 49

3.5.3. Armored Personnel Carrier (APC) ............................................................................................................ 50

4. Defense Procurement Market Dynamics ........................................................................... 51

4.1. Import Market Dynamics ...............................................................................................................51

4.1.1. Defense imports are expected to increase over the forecast period ........................................................ 51

4.1.2. Denmark sourced most of its arms imports from its neighbors ................................................................ 52


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4.1.3. Sensors and naval weapons dominate military hardware imports ........................................................... 53

4.2. Export Market Dynamics ..............................................................................................................54

4.2.1. Arms exports to recover during the forecast period ................................................................................. 54

4.2.2. Brunei and Brazil prime purchasers of Danish arms ................................................................................ 55

4.2.3. Sensors and ships are the main exported defense products ................................................................... 56

5. Industry Dynamics .............................................................................................................. 57

5.1. Five Forces Analysis.....................................................................................................................57

5.1.1. Bargaining power of supplier: low to medium ........................................................................................... 58

5.1.2. Bargaining power of buyer: high ............................................................................................................... 58

5.1.3. Barrier to entry: low ................................................................................................................................... 58

5.1.4. Intensity of rivalry: medium to high ........................................................................................................... 58

5.1.5. Threat of substitution: high ....................................................................................................................... 58

6. Market Entry Strategy ......................................................................................................... 59

6.1. Market Regulation .........................................................................................................................59

6.1.1. Offset policy aids development of domestic defense industry.................................................................. 59

6.1.2. Denmark permits 100% foreign direct investment in the defense sector ................................................. 60

6.2. Market Entry Route .......................................................................................................................61

6.2.1. Forming subsidiaries or acquiring Danish companies are good market entry opportunities .................... 61

6.2.2. Forming consortiums and product development agreements open new market entry strategy choices . 61

6.2.3. Joint weapon development programs are a viable market entry opportunity ........................................... 61

6.3. Key Challenges .............................................................................................................................62

6.3.1. Low defense budget and limited technological capability hinder market entry by foreign companies ..... 62

6.3.2. Preference given to procurements from US and Nordic companies challenging for other suppliers ....... 62

7. Competitive Landscape and Strategic Insights ................................................................ 63

7.1. Competitive Landscape Overview ...............................................................................................63

7.2. Key Domestic Companies ............................................................................................................63

7.2.1. Systematic A/S: overview ......................................................................................................................... 63

7.2.2. Systematic A/S: products and services .................................................................................................... 63

7.2.3. Systematic A/S: recent announcements and strategic initiatives ............................................................. 64

7.2.4. Systematic A/S: alliances ......................................................................................................................... 65

7.2.5. Systematic A/S: recent contract wins ....................................................................................................... 67

7.2.6. Terma A/S: overview ................................................................................................................................ 68

7.2.7. Terma A/S: products and service ............................................................................................................. 68

7.2.8. Terma A/S: recent announcements and strategic initiatives .................................................................... 69

7.2.9. Terma A/S: alliances ................................................................................................................................. 70

7.2.10. Terma A/S: recent contract wins .............................................................................................................. 72

7.2.11. Arenalogic ApS: overview ......................................................................................................................... 74


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7.2.12. Arenalogic ApS: products and services .................................................................................................... 74

7.2.13. Arenalogic ApS: recent announcements and strategic initiatives ............................................................ 74

7.2.14. Arenalogic ApS: alliances ......................................................................................................................... 75

7.2.15. Copenhagen Sensor Technology ApS: overview ..................................................................................... 76

7.2.16. Copenhagen Sensor Technology ApS: products and services ................................................................ 76

7.2.17. Copenhagen Sensor Technology ApS: recent announcements and strategic initiatives ......................... 76

7.2.18. Copenhagen Sensor Technology ApS: alliances ..................................................................................... 77

7.2.19. Danish Aerotech A/S: overview ................................................................................................................ 78

7.2.20. Danish Aerotech A/S: products and services ........................................................................................... 78

7.2.21. Danish Aerotech A/S: recent announcements and strategic initiatives .................................................... 79

7.2.22. Danish Aerotech A/S: alliances ................................................................................................................ 80

7.2.23. Danish Aerotech A/S: recent contract wins .............................................................................................. 81

7.2.24. Falck Schmidt Defense Systems A/S: overview ....................................................................................... 82

7.2.25. Falck Schmidt Defense Systems A/S: products and services .................................................................. 82

7.2.26. Falck Schmidt Defense Systems A/S: recent announcements and strategic initiatives .......................... 82

7.2.27. Falck Schmidt Defense Systems A/S: alliances ....................................................................................... 83

7.2.28. Falck Schmidt Defense Systems A/S: recent contract wins ..................................................................... 83

7.2.29. IFAD TS A/S: overview ............................................................................................................................. 84

7.2.30. IFAD TS A/S: products and services ........................................................................................................ 84

7.2.31. IFAD TS A/S: recent announcements and strategic initiatives ................................................................. 84

7.2.32. IFAD TS A/S: alliances ............................................................................................................................. 85

7.2.33. IFAD TS A/S: recent contract wins ........................................................................................................... 86

7.3. Key Foreign Companies ...............................................................................................................87

7.3.1. Alcatel-Lucent Denmark A/S: overview .................................................................................................... 87

7.3.2. Alcatel-Lucent Denmark A/S: products and services ............................................................................... 87

7.3.3. Alcatel-Lucent Denmark A/S: recent announcements and strategic initiatives ........................................ 88

7.3.4. Alcatel-Lucent Denmark A/S: recent contract wins .................................................................................. 88

7.3.5. Lockheed Martin Denmark: overview ....................................................................................................... 89

7.3.6. Lockheed Martin Denmark: products and services .................................................................................. 89

7.3.7. Lockheed Martin Denmark: recent announcements and strategic initiatives ........................................... 89

7.3.8. Lockheed Martin Denmark: alliances ....................................................................................................... 90

7.3.9. Lockheed Martin Denmark: recent contract wins ..................................................................................... 90

7.3.10. TenCate Advanced Armour Denmark A/S: overview ............................................................................... 91

7.3.11. TenCate Advanced Armour Denmark A/S: defense products .................................................................. 91

7.3.12. TenCate Advanced Armour Denmark A/S: recent announcements and strategic initiatives ................... 92

7.3.13. TenCate Advanced Armour Denmark A/S: alliances ............................................................................... 92

7.3.14. TenCate Advanced Armour Denmark A/S: recent contract wins ............................................................. 93

8. Business Environment and Country Risk ......................................................................... 94


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8.1. Demographics & Social Statistics ................................................................................................94

8.1.1. Population – Rural .................................................................................................................................... 94

8.1.2. Population - Urban .................................................................................................................................... 95

8.1.3. Population – Number of Households ........................................................................................................ 96

8.2. Economic Performance ................................................................................................................97

8.2.1. Gross Domestic per Capita....................................................................................................................... 97

8.2.2. Gross Domestic Product, current US$ ..................................................................................................... 98

8.2.3. Exports of Goods and Services ................................................................................................................ 99

8.2.4. Imports of Goods and Services .............................................................................................................. 100

8.2.5. Gross National Disposable Income ........................................................................................................ 101

8.2.6. Manufacturing Output ............................................................................................................................. 102

8.2.7. Consumer Price Index ............................................................................................................................ 103

8.2.8. Wholesale Price Index ............................................................................................................................ 104

8.2.9. Local Currency Unit per US$ .................................................................................................................. 105

8.2.10. Local Currency Unit per EUR ................................................................................................................. 106

8.2.11. Market Capitalization of Listed Companies ............................................................................................ 107

8.2.12. Market Capitalization of Listed Companies as a % of GDP ................................................................... 108

8.2.13. Total Government Cash Surplus/Deficit ................................................................................................. 109

8.2.14. Government Cash Surplus/Deficit .......................................................................................................... 110

8.2.15. Central Government Debt ....................................................................................................................... 111

8.2.16. Central Government Debt as a % of GDP .............................................................................................. 112

8.2.17. Goods Exports as a % of GDP ............................................................................................................... 113

8.2.18. Goods Imports as a % of GDP ............................................................................................................... 114

8.2.19. Goods Trade Surplus/Deficit as a % of GDP.......................................................................................... 115

8.2.20. Services Imports as a % of GDP ............................................................................................................ 116

8.2.21. Services Exports as a % of GDP ............................................................................................................ 117

8.2.22. Services trade surplus/deficit as a % of GDP ......................................................................................... 118

8.2.23. Net Foreign Direct Investment ................................................................................................................ 119

8.2.24. Net FDI as a percentage of GDP ............................................................................................................ 120

8.2.25. International reserves, including Gold .................................................................................................... 121

8.3. Energy and Utilities ..................................................................................................................... 122

8.3.1. Total Conventional Thermal Electricity Net Generation ......................................................................... 122

8.3.2. Hydroelectricity Net Generation .............................................................................................................. 123

8.3.3. Total Conventional Thermal Electricity Installed Capacity ..................................................................... 124

8.3.4. Total Electricity Exports .......................................................................................................................... 125

8.3.5. Total Electricity Imports .......................................................................................................................... 126

8.3.6. Proved Reserves of Natural Gas (Trillion Cubic Feet) ........................................................................... 127

8.3.7. Total Petroleum Consumption ................................................................................................................ 128


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8.3.8. Crude Oil Proved Reserves (Billion Barrels) .......................................................................................... 129

8.3.9. Total Non-Hydro Renewable Electricity Net Generation ........................................................................ 130

8.4. Infrastructure Quality and Availability ....................................................................................... 131

8.4.1. Roads, total network (km) ....................................................................................................................... 131

8.4.2. Rail lines, total network ........................................................................................................................... 132

8.5. Minerals ....................................................................................................................................... 133

8.5.1. Mining, Manufacturing, Utilities Output ................................................................................................... 133

8.6. Technology .................................................................................................................................. 134

8.6.1. Research and development expenditure ................................................................................................ 134

8.6.2. Patents Granted ...................................................................................................................................... 135

8.7. Telecommunication .................................................................................................................... 136

8.7.1. Telephone lines ...................................................................................................................................... 136

8.7.2. Telephone lines Penetration Rate .......................................................................................................... 137

9. Appendix ............................................................................................................................ 138

9.1. About SDI ..................................................................................................................................... 138

9.2. Disclaimer .................................................................................................................................... 138


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LIST OF FIGURES

Figure 1: Danish Defense Expenditure (US$ Billion),2011–2015 ........................................................................................................................ 16 Figure 2: Danish Defense Expenditure (US$ Billion),2016–2020 ........................................................................................................................ 17 Figure 3: Danish Defense Expenditure (DKK Billion), 2011–2015 ....................................................................................................................... 18 Figure 4: Danish Defense Expenditure (DKK Billion), 2016–2020 ....................................................................................................................... 19 Figure 5: Danish GDP Growth vs. Defense Expenditure Growth and Defense Expenditures Percentage of GDP Growth, 2011–2015 .............. 21 Figure 6: Danish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2016–2020 ........... 22 Figure 7:DanishDefense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015 ................................................................... 23 Figure 8: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020 ................................................................. 24 Figure 9: Danish Defense Capital Expenditure (US$ million), 2011–2015 ........................................................................................................... 25 Figure 10: Danish Defense Capital Expenditure (US$ million), 2016–2020 ......................................................................................................... 26 Figure 11: Danish Defense Capital Expenditure (DKK billion), 2011–2015 ......................................................................................................... 27 Figure 12: Danish Defense Capital Expenditure (DKK billion), 2016–2020 ......................................................................................................... 28 Figure 13: Danish Defense Revenue Expenditure (US$ billion), 2011–2015 ....................................................................................................... 29 Figure 14: Danish Defense Revenue Expenditure (US$ billion), 2016–2020 ....................................................................................................... 30 Figure 15: Danish Defense Revenue Expenditure (DKK billion), 2011–2015 ...................................................................................................... 31 Figure 16: Danish Defense Revenue Expenditure (DKK billion), 2016–2020 ...................................................................................................... 32 Figure 17: Danish Per Capita Defense Expenditure (US$), 2011–2015 .............................................................................................................. 33 Figure 18:DanishPer Capita Defense Expenditure (US$), 2016–2020 ................................................................................................................ 34 Figure 19: Danish Homeland Security Budget (US$ Billion), 2011–2015 ............................................................................................................ 35 Figure 20: Danish Homeland Security Budget (US$ Billion), 2016–2020 ............................................................................................................ 36 Figure 21: Danish Homeland Security Budget (DKK Billion), 2011–2015 ............................................................................................................ 37 Figure 22: Danish Homeland Security Budget (DKK Billion), 2016–2020 ............................................................................................................ 38 Figure 23: SDI Terrorism Heat Map, 2015 .......................................................................................................................................................... 40 Figure 24: SDI Terrorism Index, 2015 ................................................................................................................................................................. 41 Figure 25: Benchmarking with Key Markets – 2011-2015 vs. 2016–2020 ........................................................................................................... 43 Figure 26: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2015 and 2020 .......................................... 44 Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2015 ..................................................................... 45 Figure 28: Danish Fighters Aircraft Market Size (US$ Million), 2015–2025 ......................................................................................................... 48 Figure 29: Danish Multi-mission and Maritime Helicopter Market Size (US$ Million), 2015–2025........................................................................ 49 Figure 30: Danish Armored Personnel Vehicles Market Size (US$ Million), 2015–2025...................................................................................... 50 Figure 31: Denmark Defense Import Trend, 2010–2014 (TIV values) ................................................................................................................. 51 Figure 32: Denmark Defense Imports by Country (%), 2010–2014 ..................................................................................................................... 52 Figure 33: Denmark Defense Imports by Category (%), 2010–2014 ................................................................................................................... 53 Figure 34: Denmark Defense exports by Value (%), 2010–2014 ......................................................................................................................... 54 Figure 35: Denmark Defense exports by Country (%), 2010–2014 ..................................................................................................................... 55 Figure 36: Denmark Defense Imports by Category (%), 2010–2014 ................................................................................................................... 56 Figure 37: Industry Dynamics Porter’s Five Forces Analysis ............................................................................................................................... 57 Figure 38: Denmark’s Population – Rural (Millions), 2015-2024 .......................................................................................................................... 94 Figure 39: Denmark’s Population – Urban (Millions), 2015–2024 ........................................................................................................................ 95 Figure 40: Denmark’s Population – Number of Households (Millions), 2008–2017 ............................................................................................. 96 Figure 41: Denmark’s GDP per capita, 2015-2024.............................................................................................................................................. 97 Figure 42: Denmark’s Gross Domestic Product (current US$ Bn),2015-2024 ..................................................................................................... 98 Figure 43: Denmark’s Exports of goods and services (current US$ Bn), 2004–2013 .......................................................................................... 99 Figure 44: Denmark’s Imports of goods and services (current US$ Bn), 2003–2012 ..........................................................................................100 Figure 45: Denmark’s gross national disposable income (US$ Bn), 2004–2012 ................................................................................................101 Figure 46: Denmark’s Manufacturing Output (US$ Bn), 2003-2012 ...................................................................................................................102 Figure 47: Denmark’s Consumer Price Index, 2015–2024 .................................................................................................................................103 Figure 48: Denmark’s Wholesale Price Index, 2003-2012 ..................................................................................................................................104 Figure 49: Denmark’s LCU per US$, 2015–2024 ...............................................................................................................................................105 Figure 50: Denmark’s LCU per EUR, 2015–2024 ..............................................................................................................................................106 Figure 51: Denmark’s Market Capitalization of listed Companies (US$ Bn), 2003-2012.....................................................................................107 Figure 52: Denmark’s Market Capitalization of listed companies as a % of GDP, 2003–2012 ............................................................................108 Figure 53: Denmark’s Government cash surplus/deficit (LCU Bn), 2003-2012 ...................................................................................................109 Figure 54: Denmark’s Government cash Surplus/deficit as a % of GDP,2003–2012 ..........................................................................................110


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Figure 55: Denmark’s Central Government Debt (LCU Bn), 2002–2011 ............................................................................................................111 Figure 56: Denmark’s Central Government Debt as a % of GDP, 2003–2012....................................................................................................112 Figure 57: Denmark’s Goods Exports as a % of GDP, 2003–2012 ....................................................................................................................113 Figure 58: Denmark’s Goods Imports as a % of GDP,2003–2012 .....................................................................................................................114 Figure 59: Denmark’s Goods Trade Surplus/Deficit as a % of GDP, 2003–2012 ...............................................................................................115 Figure 60: Denmark’s Services Imports as a % of GDP, 2003–2012 .................................................................................................................116 Figure 61: Denmark’s Services Exports as a % of GDP, 2003–2012 .................................................................................................................117 Figure 62: Denmark’s Services trade surplus/deficit as a % of GDP, 2003–2012 ...............................................................................................118 Figure 63: Denmark’s Net Foreign Direct Investment (current US$ BN), 2005–2012 .........................................................................................119 Figure 64: Denmark’s Net FDI as a percentage of GDP, 2005–2012 .................................................................................................................120 Figure 65: Denmark’s International reserves, including Gold (US$ Bn), 2003–2012 ..........................................................................................121 Figure 66: Denmark’s Total Conventional Thermal Electricity Net Generation (Bn KWH), 2002–2011 ...............................................................122 Figure 67: Denmark’s Hydroelectricity Net Generation (Mn KWH), 2003–2012..................................................................................................123 Figure 68: Denmark’s Total Conventional Thermal Electricity Installed Capacity (Million ...................................................................................124 Figure 69: Denmark’s Total Electricity Exports (BnKWH), 2003–2012 ...............................................................................................................125 Figure 70: Denmark’s Total Electricity Imports (Bn KWH), 2003–2012 ..............................................................................................................126 Figure 71: Denmark’s Proved Reserves of Natural Gas (Trillion Cubic Feet), 2004–2014 ..................................................................................127 Figure 72: Denmark’s Total Petroleum Consumption (Thousand Barrels per Day), 2004–2013 .........................................................................128 Figure 73: Denmark’s Crude Oil Proved Reserves (Million Barrels), 2005–2014 ................................................................................................129 Figure 74: Denmark’s Total Non-Hydro Renewable Electricity Net Generation (Bn Kw), ....................................................................................130 Figure 75: Denmark’s Roads, total network (km), 2003–2011 ............................................................................................................................131 Figure 76: Denmark’s Rail lines (total route-Km), 2003–2012 ............................................................................................................................132 Figure 77: Denmark’s Mining, Manufacturing, Utilities Output(US$ Bn), 2003–2012 ..........................................................................................133 Figure 78: Denmark’s Research and Development (thousands LCU), 2001–2010 .............................................................................................134 Figure 79: Denmark’s Patents Granted, 2004–2013 ..........................................................................................................................................135 Figure 80: Denmark’s Telephone lines, 2003–2012 ...........................................................................................................................................136 Figure 81: Denmark’s Telephone lines Penetration Rate (per 100 people), 2003–2012 .....................................................................................137


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LIST OF TABLES

Table 1: Danish Defense Expenditure (US$ Billion), 2011–2015 ........................................................................................................................ 16 Table 2: Danish Defense Expenditure (US$ Billion),2016–2020 ......................................................................................................................... 17 Table 3: Danish Defense Expenditure (DKK Billion), 2011–2015 ........................................................................................................................ 18 Table 4: Danish Defense Expenditure (DKK Billion), 2016–2020 ........................................................................................................................ 19 Table 5: Danish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2011–2015 ............. 21 Table 6: Danish GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2016–2020 ............. 22 Table 7: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015 .................................................................. 23 Table 8: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020 .................................................................. 24 Table 9: Danish Defense Capital Expenditure (US$ million), 2011–2015 ............................................................................................................ 25 Table 10: Danish Defense Capital Expenditure (US$ million), 2016–2020 .......................................................................................................... 26 Table 11: Danish Defense Capital Expenditure (DKK billion), 2011–2015 ........................................................................................................... 27 Table 12: Danish Defense Capital Expenditure (DKK billion), 2016–2020 ........................................................................................................... 28 Table 13: Danish Defense Revenue Expenditure (US$ billion), 2011–2015 ........................................................................................................ 29 Table 14: Danish Defense Revenue Expenditure (US$ billion), 2016–2020 ........................................................................................................ 30 Table 15: Danish Defense Revenue Expenditure (DKK billion), 2011–2015 ....................................................................................................... 31 Table 16: Danish Defense Revenue Expenditure (DKK billion), 2016–2020 ....................................................................................................... 32 Table 17: Danish Per Capita Defense Expenditure (US$), 2011–2015 ............................................................................................................... 33 Table 18: Danish Per Capita Defense Expenditure (US$), 2015 – 2019 ............................................................................................................ 34 Table 19: Danish Homeland Security Budget (US$ Billion), 2011–2015.............................................................................................................. 35 Table 20: Danish Homeland Security Budget (US$ Billion), 2016–2020.............................................................................................................. 36 Table 21: Danish Homeland Security Budget (DKK Billion), 2011–2015 ............................................................................................................. 37 Table 22: Danish Homeland Security Budget (DKK Billion), 2016–2020 ............................................................................................................. 38 Table 23: Benchmarking with Key Markets – 2011–2015 vs. 2016–2020............................................................................................................ 42 Table 24: SDI Terrorism Index ............................................................................................................................................................................ 46 Table 25: Offset Regulations in Denmark ........................................................................................................................................................... 59 Table 26: Systematic A/S – Product Focus ......................................................................................................................................................... 63 Table 27: Systematic A/S: Alliances ................................................................................................................................................................... 65 Table 28: Systematic A/S: Recent Contract Wins ............................................................................................................................................... 67 Table 29: Terma A/S – Product Focus ................................................................................................................................................................ 68 Table 30: Terma A/S: Alliances .......................................................................................................................................................................... 70 Table 31: Terma A/S: Recent Contract Wins ...................................................................................................................................................... 72 Table 32: Arenalogic ApS – Product Focus ........................................................................................................................................................ 74 Table 33: Arenalogic ApS: Alliances ................................................................................................................................................................... 75 Table 34: Copenhagen Sensor Technology ApS – Product Focus ...................................................................................................................... 76 Table 35: Copenhagen Sensor Technology ApS: Alliances ................................................................................................................................ 77 Table 36: Danish Aerotech A/S – Product Focus ................................................................................................................................................ 78 Table 37: Danish Aerotech A/S: Alliances........................................................................................................................................................... 80 Table 38: Danish Aerotech A/S: Recent Contract Wins ...................................................................................................................................... 81 Table 39: Falck Schmidt Defense Systems A/S – Product Focus ....................................................................................................................... 82 Table 40: Falck Schmidt Defense Systems: Alliances ......................................................................................................................................... 83 Table 41: Falck Schmidt Defense Systems: Recent contract wins ...................................................................................................................... 83 Table 42: IFAD TS A/S – Product Focus ............................................................................................................................................................ 84 Table 43: IFAD TS A/S: Alliances ....................................................................................................................................................................... 85 Table 44: IFAD TS A/S: Recent Contract Wins ................................................................................................................................................... 86 Table 45: Alcatel-Lucent Denmark A/S – Product Focus..................................................................................................................................... 87 Table 46: Alcatel-Lucent Denmark A/S: Recent Contract Wins ........................................................................................................................... 88 Table 47: Lockheed Martin Denmark – Product Focus ....................................................................................................................................... 89 Table 48: Lockheed Martin Denmark: Alliances .................................................................................................................................................. 90 Table 49: Lockheed Martin Denmark: Recent Contract Wins .............................................................................................................................. 90 Table 50: TenCate Advanced Armour Denmark A/S – Product Focus ................................................................................................................ 91 Table 51: TenCate Advanced Armour Denmark A/S: Alliances ........................................................................................................................... 92 Table 52: TenCate Advanced Armour Denmark A/S: Recent Contract Wins ....................................................................................................... 93

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