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Future of the French Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018

France defence market: Expenditure falls almost 2% between 2009 and 2013

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2014-02-04 03:28:03 - Future of the French Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 - a new market research report on

The French defense expenditure decreased at a CAGR of -1.82% during the review period and valued US$56.4 billion in 2013. The focus of French government will be on modernization of armed forces, participation in peacekeeping operations and counter terrorism.

The French defense expenditure is mainly driven by Participation of the French Forces in international peacekeeping operations, modernization of the armed forces and rising terrorist threats

The economic crisis across Europe has led to reductions in the defense budgets of many countries. Although, French defense industry is expected to witness some recovery during the forecast period, the fiscal deficit of the country poses the challenge for domestic companies. This marginal improvement in the defense budget will lead to reduced procurements, and are expected



to have a direct negative impact on domestic defense companies.]

The French MoD protects domestic defense companies by giving preference to domestic or European companies. As a member of the EU, the French government has a policy to give priority to European-manufactured defense goods, which makes it more difficult for non-European defense companies to supply to the French defense market. The government procures 70% of its defense equipment from the domestic defense industry, 20% of its equipment from European defense companies, and the remaining 10% from non-European defense companies. Moreover, the participation of the domestic defense industry in international development programs helps the domestic defense industry to acquire advanced technologies, which further narrows the opportunities for foreign firms to enter the market through technology transfer and other collaborative programs.

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