The Japanese Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

With a defense budget of US$59.06 billion in 2012, Japan is the fourth-largest defense spender in the world. While the Japanese defense budget grew at a CAGR of 6.25% during the review period, it is expected to grow at a CAGR of 3.28% over the forecast period, to reach US$69.46 billion by 2017. However, the Japanese government has capped its defense budget at 0.99% of GDP, a situation which is projected to continue until 2017.

Japanese defense expenditure is largely driven by the perceived threat of the rising military strength of North Korea, the security of sea routes due to Japan’s high dependency on imports of oil and other natural resources, and the security of offshore islands within the vicinity of the country.

The Japanese Ministry of Defense (MoD) allocates 16.9% of its defense budget to capital expenditure, 4% to US forces stationed in Japan and the remaining budget to revenue expenditure, including the salaries of armed personnel and maintenance activities. The Japanese army, excluding expenditure on Special Action Committee on Okinawa (SACO) and US force realignment, receives 36.8% of the overall defense budget, while the air force and navy receive allocations of 23.5% and 23% respectively.

Japanese Defense Expenditure (US$ Billion), 2008–2012

With a defense budget of US$59.06 billion in 2012, Japan is the fourth-largest defense spender in the world. While the Japanese defense budget grew at a CAGR of 6.25% during the review period, it is expected to grow at a CAGR of 3.28% over the forecast period, to reach US$69.46 billion by 2017. However, the Japanese government has capped its defense budget at 0.99% of GDP, a situation which is projected to continue until 2017. The Japanese Ministry of Defense (MoD) allocates 16.9% of its defense budget to capital expenditure, 4% to US forces stationed in Japan and the remaining budget to revenue expenditure, including the salaries of armed personnel and maintenance activities. The Japanese army, excluding expenditure on Special Action Committee on Okinawa (SACO) and US force realignment, receives 36.8% of the overall defense budget, while the air force and navy receive respective allocations of 23.5% and 23%.

Japanese Defense Industry 

Published: August 2012                                        No. of Pages: 159   

                 

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Reasons to buy
•    Provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
•    Includes trend analysis of imports and exports, together with their implications and impact on the Japanese defense industry.
•    Covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
•    Allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
•    Helps the reader to understand the competitive landscape of the defense industry in Japan. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.