The defense expenditure of Norway, which was estimated at US$5.7 billion in 2010, registered a CAGR of 4.24% during the review period and is expected to grow at a CAGR of 2.27% during the forecast period, to reach US$6.4 billion by 2015. The expected increase in the country’s military spending is mainly due to its involvement in international peacekeeping missions, border disputes with Russia and the expected expansion of home guard training activities. Norwegian defense expenditure as a percentage of GDP stood at an average of 1.5% during the review period; however, this figure is expected to decrease to an average of 1.4% during the forecast period. One of the key reasons for this decline is that the country’s economy is expected to grow faster than its total defense expenditure.

This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original equipment manufacturers) to gain a market share in the Norwegian defense industry.

In particular, it offers in-depth analysis of the following:

• Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 2010–2015, 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.
• Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Norwegian defense industry.
• Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
• Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
• Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Norway. 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.
• Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.

TABLE OF CONTENTS

1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions

2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size and Forecast
3.1.1 Norwegian annual defense expenditure to reach US$6.42 billion by 2015
3.1.2 International commitments, strengthened focus on the northern areas and increase in home guard capabilities expected to increase defense expenditure
3.1.3 Defense expenditure as a percentage of GDP expected to experience a marginal decline in the forecast period
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation to increase during the forecast period
3.2.2 Funding for procurement and construction works expenditure to remain at 27% of total expenditure
3.2.3 Air force expenditure is likely to grow at CAGR of 2.27% during forecast period
3.2.4 Army expenditure set to grow at a CAGR of 2.23% during forecast period
3.2.5 Naval expenditure to grow at a CAGR of 2.25% during the forecast period
3.2.6 Procurement of materiel, buildings and construction work expenditure to increase for all forces
3.2.7 Other expenditure, including expenditure on coast guard and international operations, set to increase in the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Expenditure on homeland security market expected to grow steadily
3.3.2 Demand for equipment to increase due to modernization of homeland security
3.3.3 Norway is at “low risk” of terrorism
3.3.4 Norway has a terrorism index score of “zero”
3.3.5 Norway experiences minimal terror activity
3.4 Benchmarking with Key Global Markets
3.4.1 Norwegian defense budget expenditure expected to increase during forecast period, unlike other European countries
3.4.2 The US and China dominate the global defense industry
3.4.3 Norway allocates a moderate percentage of its GDP towards defense expenditure
3.4.4 Norway ranked twentieth among top arms importing countries during the review period
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Battle vehicles and artillery likely to dominate total investment in land systems during 2010–17
3.5.2 Bulk of investment in naval systems related to new procurements of vessels and related weapons systems
3.5.3 Investments within air systems program to focus on maintaining F-16 as a first line combat aircraft
3.5.4 Demand for clothing and small arms expected to increase
3.5.5 Communications expenditure to dominate investments in Network-based Defense
3.5.6 Logistics systems expenditure to exceed US$842 million during 2010–17

4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Imports continued to increase over review period
4.1.2 Spain is the top arms supplier to Norway
4.1.3 Ships account for majority of arms imports
4.2 Export Market Dynamics
4.2.1 Defense exports declined considerably during the review period
4.2.2 Majority of defense equipment is exported to Europe
4.2.3 Missiles account for majority of exports

5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: medium
5.1.4 Intensity of rivalry: high
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Government encourages offsets to aid development of domestic defense industry
6.1.2 Defense industry open to FDI
6.2 Market Entry Route
6.2.1 Joint development of defense equipment is entry route
6.2.2 Foreign investors enter the market through collaborative R&D programs
6.3 Key Challenges
6.3.1 Investment policies favor Scandinavian and European countries
6.3.2 End of defense modernization program limits opportunities for foreign OEMs

7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Public Sector Companies
7.2.1 Kongsberg Defense Systems: overview
7.2.2 Kongsberg Defense Systems: products
7.2.3 Kongsberg Defense Systems: recent announcements and strategic initiatives
7.2.4 Kongsberg Defense Systems: alliances
7.2.5 Kongsberg Defense Systems: recent contract wins
7.2.6 Kongsberg Defense Systems: financial analysis
7.2.7 Forsvarets Forskningsinstitutt: overview
7.2.8 Forsvarets Forskningsinstitutt: defense products
7.2.9 Forsvarets Forskningsinstitutt: recent announcements and strategic initiatives
7.2.10 Forsvarets Forskningsinstitutt: alliances
7.2.11 Forsvarets Forskningsinstitutt: recent contract wins
7.2.12 Forsvarets Forskningsinstitutt: financial analysis
7.2.13 NAMMO AS: overview
7.2.14 NAMMO AS: products and services
7.2.15 NAMMO AS: recent announcements and strategic initiatives
7.2.16 NAMMO AS: alliances
7.2.17 NAMMO AS: recent contract wins
7.2.18 NAMMO AS: financial analysis
7.2.19 Kitron: overview
7.2.20 Kitron: products and services
7.2.21 Kitron: recent announcements and strategic initiatives
7.2.22 Kitron: alliances
7.2.23 Kitron: recent contract wins
7.2.24 Kitron: financial analysis
7.3 Key Private Sector Companies
7.3.1 Natech NSV AS: overview
7.3.2 Natech NSV AS: products and services
7.3.3 Natech NSV AS: recent contracts and strategic initiatives
7.3.4 Natech NSV AS: alliances
7.3.5 Natech NSV AS: recent contract wins
7.3.6 Natech NSV AS: financial analysis
7.3.7 Jotne EPM Technology AS: overview
7.3.8 Jotne EPM Technology AS: products and services
7.3.9 Jotne EPM Technology AS: recent announcements and strategic initiatives
7.3.10 Jotne EPM Technology AS: alliances
7.3.11 Jotne EPM Technology AS: recent contract wins
7.3.12 Jotne EPM Technology AS: financial analysis
7.3.13 Tinex: overview
7.3.14 Tinex: products and services
7.3.15 Tinex: recent announcements and strategic initiatives
7.3.16 Tinex: alliances
7.3.17 Tinex: recent contract wins
7.3.18 Tinex: financial analysis
7.3.19 Thales Norway AS: overview
7.3.20 Thales Norway AS: products and services
7.3.21 Thales Norway AS: recent announcements and strategic initiatives
7.3.22 Thales Norway AS: alliances
7.3.23 Thales Norway AS: recent contract wins
7.3.24 Thales Norway AS: financial analysis
7.3.25 Sea-Hawk Navigation AS: overview
7.3.26 Sea-Hawk Navigation AS: products
7.3.27 Sea-Hawk Navigation AS: recent announcements and strategic initiatives
7.3.28 Sea-Hawk Navigation AS: alliances
7.3.29 Sea-Hawk Navigation AS: recent contract wins
7.3.30 Sea-Hawk Navigation AS: financial analysis
7.3.31 Simrad Optronics AS: overview
7.3.32 Simrad Optronics AS: products
7.3.33 Simrad Optronics AS: recent announcements and strategic initiatives
7.3.34 Simrad Optronics AS: alliances
7.3.35 Simrad Optronics AS: recent contract wins
7.3.36 Simrad Optronics AS: financial analysis
7.3.37 Umoe Mandal: overview
7.3.38 Umoe Mandal: products and services
7.3.39 Umoe Mandal: recent announcements and strategic initiatives
7.3.40 Umoe Mandal: alliances
7.3.41 Umoe Mandal: recent contract wins
7.3.42 Umoe Mandal: financial analysis
7.3.43 Eidsvoll Electronics AS: overview
7.3.44 Eidsvoll Electronics AS: products and services
7.3.45 Eidsvoll Electronics AS: recent announcements and strategic initiatives
7.3.46 Eidsvoll Electronics AS: alliances
7.3.47 Eidsvoll Electronics AS: recent contract wins
7.3.48 Eidsvoll Electronics AS: financial analysis

8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 Industrial confidence indicator, manufacturing
8.1.2 Market capitalization trend - the Oslo Stock Exchange, Norway
8.1.3 FDI inflows
8.1.4 Deployment of credit by sector
8.2 Economic Performance
8.2.1 GDP at constant prices
8.2.2 GDP per capita at constant prices
8.2.3 GDP at current prices
8.2.4 GDP per capita at current prices
8.2.5 GDP split by key segments
8.2.6 Agriculture net output at current prices (Norwegian kroner)
8.2.7 Agriculture net output at current prices (US dollar)
8.2.8 Agriculture net output at current prices as percentage of GDP
8.2.9 Manufacturing net output at current prices (Norwegian kroner)
8.2.10 Manufacturing net output at current prices (US dollars)
8.2.11 Manufacturing net output at current prices as percentage of GDP
8.2.12 Mining, manufacturing and utilities net output at current prices (Norwegian kroner)
8.2.13 Mining, manufacturing and utilities at current prices (US dollars)
8.2.14 Mining, manufacturing and utilities at current prices as percentage of GDP
8.2.15 Construction net output at current prices (Norwegian kroner)
8.2.16 Construction net output at current prices (US dollar)
8.2.17 Construction output at current prices as a percentage of GDP
8.2.18 Crude steel production
8.2.19 Crude oil consumption
8.2.20 Inflation Rate
8.2.21 Fiscal balance as a percentage of GDP
8.2.22 Trade balance as a percentage of GDP
8.2.23 Exports as a percentage of GDP
8.2.24 Imports as a percentage of GDP
8.2.25 Exports growth
8.2.26 Imports growth
8.2.27 External debt as percentage of GDP
8.2.28 Annual average exchange rate US$–NOK
8.2.29 End of the period exchange rate US$–NOK
8.3 Infrastructure Quality and Availability
8.3.1 Total airports and ports
8.3.2 Railways and roads
8.3.3 Automotive components exports trend
8.3.4 Automotive components import trend
8.3.5 Passenger car penetration
8.3.6 Total installed capacity for electricity generation
8.3.7 Installed capacity for conventional thermal electricity generation
8.3.8 Electricity production
8.3.9 Installed capacity for the generation of hydroelectricity
8.3.10 Installed capacity for renewable electricity generation
8.3.11 Electricity consumption
8.3.12 Electricity exports
8.3.13 Electricity imports
8.3.14 Healthcare expenditure
8.3.15 Healthcare expenditure as a percentage of GDP
8.3.16 Healthcare expenditure per capita
8.3.17 R&D expenditure as a percentage of GDP
8.3.18 Total internet subscribers
8.3.19 Broadband internet subscribers
8.3.20 Personal computer penetration
8.3.21 Mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Annual per capita consumer expenditure on food
8.5.5 Urban and rural population
8.5.6 Female percentage of population
8.5.7 Male percentage of population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age distribution of total population
8.5.12 Age distribution of male population
8.5.13 Age distribution of female population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political stability
8.6.2 Terrorism index
8.6.3 Transparency index

9 Appendix