Philippines Defense Industry Report 2017-2022

Philippines Defense Industry Report 2017-2022

PR Newswire

DUBLIN, Dec. 6, 2017 /PRNewswire/ --

The "Future of the Philippines' Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.

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Philippines' defense expenditure recorded a historic-period CAGR of 11.55% by the end of 2017

The growing strength and assertiveness of the Chinese Navy with regards to territorial claims in the South China Sea has spurred the government to enhance its military capabilities. The consequent demand for defense equipment will revolve around fighter and multi-role aircraft, frigates, infrastructure construction, submarines, naval vessels and surveillance equipment. As a percentage of GDP, defense expenditure will post a forecast-period CAGR of 0.9%.

Capital expenditure allocation, which stood at an average of 38.5% during the historic period, will increase over the forecast period due to the procurement of fighter aircraft, frigates, and infrastructure construction projects. The share of revenue expenditure decreased from 61.5% during the historic period to 59.1% over the forecast period, as the defense department is increasing efforts to reduce operational costs. Population growth will inflate the per capita defense expenditure at a CAGR of 10.28%.

During 2012-2016, the US emerged as the largest supplier of military hardware to the Philippines with a 40%+ share of defense imports, followed by Indonesia and South Korea. The US mainly supplied aircraft and naval vessels, a trend anticipated to continue over the forecast period due to the country's dependence on the US as a defense supplier. However, the government is beginning to widen its supplier base and plans to procure equipment from Indonesia, South Korea, Italy, Spain, Poland, Australia and Israel.

Homeland security budget will record a historic period CAGR of 1.40% to value US$2.3 Billion, driven by investments in counter terrorism and drug smuggling activities.


  • The defense budget of Philippines for the year 2017 is US$2.9 billion. For the historic period, 2013-2017, the defense budget of the country registered a CAGR of 11.55%. The defense budget is currently being driven by efforts to modernize the army, threats from terrorist organizations, and tensions in the South China Sea.
  • During the historic period, the Philippines MoD allocated an average of 38.5% of the total defense budget to capital expenditure, while an average of 61.5% was reserved for revenue expenditure. Over the forecast period, allocation towards capital expenditure is expected to increase at an average of 40.9%.
  • The MoD is expected to invest in multi-role aircraft, diesel electric submarines and infrastructure construction.

Key Topics Covered:

1. Introduction

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

4. Defense Procurement Market Dynamics

5. Industry Dynamics

6. Competitive landscape and Strategic Insights

7. Business Environment and Country Risk

8. Appendix

Companies Mentioned

  • ELTA Systems Ltd
  • Leonardo
  • Raytheon
  • Remington Arms Company
  • United Defense Manufacturing Corporation (UDMC)

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SOURCE Research and Markets