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French army modernisation predicted to stoke market growth

24th March 2011 - 14:40 GMT | by The Shephard News Team

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The French land defence market is undergoing a major shift as the French Army becomes more integrated and interoperable with its allies, according to a new report.

The Frost and Sullivan paper, released on 24 March, estimates France’s land forces market to be worth €13.10 billion ($18.6 billion) between 2009 and 2019, with €1.5 billion ($2.1 billion) estimated in 2019 alone.

Military spending is one of the keystones of the government’s economic recovery strategy and the market is expected to remain flat until 2015, following which modernisation programmes are ‘poised to stoke market growth’, according to the ‘Revenue Opportunities and Stakeholder Mapping in the French Land Defence Market’ report.

‘The trend of military downsizing has been noticeable across all the domains of the French defence force,’ said Mahendran Arjunraja, Frost and Sullivan research analyst.

‘As a conscious measure to avoid the drawbacks of downsizing, the armed forces are being equipped with advanced equipment.’

While a decreased defence budget is impacting the defence market, France’s participation in conflicts and operations has forced it to opt for advanced and highly-efficient military equipment, the report claimed.

Foreign competitors are expected to challenge the domestic defence companies, but the French defence industry ‘remains secluded’, which makes it difficult for foreign companies to penetrate the market.

However, upcoming land defence programmes in France are of significant value, and the competition to win such projects is expected to be ‘intense’. By partnering with French companies, foreign competitors can ease their way into the French market, according to Arjunraja.

The Shephard News Team

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