The expenditure for Czech Defense industry showed a -4.37% growth rate to reach a value of US$2.10 billion by the year of 2014 from the higher net of US$2.51 billion in the year of 2010. By 2020, the expected hike in the spending is estimated at US$2.55 billion, looking positive at 3.18% to 3.99% CAGR in the forecasted duration, according to the Defense Market Research. The increase in such expenses is because of the likelihood to protect the Ukraine area from annexation by external sources and initiation of several missions for peacekeeping in fighting terrorism at both sides of the border.
The Developments and Challenges
The Defense Ministry may upgrade leased Gripens, vehicles that are MRAP armored, multipurpose helicopters, CCTV systems, border crossing by automated systems, enhanced aircrafts, and identification of documents electronically. The Industry analysis projected possibilities of military modernization that will equip the region with advanced ammunition and transport facility for armed forces. The challenges include focused budget allocation and scheduling of breakdown for the resources and expenditure on navy, air-force and army, individually as defined by the Defense Market Research.
The Future Expectations and Key Players
The Czech Defense Industry also faced major outbreak of need of improvisation by market players providing defense equipments in the nation. The dynamics of export and import for the industry is set to be analyzed to reach concrete strategy as reported by the Defense Market Research. In a decade the armed forces may be empowered by armory that positions them parallel to other superpowers, regarding the technologically advanced machineries.
As projected by the Industry Analysis, the key companies aiding the industry are Aura s.r.o., Dicom, Quittner, Aero Vodochody A.S., Omnipol a.s., Ceská, Lom Praha s.p., Tatra a.s., VOP 025 Nový Jicín, Tesla and Letov Letecká Výroba s.r.o. amongst others.
The Optimistic Aspects
The Ukraine crisis has raised concerns amidst authorities, as Europe is posing threat to their internal forces. However, the budget for Czech Defense Industry is lower than that of NATO. As per Industry analysis the forces will be used to curb drug trafficking, illegal immigration, espionage and extremism. Fortunately, the nation is allowing foreign investments 100% in defense sector. Thus, the funding issue can have a respite. Austria and Spain are amongst the topmost exporters to this homeland.