The Global Body Armor and Personal Protection Market

The Global Body Armor and Personal Protection Market 2012 2022 John Carpenter House, 7 Carmelite Street, London EC4Y 0BS, United Kingdom, Tel: +44 (0)20 7936 6830

TABLE OF CONTENTS 1 Introduction... 11 1.1 What is this Report About?... 11 1.2 Definitions... 11 1.3 Summary Methodology... 13 1.4 About Strategic Defence Intelligence ()... 14 2 Executive Summary... 15 3 Global Body Armor and Personal Protection Market Size and Drivers... 17 3.1 Body Armor and Personal Protection Market Size and Forecast 2012 2022... 17 3.1.1 Global body armor and personal protection market to show positive growth during the forecast period.17 3.2 Global Body Armor and Personal Protection Market Regional Analysis... 18 3.2.1 North America dominates the global body armor and personal protection market...18 3.2.2 Demand for Soft and Hard armor in the US to support the global body armor and personal protection market...21 3.2.3 Body armor and personal protection market to be robust in Europe...22 3.2.1 Body armor and personal protection market expected to grow at a CAGR of XX% in the Asia-Pacific region...24 3.2.2 Body Armor and Personal Protection market in the Middle East to increase during the forecast period.25 3.2.3 Brazil expected to be the highest spender in the body armor and personal protection sector in the Latin American region...26 3.2.4 Markets in Africa expected to increase over the forecast period...27 3.3 Body Armor and Personal Protection Sub Sector Market Size Composition... 28 3.3.1 Soft armor segment to account for the highest expenditure in the body armor and personal protection market...28 3.3.2 Hard armor expected to constitute the second largest segment in the body armor and personal protection market 30 3.3.3 Market size of protective headgear segment expected to rise at a CAGR of XX% during the forecast period...31 3.4 Demand Drivers and Growth Stimulators... 32 3.4.1 Shortage of body armors driving the market...32 3.4.2 Technological innovations driving the body armor and personal protection market...32 3.5 Defense Budget Spending Review... 34 3.5.1 European capital expenditure expected to increase during the forecast period...34 3.5.2 Asian defense budgets expected to increase at a robust pace...35 3.5.3 North American defense expenditure projected to decline marginally during the forecast period...36 3.5.4 Modernization programs likely to drive defense expenditure in South American countries...37 2

3.5.5 Military budgets of African countries expected to increase during the forecast period...38 3.5.6 Defense budgets of Middle Eastern countries likely to increase during the forecast period...39 3.6 Defense Modernization Review... 40 3.6.1 Financial constraints causing delays in European defense modernization programs...40 3.6.2 Defense budgets of Asian countries likely to be driven by competitive arms acquisitions...40 3.6.3 Global economic slowdown leading to defense budget cuts in the North American region...41 3.6.4 Need to replace aging equipment driving South American defense expenditure...41 3.6.5 Security threats increasing the defense budget of African countries...41 3.6.6 Demand for air defense systems is likely to increase in the Middle East...41 4 Industry Trends, Recent Developments and Challenges... 43 4.1 Technological Developments... 43 4.1.1 Cosworth introduces soldier worn electronics demonstrator...43 4.1.2 Double sided combat uniforms to enhance soldier survivability...43 4.1.3 UNEQUAL Technologies launches DEFCON technology for protective gear...43 4.1.4 Fabric being developed to protect against cut wounds...44 4.2 Market Trends... 45 4.2.1 The US Army developing better body armors for women troops...45 4.2.2 Countries investing significantly to make body armor and personal protection equipment lighter...45 4.3 Industry Consolidation... 46 4.3.1 Joint programs expected to increase over the forecast period...46 4.3.2 Companies are expected to consolidate in the face of global defense budget cuts...46 4.4 Key Challenges... 47 4.4.1 Reducing the burden of soldiers poses a key challenge for body armor market...47 4.4.2 Body armor for women still in its nascent stage...47 5 SWOT Analysis of the Body Armor and Personal Protection Market... 48 5.1 Strengths... 49 5.1.1 Soldier survivability propelling the market for body armor and personal protection...49 5.1.2 Technological advancements driving the market the market for body armor and personal protection...49 5.1.3 Spread of asymmetric warfare across the globe...49 5.2 Weaknesses... 51 5.2.1 Weight of equipment decreasing mobility...51 5.2.2 High unit costs of individual protection equipment...51 5.3 Opportunities... 52 5.3.1 Demand for lighter body armor to drive the sector in the forecast period...52 5.3.2 Soldier Modernization programs fuelling demand for body armor and personal protection equipment...52 5.4 Threats... 53 3

5.4.1 US and European economic crisis...53 5.4.2 Shrinking military expenditure to impact demand for advanced technology body armor and personal protection equipment...53 6 Country Analysis Body Armor and Personal Protection Market... 54 6.1 United States Market Size and Forecast 2012 2022... 55 6.1.1 Soft armor equipment expected to account for the largest share of US body armor and personal protection market...58 6.1.2 Hard armor segment is expected to constitute the second largest market share in the US...59 6.1.3 Spending on protective headgear expected to exhibit a CAGR of XX% during the forecast period...60 6.2 France Market Size and Forecast 2012 2022... 61 6.2.1 The FELIN program to drive the hard armor market during the forecast period...64 6.2.2 FELIN V1 and FELIN V2 to drive the French soft armor market...65 6.3 Russia Market Size and Forecast 2012 2022... 66 6.3.1 Expenditure on soft armor to be robust during the forecast period...69 6.3.2 Spending on hard armor to grow at a CAGR of XX% throughout the forecast period...70 6.4 The United Kingdom Market Size and Forecast 2012 2022... 71 6.4.1 Soft armor market in the UK to increase during the forecast period...74 6.4.2 Hard armor market to register robust growth during the forecast period...75 6.5 Israel Market Size and Forecast 2012 2022... 76 6.5.1 Soft armor equipment expected to account for the largest share of Israeli body armor and personal protection market...79 6.5.2 Spending on protective headgear expected to reach US$XX million by 2018...80 6.6 Saudi Arabia Market Size and Forecast 2012 2022... 81 6.6.1 Saudi Arabia s expenditure on protective headgear segment to increase at a CAGR of XX%...83 6.7 Australia Market Size and Forecast 2012 2022... 84 6.7.1 Hard armor to account for the highest proportion of expenditure by Australia on body armor and personal protection...87 6.7.2 Soft armor accounts for the second largest share of Australian spending on body armor and personal protection...88 6.7.3 Spending on protective headgear expected to exhibit a CAGR of XX% during the forecast period...89 6.8 Indian Market Size and Forecast 2012 2022... 90 6.8.1 Hard armor equipment expected to account for the largest share of Indian body armor and personal protection market...93 6.8.2 Soft armor segment is expected to constitute the second largest market share in India...94 6.8.3 Spending on protective headgear expected to reach US$XX million by 2015...95 6.9 China Market Size and Forecast 2012 2022... 96 6.9.1 China s expenditure on hard armor to account for the highest proportion of expenditure...99 4

6.9.2 Soft armor segment is expected to exhibit a CAGR of XX% during the forecast period...100 6.9.3 Protective headgear expected to constitute the third largest market share in China...101 6.10 Brazil Market Size and Forecast 2012 2022... 102 6.10.1 Hard armor to account for the highest proportion of expenditure by Brazil on body armor and personal protection...105 6.10.2 Soft armor accounts for second largest share of Brazilian spending on body armor and personal protection...106 6.11 Peru Market Size and Forecast 2012 2022... 107 6.11.1 Peru s expenditure on soft armor segment to increase at a CAGR of XX%...109 7 Major Body Armor and Personal Protection Programs... 110 7.1 Hard Armor... 110 7.1.1 Future infantry soldier technology (FIST) program...110 7.1.2 Land 125 (Phase-3B)...111 7.1.3 F-INSAS (Phase-1)...111 7.2 Soft Armor... 113 7.2.1 DLA Troop Support - Outer Tactical Vests and Improved Outer Tactical Vests procurement program.113 7.2.2 Uniform Integrated Protection Ensemble Program...114 7.2.3 Modular Bullet Proof Vests Procurement...114 7.3 Protective Headgear... 115 7.3.1 Next Generation Combat Helmet program...115 7.3.2 US foliage green advanced combat helmets program...116 7.3.3 Australian Better Combat Helmets Program...116 8 Competitive Landscape and Strategic Insights... 117 8.1 Competitive Landscape overview... 117 8.1.1 Ceradyne Inc.: Overview...119 8.1.2 Ceradyne Inc.: Products and Services...119 8.1.3 Ceradyne Inc.: Alliances...119 8.1.4 Ceradyne Inc.: Recent Contract Wins...119 8.1.5 Ceradyne Inc.: Financial Analysis...120 8.1.6 Protective Products Enterprises: Overview...122 8.1.7 Protective Products Enterprises: Products and Services...122 8.1.8 Protective Products Enterprises: Alliances...122 8.1.9 Protective Products Enterprises: Recent Contract Wins...122 8.1.10 Protective Products Enterprises: Financial Analysis...122 8.1.11 Ballistic Body Armour: Overview...123 8.1.12 Ballistic Body Armour: Products and Services...123 5

8.1.13 Ballistic Body Armour: Alliances...123 8.1.14 Ballistic Body Armour: Recent Contract Wins...123 8.1.15 Ballistic Body Armour: Financial Analysis...123 8.1.16 Combat Clothing Australia: Overview...124 8.1.17 Combat Clothing Australia: Products and Services...124 8.1.18 Combat Clothing Australia: Alliances...124 8.1.19 Combat Clothing Australia: Recent Contract Wins...124 8.1.20 Combat Clothing Australia: Financial Analysis...124 8.1.21 ArmorSource: Overview...125 8.1.22 ArmourSource: Products and Services...125 8.1.23 ArmourSource: Alliances...126 8.1.24 ArmourSource: Recent Contract Wins...126 8.1.25 ArmorSource: Financial Analysis...126 8.1.26 BAE Systems: Overview...127 8.1.27 BAE Systems: Products and Services...127 8.1.28 BAE Systems: Alliances...127 8.1.29 BAE Systems: Recent Contract Wins...128 8.1.30 BAE Systems: Financial Analysis...129 8.1.31 Honeywell: Overview...131 8.1.32 Honeywell: Products and Services...131 8.1.33 Honeywell: Alliances...131 8.1.34 Honeywell: Recent Contract Wins...131 8.1.35 Honeywell: Financial Analysis...132 8.1.36 Survitec Group Limited: Overview...134 8.1.37 Survitec Group Limited: Products and Services...134 8.1.38 Survitec Group Limited: Alliances...134 8.1.39 Survitec Group Limited: Recent Contract Wins...135 8.1.40 Survitec Group Limited: Financial Analysis...135 8.1.41 Plasan Sasa Composite Materials: Overview...136 8.1.42 Plasan Sasa Composite Materials: Products and Services...136 8.1.43 Plasan Sasa Composite Materials: Alliances...136 8.1.44 Plasan Sasa Composite Materials: Recent Contract Wins...136 8.1.45 Plasan Sasa Composite Materials: Financial Analysis...136 8.1.46 Anjani Technoplast: Overview...137 8.1.47 Anjani Technoplast: Products and Services...137 8.1.48 Anjani Technoplast: Recent Announcements and Strategic Initiatives...137 8.1.49 Anjani Technoplast: Alliances...137 6

8.1.50 Anjani Technoplast: Recent Contract Wins...137 8.1.51 Anjani Technoplast: Financial Analysis...137 8.1.52 M Cubed Technologies: Overview...138 8.1.53 M Cubed Technologies: Products and Services...138 8.1.54 M Cubed Technologies: Recent Announcements and Strategic Initiatives...138 8.1.55 M Cubed Technologies: Alliances...138 8.1.56 M Cubed Technologies: Recent Contract Wins...138 8.1.57 M Cubed Technologies: Financial Analysis...138 8.1.58 Sarkar Defence Solutions: Overview...139 8.1.59 Sarkar Defence Solutions: Products and Services...139 8.1.60 Sarkar Defence Solutions: Recent Announcements and Strategic Initiatives...140 8.1.61 Sarkar Defence Solutions: Alliances...140 8.1.62 Sarkar Defence Solutions Limited: Recent Contract Wins...140 8.1.63 Sarkar Defence Solutions: Financial Analysis...140 8.1.64 Point Blank Body Armor Inc: Overview...141 8.1.65 Point Blank Body Armor Inc.: Products and Services...141 8.1.66 Point Blank Body Armor Inc: Alliances...141 8.1.67 Point Blank Body Armor Inc: Recent Contract Wins...141 8.1.68 Point Blank Body Armor Inc: Financial Analysis...141 9 Appendix... 142 9.1 Methodology... 142 9.2 Contact us... 142 9.3 About SDI... 142 9.4 Disclaimer... 142 7

LIST OF FIGURES Figure 1: Global Body Armor and Personal Protection Market (US$ Billion), 2012 2022... 17 Figure 2: Body Armor And Personal Protection Market Breakdown by Region (%), 2012 2022... 20 Figure 3: North American Body Armor And Personal Protection Market (US$ Million), 2012 2022... 21 Figure 4: European Body Armor and Personal Protection Market (US$ Million), 2012 2022... 23 Figure 5: Asia-Pacific Body Armor and Personal Protection Market (US$ Million), 2012 2022... 24 Figure 6: Middle East Body Armor and Personal Protection Market (US$ Million), 2012 2022... 25 Figure 7: Latin American Body Armor And Personal Protection Market (US$ Million), 2012 2022... 26 Figure 8: African Body Armor and Personal Protection Market (US$ Million), 2012 2022... 27 Figure 9: Body Armor And Personal Protection Market Breakdown by Segment (%), 2012 2022... 29 Figure 10: Hard Armor Market Size (US$ Million), 2012 2022... 30 Figure 11: Protective Headgear Market Size (US$ Million), 2012 2022... 31 Figure 12: Defense Capital Expenditure of Top Three European Defense Spenders (US$ Billion), 2012 2022... 34 Figure 13: Defense Capital Expenditure of Top Three Asian Defense Spenders (US$ Billion), 2012 2022... 35 Figure 14: Defense Capital Expenditure of Top North American Defense Spenders (US$ Billion), 2012 2022... 36 Figure 15: Defense Capital Expenditure of Top Three South American Defense Spenders (US$ Billion), 2012 2022... 37 Figure 16: Defense Capital Expenditure of Top Three African Countries (US$ Billion), 2012 2022... 38 Figure 17: Defense Capital Expenditure of Top Three Middle Eastern Defense Spenders (US$ Billion), 2012 2022... 39 Figure 18: Body Armor And Personal Protection Market in the US (US$ Billion), 2012 2022... 56 Figure 19: Body Armor And Personal Protection Market Split By Category in the US (%), 2012 2022... 57 Figure 20: Soft Armor Market Size in the US (US$ Billion), 2012 2022... 58 Figure 21: Hard Armor Market Size in the US (US$ Million), 2012 2022... 59 Figure 22: Protective Headgear Market Size in the US (US$ Million), 2012 2022... 60 Figure 23: Body Armor and Personal Protection Market in France (US$ Million), 2012 2022... 62 Figure 24: Body Armor and Personal Protection Market Split by Sector in France (%), 2012 2022... 63 Figure 25: Hard Armor Market Size in France (US$ Million), 2012 2022... 64 Figure 26: Soft Armor Market Size in France (US$ Million), 2012 2022... 65 Figure 27: Body Armor and Personal Protection Market in Russia (US$ Billion), 2012 2022... 67 Figure 28: Russian Body Armor and Personal Protection Market Split by Sector (%), 2012 2022... 68 Figure 29: Soft Armor Market Size in Russia (US$ Million), 2012 2022... 69 Figure 30: Hard Armor Market Size in Russia (US$ Million), 2012 2022... 70 Figure 31: Body Armor and Personal Protection Market in the UK (US$ Million), 2012 2022... 72 Figure 32: Body Armor and Personal Protection Market Split by Sector in UK (%), 2012 2022... 73 Figure 33: Soft Armor Market Size in the UK (US$ Million), 2012 2022... 74 Figure 34: Hard Armor Market Size in the UK (US$ Million), 2012 2022... 75 Figure 35: Body Armor and Personal Protection Market in Israel (US$ Million), 2012 2022... 77 Figure 36: Body Armor and Personal Protection Market Split by Sector in Israel (%), 2012 2022... 78 Figure 37: Soft Armor Market Size in Israel (US$ Million), 2012 2022... 79 Figure 38: Protective Headgear Market Size in Israel (US$ Million), 2012 2022... 80 Figure 39: Body Armor and Personal Protection Market in Saudi Arabia (US$ Million), 2012 2022... 82 Figure 40: Protective Headgear Market Size in Saudi Arabia (US$ Million), 2012 2022... 83 Figure 41: Body Armor and Personal Protection Market in Australia (US$ Million), 2012 2022... 85 Figure 42: Body Armor and Personal Protection Market Split by Sector in Australia (%), 2012 2022... 86 Figure 43: Hard Armor Market Size in Australia (US$ Million), 2012 2022... 87 Figure 44: Soft Armor Market Size in Australia (US$ Million), 2012 2022... 88 Figure 45: Protective Headgear Market Size in Australia (US$ Million), 2012 2022... 89 Figure 46: Body Armor and Personal Protection Market in India (US$ Million), 2012 2022... 91 Figure 47: Body Armor and Personal Protection Market Split by Sector in India (%), 2012 2022... 92 Figure 48: Hard Armor Market Size in India (US$ Million), 2012 2022... 93 Figure 49: Soft Armor Market Size in India (US$ Million), 2012 2022... 94 Figure 50: Protective Headgear Market Size in India (US$ Million), 2012 2022... 95 Figure 51: Body Armor and Personal Protection Market in China (US$ Million), 2012 2022... 97 Figure 52: Body Armor and Personal Protection Market Split By Category in China (%), 2012 2022... 98 Figure 53: Hard Armor Market Size in China (US$ Million), 2012 2022... 99 Figure 54: Soft Armor Market Size in China (US$ Million), 2012 2022... 100 8

Figure 55: Protective Headgear Market Size in China (US$ Million), 2012 2022... 101 Figure 56: Body armor and Personal Protection Market in Brazil (US$ Million), 2012 2022... 103 Figure 57: Body armor and Personal Protection Market Split By Category in Brazil (%), 2012 2022... 104 Figure 58: Hard Armor Market Size in Brazil (US$ Million), 2012 2022... 105 Figure 59: Soft Armor Market Size in Brazil (US$ Million), 2012 2022... 106 Figure 60: Body armor and Personal Protection Market in Peru (US$ Million), 2012 2022... 108 Figure 61: Soft Armor Market Size in Peru (US$ Million), 2012 2022... 109 Figure 62: Ceradyne Inc. Revenue Trend Analysis (US$ Million), 2007 2011... 120 Figure 63: Ceradyne Inc. Operating Profit (US$ Million), 2007 2011... 121 Figure 64: Ceradyne Inc. Net Profit Trend Analysis (US$ Million), 2007 2011... 121 Figure 65: BAE Systems Revenue Trend Analysis (GBP Billion), 2007 2011... 129 Figure 66: BAE Systems Operating Profit (GBP Million), 2007 2011... 129 Figure 67: BAE Systems Net Profit Trend Analysis (GBP Million), 2007 2011... 130 Figure 68: Honeywell Revenue Trend Analysis (US$ Billion), 2007 2011... 132 Figure 69: Honeywell Operating Profit (US$ Million), 2007 2011... 133 Figure 70: Honeywell Net Profit Trend Analysis (US$ Million), 2007 2011... 133 9

LIST OF TABLES Table 1: Global Body Armor And Personal Protection Market Overview... 19 Table 2: Global Body Armor And Personal Protection Market Overview... 28 Table 3: SWOT Analysis of the Body Armor and Personal Protection market... 48 Table 4: Leading Body Armor And Personal Protection Markets and Top Three Segments... 53 Table 5: US Body Armor and Personal Protection Market Overview... 54 Table 6: Key Body Armor and Personal Protection programs... 55 Table 7: French Body Armor and Personal Protection Market Overview... 60 Table 8: Major French Body Armor and Personal Protection Programs... 61 Table 9: Russian Body Armor and Personal Protection Market Overview... 65 Table 10: Major Russian Body Armor and Personal Protection Programs... 66 Table 11: UK Body Armor and Personal Protection Market Overview... 70 Table 12: Major UK Body Armor and Personal Protection Programs... 71 Table 13: Israeli Body Armor and Personal Protection - Market Overview... 75 Table 14: Major Israeli Body Armor and Personal Protection Programs... 76 Table 15: Saudi Arabian Body Armor Market Overview... 80 Table 16: Australian Body Armor and Personal Protection Market Overview... 83 Table 17: Key Australian Body Armor and Personal Protection Programs... 84 Table 18: Indian Body Armor and Personal Protection Market Overview... 89 Table 19: Key Indian Body Armor and Personal Protection Programs... 90 Table 20: Chinese Body Armor and Personal Protection Market Overview... 95 Table 21: Brazilian Body armor and Personal Protection Market Overview... 101 Table 22: Key Brazilian Body Armor and Personal Protection Programs... 102 Table 23: Peruvian Body Armor and Personal Protection Market Overview... 106 Table 24: Key Peruvian Body Armor and Personal Protection Programs... 107 Table 25: Program Details FIST program... 109 Table 26: Program Details Land 125 (Phase-3B)... 110 Table 27: Program Details F-INSAS (Stage-1)... 111 Table 28: Program Details Outer Tactical Vests and Improved Outer Tactical Vests procurement program:... 112 Table 29: Program Details Uniform Integrated Protection Ensemble Program... 113 Table 30: Program Details Modular Bullet Proof Vests... 113 Table 31: Program Details Force Protection Systems program... 114 Table 32: Program Details Foliage green advanced combat helmets program... 115 Table 33: Program Details Better Combat Helmets Program... 115 Table 34: Key Global Body Armor and Personal Protection Manufacturers and Capabilities... 117 Table 35: Ceradyne Inc. Alliances... 118 Table 36: Ceradyne Inc. Recent Contract Wins... 118 Table 37: Protective Products Enterprises Recent Contract Wins... 121 Table 38: Combat Clothing Australia Recent Contract Wins... 123 Table 39: ArmourSource: Alliances... 125 Table 40: ArmourSource: Recent Contract Wins... 125 Table 41: Saab Recent Contract Wins... 127 Table 42: Honeywell Recent Contract Wins... 130 Table 43: Saab Recent Contract Wins... 134 Table 44: Plasan Sasa Composite Materials Alliances... 135 Table 45: M Cubed Technologies Recent Contract Wins... 137 Table 46: Sarkar Defence Solutions Alliances... 139 Table 47: Sarkar Defence Solutions Recent Contract Wins... 139 10

1 Executive Summary The global body armor and personal protection market is expected to increase at a CAGR of XX% during the forecast period The global body armor and personal protection market is expected to be worth US$XX billion in 2012 and to increase to US$XX billion by 2022, representing a CAGR of XX% during the forecast period. The demand for body armor and personal protection equipment is anticipated to be driven by internal and external security threats, territorial disputes, modernization initiatives, technological innovations, and a general shortage of body armor across the world. Cumulatively, the global market is expected to value US$XX billion during the forecast period. The market is expected to be dominated by North America, followed by Europe and Asia-Pacific. Despite the economic downturn in Europe, the region s share of the global market is projected to increase during the forecast period due to the scheduled deployment of various modernization programs that have been initiated in previous years. In terms of categories, soft armor is expected to account for the highest proportion of spending in the global body armor and personal protection market, followed by hard armor and protective headgear. The demand for soft armor is anticipated to be higher than other categories because of the research and development programs being conducted across the world in order to develop enhanced combat clothing. Hard armor systems are also expected to witness significant demand due to the growing threat of asymmetrical warfare and significant technological advances in the field. 11

US$ Billion The Global Body Armor and Personal Protection Market 2012 2022 2 Global Body Armor and Personal Protection Market Size and Drivers 2.1 Body Armor and Personal Protection Market Size and Forecast 2012 2022 2.1.1 Global body armor and personal protection market to show positive growth during the forecast period The global body armor and personal protection market is estimated to value US$XX billion in 2012 and increase at a CAGR of XX% during the forecast period, to reach its peak of US$XX billion by 2022. The market consists of three categories of body armor and personal protection: soft armor, hard armor, and protective headgear. The soft armor segment is expected to account for XX% of the global body armor and personal protection market, followed by the hard armor segment with a share of XX%, and protective headgear with a share of XX%. During the forecast period, cumulative global expenditure on body armor and personal protection is expected to reach US$XX billion. The chart below shows the expected body armor and personal protection market value during 2012 2022: Figure 1: Global Body Armor and Personal Protection Market (US$ Billion), 2012 2022 XX XX XX XX XX XX XX 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: SDI analysis SDI 12

2.2 Global Body Armor and Personal Protection Market Regional Analysis 2.2.1 North America dominates the global body armor and personal protection market The US is expected to follow past trends and record budget cuts during the forecast period, but these cuts are not expected to affect the country s body armor and personal protection procurement programs. The US Department of Defense declared in a January 2012 press release statement that the US Army is preparing for a smaller infantry but a better equipped and optimally trained force. In the 2010 US Army Modernization Strategy (AMS), significant emphasis has been placed on improving personal protection for ground troops, and the US Department of Defense is expected to continue upgrading its existing body armor and protective headgear capabilities in order to remain the dominant land force globally. Due to the focus that has been placed on enabling better personal protection for US soldiers in the US Army Modernization Strategy, the Army s Fiscal Year 2011 Budget Request and the Army s Future Year s Defense Program (FYDP) includes increased funding for armor kits for increasing survivability and the accelerated development of lightweight body armor, which are now being designed gender specifically. Due to these mandates, North America is the leading spender in the body armor and personal protection sector and accounts for XX% of the global market. Some programs which are expected to contribute substantially to North American expenditure on body armor and personal protection include the procurement of Improved Outer Tactical Vests, the Uniform Integrated Protection Ensemble program, and the Security and Force Protection Services program. Europe and Asia are also expected to account for a significant portion of the total body armor and personal protection market during the forecast period, with shares of XX% and XX% respectively. This will be largely driven by the efforts of countries such as India, China, and Russia to provide enhanced survivability to their armed forces. The Middle East, Latin America, and Africa account for XX%, XX%, and XX% of global body armor and personal protection expenditure respectively. 13

The table below gives a brief overview of the global body armor and personal protection market: Table 1: Global Body Armor And Personal Protection Market Overview Region Market in 2012 Market in 2022 Total Market (2012 2022) Annualized growth/decline (2012 2022) North America US$XX million US$XX billion US$XX billion XX% Europe US$XX million US$XX million US$XX billion XX% Asia-Pacific US$XX million US$XX million US$XX billion XX% Middle East US$XX million US$XX million US$XX million XX% Latin America US$XX million US$XX million US$XX million XX% Africa US$XX million US$XX million US$XX million XX% Source: SDI analysis SDI 14

2.3 Body Armor and Personal Protection Sub Sector Market Size Composition 2.3.1 Soft armor segment to account for the highest expenditure in the body armor and personal protection market Soft body armor offers a significant contribution to ballistic protection for military personal due to their lightweight structures. The systems in use currently are constructed from conventional textile materials fused with filament composites, and have become relatively thicker and heavier to meet increasing protection requirements against more effective threats. The major factor driving the increased procurement of soft armor systems is the rapid technology advancement in the domains of reducing soldier load and providing enhanced personal protection, which has rendered earlier equipment obsolete. The armed forces of all major global defense spenders are running procurement programs in order to provide enhanced survivability capabilities for war fighters. These procurement programs are in turn driven by the endeavors undertaken by leading military nations to decrease troop numbers, which necessitates survivability of the reduced battalion in order to remain effective. As such, these survivability concerns are urging governments to continue to invest in body armor equipment so as to complement the decrease in actual forces on the ground. The market for the soft armor segment is expected to attract an expenditure of US$XX million in 2012, which is expected to grow at a CAGR of XX% and to reach US$XX billion in 2022. The cumulative market for soft armor during the forecast period is expected to register a value of US$XX billion. While hard armor is expected to account for XX% of the market, protective headgear is expected to constitute XX% of the overall market share during the forecast period. The table below gives a brief overview of the global body armor and personal protection market: Table 2: Global Body Armor And Personal Protection Market Overview Category Market in 2012 Market in 2022 Total Market (2012 2022) Annualized growth/decline (2012 2022) Soft Armor US$XX million US$XX billion US$XX billion XX% Hard Armor US$XX million US$XX million US$XX billion XX% Protective Headgear US$XX million US$XX million US$XX billion XX% Total Body Armor and Personal Protection Market US$XX billion US$XX billion US$XX billion XX% Source: SDI analysis SDI 15