Colombia Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025

Colombia Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025


Colombia Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2025 report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for maritime and border security market over the forecast period.

This report offers detailed analysis of the Colombian defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

During the historic period, the Colombian government allocated an average of 3.7% of its defense budget to capital expenditure, which includes both the purchase of new equipment and upgrade programs for existing equipment. The rest of the budget was allocated to revenue expenditure, which includes salaries, planning, administration and training expenditure.

Military capital expenditure, on a cumulative basis, is anticipated to bewhich is anticipated to value US$2.2 billion over the forecast period. which is higher than the US$1.9 billion spent during the historic period.

Over the forecast period, the country is expected to invest in transport aircraft and multi-role aircraft, border security, infantry fighting vehicles, main battle tanks, self-propeleld howitzers, and frigates.

Over the forecast period, the Colombian defense expenditure is anticipated to increase at a CAGR of 4.58% to value US$12 billion in 2025.

The Colombian defense market has three major sectors: Multirole fighter Aircraft, Frigates and Military Aerospace MRO among others.

Over the forecast period, on a cumulative basis, Colombia is anticipated to spend US$2.2 billion on defense capital expenditure. In the coming years, demand for equipment is expected to mainly revolve around the procurement of multirole aircraft, naval vessels, transport aircraft, and the modernization of armored vehicles capabilities.


In particular, it provides an in-depth analysis of the following -

  • The Colombian defense industry market size and drivers: detailed analysis of the Colombia's defense industry during 2021-2025, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities:list of the top ten defense investment opportunities over the next 5 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Colombia's defense industry.
Reasons to Buy
  • Determine prospective investment areas based on a detailed trend analysis of the Colombian defense market over the next five years
  • Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Colombian market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
  • Identify the major threats that are driving the Colombian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion
  • Channelize resources by focusing on the ongoing programs that are being undertaken by the Colombian government
  • Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country.
  • The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About GlobalData
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Procurement Programs
3.1.2. Key Drivers and Challenges
3.2. Defense Market Size Historical and Forecast
3.2.1. Colombian aggregate defense expenditure, inclusive of US military aid, is anticipated to post a CAGR of 4.58% over the forecast period.
3.2.2. Defense and police expenditure excluding US aid is expected to increase over the forecast period
3.2.3. Equipment procurement plans and joint operations expected to drive defense expenditure over the forecast period
3.2.4. Colombian defense expenditure as a percentage of GDP anticipated to increase
3.3. Analysis of Defense Budget Allocation
3.3.1. Majority of defense budget allocated to revenue expenditure
3.3.2. Capital expenditure expected to increase over the forecast period
3.3.3. Key Trends and Market Insights
3.3.4. Per capita defense expenditure set to increase over the forecast period
3.4. Benchmarking with Key Global Markets
3.4.1. Colombia’s defense budget isexpected to increase at a CAGR of 15.14% over the forecast period
3.4.2. Colombia’s defense expenditure is low compared to European and other Latin American nations
3.4.3. Colombia allocates a significantlyhigh proportion of its GDP todefense
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2020-2025
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports are expected to recover over the forecast period
4.1.2. Colombia sourced most its arms imports from Germany and the US
4.1.3. Naval vessels and aircraftdominated the country’s military hardware imports
4.2. Export Market Dynamics
4.2.1. Arms exportsare low due to the under-developed domestic defense industry
4.2.2. Colombiaexported most its arms to Honduras and Guatemala
5. Market Entry Strategy
5.1. Market Regulation
5.1.1. Offset policy aids development of domestic defense industry
5.1.2. Colombia does not permit FDI in the defense industry
5.2. Market Entry Route
5.2.1. Direct selling is the preferred route for foreign distributors
6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview
6.1.1. Colombian market share analysis
7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Gross Domestic per Capita
7.1.2. Consumer Price Inflation
7.1.3. Real GDP Growth Rate (%)
7.1.4. Government Budget Surplus/Deficit as a Percentage of GDP
7.1.5. Unemployment Rate as a Percentage of the Total Labor Force
8. Appendix
8.1. About GlobalData
8.2. Disclaimer
List of Tables
Table 1: Colombia’s Ongoing Development and Procurement Programs, 2020
Table 2: Colombia’s Future Procurement Programs, 2020
Table 3: Colombia’s Defense Expenditure Including US Aid, 2016-2025
Table 4: Colombia’s Defense and Police Expenditure Excluding US Aid (COP Trillion and US$ Billion), 2015-2025
Table 5: Colombian GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016-2025
Table 6: Colombia’s Defense Budget Allocation for Capital and Revenue Expenditure (%), 2016-2025
Table 7: Colombian’s Defense Capital Expenditure, Excluding US Aid (COPTrillion and US$ Billion), 2016-2025
Table 8: Colombian’s PerCapita Defense Expenditure (US$), 2016-2025
Table 9: Benchmarking with Key Markets, 2016-2020 vs 2021-2025
Table 10: Top 10 Colombian Defense Market Sectors by Value (US$ Million), 2020-2025
Table 11: Offset Regulations in Colombia
Table 12: Competitive Landscape of the Colombian Defense Industry
Table 13: Top Defense Suppliers in the Colombian Defense Industry By Value (US$ Million),2020-2025
List of Figures
Figure 1: Colombian Defense Budget, 2021 and 2025
Figure 2: Colombian Defense Imports/Exports,2015 and 2019
Figure 3: Colombia’s Top Three Prospective Procurements/Developments
Figure 4: Colombia’sTotal Defense Expenditure Inclusive of US Aid (US$ Billion), 2016-2020
Figure 5: Colombia’sUS Security Aid (US$ Million), 2016-2020
Figure 6: Colombia’sTotal Defense Expenditure Excluding of US Aid (US$ Billion), 2016-2020
Figure 7: Colombia’sDefenseand Police Expenditure Excluding US Aid (COP Trillion), 2016-2025
Figure 8: Colombia’s Defense andPolice ExpenditureExcluding US Aid (US$ Billion), 2016-2025
Figure 9: Colombia GDP Growth vs Defense Expenditure as a Percentage of GDP Growth, 2016-2025
Figure 10: Colombia’s Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Figure 11: Colombia’s Capital Budget Expenditure (COP Trillion),2016-2025
Figure 12: Colombia’s Capital Budget Allocation (US$ Billion), 2016-2025
Figure 13: Colombia’s Per Capita Defense Expenditure (US$), 2016-2025
Figure 14: Benchmarking with Key Markets,2016-2020 vs 2021-2025
Figure 15: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2020 and 2025
Figure 16: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2020
Figure 17: Colombia’s Defense Import Trend(US$ Million), 2015-2019 (TIV Values)
Figure 18: Colombia’s Defense Imports by Country (%), 2015-2019
Figure 19: Colombia’s Defense Imports by Category (%), 2015-2019
Figure 20: Colombia’s Defense Export Trend(US$ Million), 2015-2019 (TIV Values)
Figure 21: Colombia’s Defense Imports by Country (%), 2015-2019
Figure 22: Colombian Market Share Analysis, 2020
Figure 23: Colombian GDP Per Capita, 2015-2025
Figure 24: Colombian GDP at Current Prices (US$ Billion), 2016-2025
Figure 25: Colombian Exports of Goods and Services, Current Prices (LCU Billion), 2016-2025
Figure 26: Government Budget Surplus/ Deficit as a Percentage of GDP (LCU), 2016-2025
Figure 27: Colombian Unemployment Rate as a Percentage of the Total Labor Force, 2015-2025

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