Future of the Argentina Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Argentine defense budget values US$5.9 Billion in 2017, and registered a CAGR of 5.14% during the historic period. The on-going modernization and procurement programs of the armed forces, the Falkland Islands territorial dispute with the UK, and participation in peacekeeping missions drove Argentine defense expenditure during 2013-2017. With this trend expected to continue over the forecast period, the country is projected to cumulatively spend US$42.3 Billion during 2018-2022. As a percentage of GDP, the country’s defense expenditure is expected to average 1.1% during the forecast period, compared to 0.9% recorded in the historic period.
Argentina’s defense capital expenditure valued US$1.5 Billion in 2017, and recorded a CAGR of 3.72% during 2013-2017. Capital expenditure is projected to grow at a CAGR of 10.58% during the forecast period to value US$2.3 Billion in 2022. This is primarily due to the procurement of advanced defense equipment and focus on increasing the indigenous defense manufacturing capabilities.
Aircraft accounted for the largest share of imports during 2012-2016, with the US being the largest supplier. Argentina’s domestic defense capabilities are restricted to the manufacture of trainer aircraft, transport aircraft, submarines, and small arms. Aircraft accounted for 72% of Argentina’s arms imports, followed by sensors and engines. In addition, rising capital expenditure allocations and the need to modernize its weapons arsenal are expected to increase defense imports during the forecast period.
Argentina’s defense exports were negligible during the historic period as the domestic companies, which are primarily involved in the manufacturing of trainer aircraft, UAVs, small arms, and submarines, are less sophisticated compared to other global partners. However, the country is increasing its efforts to reduce its dependency and is encouraging joint agreements and projects to boost its indigenous market.
Over the forecast period the country plans to acquire some fighter aircraft to fill in the void created by the decommissioning of Mirage fighters in 2015. The Argentine Air Force has evinced interest in acquiring 20 units of either J-20 or JF-17/FC-10 Thunder aircraft for the role. Similarly the Argentine Navy has shown interest in acquiring five units of Chinese P18 corvettes.
The report “Future of the Argentina Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of Argentina defense industry 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.
In particular, it provides an in-depth analysis of the following -
- Argentina defense industry market size and drivers: Detailed analysis of Argentina defense industry during 2018-2022, 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. It also details the key challenges faced by defense market participants within the country.
- Porter’s Five Force analysis of Argentina defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
- Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
- Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of Argentina defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Companies mentioned in this report: Fábrica Argentina de Aviones SA (FAdeA), Astillero Río Santiago, The Institute of Scientific and Technological Research for the Defense (CITIDEF), INVAP SE, Dirección General de Fabricaciones Militares (DGFM) and Tandanor.
- The Argentine defense budget values US$5.9 billion in 2017, and registered a CAGR of 5.14% during the historic period. The on-going modernization and procurement programs of the armed forces, the Falkland Islands territorial dispute with the UK, and participation in peacekeeping missions drove Argentine defense expenditure during 2013-2017. With this trend expected to continue over the forecast period, the country is projected to cumulatively spend US$42.3 billion during 2018-2022.
- During 2013-2017, an average of 26.6% of the country’s defense budget was allocated to capital expenditure, while an average of 73.4% was reserved for revenue expenditure. Over the forecast period 2018-2022, the share of capital expenditure is expected to average 23.2%, while the remaining 76.8% will be assigned to revenue expenditure, which will continue to comprise the majority of the nation‘s defense budget.
- The MoD is expected to invest in submarines, multi-role aircraft and transport aircraft.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of Argentinan defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of Argentina defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook