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Future of the Argentine Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the Argentine Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

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 2014-2018. With this trend expected to continue over the forecast period, the country is projected to cumulatively spend US$18 billion over 2019-2023. As a percentage of GDP, the country’s defense expenditure is expected to average 0.5% over the forecast period, compared to 0.4% recorded in the historic period.

Argentina’s defense capital expenditure recorded a relatively flat CAGR of 1.59% during 2014-2018. However, the capital expenditure is projected to grow at a CAGR of 6.97% over the forecast period, primarily due to the procurement of advanced defense equipment and the focus on increasing indigenous defense manufacturing capabilities. Moreover, Argentina is focusing on the development of its domestic defense industrial base in order to reduce its dependency on foreign suppliers and, is therefore engaging in joint production projects and collaborations with foreign equipment manufacturers

Key opportunities for equipment suppliers are expected in sectors such as submarines, multi-role aircraft, and transport aircraft. Revenue expenditure is also projected to increase over the forecast period, at a CAGR of 9.47%, which will be directed towards additional recruitment, training, and development programs for military personnel.

Future of the Argentine Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

Companies Mentioned - Fábrica Argentina de Aviones, Astillero Río Santiago, CITEDEF, INVAP SE, Dirección General de Fabricaciones Militares, Tandanor

Scope

The report ""Future of the Argentine Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023"" offers detailed analysis of the Argentine 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 -
- The Argentine defense industry market size and drivers: detailed analysis of the Argentine defense industry during 2019-2023, 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 Argentine defense industry.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Argentine 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
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Argentine defense industry covering sections including demand drivers, Key Trends , and latest industry contracts


1. Introduction
1.1. What is this Report about?
1.2. Definitions
1.3. Summary Methodology
1.4. About Strategic Defence Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary threat perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023
3.1.6. Social, Political and Economic Environment & Support for Defense Projects
3.1.7. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Argentina defense expenditure is expected to grow at a CAGR of 8.89% over the forecast period
3.2.2. Falkland Islands dispute, modernization of armed forces and contributions to international peacekeeping missions are the main factors driving Argentina defense expenditure
3.2.3. Defense expenditure as a percentage of GDP will increase marginally over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Argentina defense budget split between capital and revenue expenditure
3.3.2. Capital expenditure to increase at a CAGR of 6.97% over the forecast period
3.3.3. Per capita defense expenditure is expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Argentina’s homeland security expenditure anticipated to increase at a CAGR of 9.59% over the forecast period
3.4.2. Threat of terrorism, Human and drug trafficking will drive homeland security expenditure
3.4.3. Argentina is considered at some risk of terrorism
3.4.4. Argentina faces some-level threat from foreign terrorist organizations
3.4.5. Argentina has a terrorism index score of “0.8”
3.5. Benchmarking with Key Global Markets
3.5.1. Argentine defense expenditure to increase at a CAGR of 8.89% over the forecast period
3.5.2. Argentine defense expenditure is one of the highest in Latin American countries
3.5.3. Argentina’s defense budget as a percentage of GDP to reach 0.5% by 2023
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Categories by Value (US$ million) - Forecast-Period Projections
3.6.2. Multi-Role Aircraft
3.6.3. Submarine
3.6.4. Transport Aircraft
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Argentine defense imports anticipated to increase over the forecast period
4.1.2. The US was a major arms supplier to Argentina during 2013-2017
4.1.3. Aircraft account for the majority of Argentine arms imports
4.2. Export Market Dynamics
4.2.1. Argentina has negligible arms exports
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Buyer: Low
5.1.2. Bargaining power of Supplier: High
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low to medium
5.1.5. Threat of Substitution: Low
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids the development of the domestic defense industry
6.1.2. Open foreign direct investment policy
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign Military Sales is an effective entry route for foreign defense companies
6.2.4. Joint product development and military collaborations provide market entry opportunities
6.3. Key Challenges
6.3.1. Small defense budget and limited technological capability limits market entry for foreign companies
6.3.2. Corruption in the Argentine defense sector hinders its growth
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Domestic Public Companies
7.2.1. Fábrica Argentina de Aviones: Overview
7.2.2. Fábrica Argentina de Aviones: Products
7.2.3. Fábrica Argentina de Aviones: Recent announcements and strategic initiatives
7.2.4. Fábrica Argentina de Aviones: Alliances
7.2.5. Fábrica Argentina de Aviones: Recent contract wins
7.2.6. Astillero Río Santiago: Overview
7.2.7. Astillero Río Santiago: Products
7.2.8. Astillero Río Santiago: Recent announcements and strategic initiatives
7.2.9. Astillero Río Santiago: Alliances
7.2.10. CITEDEF: Overview
7.2.11. CITEDEF: Products and services
7.2.12. CITEDEF: Recent announcements and strategic initiatives
7.2.13. INVAP SE: Overview
7.2.14. INVAP SE: Products
7.2.15. INVAP S.E.: Recent announcements and strategic initiatives
7.2.16. INVAP S.E.: Alliances
7.2.17. Dirección General de Fabricaciones Militares: Overview
7.2.18. Dirección General de Fabricaciones Militares: Products
7.2.19. Dirección General de Fabricaciones Militares: Recent announcements and strategic initiatives
7.2.20. Dirección General de Fabricaciones Militares: Alliances
7.2.21. Tandanor: Overview
7.2.22. Tandanor: Services:
7.2.23. Tandanor: recent announcements and strategic initiatives
7.2.24. Tandanor: Recent contract wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices
8.1.3. Exports of goods and services
8.1.4. Imports of goods and services
8.1.5. Gross national disposable income
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Government cash surplus/deficit as a percentage of GDP
8.1.10. Goods imports as % of GDP
8.1.11. Goods exports as % of GDP
8.1.12. Service Imports as % of GDP
8.1.13. Service Exports as % of GDP
8.1.14. Foreign Direct Investment
8.1.15. Net foreign direct investment as % of GDP
8.1.16. Mining, Manufacturing, Utilities Output
9. Appendix
9.1. About SDI
9.2. Disclaimer
List of Tables
Table 1: Argentina Land Forces Strength
Table 2: Argentina Air Force Strength
Table 3: Argentina Navy Strength
Table 4: Argentina Ongoing Procurement Programs
Table 5: Argentina Future Procurement Programs
Table 6: Argentine - Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: Argentina Defense Expenditure (ARS Billion & US$ Billion), 2014-2023
Table 8: Argentina GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023
Table 9: Argentina Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 10: Argentina Defense Capital Expenditure (ARS Billion & US$ Million), 2014-2023
Table 11: Argentina Per-Capita Defense Expenditure (US$), 2014-2023
Table 12: Argentine Homeland Security Expenditure (ARS Billion & US$ Billion), 2014-2023
Table 13: Terrorism Index, 2018
Table 14: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023
Table 15: Argentina - 10 Leading Defense Market Categories by Value (US$ Million), 2018-2023
Table 16: Offset Regulations in Argentina
Table 17: Argentina Budget Preparation Process
Table 18: Argentine - Top 10 Defense Suppliers by Value (US$ Million), 2018-2023
Table 19: Competitive Landscape of the Argentine Defense Market
Table 20: Fábrica Argentina de Aviones - Product Focus
Table 21: Fábrica Argentina de Aviones - Alliances
Table 22: Fábrica Argentina de Aviones - Recent Contract Wins
Table 23: Astillero Río Santiago - Product Focus
Table 24: Astillero Río Santiago - Alliances
Table 25: CITEDEF- Product and Services
Table 26: INVAP SE - Product Focus
Table 27: INVAP S.E. - Alliances
Table 28: Dirección General de Fabricaciones Militares - Product Focus
Table 29:Dirección General de Fabricaciones Militares - Alliances
Table 30: Tandanor - Services portfolio
Table 31: Tandanor - Recent Contract Wins
List of Figures
Figure 1: Argentina Defense Expenditure (ARS Billion), 2014-2023
Figure 2: Argentine Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Argentina GDP Growth vs. Defense Expenditure as Percentage of GDP, 2014-2023
Figure 4:Argentine Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Argentina Defense Capital Expenditure (ARS Billion), 2014-2023
Figure 6: Argentina Defense Capital Expenditure (US$ Million), 2014-2023
Figure 7: Argentina Per Capita Expenditure (US$), 2014-2023
Figure 8: Argentina Homeland Security Budget (ARS Billion), 2014-2023
Figure 9: Argentina Homeland Security Budget (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023
Figure 13: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2018 and 2023
Figure 14: Benchmarking with Large Defense Spenders as % of GDP - 2018
Figure 15: Multi-Role Aircraft Market Size (US$ Million), 2018-2023
Figure 16: Submarines Market Size (US$ Million), 2018-2023
Figure 17: Transport Aircraft Market Size (US$ Million), 2018-2023
Figure 18: Argentine - Defense Procurements in Terms of Supplier Relationships, 2018
Figure 19: Argentine Defense Imports , 2013-2017
Figure 20: Argentine Defense Imports by country (%), 2013-2017
Figure 21: Argentine defense Imports by Category, 2013-2017
Figure 22: Industry Dynamics - Porter’s Five Forces Analysis
Figure 23: Argentine GDP Per Capita, 2015-2025
Figure 24: Argentine GDP, Current Prices (USD Billion), 2015-2025
Figure 25: Argentine Exports of goods and services (LCU Billion), 2005-2014
Figure 26: Argentine Imports of goods and services (LCU Billion), 2005-2014
Figure 27: Argentine Gross National Disposable Income (USD Billion), 2005-2013
Figure 28: Argentine Local Currency per US$, 2015-2024
Figure 29: Argentine Market Capitalization of Listed Companies (USD Billion), 2005-2012
Figure 30: Argentine Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 31: Argentine - Government Cash Surplus/Deficit as a Percentage of GDP, 2006-2012
Figure 32: Argentine Goods Imports as % of GDP, 2005-2014
Figure 33: Argentine Goods Exports as % of GDP, 2005-2014
Figure 34: Argentine Service Imports as % of GDP, 2005-2014
Figure 35: Argentine Service Exports as % of GDP, 2005-2014
Figure 36: Argentine Foreign Direct Investment (USD Billion), 2006-2014
Figure 37: Argentine Net foreign direct investment as % of GDP, 2006-2014
Figure 38: Argentine Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014

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