Future of the Brazil Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Brazilian Government reduced its budget and focused on implementing a transaction tax on the people to overcome the recession. Although the actual budget increased in terms of local currency from 2012 to 2016, it showed a downward trend in the dollar value owing to variations in the exchange rate. Military expenditure, which stands at US$29.3 Billion in 2017, registered at a CAGR of -2.96%. It is however, expected to grow at a CAGR of 5%+ during the forecast period.
Brazilian homeland security expenditure is estimated to reach US$5.1 Billion in 2022. The country is spending heavily on border security and homeland infrastructure and the country is in the process of modernizing its border control and security infrastructure.
In order to promote Brazil’s domestic defense industry, the majority of its arms imports deals include technology transfer obligations. However, a number of defense firms are either reluctant to share proprietary information or are prohibited by their country's policy on the transfer of technology. This requirement has been a key deterrent for foreign OEMs entering the Brazilian industry.
The report “Future of the Brazil Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Brazilian 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, this report provides the following analysis -
- The Brazilian defense industry market size and drivers: Detailed analysis of the Brazilian 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 with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
- Porter’s Five Force analysis of the Brazilian 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 the Brazilian 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: Empresa Brasileira de Aeronautica SA (Embraer) , Forjas Taurus SA, Avibras Industria Aerospacial (Avibras), Companhia Brasileira de Cartuchosis, Helibras, Industria de Material Belico do Brasil (IMBEL), Aeroelectronica, Indústria Naval do Ceará (INACE), Northrop Grumman Brazil,and Lockheed Martin Brazil.
- Brazilian military expenditure, which stands at US$29.3 billion in 2017, registered at a CAGR of -2.96% during the historic period. It is however, expected to grow at a CAGR of 5.06% during the forecast period, and grow from US$30.3 billion in 2018 to reach US$36.9 billion by 2022. There is a huge difference between the planned budget and the executed budget in 2015 due to an economic crisis faced by the country, however with the country’s economy is showing some positive signs of recovery as the 2017 budget has marginally surpassed its initially planned estimates.
- The Brazilian MoD allocated an average of 11.9% of defense spending towards capital expenditure during the historic period, which is expected to increase to 13.2% over the forecast period. The major procurements of the country include multi-role aircraft, multi-mission helicopters, naval vessels, aircraft carriers, transport helicopters, and modernizing its armored vehicles, FX-2 program. In addition, border monitoring program- SISFRON (Sistema Integrado de Monitoramento de Fronteiras) and SISGAAZ (Sistema de Gerenciamento da Amazônia Azul), is to be implemented during the forecast period.
- The MoD is expected to invest in multi-role aircraft, disel electric submarine and military-IT and networking.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Brazilian 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 the Brazilian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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