Dublin, Nov. 01, 2019 (GLOBE NEWSWIRE) -- The "Brazilian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.
This offers detailed analysis of the Brazilian defense industry with market size forecasts covering the next five years. The 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 defense industry market size and drivers: detailed analysis of the Brazilian defense industry during 2020-2024, 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
- 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
Market Highlights
The Brazilian defense budget is expected to reach US$40.2 billion in 2024, growing at a CAGR of 7.76% over the forecast period. Over the forecast period, Brazilian military expenditure, which stands at US$27.9 billion in 2019, is anticipated to grow from US$29.8 billion in 2020 to value US$40.2 billion in 2024, registering a CAGR of 7.76%.
This growth will primarily be driven by the country's military modernization initiatives. The country's defense expenditure will largely be boosted by the Brazilian MoD's increasing efforts to replace its aging military systems and equipment, military procurements that are largely focused on the protection of its substantial resources from illegal mining, deforestation, and drug trafficking.
Military capital expenditure, on a cumulative basis, is anticipated to be US$21.4 billion over the forecast period, which is higher than the US$15.2 billion spent during the historic period. The increase is due to the release of budgetary pressures owing to a recovery in economic conditions from 2017, which has prompted the country to adopt previously postponed defense procurement plans.
Brazilian homeland security expenditure is anticipated to be US$4.8 billion in 2020 and is expected to grow at a CAGR of 5.36% to reach US$6 billion in 2024. This expenditure is primarily driven by the country's focus on enhancing its defense capabilities to counter the increasing rate of cyber-attacks, modernizing its border control and security infrastructure, and increasing efforts by the government to control organized crimes such as drug trafficking and border crossing.
Brazil predominantly relies on imports to retain its military edge. During the historic period, the country's defense imports were the highest in 2018, with aircraft and naval vessels dominating the imports category and France and the US being the main suppliers. In order to protect its oil rich reserves in the Amazon basin, Brazil is spending heavily on naval vessel procurements. The Brazilian defense industry is still in its early development stage, and defense exports are mostly limited to less developed nations such as Afghanistan, Indonesia and Lebanon, among others.
In order to promote Brazil's domestic defense industry, the majority of its arms imports deals include technology transfer obligations. These obligations have been a key deterrent for foreign OEMs entering the Brazilian industry, as a number of foreign defense firms are either reluctant to share proprietary information or are prohibited by their indigenous country's policy regarding the transfer of technology.
Key Takeaways
- Over the forecast period, Brazilian military expenditure, which stands at US$27.9 billion in 2019, is anticipated to grow from US$29.8 billion in 2020 to value US$40.2 billion in 2024, registering a CAGR of 7.76%. This growth will primarily be driven by the country's military modernization initiatives.
- The country's defense expenditure will largely be boosted by the Brazilian MoD's increasing efforts to replace its aging military systems and equipment, military procurements that are largely focused on the protection of its substantial resources from illegal mining, deforestation, and drug trafficking.
- Additionally, the Brazilian Ministry of Defense aims to decrease its dependence on foreign OEMs by boosting its indigenous defense industry and by equipping the country with the latest technological developments. As a percentage of GDP, the country's defense budget is expected to average 1.3% over the forecast period.
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 The Brazilian defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Key Topics Covered
1. Introduction
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 and Strategy
3.1.3. Procurement Programs
3.1.4. Top Procurement Programs by Value (US$ Million) 2019-2024
3.1.5. Social, Political and Economic Environment and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Brazilian defense budget is expected to grow at a CAGR of 7.76% over 2020-2024
3.2.2. Development of indigenous defense capabilities, modernization of defense systems, and large defense procurement projects are expected to boost Brazilian defense expenditure
3.2.3. Defense budget as a percentage of GDP will remain at an average of 1.33% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Percentage allocation towards capital expenditure to remain constant
3.3.2. Capital expenditure is anticipated to record a CAGR of 4.81% over the forecast period
3.3.3. The army accounted for the largest percentage share of the overall Brazilian defense budget
3.3.4. Army will account for the highest share of the Brazilian defense budget
3.3.5. Brazilian per capita defense expenditure to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Brazil's homeland security market is expected to grow at a CAGR of 5.36% over the forecast period
3.4.2. Human trafficking will drive homeland security expenditure
3.5. Benchmarking with Key Global Markets
3.5.1. Brazil ranks among major global defense markets
3.5.2. Brazil is expected to remain among top defense spending countries in the world
3.5.3. Brazil is expected to spend an average of 1.15% of its GDP on defense over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024
3.6.2. Physical Security (CIP)
3.6.3. Multirole Aircraft
3.6.4. Diesel Electric Submarines
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Modernization of defense systems expected to drive arms imports
4.1.2. France, the US and the UK are the major suppliers for Brazil
4.1.3. Aircraft and naval vessels accounted for 51.8% of Brazilian defense imports
4.2. Export Market Dynamics
4.2.1. Development of domestic defense capability is expected to fuel exports from Brazil's emerging military industry
4.2.2. Afghanistan and Indonesia are the major prospects for Brazilian defense exports
4.2.3. Aircraft accounted for the majority of Brazilian defense exports during 2014-2018
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Low to Medium
5.1.2. Bargaining Power of Buyer: Medium to High
5.1.3. Barrier to Entry: Medium
5.1.4. Intensity of Rivalry: Low to Medium
5.1.5. Threat of Substitution: Medium to High
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. International and domestic defense procurement deals are primarily decided by competitive bidding
6.1.2. Stringent offset requirements for all defense procurements
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign OEMs follow direct offset route to enter defense market
6.2.4. Collaborations provide market entry opportunities
6.3. Key Challenges
6.3.1. Low allocation for defense capital expenditure and delay in the closure of defense deals are the major challenges of the Brazilian defense industry
6.3.2. Complying with Brazil's requirement for extensive technology transfer
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.1.1. Brazilian Market Share Analysis, 2018
7.2. Key Public Sector Companies
7.2.1. Embraer: Overview
7.2.2. Embraer: Products
7.2.3. Embraer: Recent Announcements and Strategic Initiatives
7.2.4. Embraer: Alliances
7.2.5. Embraer: Recent Contract Wins
7.2.6. Embraer: Financial Analysis
7.2.7. Forjas Taurus SA: Overview
7.2.8. Forjas Taurus SA: Products
7.2.9. Forjas Taurus SA: Recent Announcements and Strategic Initiatives
7.2.10. Forjas Taurus SA: Alliances
7.2.11. Forjas Taurus SA: Recent Contract Wins
7.2.12. Forjas Taurus SA: Financial Analysis
7.2.13. Avibras Industria Aerospacial: Overview
7.2.14. Avibras Industria Aerospacial: Products
7.2.15. Avibras Industria Aerospacial: Recent Announcements and Strategic Initiatives
7.2.16. Avibras Industria Aerospacial: Alliances
7.2.17. Avibras Industria Aerospacial: Recent Contract Wins
7.2.18. Companhia Brasileira de Cartuchos: Overview
7.2.19. Companhia Brasileira de Cartuchos: Products
7.2.20. Companhia Brasileira de Cartuchos: Recent Announcements and Strategic Initiatives
7.2.21. Companhia Brasileira de Cartuchos: Recent Contract Wins
7.2.22. Helibras: Overview
7.2.23. Helibras: Products
7.2.24. Helibras: Recent Announcements and Strategic Initiatives
7.2.25. Helibras: Alliances
7.2.26. Helibras: Recent Contract Wins
7.2.27. Industria de Material Belico do Brasil (IMBEL): Overview
7.2.28. Industria de Material Belico do Brasil (IMBEL): Products
7.2.29. Industria de Material Belico do Brasil (IMBEL): Recent Announcements and Strategic Initiatives
7.2.30. Industria de Material Belico do Brasil (IMBEL): Alliances
7.2.31. Industria de Material Belico do Brasil (IMBEL): Recent Contract Wins
7.2.32. Aeroelectronica: Overview
7.2.33. Aeroelectronica: Products
7.2.34. Aeroelectronica: Recent Announcements and Strategic Initiatives
7.2.35. Aeroelectronica: Alliances
7.2.36. Aeroelectronica: Recent Contract Wins
7.2.37. Indstria Naval do Cear: Overview
7.2.38. Indstria Naval do Cear: Products
7.2.39. Indstria Naval do Cear: Recent Announcements and Strategic Initiatives
7.2.40. Indstria Naval do Cear: Recent Contract Wins
7.2.41. Northrop Grumman Brazil: Overview
7.2.42. Northrop Grumman Brazil: Products
7.2.43. Northrop Grumman Brazil: Recent Announcements and Strategic Initiatives
7.2.44. Northrop Grumman Brazil: Alliances
7.2.45. Northrop Grumman Brazil: Recent Contract Wins
7.2.46. Lockheed Martin Brazil: Overview
7.2.47. Lockheed Martin Brazil: Products
7.2.48. Lockheed Martin Brazil: Recent Announcements and Strategic Initiatives
7.2.49. Lockheed Martin Brazil: Alliances
7.2.50. Lockheed Martin Brazil: Recent Contract Wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita at Constant Prices
8.1.2. GDP at 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. BRL per US$ (Period Average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP
8.1.10. Goods Exports and Imports as a Percentage of GDP
8.1.11. Services Exports and Imports as a Percentage of GDP
8.1.12. Foreign Direct Investment, net (BoP, current US$ Billion)
8.1.13. Net Foreign Direct Investment as a Percentage of GDP
8.1.14. Mining, Manufacturing, Utilities Output (BRL Billion)
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