• Japanese
  • Korean
  • Chinese
Cover Image

Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2020

Summary

The Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2020, published by Strategic Defence Intelligence, 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.

Key Findings

Over the historic period, Brazil's defense expenditure registered a growth rate of -3.68%, decreasing from US$37.1 billion in 2011 to US$31.9 billion in 2015

Brazil's military expenditure, valued at US$31.9 billion in 2015, is expected to increase to US$41.1 billion by 2020, registering a CAGR of 4.34% over the forecast period

Brazilian military expenditure will be driven by the modernization of defense systems, development of indigenous defense capabilities, and large defense procurement projects

The Defense Ministry is expected to procure military satellite, border surveillance and detection, fighters and multi-role aircraft, conventional and nuclear submarines, and C4ISR systems

This report 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, it provides an in-depth analysis of the following:

Brazilian defense industry market size and drivers: detailed analysis of the Brazilian defense industry during 2016-2020, 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 the army, navy, and air force. 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 coming 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

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

Table of Contents

1 Introduction

  • 1.1. What is this Report About?
  • 1.2. Definitions
  • 1.3. Summary Methodology
  • 1.4. SDI Terrorism Index
  • 1.5. About Strategic Defence Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

  • 3.1. Defense Market Size Historical and Forecast
    • 3.1.1. Brazilian annual defense expenditure expected to grow at a CAGR of 4.34% over the forecast period
    • 3.1.2. Modernization of defense systems development of indigenous defense capabilities and large defense procurement projects expected to drive the Brazilian defense expenditure
    • 3.1.3. Defense expenditure as a percentage of GDP is expected to average 1.77% during the forecast period
  • 3.2. Analysis of Defense Budget Allocation
    • 3.2.1. The majority of Brazil's defense budget is allocated for revenue expenditure
    • 3.2.2. Overall capital expenditure is expected to grow at a CAGR of 9.40% during the forecast period
    • 3.2.3. Army accounted for the largest percentage share during the historic period
    • 3.2.4. Per capita defense expenditure expected to decrease over the forecast period
  • 3.3. Homeland Security Market Size and Forecast
    • 3.3.1. Homeland security expenditure is expected to grow at a CAGR of 2.36% during the forecast period
    • 3.3.2. Brazil is expected to invest US$27.7 billion cumulatively on homeland security during the forecast period
    • 3.3.3. Brazilian sporting events will be the key factor driving homeland security
    • 3.3.4. SDI Terrorism Index rates Brazil to be a "low risk" region
    • 3.3.5. Brazil faces minimal threat from terrorists
  • 3.4. Benchmarking with Key Global Markets
    • 3.4.1. Brazil defense expenditure is expected to grow faster than the majority of the largest global defense budgets
    • 3.4.2. Brazil set to continue its high defense expenditure
    • 3.4.3. Brazil expected to spend an average of 1.77% of its GDP on defense over the forecast period
    • 3.4.4. Brazil faces "low risk" by acts of terrorism
  • 3.5. Market Opportunities: Key Trends and Drivers
    • 3.5.1. Military Satellite
    • 3.5.2. Border Surveillance and Detection
    • 3.5.3. Fighters and Multi-role aircraft
    • 3.5.4. Conventional and Nuclear Submarines
    • 3.5.5. C4ISR Systems

4 Defense Procurement Market Dynamics

  • 4.1. Import Market Dynamics
    • 4.1.1. Modernization of defense systems expect to drive arms imports
    • 4.1.2. Germany and the US were the key defense suppliers to Brazil
    • 4.1.3. Aircraft and armored vehicles were the key defense imports during 2009-2013
  • 4.2. Export Market Dynamics
    • 4.2.1. Development of domestic defense capability is expected to fuel exports in Brazil's emerging military industry
    • 4.2.2. Ecuador and Chile are expected to be the main recipients over the forecast period
    • 4.2.3. Aircraft was the main exported defense product during 2009-2013

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 offsets requirements for all defense procurements
  • 6.2. Market Entry Route
    • 6.2.1. Foreign OEMs follow direct offset route to enter defense market
    • 6.2.2. Collaborations provide market entry opportunities
  • 6.3. Key Challenges
    • 6.3.1. Complying with Brazil's requirement for extensive technology transfer
    • 6.3.2. Delay in the closure of defense deals and low allocation for capital defense expenditure

7 Competitive Landscape and Strategic Insights

  • 7.1. Competitive Landscape Overview
  • 7.2. Key Domestic Companies
    • 7.2.1. Embraer: overview
    • 7.2.2. Embraer: products and services
    • 7.2.3. Embraer: recent announcement 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 and services
    • 7.2.9. Forjas Taurus SA: recent announcement 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 and services
    • 7.2.15. Avibras Industria Aerospacial: recent announcement 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 and services
    • 7.2.20. Companhia Brasileira de Cartuchos: recent announcement and strategic initiatives
    • 7.2.21. Companhia Brasileira de Cartuchos: recent contract wins
    • 7.2.22. Helibras: overview
    • 7.2.23. Helibras: products and services
    • 7.2.24. Helibras: recent announcement and strategic initiatives
    • 7.2.25. Helibras: alliances
    • 7.2.26. Helibras: recent contract wins
    • 7.2.27. Helibras: financial analysis
    • 7.2.28. Industria de Material Belico do Brasil (IMBEL): overview
    • 7.2.29. Industria de Material Belico do Brasil (IMBEL): products and services
    • 7.2.30. Industria de Material Belico do Brasil (IMBEL): recent announcement and strategic initiatives
    • 7.2.31. Industria de Material Belico do Brasil (IMBEL): alliances
    • 7.2.32. Industria de Material Belico do Brasil (IMBEL): recent contract wins
    • 7.2.33. Aeroelectronica: overview
    • 7.2.34. Aeroelectronica: products and services
    • 7.2.35. Aeroelectronica: recent announcement and strategic initiatives
    • 7.2.36. Aeroelectronica: alliances
    • 7.2.37. Aeroelectronica: recent contract wins
    • 7.2.38. Industria Naval do Ceara: overview
    • 7.2.39. Industria Naval do Ceara: products and services
    • 7.2.40. Industria Naval do Ceara: recent announcement and strategic initiatives
    • 7.2.41. Industria Naval do Ceara: recent contract wins
    • 7.2.42. Northrop Grumman Brazil: overview
    • 7.2.43. Northrop Grumman Brazil: products and services
    • 7.2.44. Northrop Grumman Brazil: recent announcement and strategic initiatives
    • 7.2.45. Northrop Grumman Brazil: alliances
    • 7.2.46. Northrop Grumman Brazil: recent contract wins
    • 7.2.47. EADS Brazil: overview
    • 7.2.48. EADS Brazil: products and services
    • 7.2.49. EADS Brazil: recent announcement and strategic initiatives
    • 7.2.50. EADS Brazil: alliances
    • 7.2.51. EADS Brazil: recent contract wins
    • 7.2.52. Lockheed Martin Brazil: overview
    • 7.2.53. Lockheed Martin Brazil: products and services
    • 7.2.54. Lockheed Martin Brazil: recent announcement and strategic initiatives
    • 7.2.55. Lockheed Martin Brazil: alliances
    • 7.2.56. Lockheed Martin Brazil: recent contract wins

8 Business Environment and Country Risk

  • 8.1. Demographics and Social Statistics
    • 8.1.1. Population - Rural
    • 8.1.2. Population - Urban
    • 8.1.3. Population - Number of Households
  • 8.2. Economic Performance
    • 8.2.1. Gross Domestic per Capita
    • 8.2.2. Gross Domestic Product current US$
    • 8.2.3. Exports of Goods and Services
    • 8.2.4. Imports of Goods and Services
    • 8.2.5. Gross National Disposable Income
    • 8.2.6. Manufacturing Output
    • 8.2.7. Consumer Price Index
    • 8.2.8. Wholesale Price Index
    • 8.2.9. Local Currency Unit per USD
    • 8.2.10. Market Capitalization of Listed Companies
    • 8.2.11. Market Capitalization of Listed Companies (% of GDP)
    • 8.2.12. Total Government Cash Surplus/Deficit (LCU bn)
    • 8.2.13. Goods Exports as a % of GDP
    • 8.2.14. Goods Imports as a % of GDP
    • 8.2.15. Goods balance as a % of GDP
    • 8.2.16. Services Imports as a % of GDP
    • 8.2.17. Services Exports as a % of GDP
    • 8.2.18. Net Foreign Direct Investment (BoP current US$ bn)
    • 8.2.19. Net FDI as a % of GDP
    • 8.2.20. International reserves including Gold (US$ bn)
  • 8.3. Energy and Utilities
    • 8.3.1. Total Conventional Thermal Electricity Net Generation (Bn KWH)
    • 8.3.2. Hydroelectricity Net Generation (Billion KWh)
    • 8.3.3. Nuclear Electricity Net Generation (Billion kWh)
    • 8.3.4. Total Conventional Thermal Electricity Installed Capacity (Million kW)
    • 8.3.5. Proved reserves of Natural Gas (Trillion Cubic Feet)
    • 8.3.6. Total Petroleum Consumption (Thousand Barrels Per Day)
  • 8.4. Infrastructure Quality and Availability
    • 8.4.1. Rail lines (total route km)
    • 8.4.2. Air transport freight (Million ton-km)
    • 8.4.3. Overall Construction (US$ million)
  • 8.5. Minerals
    • 8.5.1. Mining Manufacturing Utilities Output (US$ billion)
  • 8.6. Technology
    • 8.6.1. Research and development expenditure (thousands LCU)
    • 8.6.2. Patents Granted
  • 8.7. Telecommunication
    • 8.7.1. Telephone lines (in mn)
    • 8.7.2. Telephone lines Penetration Rate (per 100 people)

9 Appendix

  • 9.1. About SDI
  • 9.2. Disclaimer

List of Tables

  • Table 1: Brazilian Defense Expenditure (US$ Billion) 2011-2015
  • Table 2: Brazilian Defense Expenditure (US$ Billion) 2016-2020
  • Table 3: Brazilian Defense Expenditure (BRL Billion) 2011-2015
  • Table 4: Brazilian Defense Expenditure (BRL Billion) 2016-2020
  • Table 5: Brazilian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP 2011-2015
  • Table 6: Brazilian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP 2016-2020
  • Table 7: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%) 2011-2015
  • Table 8: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%) 2016-2020
  • Table 9: Brazilian Capital Expenditure (US$ billion) 2011-2015
  • Table 10: Brazilian Capital Expenditure (US$ billion) 2016-2020
  • Table 11: Brazilian Capital Expenditure (BRL billion) 2011-2015
  • Table 12: Brazilian Capital Expenditure (BRL billion) 2016-2020
  • Table 13: Brazilian Per Capita Defense Expenditure (US$) 2011-2015
  • Table 14: Brazilian Per Capita Defense Expenditure (US$) 2016-2020
  • Table 15: Brazilian Homeland Security Budget (US$ billion) 2011-2015
  • Table 16: Brazilian Homeland Security Budget (US$ billion) 2016-2020
  • Table 17: Brazilian Homeland Security Budget (BRL billion) 2011-2015
  • Table 18: Brazilian Homeland Security Budget (BRL billion) 2016-2020
  • Table 19: Benchmarking with Key Markets - 2011-2015 vs. 2016-2020

Table20: SDI Terrorism Index

  • Table 21: Brazil - Offset Guidelines and Agreements

Table22:Embraer- Product focus

Table23:Embraer- Alliances

Table24:Embraer- Recent Contract Wins

Table25:Forjas Taurus SA- Product focus

Table26: Forjas Taurus SA- Alliances

Table27:Embraer- Recent Contract Wins

Table28:Avibras Industria Aerospacial- Product focus

Table29:Avibras Industria Aerospacial- Alliances

Table30:Avibras Industria Aerospacial- Recent Contract Wins

Table31:Companhia Brasileira de Cartuchos- Product focus

Table32: Companhia Brasileira de Cartuchos (CBC)- Recent Contract Wins

Table33:Helibras- Product focus

Table34:Helibras- Alliances

Table35:Helibras- Recent Contract Wins

Table36:Industria de Material Belico do Brasil (IMBEL)- Product focus

Table37:Industria de Material Belico do Brasil (IMBEL)- Alliances

Table38:Industria de Material Belico do Brasil (IMBEL)- Recent Contract Wins

Table39:Aeroelectronica- Product focus

Table40:Aeroelectronica- Alliances

Table41:Aeroelectronica- Recent Contract Wins

Table42:Industria Naval do Ceara- Product focus

Table43:Industria Naval do Ceara- Recent Contract Wins

Table44: Northrop Grumman- Product focus

Table45:Northrop Grumman- Alliances

Table46:Northrop Grumman - Recent Contract Wins

Table47:EADS Brazil- Product focus

Table48: EADS Brazil- Alliances

Table49: EADS Brazil- Recent Contract Wins

Table50: Lockheed Martin- Product focus

Table51: Lockheed Martin- Alliances

Table52:Lockheed Martin- Recent Contract Wins

List of Figures

  • Figure 1: Brazilian Defense Expenditure (US$ Billion) 2011-2015
  • Figure 2: Brazilian Defense Expenditure (US$ Billion) 2016-2020
  • Figure 3: Brazilian Defense Expenditure (BRL Billion) 2011-2015
  • Figure 4: Brazilian Defense Expenditure (BRL Billion) 2016-2020
  • Figure 5: Brazilian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP 2011-2015
  • Figure 6: Brazilian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP 2016-2020
  • Figure 7:Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%) 2011-2015
  • Figure 8: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%) 2016-2020
  • Figure 9: Brazilian Capital Expenditure (US$ billion) 2011-2015
  • Figure 10: Brazilian Capital Expenditure (US$ billion) 2016-2020
  • Figure 11: Brazilian Capital Expenditure (BRL billion) 2011-2015
  • Figure 12: Brazilian Capital Expenditure (BRL billion) 2016-2020
  • Figure 13: Brazilian Defense Expenditure Allocation (US$ billion) 2011-2015
  • Figure 14: Brazilian Defense Expenditure Allocation (US$ billion) 2016-2020
  • Figure 15: Brazilian Per Capita Defense Expenditure (US$) 2011-2015
  • Figure 16: Brazilian Per Capita Defense Expenditure (US$) 2016-2020
  • Figure 17: Brazilian Homeland Security Budget (US$ billion) 2011-2015
  • Figure 18: Brazilian Homeland Security Budget (US$ billion) 2016-2020
  • Figure 19: Brazilian Homeland Security Budget (BRL billion) 2011-2015
  • Figure 20: Brazilian Homeland Security Budget (BRL billion) 2016-2020
  • Figure 21: SDI Terrorism Heat Map2015
  • Figure 22: SDI Terrorism Index2015
  • Figure 23: Benchmarking with Key Markets - 2011-2015 vs. 2016-2020
  • Figure 24: Defense Expenditure of the World's Largest Military Spenders (US$ Billion) 2015 and 2020
  • Figure 25: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%)2015
  • Figure 26: Military Satellite (US$ Million) 2015-2025
  • Figure 27: Border Surveillance and Detection (US$ Million) 2015-2025
  • Figure 28: Fighters and Multi-Role Aircraft(US$ Million) 2015-2025
  • Figure 29: Submarines Market (US$ Million) 2015-2025
  • Figure 30: C4ISR Systems (US$ Million) 2015-2025
  • Figure 31: Brazilian Defense Import Trend 2009-2013 (TIV values)
  • Figure 32: Brazilian Defense Imports by Country (%) 2009-2013
  • Figure 33: Brazilian Defense Imports by Category (%) 2009-2013
  • Figure 34: Brazilian Defense Exports By Value (US$ million) 2009-2013
  • Figure 35: Brazilian Defense Exports by Country (%) 2009-2013
  • Figure 36: Brazilian Defense Exports by Category (%) 2009-2013
  • Figure 37: Industry Dynamics - Porter's Five Forces Analysis
  • Figure 38: Embraer - Revenue Trend Analysis (BRL Billion) 2009-2013
  • Figure 39: Embraer - Operating Profit Trend Analysis (BRL Billion) 2009-2013
  • Figure 40: Embraer - Net Profit Trend Analysis (BRL Billion) 2008-2012
  • Figure 41: Forjas Taurus SA - Revenue Trend Analysis (BRL Million) 2009-2013
  • Figure 42: Forjas Taurus SA - Operating Profit Trend Analysis (BRL Million) 2009-2013
  • Figure 43: Forjas Taurus SA - Net Profit Trend Analysis (BRL Million) 2009-2013
  • Figure 44: Brazil Population - Rural (In Millions) 2015-2024
  • Figure 45: Brazil Population - Urban (In Millions) 2015-2024
  • Figure 46: Brazil Population - Number of Households (In Millions) 2009-2018
  • Figure 47: Brazil GDP per capita 2015-2024
  • Figure 48: Brazil Gross Domestic Product (current US$ Mn) 2015-2024
  • Figure 49: Brazil Exports of goods and services (current US$ Bn) 2003-2012
  • Figure 50: Brazil Imports of goods and services (current US$ Bn) 2003-2011
  • Figure 51: Brazil Gross national disposable income (US$ Bn) 2003 - 2012
  • Figure 52: Brazil Manufacturing Output (US$ Bn) 2003-2012
  • Figure 53: Brazil Consumer Price Index 2014-2024
  • Figure 54: Brazil Wholesale Price Index 2003-2012
  • Figure 55: Brazil LCU per US$ 2015-2024
  • Figure 56: Brazil Market Capitalization of listed Companies (US$ Bn) 2003-2012
  • Figure 57: Brazil Market Capitalization of listed companies as a % of GDP 2004-2013
  • Figure 58: Brazil Government cash surplus/deficit (LCU Bn) 2002-2011
  • Figure 59: Brazil Goods Exports as a % of GDP 2004-2013
  • Figure 60: Brazil Goods Imports as a % of GDP 2004-2013
  • Figure 61: Brazil Goods balance as a % of GDP 2004-2013
  • Figure 62: Brazil Services Imports as a % of GDP 2004-2013
  • Figure 63: Brazil Services Exports as a % of GDP 2004-2013
  • Figure 64: Brazil Net Foreign Direct Investment (current US$ bn) 2004-2013
  • Figure 65: Brazil Net FDI as a % of GDP 2004-2013
  • Figure 66: Brazil International reserves including Gold (US$ Bn) 2004-2013
  • Figure 67: Brazil Total Conventional Thermal Electricity Net Generation (Bn KWH) 2003-2012
  • Figure 68: Brazil Hydroelectricity Net Generation (Bn KWH) 2003-2012
  • Figure 69: Brazil Nuclear Electricity Net Generation (Bn KWH) 2003-2012
  • Figure 70: Brazil Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts) 2003-2012
  • Figure 71: Brazil Proved reserves of Natural Gas (Trillion Cubic feet) 2004-2013
  • Figure 72: Brazil Total Petroleum Consumption (Thousand Barrels per Day) 2004-2013
  • Figure 73: Brazil Rail lines (Total route Km) 2007-2012
  • Figure 74: Brazil Air transport freight (Million ton-Km) 2003-2012
  • Figure 75: Brazil Overall Construction (US$ Bn) 2009-2018
  • Figure 76: Brazil Mining Manufacturing Utilities Output(US$ Bn) 2004-2013
  • Figure 77: Brazil Research and Development (thousands LCU) 2001-2010
  • Figure 78: Brazil Patents Granted 2003-2012
  • Figure 79: Brazil Telephone lines (in mn) 2003-2012
  • Figure 80: Brazil Telephone lines Penetration Rate (per 100 people) 2003-2012
Show More
Pricing