Market Research Report
Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||765993|
|Published||Content info||84 Pages
Delivery time: 1-2 business days
|Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: March 25, 2019||Content info: 84 Pages||
Mexican defense expenditure recorded a CAGR of 0.83% during the historic period and stood at US$6.4 billion in 2019. Over the forecast period, it is anticipated to register a CAGR of 4.45% to value US$8.0 billion in 2024. Being one of the largest oil and gas exporters in the North American and Latin American region, Mexico was hit hard by the fall in energy prices, which prompted the government to cut back on overall government spending. Due to this, the Mexican defense budget contracted for three consecutive years, 2015, 2016 and 2017, by -8.21%, -13.84% and -5.02%, respectively. The Mexican defense budget is set to register a forecast-period CAGR of 4.45% to reach US$8.0 billion in 2024.
Mexican homeland security (HLS) expenditure stands at US$3.2 billion in 2019 and recorded a CAGR of -10.23% during the historic period. It is expected to grow at a CAGR of 5.87% over the forecast period to reach US$4.8 billion in 2024. Mexico has historically focused on its defense spending on countering drug cartels. "Plan 2030" was initiated to equip the country's defense forces to better combat drug cartels and other related groups.
The country's capital expenditure allocation, which stood at an average of 13.3% during 2015-2019, is anticipated to increase to an average of 15.2% over the forecast period. This increase is primarily due to the procurement of advanced defense equipment and a focus on increasing the capabilities of the country's indigenous defense industry.
Various procurements that are expected to fuel the growth of the capital budget allocation over the forecast period include RGM-84L Harpoon Block II anti-ship missiles, Rolling Airframe Missile (RAM) systems, Super Puma H225M military aircraft, POLA corvettes, SandCat-APVs, Sigma 10514 frigates, Evolved Seasparrow tactical missiles, Damen Stan Patrol 4207 vessels, and FX-05 Xicoatl (Fire Serpent) assault rifles, among many others.
The underdeveloped indigenous defense sector is a major challenge for Mexican military requirements, which makes it an import oriented country for its arms and equipment. Historically, the country has procured the majority of its military equipment from the US, France, the Netherlands and Spain, accounting for 63.1%, 9.5%, 8.9% and 8.1% of total defense imports respectively. Aircraft accounted for the largest share of imports during the historic period, occupying a 73.6% share.
The report "Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", 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.
In particular, it provides an in-depth analysis of the following -
Companies mentioned: Productos Mendoza, Aviabaltika de Mexico Company