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Market Research Report

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

Published by GlobalData Product code 765993
Published Content info 64 Pages
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Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
Published: December 18, 2018 Content info: 64 Pages
Description

"Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", published by GlobalData, 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.

This report offers detailed analysis of the Mexican 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 defense industry market size and drivers: detailed analysis of the Mexican 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: details of the top five defense investment opportunities
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Mexican defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Scope

  • The Mexican defense budget values US$5.9 billion in 2018 and registered a CAGR of -3.35% during the historic period.
  • As 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.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Mexican 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 Mexican defense industry covering sections including demand drivers, Key Trends and Growth Stimulators, and latest industry contracts.
Table of Contents
Product Code: GDDF0541MR

Table of Contents

1. Introduction 6

  • 1.1. What is this Report About? 6
  • 1.2. Definitions 6
  • 1.3. Summary Methodology 8
  • 1.4. About GlobalData 9

2. Executive Summary 10

3. Market Attractiveness and Emerging Opportunities 11

  • 3.1. Current Market Scenario 12
    • 3.1.1. Military Fleet size 12
    • 3.1.2. Procurement Programs 16
    • 3.1.3. Key Drivers and Challenges 17
  • 3.2. Defense Market Size Historical and Forecast 18
    • 3.2.1. Mexican defense budget to grow at a forecast-period CAGR of 4.23% 18
    • 3.2.2. The government's fight against drug trafficking is set to drive defense expenditure over the forecast period 20
    • 3.2.3. Defense budget as a percentage of GDP to remain at an average of 0.46% over the forecast period 21
  • 3.3. Analysis of Defense Budget Allocation 23
    • 3.3.1. Capital expenditure will increase over the forecast period 23
    • 3.3.2. Capital expenditure is anticipated to record a forecast-period CAGR of 4.47% 25
    • 3.3.3. Per capita defense expenditure to rise over the forecast period 27
  • 3.4. Homeland Security Market Size and Forecast 28
    • 3.4.1. Homeland security will post a forecast-period CAGR of 6.26% 28
    • 3.4.2. Organized crime and money laundering to drive the HLS market 30
    • 3.4.3. Mexico falls under the "moderately affected" category on the terrorism index 31
    • 3.4.4. Mexico faces a moderate threat from terrorist organizations 32
    • 3.4.5. Mexico has a terrorism index score of 3.3 34
  • 3.5. Benchmarking with Key Global Markets 35
    • 3.5.1. Mexico's defense budget expected to increase over the forecast period 35
    • 3.5.2. Mexico's military expenditure is limited compared to countries with the largest defense expenditures 37
    • 3.5.3. The defense budget as a percentage of GDP is set to decline over the forecast period 38
  • 3.6. Market Opportunities: Key Trends and Drivers 39

4. Defense Procurement Market Dynamics 40

  • 4.1. Import Market Dynamics 41
    • 4.1.1. Limited domestic defense capabilities to drive the country's defense imports 41
    • 4.1.2. The US, France and the Netherlands are Mexico's major suppliers for the Mexico 42
    • 4.1.3. Aircraft and armored vehicles accounted for 88.6% of defense imports 43
  • 4.2. Export Market Dynamics 44
    • 4.2.1. Mexico does not export arms due to an underdeveloped domestic arms industry 44

5. Market Entry strategy 45

  • 5.1. Market Regulation 45
    • 5.1.1. Mexico has not disclosed any offset obligations 45
    • 5.1.2. Mexico allows 100% FDI in the defense industry 45
  • 5.2. Market Entry Route 46
    • 5.2.1. Budgeting process 46
    • 5.2.2. Procurement Policy and Process 47
    • 5.2.3. Military collaborations provide good market entry opportunities 47

6. Competitive Landscape and Strategic Insights 48

  • 6.1. Competitive Landscape Overview 48

7. Business Environment and Country Risk 49

  • 7.1. Economic Performance 49
    • 7.1.1. GDP Per Capita at Constant Prices (US$) 49
    • 7.1.2. GDP at Current Prices (US$) 50
    • 7.1.3. Exports of Goods and Services 51
    • 7.1.4. Imports of Goods and Services 52
    • 7.1.5. Gross National Disposable Income 53
    • 7.1.6. LCU per US$ (Period Average) 54
    • 7.1.7. Market Capitalization of Listed Companies 55
    • 7.1.8. Market Capitalization of Listed Companies (Percentage of GDP) 56
    • 7.1.9. Goods Exports as a Percentage of GDP 57
    • 7.1.10. Goods Imports as a Percentage of GDP 58
    • 7.1.11. Service Imports as a Percentage of GDP 59
    • 7.1.12. Services Exports as a Percentage of GDP 60
    • 7.1.13. Foreign Direct Investment (FDI), net (BoP, current US$ Billion) 61
    • 7.1.14. Net FDI as a Percentage of GDP 62
    • 7.1.15. Mining, Manufacturing, Utilities Output 63

8. Appendix 64

  • 8.1. About GlobalData 64
  • 8.2. Disclaimer 64

List of Tables

  • Table 1: Mexican Ground Forces Strength 12
  • Table 2: Mexican Air Force Strength 13
  • Table 3: Mexican Navy Strength 14
  • Table 4: Mexican Ongoing Development and Procurement Programs (US$ Million) 16
  • Table 5: Mexican Future Procurement Programs 16
  • Table 6: Mexican Defense Expenditure (MXN Billion and US$ Billion), 2014-2023 18
  • Table 7: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2014-2023 21
  • Table 8: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 23
  • Table 9: Mexican Defense Capital Expenditure (MXN Billion & US$ Billion), 2014-2023 25
  • Table 10: Mexican Per Capita Defense Expenditure (US$), 2014-2023 27
  • Table 11: Mexican Homeland Security Expenditure (MXN Billion and US$ Billion), 2014-2023 28
  • Table 12: Terrorism Index, 2018 32
  • Table 13: Benchmarking with Key Markets - 2014-2018 vs 2019-2023 35
  • Table 14: Top Mexican Defense Sectors by Value (US$ Million), 2018-2023 39
  • Table 15: Mexican Budget process 46
  • Table 16: Mexican - Competitive Landscape of Defense Industry, 2018 48

List of Figures

  • Figure 1: Mexican Defense Expenditure (MXN Billion), 2014-2023 19
  • Figure 2: Mexican Defense Expenditure (US$ Billion), 2014-2023 19
  • Figure 3: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2014-2023 22
  • Figure 4: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 24
  • Figure 5: Mexican Defense Capital Expenditure (MXN Billion), 2014-2023 26
  • Figure 6: Mexican Defense Capital Expenditure (US$ Billion), 2014-2023 26
  • Figure 7: Mexican Per Capita Defense Expenditure (US$), 2014-2023 27
  • Figure 8: Mexican Homeland Security Expenditure (MXN Billion), 2014-2023 29
  • Figure 9: Mexican Homeland Security Expenditure (US$ Billion), 2014-2023 29
  • Figure 10: Terrorism Heat Map, 2018 31
  • Figure 11: Terrorism Index, 2018 34
  • Figure 12: Mexico - Benchmarked Against Key Markets (%), 2014-2018 vs. 2019-2023 36
  • Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2018 and 2023 37
  • Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 38
  • Figure 15: Mexican Defense Imports (US$ Million), 2013-2017 (TIV Values*) 41
  • Figure 16: Mexican Defense Imports by Country (%), 2013-2017 42
  • Figure 17: Mexican Defense Imports by Category (%), 2013-2017 43
  • Figure 18: Mexican - GDP Per Capita at Constant Prices (US$), 2015-2025 49
  • Figure 19: Mexican - GDP at Current Prices (US$ Billion), 2015-2025 50
  • Figure 20: Mexican - Exports of Goods and Services (LCU Trillion), 2005-2014 51
  • Figure 21: Mexican - Imports of Goods and Services (LCU Trillion), 2005-2014 52
  • Figure 22: Mexican - Gross National Disposable Income (US$ Billion), 2005-2012 53
  • Figure 23: Mexican - LCU per US$, 2015-2024 54
  • Figure 24: Mexican - Market Capitalization of Listed Companies (US$ Billion), 2005-2012 55
  • Figure 25: Mexican - Market Capitalization of Listed Companies (Percentage of GDP), 2005-2012 56
  • Figure 26: Mexican - Goods Exports as a Percentage of GDP, 2005-2014 57
  • Figure 27: Mexican - Goods Imports as a Percentage of GDP, 2005-2014 58
  • Figure 28: Mexican - Services Imports as a Percentage of GDP, 2005-2014 59
  • Figure 29: Mexican - Services Exports as a Percentage of GDP, 2005-2014 60
  • Figure 30: Mexican - FDI, Net (BoP, Current US$ Billion), 2005-2014 61
  • Figure 31: Mexican - Net FDI as a Percentage of GDP, 2005-2014 62
  • Figure 32: Mexican - Mining, Manufacturing, Utilities Output (LCU Trillion), 2005-2014 63
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