Market Research Report
Colombian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||912975|
|Published||Content info||61 Pages
Delivery time: 1-2 business days
|Colombian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: September 5, 2019||Content info: 61 Pages||
The brutal atrocities and insurgencies by two major armed militia groups - FARC and ELN have been a major concern for the Colombian government. In 2017, the government signed a peace accord with the FARC leadership to restore socio-economic stability in the country. However, approximately 1,200 FARC dissidents shied away from the accord and continued to pose a significant threat to national security.
Against this backdrop, it is prudent for Colombia to invest in the development and maintenance of a robust defense and security posture. With this trend expected to continue over the forecast period, Colombia's defense expenditure is anticipated to register a CAGR of 15.14% to value US$47.2 billion in 2024. As a percentage of GDP, the country's defense expenditure is expected to average 9.12% over the forecast period, compared to 4.02% recorded during the historic period.
During the historic period, the Colombian government allocated an average of 3.6% of its defense budget to capital expenditure, which includes both the purchase of new equipment and upgrade programs for existing equipment. The rest of the budget was allocated to revenue expenditure, which includes salaries, planning, administration and training expenditure. On a cumulative basis, Colombia allocated US$2.3 billion to capital expenditure over the historic period, which is anticipated to value US$5.9 billion over the forecast period. Capital expenditure is anticipated to increase at a CAGR of 14.67%, while revenue expenditure will increase at a CAGR of 15.23% during the forecast period.
The US has developed multiple programs supporting the Colombian government, to establish law enforcement in the most conflict-ridden and neglected rural areas of Colombia. These US programs also take into account various socio-economic aspects for the Colombian population, such as agrarian reforms, better educational opportunities, and a stable business environment to ensure continuous public as well as private investments. . However, manufacturers from Russia, France, Germany, and Israel are also gaining traction in the Colombian defense market.
Apart from this, Colombia also enjoys close defense cooperation with NATO, and is one of the organization's key partners in Latin America. In March 2013, NATO allies adopted a bespoke approach to cultivate close cooperation with Colombia in specific areas of common interest.
The report "Colombian Defense 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: Embraer S.A., Dassault Aviation, International Aero Engines, Textron Systems, Textron Systems