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Market Research Report

Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021

Published by Strategic Defence Intelligence Product code 269711
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Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021
Published: August 31, 2016 Content info: 108 Pages
Description

Summary

The Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021, 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 developments.

Key Findings

Over the historic period, Brazil's defense expenditure registered CAGR of -13.31%,decreasingfrom US$34.2billion in 2012 to US$19.3 billion in 2016

The Brazilian military expenditure, estimated to value US$17.5billion in 2017, is expected to increase marginally, to reachUS$20.5 billion by 2021, registering a CAGR of 4.08% over the forecast period

The country's military expenditure will be driven by the large defense procurement projects, development of indigenous defense capabilities, and modernization of its defense systems

The Defense Ministry is expected to spend more onmulti-role combat aircraft, diesel electric submarines, and military IT- networking

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:

The Brazilian defense industry market size and drivers: detailed analysis of the Brazilian defense industry during 2017-2021, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization programs

Budget allocation and key challenges: insights into procurement schedules formulated within the country. 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 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: Competitive landscape analysis 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
Product Code: DF0373MR

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 defense budget is expected to grow at an estimated CAGR of 4.08% during 2017-2021
    • 3.1.2. Development of indigenous defense capabilities, modernization of defense systems, and large defense procurement projects are expected to drive the Brazilian defense expenditure
    • 3.1.3. Defense budget as a percentage of GDP will remain at an average of 1.14% over the forecast period
  • 3.2. Analysis of Defense Budget Allocation
    • 3.2.1. Share of capital expenditure is expected to decrease during the forecast period
    • 3.2.2. Capital expenditure is anticipated to record a CAGR of 7.45% during the forecast period
    • 3.2.3. The army accounted for the largest percentage share of the overall Brazilian defense budget
    • 3.2.4. Army defense expenditure is estimated to reach US$9.6 billion in 2021
    • 3.2.5. Air force defense expenditure is expected to grow at a CAGR of 2.85% during 2017-2021
    • 3.2.6. Naval expenditure is estimated to register a CAGR of 4.33% over the forecast period
    • 3.2.7. Other category allocation is expected to increase over the forecast period
    • 3.2.8. The Brazilian Per-capita defense expenditure to increase during the forecast period
  • 3.3. Homeland Security Market Size and Forecast
    • 3.3.1. Homeland Security market in Brazil is expected to grow at a CAGR of 3.97% during the forecast period
    • 3.3.2. Brazilian sporting events will be the key factor driving homeland security
    • 3.3.3. Brazil falls under "moderately affected" category in the terrorism index
    • 3.3.4. Brazil faces very low threats from terrorist organizations
    • 3.3.5. Brazil has a terrorism index score of 2.2
  • 3.4. Benchmarking with Key Global Markets
    • 3.4.1. Brazil ranks among major Global Defense Markets
    • 3.4.2. Brazils expected to remain among top defense spending countries in the world
    • 3.4.3. Brazil is expected to spend an average of 1.14% of its GDP on defense over the forecast period
  • 3.5. Market Opportunities: Key Trends and Drivers
    • 3.5.1. Multi-role aircraft
    • 3.5.2. Diesel Electric Submarine
    • 3.5.3. Military IT -Networking

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. Aircraft and Armored Vehicles accounted for a total share55% in the Brazilian defense imports
    • 4.1.3. Germany, the US, and France are the major suppliers for Brazil
  • 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. Indonesia and Angola are the major prospects for the Brazilian defense exports
    • 4.2.3. Aircraft accounted for the majority of Brazilian defense exports during 2011-2015

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
    • 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. Low allocation for defense capital expenditure and delay in the closure of defense deals are the major challenges of 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
  • 7.2. Key Public Sector Companies
    • 7.2.1. Embraer: overview
    • 7.2.2. Embraer: products and services
    • 7.2.3. Embraer: recent announcements and strategic initiatives
    • 7.2.4. Embraer - alliances
    • 7.2.5. Embraer: recent contract wins

To provide latest simulation technology for the KC-390 programme. 64

A contract to build 28 of its newly launched mid-sized cargo planes 64

    • 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 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 and services
    • 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 and services
    • 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 and services
    • 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 and services
    • 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 and services
    • 7.2.34. Aeroelectronica: recent announcements and strategic initiatives
    • 7.2.35. Aeroelectronica: alliances
    • 7.2.36. Aeroelectronica: recent contract wins
    • 7.2.37. Industria Naval do Ceara: overview
    • 7.2.38. Industria Naval do Ceara: products and services
    • 7.2.39. Industria Naval do Ceara: recent announcements and strategic initiatives
    • 7.2.40. Industria Naval do Ceara: recent contract wins
    • 7.2.41. Northrop Grumman Brazil: overview
    • 7.2.42. Northrop Grumman Brazil: products and services
    • 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 and services
    • 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 (US$)
    • 8.1.2. GDP at current prices (US$)
    • 8.1.3. Exports of goods and services (BRL)
    • 8.1.4. Imports of goods and services (BRL)
    • 8.1.5. Gross national disposable income (US$ Billions)
    • 8.1.6. BRL per US$ (period average)
    • 8.1.7. Market capitalization of listed companies (US$ Billions)
    • 8.1.8. Market capitalization of listed companies (% of GDP)
    • 8.1.9. Government cash surplus/deficit as a percentage of GDP (BRL)
    • 8.1.10. Goods exports and imports as a percentage of GDP
    • 8.1.11. Services imports and exports as a percentage of GDP
    • 8.1.12. Foreign direct investment, net (BoP, current US$ Billions)
    • 8.1.13. Net foreign direct investment as a percentage of GDP
  • 8.2. Mineral
    • 8.2.1. Mining, Manufacturing, Utilities Output (BRL Billion)

9 Appendix

  • 9.1. About SDI
  • 9.2. Disclaimer

List of Tables

  • Table 1: Brazilian Defense Expenditure (R$ billionand US$ billion), 2012-2021
  • Table 2: Brazilian GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2012-2021
  • Table 3: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2021
  • Table 4: Brazilian Defense Capital Expenditure (R$ billion and US$ billion), 2012-2021
  • Table 5: Brazilian Defense Budget Split between Army, Navy, Air Force and other category, 2012-2021
  • Table 6: Brazilian Defense Expenditure for Army (R$ billion and US$ billion), 2012-2021
  • Table 7: Brazilian Defense Expenditure for Air Force (R$ billion and US$ billion), 2012-2021
  • Table 8: Brazilian Defense Expenditure for Navy (R$ billion and US$ billion), 2012-2021
  • Table 9: Brazilian Other Category Expenditure (R$ billionand US$ billion), 2012-2021
  • Table 10: Brazilian Per Capita Defense Expenditure (US$), 2012-2021
  • Table 11: Brazilian Homeland Security Expenditure (R$ billionand US$ billion), 2012-2021
  • Table 12: SDI Terrorism Index, 2016
  • Table 13:Benchmarking with Key Markets - 2012-2016 vs. 2017-2021
  • Table 14: Brazil - Offset Guidelines and Agreements

Table15:Embraer- Alliances

Table16: Embraer- Recent Contract Wins

Table17: Forjas Taurus SA- Alliances

Table18: Forjas Taurus SA- Recent Contract Wins

Table19:Avibras Industria Aerospacial- Alliances

Table20:Avibras Industria Aerospacial- Recent Contract Wins

Table21: Companhia Brasileira de Cartuchos (CBC)- Recent Contract Wins

Table22:Helibras- Alliances

Table23:Helibras- Recent Contract Wins

  • Table 24: Industria de Material Belico do Brasil (IMBEL)- Alliances

Table25: Industria de Material Belico do Brasil (IMBEL)- Recent Contract Wins

Table26:Aeroelectronica- Alliances

Table27:Aeroelectronica- Recent Contract Wins

Table28:Industria Naval do Ceara- Recent Contract Wins

Table29:Northrop Grumman- Alliances

Table30:Northrop Grumman - Recent Contract Wins

Table31: Lockheed Martin- Alliances

Table32:Lockheed Martin- Recent Contract Wins

List of Figures

  • Figure 1: Brazilian Defense Expenditure (R$ billion), 2012-2021
  • Figure 2: Brazilian Defense Expenditure (US$ Billion), 2012-2021
  • Figure 3: Brazilian GDP Growth and Defense Expenditure as Percentage of GDP Growth,2012-2021
  • Figure 4: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%),2012-2021
  • Figure 5: Brazilian Defense Capital Expenditure (R$ billion), 2012-2021
  • Figure 6: Brazilian Defense Capital Expenditure (US$ billion), 2012-2021
  • Figure 7: Brazilian Defense budget Split Between Army, Navy, Air Force and Other category, 2012-2021
  • Figure 8: Brazilian Army Expenditure (R$ billion), 2012-2021
  • Figure 9: Brazilian Defense Expenditure for Army (US$ billion), 2012-2021
  • Figure 10: Brazilian Defense Expenditure for Air Force (R$ billion), 2012-2021
  • Figure 11: Brazilian Defense Expenditure for Air Force (US$ billion), 2012-2021
  • Figure 12: Brazilian Defense Expenditure for Navy (R$ billion), 2012-2021
  • Figure 13: Brazilian Defense Expenditure for Navy (US$ Billion), 2012-2021
  • Figure 14: Brazilian Defense Expenditure for other category (R$ billion), 2012-2021
  • Figure 15: Brazilian Defense Expenditure for other category (US$ Billion), 2012-2021
  • Figure 16: Brazilian Per Capita Defense Expenditure (US$), 2012-2021
  • Figure 17: Brazilian Homeland Security Expenditure (R$ billion), 2012-2021
  • Figure 18: Brazilian Homeland Security Expenditure (US$ billion), 2012-2021
  • Figure 19: SDI Terrorism Heat Map, 2016
  • Figure 20: SDI Terrorism Index, 2016
  • Figure 21: Benchmarking with Key Markets, 2012-2016 vs. 2017-2021
  • Figure 22: Defense Expenditure of the World's Largest Military Spenders (US$ billion),2016 and 2021
  • Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016
  • Figure 24: Multi-role Aircraft Market Size (US$ Million), 2016-2026
  • Figure 25: Diesel Electric Submarine Market Size (US$ Million), 2016 -2026
  • Figure 26: Military IT-Networking Market Size (US$ Million), 2016 -2026
  • Figure 27: Brazilian Defense Import Trend (US$ Million), 2011-2015 (TIV values*)
  • Figure 28: Brazilian Defense Imports by Category (%), 2011-2015
  • Figure 29: Brazilian Defense Imports by Country (%), 2011-2015
  • Figure 30: Brazilian Defense Export Trend (US$ Million), 2011-2015 (TIV values)
  • Figure 31: Brazilian Defense Exports by Country (%), 2011-2015
  • Figure 32:Brazilian Defense Exports by Category (%), 2011-2015
  • Figure 33: Industry Dynamics - Porter's Five Forces Analysis
  • Figure 34: Embraer - Revenue Trend Analysis (BRL Billion), 2011-2015
  • Figure 35: Embraer - Operating Profit Trend Analysis (BRL Billion), 2011-2015
  • Figure 36: Embraer-Net Profit Trend Analysis (BRL Billion), 2011-2015
  • Figure 37: Forjas Taurus SA - Revenue Trend Analysis (BRL Million), 2011-2015
  • Figure 38: Forjas Taurus SA - Operating Profit Trend Analysis (BRL Million), 2011-2015
  • Figure 39: Forjas Taurus SA - Net Profit Trend Analysis (BRL Million), 2011-2015
  • Figure 40: Brazilian GDP Per Capita at Constant Prices (US$), 2015-2025
  • Figure 41: Brazil GDP at Current Prices (US$ Billion), 2015-2025
  • Figure 42: Brazilian Exports of goods and services (BRL Billion), 2005-2014
  • Figure 43: Brazilian Imports of goods and services (BRL Billion), 2005-2014
  • Figure 44: Brazilian Gross National disposable income (US$ Billion), 2010?2014
  • Figure 45: Brazilian BRL per US$, 2015-2024
  • Figure 46: Brazilian market capitalization of listed companies (US$ Billion), 2005-2012
  • Figure 47: Brazilian market capitalization of listed companies (% of GDP), 2005-2012
  • Figure 48: Brazilian Government cash surplus/deficit as % of GDP (BRL), 2005-2009
  • Figure 49: Brazil? Goods exports and imports as a % of GDP (%), 2005-2014
  • Figure 50: Brazil?Services imports and exports as a % of GDP (%), 2005-2014
  • Figure 51: Brazilian Foreign direct investment, net (BoP, current US$ Billion), 2005-2014
  • Figure 52: Brazilian Net foreign direct investment as % of GDP, 2005-2014
  • Figure 53: Brazilian Mining, Manufacturing, Utilities Output (BRL Billion), 2005-2014
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