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The Peruvian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 - Product Image

The Peruvian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

  • ID: 2359211
  • December 2012
  • Region: Peru
  • 112 Pages
  • Strategic Defence Intelligence

Product Synopsis
This report is the result of SDI's extensive market and company research covering the Peruvian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.

Introduction and Landscape
Why was the report written?
The Peruvian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Peruvian defense industry.

What is the current market landscape and what is changing?
During the review period the Peruvian defense budget recorded a CAGR of 14%. Expenditure was supported by a modernization program, participation in peacekeeping missions, and measures to counter drug trafficking. In 2012 the Peruvian defense budget stood at 1.4% of GDP and is expected to marginally increase to 1.5% of GDP by 2017. During the review period, Peru's capital expenditure allocation stood at 13.1% of the total defense budget, and this READ MORE >

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. Defense expenditure is projected to grow at a CAGR of XX% during the forecast period
3.1.2. Threat from the Shining Path group, modernization, border disputes, peacekeeping and an arms race with neighboring countries to drive defense expenditure in the forecast period
3.1.3. Defense budget as a percentage of GDP is expected a marginal increase during the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Revenue expenditure accounts for a majority of the Peruvian defense budget
3.2.2. Per capita defense expenditure expected to increase during the forecast period
3.2.3. Other expenditures account for the majority of the Peruvian defense budget
3.2.4. Budget allocation for the army higher than the navy and the air force
3.2.5. Defense budget allocation for the navy expected to increase
3.2.6. Defense budget allocation for the Air Force expected to be the lowest
3.2.7. Other expenses expected to decrease during 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 XX% during the forecast period
3.3.2. Capital expenditure is expected to increase in the forecast period
3.3.3. Cocaine trafficking and organized crime to drive HLS market
3.3.4. Peru considered at 'some risk' of terrorist attack
3.3.5. Peru experienced low levels of terrorist activity during the review period
3.4. Benchmarking with Key Global Markets
3.4.1. Peru's defense budget expected to register marginal growth in the forecast period
3.4.2. Peru's military expenditure is limited compared with countries with the largest defense expenditure
3.4.3. Peru allocates a low percentage of GDP to defense
3.4.4. Peru has a moderate per-capita defense expenditure
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Demand for utility aircraft is expected to surge
3.5.2. Increased demand for main battle tanks expected
3.5.3. The need to combat drug trafficking, illegal logging, and exploitation of natural resources will drive demand for surveillance equipment
3.5.4. Threat from the Shining Path group to generate demand for precise ammunition, unmanned aerial vehicles (UAVs), assault rifles, and other combat equipment
3.5.5. Modernization of naval and air force capabilities to provide excellent market opportunities

4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities drives the country's defense imports
4.1.2. Defense imports expected to increase during the forecast period
4.1.3. Italy accounted for the majority of Peru's defense imports during the review period
4.1.4. Aircraft, ships, and missiles are the most imported military hardware

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: high
5.1.3. Barriers to entry: medium
5.1.4. Intensity of rivalry: low to high
5.1.5. Threat of substitution: low to high

6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry
6.1.2. Peru allows XX% FDI in defense industry
6.2. Market Entry Route
6.2.1. The country's biennial defense exhibition provides an attractive entry route
6.2.2. Direct selling is the preferred market entry route for foreign OEMs
6.3. Key Challenges
6.3.1. Small defense budget and limited technological capability limits the market entry of foreign companies
6.3.2. Lack of transparency hampers the growth of the Peruvian defense industry

7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Los ServiciosIndustriales de la Marina (SIMA): overview
7.2.2. Los ServiciosIndustriales de la Marina (SIMA): products and services
7.2.3. Los ServiciosIndustriales de la Marina (SIMA): recent announcements and strategic initiatives
7.2.4. Los ServiciosIndustriales de la Marina (SIMA): Alliances
7.2.5. Los ServiciosIndustriales de la Marina (SIMA): recent contract awards
7.2.6. The Army Ammunition Factory (FAME): overview
7.2.7. The Army Ammunition Factory (FAME): products and services
7.2.8. The Army Ammunition Factory (FAME): recent announcements and strategic initiatives
7.2.9. DesarrollosIndustrialesCasanave: overview
7.2.10. DesarrollosIndustrialesCasanave: products and services
7.2.11. DesarrollosIndustrialesCasanave: recent announcements and strategic initiatives
7.2.12. DesarrollosIndustrialesCasanave: alliances

8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Construction Output, Current Prices, Local Currency
8.2.2. Construction Output, Current Prices, US Dollars
8.2.3. Current Account Balance as Percentage of GDP
8.2.4. Debt-Service Ratio
8.2.5. Deposit Interest Rate
8.2.6. Exports of goods and services, current prices
8.2.7. External debt as percentage of GDP (%)
8.2.8. Foreign Direct Investment
8.2.9. Fiscal Balance as a percentage of GDP
8.2.10. GDP at Purchasing Power Parity
8.2.11. GDP, Constant Prices (Local Currency)
8.2.12. GDP, Constant Prices (US$)
8.2.13. GDP, Current Prices (Local Currency)
8.2.14. GDP, Current Prices (US$)
8.2.15. General Government Final Consumption Expenditure
8.2.16. Gross Fixed Capital Formation, Current Prices
8.2.17. Imports of goods and services
8.2.18. Inflation, average consumer prices
8.2.19. Interest Rate (Lending)
8.2.20. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.21. Manufacturing Output, Current Prices (US$ Billions)
8.2.22. Market Capitalization of Stock Exchange (US$ mn)
8.2.23. US$- Exchange Rate (Annual Average)
8.2.24. US$- Exchange Rate (EoP)
8.2.25. Wholesale Price Index
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Installed Capacity
8.3.3. Fossil Fuels Proved Natural Gas Reserves
8.3.4. Fossil Fuels Proved Oil Gas Reserves
8.3.5. Hydroelectricity Installed Capacity
8.3.6. Natural Gas Consumption
8.3.7. Natural Gas Production
8.3.8. Net Conventional Thermal Electricity Generation
8.3.9. Net Geothermal, Solar, Wind, and Wood Electric Power Generation
8.3.10. Net Hydroelectric Power Generation
8.3.11. Petroleum Consumption
8.3.12. Petroleum Production
8.4. Minerals
8.4.1. Coal Consumption
8.4.2. Coal Production
8.5. Technology
8.5.1. Patents Granted
8.6. Social and Political Risk
8.6.1. Political Stability Index
8.6.2. Transparency Index

9 Appendix
9.1. About SDI
9.2. Disclaimer

List of Tables

Table 1: Peruvian Defense Expenditure, 2008-2012
Table 2: Peruvian Defense Expenditure, 2013-2017
Table 3: Peruvian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
Table 4: Peruvian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013-2017
Table 5: Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Table 6: Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Table 7: Peruvian Per Capita Defense Expenditure (US$), 2008-2012
Table 8: Peruvian Per Capita Defense Expenditure (US$), 2013-2017
Table 9: Peruvian Defense Budget Breakdown (%), 2008-2012
Table 10: Peruvian Defense Budget Breakdown (%), 2013-2017
Table 11: Peruvian Defense Budget Allocation for the Army (US$ Billion), 2008-2012
Table 12: Peruvian Defense Budget Allocation for the Army (US$ Billion), 2013-2017
Table 13: Peruvian Defense Budget Allocation for the Navy (US$ Billion), 2008-2012
Table 14: Peruvian Defense Budget Allocation for the Navy (US$ Billion), 2013-2017
Table 15: Peruvian Defense Budget Allocation for the Air Force (US$ Billion), 2008-2012
Table 16: Peruvian Defense Budget Allocation for the Air Force (US$ Billion), 2013-2017
Table 17: Peruvian Defense Budget Allocation for Other Expenditure (US$ Billion), 2008-2012
Table 18: Peruvian Defense Budget Allocation for Other Expenditure (US$ Billion), 2013-2017
Table 19: Peruvian Homeland Security Budget (US$ billion), 2008-2012
Table 20: Peruvian Homeland Security Budget (US$ billion), 2013-2017
Table 21: Peruvian Homeland Security Budget Split (%), 2008-2012
Table 22: Peruvian Homeland Security Budget Split (%), 2013-2017
Table 23: SDI Terrorism Index
Table 27: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Table 25: Defense Offset Regulations in Peru
Table 26: Los ServiciosIndustriales de la Marina (SIMA)- Products and Services
Table 27: Los ServiciosIndustriales de la Marina (SIMA): Alliances
Table 28: Los ServiciosIndustriales de la Marina (SIMA) - Recent Contract Wins
Table 29: The Army Ammunition Factory (FAME)- Product Focus
Table 30: DesarrollosIndustrialesCasanave- Product Focus
Table 31: DesarrollosIndustrialesCasanave: Alliances

List of Figures

Figure 1: Peruvian Defense Expenditure, 2008-2012
Figure 2: Peruvian Defense Expenditure, 2013-2017
Figure 3: Peruvian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
Figure 4: Peruvian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2013-2017
Figure 5:Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Figure 6: Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Figure 7: Peruvian Per Capita Defense Expenditure (US$), 2008-2012
Figure 8: Peruvian Per Capita Defense Expenditure (US$), 2013-2017
Figure 9: Peruvian Defense Budget Breakdown (%), 2008-2012
Figure 10: Peruvian Defense Budget Breakdown (%), 2013-2017
Figure 11: Peruvian Defense Budget Allocation for the Army (US$ Billion), 2008-2012
Figure 12: Peruvian Defense Budget Allocation for the Army (US$ Billion), 2013-2017
Figure 13: Peruvian Defense Budget Allocation for the Navy (US$ Billion), 2008-2012
Figure 14: Peruvian Defense Budget Allocation for the Navy (US$ Billion), 2013-2017
Figure 15: Peruvian Defense Budget Allocation for the Air Force (US$ Billion), 2008-2012
Figure 16: Peruvian Defense Budget Allocation for the Air Force (US$ Billion), 2013-2017
Figure 17: Peruvian Defense Budget Allocation for Other Expenditure (US$ Billion), 2008-2012
Figure 18: Peruvian Defense Budget Allocation for Other Expenditure (US$ Billion), 2013-2017
Figure 19: Peruvian Homeland Security Budget (US$ billion), 2008-2012
Figure 20: Peruvian Homeland Security Budget (US$ billion), 2013-2017
Figure 21: Peruvian Homeland Security Budget Split (%), 2008-2012
Figure 22: Peruvian Homeland Security Budget Split (%), 2013-2017
Figure 23: SDI Terrorism Heat Map, 2012
Figure 24: SDI Terrorism Index, 2012
Figure 25: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Figure 26: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2012 and 2017
Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2012
Figure 28: Per-capita Defense Expenditure of the Largest Military Spenders in the World (US$), 2012
Figure 29: Peruvian Defense Import Trend, 2007-2011 (TIV values)
Figure 30: Peruvian Defense Imports by Country (US$ Million), 2007-2011
Figure 31: Peruvian Defense Imports by Country (%), 2007-2011 and 2011
Figure 32: Peruvian Defense Imports by Category (%),2007-2011
Figure 33: Industry Dynamics Porter's Five Forces Analysis
Figure 34: Peruvian Population - Female (In Millions), 2008-2017
Figure 35: Peruvian Population - Male (In Millions), 2008-2017
Figure 36: Peruvian Construction Output, Current Prices, (In PEN Billions), 2001-2010
Figure 37: Peruvian Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 38: Peruvian Current Account Balance as Percentage of GDP, 2008-2017
Figure 39: Peruvian Debt-Service Ratio, 2001-2010
Figure 40: Peruvian Deposit Interest Rate, 2001-2010
Figure 41: Peruvian Exports of goods and services, current prices (US$ Billion), 2001-2010
Figure 42: Peruvian External Debt as percentage of GDP (%), 2001-2010
Figure 43: Peruvian Foreign Direct Investment (US$ Billion), 2001-2010
Figure 44: Peruvian Fiscal Balance as a percentage of GDP (%), 2001-2010
Figure 45: Peruvian GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 46: Peruvian GDP at Constant Prices (in PEN Billion), 2006-2015
Figure 47: Peruvian GDP at Constant Prices (US$ Billion), 2006-2015
Figure 48: Peruvian GDP at Current Prices (PEN Billion), 2006-2015
Figure 49: Peruvian GDP at Current Prices (US$ Billion), 2006-2015
Figure 50: Peruvian General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 51: Peruvian Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 52: Peruvian Imports of goods and services (current US$ Billion), 2001-2010
Figure 53: Peruvian Inflation, average consumer prices, 2008-2017
Figure 54: Peruvian Lending Interest rate, 2001-2010
Figure 55: Peruvian Manufacturing Output, Current Prices (PEN Billion), 2001-2010
Figure 56: Peruvian Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 57: Peruvian Market Capitalization of Stock Exchange (US$ Million), 2001-2010
Figure 58: Peruvian US$- Exchange Rate (Annual Average), 2002-2011
Figure 59: Peruvian US$- Exchange Rate (EoP), 2002-2011
Figure 60: Peruvian Wholesale Price Index, 2000-2009
Figure 61: Peruvian Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009
Figure 62: Peruvian Electricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 63: Peruvian Fossil Fuels Proved Natural Gas Reserves (Trillion Cubic Feet), 2002-2011
Figure 64: Peruvian Fossil Fuels Proved Oil Gas Reserves (Billion Barrels), 2002-2011
Figure 65: Peruvian Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 66: Peruvian Natural Gas Consumption (Billion Cubic Feet), 2001-2010
Figure 67: Peruvian Natural Gas Production (Billion Cubic Feet), 2001-2010
Figure 68: Peruvian Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2010
Figure 69: Peruvian Net Geothermal, Solar, Wind, and Wood Electric Power Generation (Billion Kilowatt Hours), 2001-2010
Figure 70: Peruvian Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2010
Figure 71: Peruvian Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 72: Peruvian Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 73: Peruvian Coal Consumption (Thousand Short Tons), 2001-2010
Figure 74: Peruvian Coal Production (Thousand Short Tons), 2001-2010
Figure 75: Peruvian Patents Granted, 2002-2011
Figure 76: Peruvian Political Stability Index, 2002-2010
Figure 77: Peruvian Transparency Index, 2002-2011

- Los ServiciosIndustriales de la Marina (SIMA)
- The Army Ammunition Factory (FAME)
- DesarrollosIndustrialesCasanave

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