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Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2020

  • ID: 3384491
  • August 2015
  • Region: Mexico
  • 96 pages
  • Strategic Defence Intelligence
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Summary
The Mexican defense market will be driven by the ongoing modernization and upgrade of military equipment such as military transport aircraft, multi-utility helicopters, and naval vessels, as well as the country's efforts to combat the increasing level of drug trafficking. Also the capital expenditure allocation is anticipated to average 10.3% of the total defense budget during 2016-2020 and procurement of defense equipment are expected to be in the areas of multi-role aircraft, military helicopters, corvettes, and transport aircraft.

Key Findings
- During 2011-2015, Mexican defense expenditure registered a growth rate of 4.08%, increasing from US$5.5 billion in 2011 to US$6.5 billion in 2015

- Military expenditure is anticipated to register a CAGR of 7.25% during 2016-2020, to value US$9.2 billion in 2020

- The ongoing modernization, which has led to the upgrade of military equipment, along with country's efforts to combat the increasing level of drug trafficking is expected to drive defense expenditure over the forecast period

- Demand for equipment is mainly expected to revolve around multi-role aircraft, military helicopters, corvettes, and READ MORE >

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1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. Terrorism Index
1.5. About the Publisher
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 7.25% during 2016-2020
3.1.2. The government's fight against drug trafficking to drive defense expenditure in the forecast period
3.1.3. Defense expenditure as a percentage of GDP estimated to increase over the forecast period
3.1.4. Per capita defense expenditure forecast to increase over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of capital expenditure to average 10.3% during the forecast period
3.2.2. Mexican defense capital expenditure is expected to grow at a CAGR of 11.13% during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security expenditure is anticipated to increase at a CAGR of 7.34% during the forecast period
3.3.2. Organized crime and money laundering to drive the HLS market
3.3.3. Mexico considered at 'some risk' of terrorist attack
3.4. Benchmarking with Key Global Markets
3.4.1. Mexico's defense budget expected to increase over the forecast period
3.4.2. Mexico's military expenditure is limited compared to countries with the largest defense expenditures
3.4.3. Mexico allocates a low percentage of GDP to defense
3.4.4. Mexico suffers “some risk” level of terrorist activity
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Multi-role Aircraft
3.5.2. Military Helicopters
3.5.3. Corvettes
3.5.4. Transport Aircraft
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. The US was a major arms supplier to Mexico during 2010-2014
4.1.3. Aircraft to dominate Mexican defense imports
4.2. Export Market Dynamics
4.2.1. Mexico does not export arms due to an underdeveloped domestic arms industry
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of the supplier: low
5.1.2. Bargaining power of the buyer: medium
5.1.3. Barriers to entry: low
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. Mexico has not disclosed any offset obligations
6.1.2. Mexico allows 100% FDI in defense industry
6.2. Market Entry Route
6.2.1. Foreign OEMs prefer direct selling to enter the market
6.2.2. Military collaborations provide good market entry opportunities
6.3. Key Challenges
6.3.1. Corruption and lack of transparency impedes the growth of Mexico's defense industry
6.3.2. Lack of domestic defense technological know-how acts as a deterrent to market entry
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Productos Mendoza: overview
7.2.2. Productos Mendoza: products
7.2.3. Aviabaltika de Mexico Company: overview
7.2.4. Aviabaltika de Mexico Company: products and services
8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Total Rural Population
8.1.2. Total Urban Population
8.1.3. Number of households
8.2. Economic Performance
8.2.1. GDP Per Capita
8.2.2. GDP, Current Prices
8.2.3. Consumer Price Index
8.2.4. Wholesale Price Index
8.2.5. Local Currency Unit per Euro
8.2.6. Lending Rate
8.2.7. Real Interest Rate
8.2.8. Market Capitalization of Listed Companies
8.2.9. Market Capitalization of Listed Companies (% of GDP)
8.2.10. Goods exports as % of GDP
8.2.11. Goods imports as % of GDP
8.2.12. Goods Trade Surplus/Deficit as % of GDP
8.2.13. Service Imports as % of GDP
8.2.14. Service Exports as % of GDP
8.2.15. Service Trade Surplus/Deficit as % of GDP
8.2.16. Foreign Direct Investment
8.2.17. Net foreign direct investment as % of GDP
8.2.18. International reserves, including gold
8.3. Energy and Utilities
8.3.1. Conventional Thermal Electricity Net Generation
8.3.2. Hydroelectricity Net Generation
8.3.3. Nuclear Electricity Net Generation
8.3.4. Conventional Thermal Electricity Installed Capacity
8.3.5. Electricity Exports
8.3.6. Electricity Imports
8.3.7. Proved Natural Gas Reserves
8.3.8. Petroleum Consumption
8.4. Infrastructure
8.4.1. Air transport, freight
8.5. Minerals
8.5.1. Mining, Manufacturing, Utilities Output
8.6. Technology
8.6.1. Patents Granted
8.7. Telecommunication
8.7.1. Telephone Lines
8.7.2. Telephone Lines Penetration Rate
9 Appendix
9.1. About Us
9.2. Disclaimer

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- Productos Mendoza
- Aviabaltika de Mexico Company

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Note: Product cover images may vary from those shown

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