Future of the Chilean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

  • ID: 4447373
  • Report
  • Region: Chile
  • 91 pages
  • Strategic Defence Intelligence
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FEATURED COMPANIES

  • FAMAE
  • Linktronic Radar Systems
  • SISDEF Ltda
  • MORE
Future of the Chilean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary:

Chilean defense budget values at around US$2.6 Billion in 2017 and registered a CAGR of over 0.2% during the historic period of 2013-2017. However, it is anticipated to increase at a CAGR of over 5% over the forecast period to a value of about US$3.4 Billion by 2022. As a percentage of GDP, the country’s defense budget is expected to average 1% over the forecast period.

Chile’s homeland security (HLS) expenditure values US$5 Billion in 2017 and registered a CAGR of 0.63% during the historic period. Moreover, it is anticipated to register a CAGR of over 7% over the forecast period to value of US$7.1 Billion in 2022. The capital expenditure allocation is expected to remain constant at an average of around 27% during the forecast period. This is primarily due to the country’s plans to procure multirole aircraft, transport aircraft, naval air defense systems, and military helicopters.

Missiles accounted for the majority of Chile’s imports during 2012-2016, with the US being the largest supplier. Sensors, aircraft and air defense systems were the other defense imports during 2012-2016, with France, Norway, Germany, and Israel being the other significant suppliers. During this period, the country acquired EMB-314 Super Tucano aircraft, Sirocco multirole ships (previously called the Foudre), and AAV7 armored amphibious vehicles.

Additionally, capital expenditure allocations during the forecast period are expected to increase, thereby encouraging defense imports.

The report 'Future of the Chilean Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022' offers detailed analysis of the Chilean 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 depth, this report provides the following:
  • The Chilean defense industry market size and drivers: Detailed analysis of the Chilean defense industry during 2018-2022, 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.
  • Porter’s Five Force analysis of the Chilean defense industry: Analysis of the 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 next 10 years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the Chilean defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Companies mentioned in this report: FAMAE, Desarrollo de Tecnologias y Sistemas, Linktronic Radar Systems, SISDEF Ltda

Scope:
  • The Chilean defense budget values US$2.6 billion in 2017 and registered a CAGR of 0.24% during the historic period 2013-2017.
  • The country’s maritime border dispute with Peru and Bolivia and active participation in international peacekeeping missions, along with its plans to equip its forces with advanced equipment, technology, command systems, and adequate training to ensure improved capabilities are anticipated to drive demand for robust defense expenditure over the forecast period.
  • However, with the country winding down its peacekeeping contingent in Haiti, its overseas engagements are also expected to diminish, thus negating the need to maintain high defense spending.
Reasons to buy:
  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Chilean 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 Chilean defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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FEATURED COMPANIES

  • FAMAE
  • Linktronic Radar Systems
  • SISDEF Ltda
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Chilean defense expenditure to be US$15.2 billion cumulatively over the forecast period
3.2.2. Border disputes and military modernization to drive defense expenditure
3.2.3. Defense expenditure as a percentage of GDP is anticipated to decline over the forecast period
3.3. Analysis of Defense Budget Allocations
3.3.1. Capital expenditure allocation expected to increase over the forecast period
3.3.2. Capital expenditure expected to decrease over the forecast period
3.3.3. The army is expected to receive the highest allocation over the forecast period
3.3.4. Army expenditure to rise over the forecast period
3.3.5. Per-capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland Security market in Chile expected to grow at a CAGR of 7.19% during the forecast period
3.4.2. Drug trafficking, natural disasters, and threats from the Mapuche community to drive the homeland security budget
3.4.3. Chile considered at ‘moderate risk’ of a terrorist attack
3.4.4. Chile experienced moderate terror activity during the historic period
3.4.5. Chile has a terrorism index score of 2.7
3.5. Benchmarking with Key Global Markets
3.5.1. Chilean defense budget expected to register consistent growth over the forecast period
3.5.2. Chilean military expenditure is expected to remain low compared to other leading spenders
3.5.3. Defense budget as a percentage of GDP expected to remain low on a global scale
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Transport Aircraft
3.6.2. Surface-Air Missiles
3.6.3. Military IT - Networking

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports maintained large volumes during the historic period
4.1.2. The US accounts for most Chilean defense imports
4.1.3. Missiles, sensors and aircraft are the largest imported military hardware
4.2. Export Market Dynamics
4.2.1. Aircraft are the main exported defense products

5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Medium
5.1.2. Bargaining Power of Buyer: Low
5.1.3. Barrier to Entry: Low
5.1.4. Intensity of Rivalry: Low to Medium
5.1.5. Threat of Substitution: High

6. Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids the development of the domestic defense industry
6.1.2. Foreign direct investment in the defense sector is restricted
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. The country’s biennial defense exhibition provides an attractive entry route
6.2.4. Joint ventures and collaborations provide market entry opportunities
6.2.5. Foreign equipment manufacturers enter the market through direct commercial sales
6.3. Key Challenges
6.3.1. Changes in the economic environment

7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. FAMAE: Overview
7.2.2. FAMAE: Products and Services
7.2.3. FAMAE: Recent Announcements and Strategic Initiatives
7.2.4. FAMAE: Alliances
7.2.5. FAMAE: Recent Contract Wins
7.2.6. Desarrollo de Tecnologias y Sistemas (DTS): Overview
7.2.7. Desarrollo de Tecnologias y Sistemas (DTS): Products and Services
7.2.8. Desarrollo de Tecnologias y Sistemas (DTS): Recent Announcements and Strategic Initiatives
7.2.9. Desarrollo de Tecnologias y Sistemas (DTS): Alliances
7.2.10. Linktronic Radar Systems: Overview
7.2.11. Linktronic Radar Systems: Products
7.2.12. SISDEF Ltda: Overview
7.2.13. SISDEF Ltda: Products
7.2.14. SISDEF Ltda: Recent Announcements and Strategic Initiatives
7.2.15. SISDEF Ltda: Recent Contract Wins

8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices, US$ Billion
8.1.3. Local Currency Unit per US$
8.1.4. Market Capitalization of Listed Companies
8.1.5. Market Capitalization of Listed Companies (% of GDP)
8.1.6. Exports of Goods & Services (LCU Billion)
8.1.7. Imports of Goods and Services (LCU Billion)
8.1.8. Goods Exports as a Percentage of GDP
8.1.9. Goods Imports as a Percentage % of GDP
8.1.10. Gross National Disposable Income (USD Billion)
8.1.11. Service Imports as a Percentage of GDP
8.1.12. Service Exports as a Percentage of GDP
8.1.13. Foreign Direct Investment
8.1.14. Net Foreign Direct Investment as a Percentage of GDP
8.1.15. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix
9.1. About the Publisher
9.2. Disclaimer

List of Tables:
Table 1: Chile Ground Forces Strength
Table 2: Chile Navy Strength
Table 3: Chile Air Force Strength
Table 4: Chile - Ongoing Development and Procurement Programs
Table 5: Chile - Future Procurement Programs
Table 6: Chilean Defense Expenditure (CLP$ billion & US$ billion), 2013-2022
Table 7: Chilean GDP Growth and Defense Expenditure as a Percentage of GDP, 2013-2022
Table 8: Chilean Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Table 9: Chilean Defense Capital Expenditure (CLP$ Billion & US$ Million), 2013-2022
Table 10: Chilean Defense Budget Share (%) Split by Services (Army, Navy, Air Force and Other), 2013-2022
Table 11: Chile Defense Budget Allocations in EUR Million - Breakdown by Services (Army, Air Force, Navy and Others) 2013-2022
Table 12: Chilean Defense Budget in US$ Million - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Table 13: Chilean Per-Capita Defense Expenditure (US$), 2013-2022
Table 14: Chilean Homeland Security Expenditure (CLP$ trillion & US$ billion), 2013-2022
Table 15: Terrorism Index, 2017
Table 16: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 17: Chile Budget Formation Timetable
Table 18: Competitive Landscape of the Chilean Defense Industry
Table 19: FAMAE - Product Focus
Table 20: FAMAE - Alliances
Table 21: FAMAE: Recent Contract Wins
Table 22: Desarrollo de Tecnologias y Sistemas (DTS) - Product Focus
Table 23: Desarrollo de Tecnologias y Sistemas (DTS) - Alliances
Table 24: Linktronic Radar Systems - Product Focus
Table 25: SISDEF Ltda - Product Focus
Table 26: SISDEF Ltda - Recent Contract Wins

List of Figures:
Figure 1: Chilean Defense Expenditure (CLP$ Trillion), 2013-2022
Figure 2: Chilean Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Chilean GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2012-2022
Figure 4: Chilean Defense Expenditure Allocation for Capital and Revenue Expenditure (%), 2013-2022
Figure 5: Chilean Defense Capital Expenditure (CLP$ Billion), 2013-2022
Figure 6: Chilean Defense Capital Expenditure (US$ Million), 2013-2022
Figure 7: Chilean Defense Expenditure Split Between Army, Navy, Air Force and Others (%), 2013-2022
Figure 8: Chilean Defense Expenditure in (CLP$ Million), - Breakdown by Services (Army, Air Force, Navy and Others) 2013-2022
Figure 9: Chilean Defense Budget in US$ Million - Breakdown by Services (Army, Navy, Air Force and Others) 2013-2022
Figure 10: Chilean Per-Capita Defense Expenditure (US$), 2013-2022
Figure 11: Chilean Homeland Security Budget (CLP$ Trillion), 2013-2022
Figure 12: Chilean Homeland Security Budget (US$ Billion), 2013-2022
Figure 13: Terrorism Heat Map, 2017
Figure 14: Terrorism Index, 2017
Figure 15: Benchmarking with Key Global Markets: 2013-2017 vs. 2018-2022
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 18: Transport Aircraft Market Size (US$ Million), 2017-2020
Figure 19 Surface-Air Missiles Market Size (US$ Million), 2017-2027
Figure 20: Chilean Military IT - Networking Market Size (US$ Million), 2017-2027
Figure 21: Chilean Defense Imports (US$ Million), 2012-2016
Figure 22: Chilean Defense Imports by Country (%), 2012-2016
Figure 23: Chilean Defense Imports by Category (%), 2012-2016
Figure 24: Industry Dynamics - Porter’s Five Forces Analysis
Figure 25: Chilean GDP Per Capita, 2015-2025
Figure 26: Chilean GDP, Current Prices, US$ Billion, 2015-2025
Figure 27: Chilean LCU per US$ 2015-2024
Figure 28: Chilean Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 29: Chilean Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 30: Chilean Exports of Goods & Services (LCU Billion), 2005-2014
Figure 31: Chilean Imports of Goods and Services (LCU Billion), 2005-2014
Figure 32: Chilean Goods Exports as a % of GDP, 2005-2014
Figure 33: Chilean Goods Imports as a % of GDP, 2005-2014
Figure 34: Chilean Gross National Disposable Income, 2005-2014
Figure 35: Chilean Service Imports as a % of GDP, 2005-2014
Figure 36: Chilean Service Exports as a % of GDP, 2005-2014
Figure 37: Chilean Foreign Direct Investment (US$ Billion), 2005-2014
Figure 38: Chilean Net Foreign Direct Investment as a % of GDP, 2005-2014
Figure 39: Chilean Government Cash Surplus/Deficit as a % of GDP (LCU), 2005-2012
Figure 40: Chilean Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
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  • FAMAE
  • Desarrollo de Tecnologias y Sistemas
  • Linktronic Radar Systems
  • SISDEF Ltda
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