Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

  • ID: 4726831
  • Report
  • Region: Brazil
  • 133 pages
  • GlobalData
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FEATURED COMPANIES

  • Aeroelectronica
  • Forjas Taurus SA
  • Helibras
  • MORE
Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

"Future of the Brazilian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" 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.

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 2019-2023, 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 Brazilian 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 Brazilian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Scope
  • Brazilian military expenditure, which stands at US$25.8 billion in 2018, registered at a CAGR of -5.81% during the historic period. There is a huge difference between the planned budget and the executed budget in 2015 due to the economic crisis the country faced. However, the country’s economy is showing some positive signs of recovery, as the 2017 budget marginally surpassed its initially planned estimates.
  • Brazil relies on imports to retain its military edge and, although the country has a decent domestic defense industry, the country relies on imports of cutting-edge defense technologies from the US and European suppliers. During the historic period, the country’s defense imports were the highest in 2012. Aircraft and armored vehicles dominated imports during this period, with Germany and the US being the main suppliers. In order to protect its oil rich reserves in the Amazon basin, Brazil is spending heavily on naval vessel procurements over the forecast period. Brazil has contracted the French defense company DCNS to supply four diesel-electric-powered submarines, based on the Scorpene model.
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.
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2 of 4

FEATURED COMPANIES

  • Aeroelectronica
  • Forjas Taurus SA
  • Helibras
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About

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 and 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. Brazilian defense budget is expected to grow at a CAGR of 1.77% over 2019-2023
3.2.2. Development of indigenous defense capabilities, modernization of defense systems, and large defense procurement projects are expected to boost Brazilian defense expenditure
3.2.3. Defense budget as a percentage of GDP will remain at an average of 1.21% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Percentage allocation towards capital expenditure to remain constant
3.3.2. Capital expenditure is anticipated to record a CAGR of 4.81% over the forecast period
3.3.3. The army accounted for the largest percentage share of the overall Brazilian defense budget
3.3.4. Army to continue accounting for the lion’s share of Brazilian defense budget
3.3.5. Brazilian per capita defense expenditure to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Brazil’s homeland security market is expected to grow at a CAGR of 3.42% over the forecast period
3.4.2. Human trafficking will drive homeland security expenditure
3.4.3. Brazil falls under the “some risk” category on the terrorism index
3.4.4. Brazil faces some threats from terrorist organizations
3.4.5. Brazil has a terrorism index score of 1.6
3.5. Benchmarking with Key Global Markets
3.5.1. Brazil ranks among major global defense markets
3.5.2. Brazil is expected to remain among top defense spending countries in the world
3.5.3. Brazil is expected to spend an average of 1.15% of its GDP on defense over the forecast period
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top Defense Market Sectors by Value (US$ Million) - Projections over 2018-2023
3.6.2. Multirole Aircraft
3.6.3. Diesel Electric Submarines
3.6.4. Land-based C4ISR

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Modernization of defense systems expected to drive arms imports
4.1.2. Germany, US, and France are the major suppliers for Brazil
4.1.3. Aircraft and armored vehicles accounted for 56.7% of Brazilian defense imports
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 Afghanistan are the major prospects for Brazilian defense exports
4.2.3. Aircraft accounted for the majority of Brazilian defense exports during 2013-2017

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 to Medium
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 offset requirements for all defense procurements
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign OEMs follow direct offset route to enter defense market
6.2.4. 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 the 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
7.2.3. Embraer: Recent Announcements and Strategic Initiatives
7.2.4. Embraer: Alliances
7.2.5. Embraer: Recent Contract Wins
7.2.6. Embraer: Financial Analysis
7.2.7. Forjas Taurus SA: Overview
7.2.8. Forjas Taurus SA: Products
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 Aeroespacial: Products
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
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
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
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
7.2.34. Aeroelectronica: Recent Announcements and Strategic Initiatives
7.2.35. Aeroelectronica: Alliances
7.2.36. Aeroelectronica: Recent Contract Wins
7.2.37. Indústria Naval do Ceará: Overview
7.2.38. Indústria Naval do Ceará: Products
7.2.39. Indústria Naval do Ceará: Recent Announcements and Strategic Initiatives
7.2.40. Indústria Naval do Ceará: Recent Contract Wins
7.2.41. Northrop Grumman Brazil: Overview
7.2.42. Northrop Grumman Brazil: Products
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
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
8.1.2. GDP at Current Prices
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. BRL per US$ (Period Average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP
8.1.10. Goods Exports and Imports as a Percentage of GDP
8.1.11. Services Exports and Imports as a Percentage of GDP
8.1.12. Foreign Direct Investment, net (BoP, current US$ Billion)
8.1.13. Net Foreign Direct Investment as a Percentage of GDP
8.1.14. Mining, Manufacturing, Utilities Output (BRL Billion)

9. Appendix
9.1. About
9.2. Disclaimer

List of Tables
Table 1: Brazilian - Defense Modernization Priorities
Table 2: Brazilian Army - High Priority Projects
Table 3: Brazilian Army - High Priority Projects
Table 4: Brazilian Air Force - High Priority Projects
Table 5: Brazilian Army Strength
Table 6: Brazilian Air Force Strength
Table 7: Brazilian Navy Strength
Table 8: Brazilian - Ongoing Development and Procurement Programs
Table 9: Brazilian - Future Procurement Programs
Table 10: Brazil - Top Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 11: Brazilian Defense Expenditure (BRL Billion & US$ Billion), 2014-2023
Table 12: Brazilian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023
Table 13: Brazilian Defense Capital Expenditure (BRL Billion & US$ Billion), 2014-2023
Table 14: Brazilian Defense Budget Share - (%) Split by Services (Army, Navy, Air Force and Other), 2014-2023
Table 15: Brazilian Defense Budget Allocations in BRL Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023
Table 16: Brazilian Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023
Table 17: Brazilian Per Capita Defense Expenditure (US$), 2014-2023
Table 18: Brazilian Homeland Security Expenditure (BRL Billion & US$ Billion), 2014-2023
Table 19: Terrorism Index, 2018
Table 20: Benchmarking with Key Markets - 2014-2018 vs 2019-2023
Table 21: Top Indian Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 22: Brazil - Offset Guidelines and Agreements
Table 23: Brazil Budget Formation Timetable
Table 24: Competitive Landscape of the Brazilian Defense Industry
Table 25: Embraer - Alliances
Table 26: Embraer - Recent Contract Wins
Table 27: Forjas Taurus SA - Products
Table 28: Forjas Taurus SA - Alliances
Table 29: Forjas Taurus SA - Recent Contract Wins
Table 30:Avibras Industria Aerospacial - Alliances
Table 31: Avibras Industria Aerospacial - Recent Contract Wins
Table 32: Companhia Brasileira de Cartuchos - Recent Contract Wins
Table 33: Helibras - Alliances
Table 34: Helibras - Recent Contract Wins
Table 35: Industria de Material Belico do Brasil (IMBEL) - Alliances
Table 36: Industria de Material Belico do Brasil (IMBEL) - Recent Contract Wins
Table 37: Aeroelectronica - Alliances
Table 38: Aeroelectronica - Recent Contract Wins
Table 39: Indústria Naval do Ceará - Recent Contract Wins
Table 40: Northrop Grumman Brazil - Alliances
Table 41: Northrop Grumman Brazil - Recent Contract Wins
Table 42: Lockheed Martin Brazil - Alliances
Table 43: Lockheed Martin Brazil - Recent Contract Wins

List of Figures
Figure 1: Brazilian Defense Expenditure (BRL Billion), 2014-2023
Figure 2: Brazilian Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Brazilian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023
Figure 4: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Brazilian Defense Capital Expenditure (BRL Billion), 2014-2023
Figure 6: Brazilian Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Brazilian Defense Budget Share - (%) Split by Services (Army, Navy, Air Force and Other), 2014-2023
Figure 8: Brazil Defense Budget in BRL Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023
Figure 9: Brazil Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2014-2023
Figure 10: Brazilian Per Capita Defense Expenditure (US$), 2014-2023
Figure 11: Brazilian Homeland Security Expenditure (BRL Billion), 2014-2023
Figure 12: Brazilian Homeland Security Expenditure (US$ Billion), 2014-2023
Figure 13: Terrorism Heat Map, 2018
Figure 14: Terrorism Index, 2018
Figure 15: Benchmarking with Key Markets, 2014-2018 vs 2019-2023
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 18: Multirole Aircraft Market Size (US$ Million), 2018-2023
Figure 19: Diesel Electric Submarine Market Size (US$ Million), 2018 -2023
Figure 20: Military Land-based C4ISR Market Size (US$ Million), 2018-2023
Figure 21: Top Brazilian Defense Procurements in Terms of Their Supplier Relationships
Figure 22: Brazilian Defense Import Trend (US$ Million), 2013-2017 (TIV Values*)
Figure 23: Brazilian Defense Imports by Country (%), 2013-2017
Figure 24: Brazilian Defense Imports by Category (%), 2013-2017
Figure 25: Brazilian Defense Export Trend (US$ Million), 2013-2017 (TIV Values)
Figure 26: Brazilian Defense Exports by Country (%), 2013-2017
Figure 27: Brazilian Defense Exports by Category (%), 2013-2017
Figure 28: Industry Dynamics - Porter’s Five Forces Analysis
Figure 29: Embraer - Revenue Trend Analysis (BRL Billion), 2013-2017
Figure 30: Embraer - Operating Profit Trend Analysis (BRL Billion), 2013-2017
Figure 31: Embraer - Net Profit Trend Analysis (BRL Billion), 2013-2017
Figure 32: Forjas Taurus SA - Revenue Trend Analysis (BRL Million), 2013-2017
Figure 33: Forjas Taurus SA - Operating Profit Trend Analysis (BRL Million), 2013-2017
Figure 34: Forjas Taurus SA - Net Profit Trend Analysis (BRL Million), 2013-2017
Figure 35: Brazilian GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 36: Brazil GDP at Current Prices (US$ Billion), 2015-2025
Figure 37: Brazilian Exports of Goods and Services (BRL Billion), 2005-2014
Figure 38: Brazilian Imports of Goods and Services (BRL Billion), 2005-2014
Figure 39: Brazilian Gross National Disposable Income (US$ Billion), 2010−2014
Figure 40: Brazilian BRL per US$, 2015-2024
Figure 41: Brazilian Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 42: Brazilian Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
Figure 43: Brazilian Government Cash Surplus/Deficit as a Percentage of GDP (BRL), 2005-2009
Figure 44: Brazilian Goods Exports and Imports as a Percentage of GDP, 2005-2014
Figure 45: Brazilian Services Exports and Imports as a Percentage of GDP, 2005-2014
Figure 46: Brazilian Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2014
Figure 47: Brazilian Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 48: Brazilian Mining, Manufacturing, Utilities Output (BRL Billion), 2005-2014
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  • Empresa Brasileira de Aeronautica SA (Embraer)
  • Forjas Taurus SA
  • Avibras Industria Aerospacial (Avibras)
  • Companhia Brasileira de Cartuchosis
  • Helibras
  • Industria de Material Belico do Brasil (IMBEL)
  • Aeroelectronica
  • Indústria Naval do Ceará (INACE)
  • Northrop Grumman Corporation (Northrop Grumman)
  • Lockheed Martin Corporation (Lockheed Martin)
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