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Brazilian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

  • ID: 4850682
  • Report
  • Region: Brazil
  • 126 pages
  • GlobalData
1h Free Analyst Time

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1 of 3

FEATURED COMPANIES

  • Aeroelectronica
  • Embraer
  • Forjas Taurus SA
  • Helibras
  • Indústria Naval do Ceará
  • Lockheed Martin Brazil
  • MORE
Brazilian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

The Brazilian defense budget is expected to reach US$40.2 billion in 2024, growing at a CAGR of 7.76% over the forecast period. Over the forecast period, Brazilian military expenditure, which stands at US$27.9 billion in 2019, is anticipated to grow from US$29.8 billion in 2020 to value US$40.2 billion in 2024, registering a CAGR of 7.76%. This growth will primarily be driven by the country’s military modernization initiatives. The country’s defense expenditure will largely be boosted by the Brazilian MoD’s increasing efforts to replace its aging military systems and equipment, military procurements that are largely focused on the protection of its substantial resources from illegal mining, deforestation, and drug trafficking.

Military capital expenditure, on a cumulative basis, is anticipated to be US$21.4 billion over the forecast period, which is higher than the US$15.2 billion spent during the historic period. The increase is due to the release of budgetary pressures owing to a recovery in economic conditions from 2017, which has prompted the country to adopt previously postponed defense procurement plans.

Brazilian homeland security expenditure is anticipated to be US$4.8 billion in 2020 and is expected to grow at a CAGR of 5.36% to reach US$6 billion in 2024. This expenditure is primarily driven by the country’s focus on enhancing its defense capabilities to counter the increasing rate of cyber-attacks, modernizing its border control and security infrastructure, and increasing efforts by the government to control organized crimes such as drug trafficking and border crossing.

Brazil predominantly relies on imports to retain its military edge. During the historic period, the country’s defense imports were the highest in 2018, with aircraft and naval vessels dominating the imports category and France 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. The Brazilian defense industry is still in its early development stage, and defense exports are mostly limited to less developed nations such as Afghanistan, Indonesia and Lebanon, among others.

In order to promote Brazil’s domestic defense industry, the majority of its arms imports deals include technology transfer obligations. These obligations have been a key deterrent for foreign OEMs entering the Brazilian industry, as a number of foreign defense firms are either reluctant to share proprietary information or are prohibited by their indigenous country's policy regarding the transfer of technology.

The report “Brazilian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” 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 defense industry market size and drivers: detailed analysis of the Brazilian defense industry during 2020-2024, 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
  • 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
Companies mentioned: Embraer, Forjas Taurus SA, Avibras Industria Aerospacial, Companhia Brasileira de Cartuchos, Helibras, Industria de Material Belico do Brasil (IMBEL), Aeroelectronica, Indústria Naval do Ceará, Northrop Grumman Brazil, Lockheed Martin Brazil

Scope
  • Over the forecast period, Brazilian military expenditure, which stands at US$27.9 billion in 2019, is anticipated to grow from US$29.8 billion in 2020 to value US$40.2 billion in 2024, registering a CAGR of 7.76%. This growth will primarily be driven by the country’s military modernization initiatives.
  • The country’s defense expenditure will largely be boosted by the Brazilian MoD’s increasing efforts to replace its aging military systems and equipment, military procurements that are largely focused on the protection of its substantial resources from illegal mining, deforestation, and drug trafficking.
  • Additionally, the Brazilian Ministry of Defense aims to decrease its dependence on foreign OEMs by boosting its indigenous defense industry and by equipping the country with the latest technological developments. As a percentage of GDP, the country’s defense budget is expected to average 1.3% over the forecast period.
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 The Brazilian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
Note: Product cover images may vary from those shown
2 of 3

FEATURED COMPANIES

  • Aeroelectronica
  • Embraer
  • Forjas Taurus SA
  • Helibras
  • Indústria Naval do Ceará
  • Lockheed Martin Brazil
  • MORE
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Author

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. Procurement Programs
3.1.4. Top Procurement Programs by Value (US$ Million) 2019-2024
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 7.76% over 2020-2024
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 1.33% 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 will account for the highest share of the 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 5.36% over the forecast period
3.4.2. Human trafficking will drive homeland security expenditure
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 2019-2024
3.6.2. Physical Security (CIP)
3.6.3. Multirole Aircraft
3.6.4. Diesel Electric Submarines

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. France, the US and the UK are the major suppliers for Brazil
4.1.3. Aircraft and naval vessels accounted for 51.8% of Brazilian defense imports
4.2. Export Market Dynamics
4.2.1. Development of domestic defense capability is expected to fuel exports from Brazil’s emerging military industry
4.2.2. Afghanistan and Indonesia are the major prospects for Brazilian defense exports
4.2.3. Aircraft accounted for the majority of Brazilian defense exports during 2014-2018

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
7.1.1. Brazilian Market Share Analysis, 2018
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 Aerospacial: 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 the Author
9.2. Disclaimer

List of Tables
Table 1: Brazilian Army - High Priority Projects
Table 2: Brazilian Navy - High Priority Projects
Table 3: Brazilian Air Force - High Priority Projects
Table 4: Brazilian - Ongoing Development and Procurement Programs
Table 5: Brazilian - Future Procurement Programs
Table 6: Brazil - Top Defense Procurement Programs by Value (US$ Million), 2019-2024
Table 7: Brazilian Defense Expenditure (BRL Billion and US$ Billion), 2015-2024
Table 8: Brazilian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015-2024
Table 9: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 10: Brazilian Defense Capital Expenditure (BRL Billion and US$ Billion), 2015-2024
Table 11: Brazilian Defense Budget Share - (%) Split by Services (Army, Navy, Air Force and Others), 2015-2024
Table 12: Brazilian Defense Budget Allocations in BRL Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2015-2024
Table 13: Brazilian Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2015-2024
Table 14: Brazilian Per Capita Defense Expenditure (US$), 2015-2024
Table 15: Brazilian Homeland Security Expenditure (BRL Billion and US$ Billion), 2015-2024
Table 16: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Table 17: Top Indian Defense Market Sectors by Value (US$ Million) - 2019-2024
Table 18: Brazil - Offset Guidelines and Agreements
Table 19: Competitive Landscape of the Brazilian Defense Industry
Table 20: Brazil - Top Defense Suppliers by Value (US$ Million),2019-2024
Table 21: Embraer - Alliances
Table 22: Embraer - Recent Contract Wins
Table 23: Forjas Taurus SA - Products
Table 24: Forjas Taurus SA - Alliances
Table 25: Forjas Taurus SA - Recent Contract Wins
Table 26:Avibras Industria Aerospacial - Alliances
Table 27: Avibras Industria Aerospacial - Recent Contract Wins
Table 28: Companhia Brasileira de Cartuchos - Recent Contract Wins
Table 29: Helibras - Alliances
Table 30: Helibras - Recent Contract Wins
Table 31: Industria de Material Belico do Brasil (IMBEL) - Alliances
Table 32: Industria de Material Belico do Brasil (IMBEL) - Recent Contract Wins
Table 33: Aeroelectronica - Alliances
Table 34: Aeroelectronica - Recent Contract Wins
Table 35: Indústria Naval do Ceará - Recent Contract Wins
Table 36: Northrop Grumman Brazil - Alliances
Table 37: Northrop Grumman Brazil - Recent Contract Wins
Table 38: Lockheed Martin Brazil - Alliances
Table 39: Lockheed Martin Brazil - Recent Contract Wins

List of Figures
Figure 1: Brazilian Defense Budget: 2020 and 2024
Figure 2: Brazilian Defense Imports/Exports: 2014 and 2018
Figure 3: Brazil’s Top Prospective Procurements/Developments
Figure 4: Brazilian Partner Countries for Defense Cooperation and Military Training
Figure 5: Brazilian Defense Expenditure (BRL Billion), 2015-2024
Figure 6: Brazilian Defense Expenditure (US$ Billion), 2015-2024
Figure 7: Brazilian GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2015-2024
Figure 8: Brazilian Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Figure 9: Brazilian Defense Capital Expenditure (BRL Billion), 2015-2024
Figure 10: Brazilian Defense Capital Expenditure (US$ Billion), 2015-2024
Figure 11: Brazilian Defense Budget Share - (%) Split by Services (Army, Navy, Air Force and Others), 2015-2024
Figure 12: Brazil Defense Budget in BRL Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2015-2024
Figure 13: Brazil Defense Budget in US$ Billion - Breakdown by Services (Army, Navy, Air Force and Others) 2015-2024
Figure 14: Brazilian Per Capita Defense Expenditure (US$), 2015-2024
Figure 15: Brazilian Homeland Security Expenditure (BRL Billion), 2015-2024
Figure 16: Brazilian Homeland Security Expenditure (US$ Billion), 2015-2024
Figure 17: Benchmarking with Key Markets, 2015-2019 vs 2020-2024
Figure 18: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024
Figure 19: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
Figure 20: Physical Security (CIP) Market Size (US$ Million), 2019-2024
Figure 21: Multirole Aircraft Market Size (US$ Million), 2019-2024
Figure 22: Diesel Electric Submarine Market Size (US$ Million), 2019-2024
Figure 23: Top Brazilian Defense Procurements in Terms of Their Supplier Relationships
Figure 24: Brazilian Defense Import Trend (US$ Million), 2014-2018 (TIV Values)
Figure 25: Brazilian Defense Imports by Country (%), 2014-2018
Figure 26: Brazilian Defense Imports by Category (%), 2014-2018
Figure 27: Brazilian Defense Export Trend (US$ Million), 2014-2018 (TIV Values)
Figure 28: Brazilian Defense Exports by Country (%), 2014-2018
Figure 29: Brazilian Defense Exports by Category (%), 2014-2018
Figure 30: Industry Dynamics - Porter’s Five Forces Analysis
Figure 31: The Brazilian Budgeting Process
Figure 32: The Brazilian Market’s Challenges
Figure 33: Brazilian Market Share Analysis, 2018
Figure 34: Embraer - Revenue Trend Analysis (BRL Billion), 2014-2018
Figure 35: Embraer - Operating Profit Trend Analysis (BRL Billion), 2014-2018
Figure 36: Embraer - Net Profit Trend Analysis (BRL Million), 2014-2018
Figure 37: Forjas Taurus SA - Revenue Trend Analysis (BRL Million), 2014-2018
Figure 38: Forjas Taurus SA - Operating Profit Trend Analysis (BRL Million), 2014-2018
Figure 39: Forjas Taurus SA - Net Profit Trend Analysis (BRL Million), 2014-2018
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 as a Percentage of GDP, 2005-2012
Figure 48: Brazilian Government Cash Surplus/Deficit as a Percentage of GDP (BRL), 2005-2012
Figure 49: Brazilian Goods Exports and Imports as a Percentage of GDP, 2005-2014
Figure 50: Brazilian Services Exports and Imports as a Percentage 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 a Percentage of GDP, 2005-2014
Figure 53: Brazilian Mining, Manufacturing, Utilities Output (BRL Billion), 2005-2014
Note: Product cover images may vary from those shown
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  • Embraer
  • Forjas Taurus SA
  • Avibras Industria Aerospacial
  • Companhia Brasileira de Cartuchos
  • Helibras
  • Industria de Material Belico do Brasil (IMBEL)
  • Aeroelectronica
  • Indústria Naval do Ceará
  • Northrop Grumman Brazil
  • Lockheed Martin Brazil
Note: Product cover images may vary from those shown
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