DUBLIN--(BUSINESS WIRE)--The "Future of the Argentina Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.
Argentine defense budget values US$5.9 Billion in 2017, and registered a CAGR of 5.14% during the historic period
The on-going modernization and procurement programs of the armed forces, the Falkland Islands territorial dispute with the UK, and participation in peacekeeping missions drove Argentine defense expenditure during 2013-2017. With this trend expected to continue over the forecast period, the country is projected to cumulatively spend US$42.3 Billion during 2018-2022. As a percentage of GDP, the country's defense expenditure is expected to average 1.1% during the forecast period, compared to 0.9% recorded in the historic period.
Argentina's defense capital expenditure valued US$1.5 Billion in 2017, and recorded a CAGR of 3.72% during 2013-2017. Capital expenditure is projected to grow at a CAGR of 10.58% during the forecast period to value US$2.3 Billion in 2022. This is primarily due to the procurement of advanced defense equipment and focus on increasing the indigenous defense manufacturing capabilities.
Aircraft accounted for the largest share of imports during 2012-2016, with the US being the largest supplier. Argentina's domestic defense capabilities are restricted to the manufacture of trainer aircraft, transport aircraft, submarines, and small arms. Aircraft accounted for 72% of Argentina's arms imports, followed by sensors and engines. In addition, rising capital expenditure allocations and the need to modernize its weapons arsenal are expected to increase defense imports during the forecast period.
Argentina's defense exports were negligible during the historic period as the domestic companies, which are primarily involved in the manufacturing of trainer aircraft, UAVs, small arms, and submarines, are less sophisticated compared to other global partners. However, the country is increasing its efforts to reduce its dependency and is encouraging joint agreements and projects to boost its indigenous market.
Over the forecast period the country plans to acquire some fighter aircraft to fill in the void created by the decommissioning of Mirage fighters in 2015. The Argentine Air Force has evinced interest in acquiring 20 units of either J-20 or JF-17/FC-10 Thunder aircraft for the role. Similarly the Argentine Navy has shown interest in acquiring five units of Chinese P18 corvettes.
Key Topics Covered:
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
- Fábrica Argentina de Aviones SA (FAdeA)
- Astillero Río Santiago
- The Institute of Scientific and Technological Research for the Defense (CITIDEF)
- INVAP SE
- Dirección General de Fabricaciones Militares (DGFM)
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