The 2019 Brazilian Defense Market: Attractiveness, Competitive Landscape and Forecast to 2024 - ResearchAndMarkets.com

DUBLIN--()--The "Brazilian Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.

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.

Report Coverage

This offers detailed analysis of the Brazilian defense industry with market size forecasts covering the next five years. The 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, Indstria Naval do Cear, Northrop Grumman Brazil, Lockheed Martin Brazil

Key Takeaways

  • 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.

For more information about this report visit https://www.researchandmarkets.com/r/qvjucd

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900