Summary
This report offers insights into market opportunities and entry strategies adopted by foreign OEMs to gain a market share in the Brazilian defense industry. In particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: Detailed analysis of the current market size and growth expectations during 2010–2016, including highlights of the key drivers, to aid understanding of the growth dynamics. It also benchmarks the sector against key global markets and provides detailed understanding of emerging opportunities in specific areas.
Procurement dynamics: Trend analysis of imports and exports, along with their implications and impact on the Brazilian defense industry.
Industry structure: Five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
Market entry strategy: Analysis of possible ways to enter the market, along with knowledge of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: Analysis of the competitive landscape of defense manufacturers in Brazil. It provides an overview of the key defense companies (both domestic and foreign) along with insights such as key alliances, strategic initiatives and a brief financial analysis.
Business environment and country risk: A range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.
Key Hightlights
Brazil maintains stable and amicable relationships with its neighboring countries, and has not engaged in any major armed conflict with another nation in over 50 years. The country is vast and geographically diverse and is home to the Amazon River and rainforests. It also has large reserves of several natural resources, and has recently discovered substantial oil reserves. The country’s defense procurements are largely focused on the protection of its substantial resources from illegal mining, deforestation and drug trafficking. The Brazilian Ministry of Defense aims to decrease its dependence on foreign OEMs (original equipment manufacturers) and enhancing its domestic defense capabilities. As such, it prefers to procure defense technology from foreign OEMs, which is then constructed by domestic defense companies. This provides domestic defense firms with technology and equipment which they can integrate into their existing systems. The technology procured has assisted the development of the country’s aeronautical industry, and continues to provide the Brazilian defense forces advanced attack helicopters, light attack aircrafts and air cargo transport systems.
Scope
Analysis of defense industry market size from 2005 through 2010 and forecasts till 2016
Analysis of defense budget allocation
Benchmarking with key global markets
Market opportunities
Defense procurement dynamics
Industry dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons to Buy
Gain insight into the Brazilian defense industry with current, historic and forecast market values
Get insight into market opportunity and attractiveness
Get insight into industry procurement dynamics
Gain insight into industry structure
Gain insight into regulations governing the Brazilian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Brazilian defense industry along with profiles of all those companies
Table of Content
1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 Terrorism Index
1.5 About this Research
1.6 About Strategic Defence Intelligence
List of Tables
Table 1: Brazil Defense Expenditure (US$ Billion), 2005–2010
Table 2: Brazil Defense Expenditure (US$ Billion), 2011–2016
Table 3: Brazil Defense Expenditure as a Percentage of GDP (%), 2005–2010
Table 4: Brazil Defense Expenditure as a Percentage of GDP (%), 2011–2016
Table 5: Brazil Defense Budget Split Between Capital and Revenue Expenditure (%), 2005–2010
Table 6: Brazil Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2016
Table 7: Brazil Capital Expenditure (US$ Billion), 2005–2010
Table 8: Brazil Capital Expenditure (US$ Billion), 2011–2016
Table 9: Benchmarking with Key Markets, 2005–2010 vs 2011–2016
Table 10: Benchmarking with Large Defense Spenders in the World (US$ Billion), 2010 and 2016
Table 11: ICD Research Terrorism Index
Table 12: Brazil – Offset Guidelines and Agreements
Table 13: Embraer – Main Products and Services
Table 14: Embraer – Alliances
Table 15: Embraer – Recent Contract Wins
Table 16: Forjas Taurus SA – Main Products and Services
Table 17: Forjas Taurus SA – Alliances
Table 18: Forjas Taurus SA – Recent Contract Wins
Table 19: Avibras Industria Aerospacial – Main Products and Services
Table 20: Avibras Industria Aerospacial – Alliances
Table 21: Avibras Industria Aerospacial – Recent Contract Wins
Table 22: Companhia Brasileira de Cartuchos (CBC) – Main Products and Services
Table 23: Companhia Brasileira de Cartuchos (CBC) – Recent Contract Wins
Table 24: Helibras – Main Products and Services
Table 25: Helibras – Alliances
Table 26: Helibras – Recent Contract Wins
Table 27: Industria de Material Belico do Brasil (IMBEL) – Main Products and Services
Table 28: Industria de Material Belico do Brasil (IMBEL) – Alliances
Table 29: Industria de Material Belico do Brasil (IMBEL) – Recent Contract Wins
Table 30: Mectron - Engenharia, Indústria e Comércio SA – Main Products and Services
Table 31: Mectron - Engenharia, Indústria e Comércio SA – Alliances
Table 32: Mectron - Engenharia, Indústria e Comércio SA – Recent Contract Wins
Table 33: Aeroelectronica – Main Products and Services
Table 34: Aeroelectronica – Recent Contract Wins
Table 35: Indústria Naval do Ceará – Main Products and Services
Table 36: Indústria Naval do Ceará – Recent Contract Wins
Table 37: Northrop Grumman – Main Products and Services
Table 38: Northrop Grumman – Recent Contract Wins
Table 39: EADS Brazil – Main Products and Services
Table 40: EADS Brazil – Alliances
Table 41: EADS Brazil – Recent Contract Wins
Table 42: Lockheed Martin – Main Products and Services
Table 43: Lockheed Martin – Alliances
Table 44: Lockheed Martin – Recent Contract Wins
List of Figures
Figure 1: Brazil Defense Expenditure (US$ Billion), 2005–2010
Figure 2: Brazil Defense Expenditure (US$ Billion), 2011–2016
Figure 3: Brazil Defense Expenditure as Percentage of GDP (%), 2011–2016
Figure 4: Brazil Defense Budget Split Between Capital and Revenue Expenditure (%), 2005–2010
Figure 5: Brazil Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2016
Figure 6: Brazil Capital Expenditure (US$ Billion), 2005–2010
Figure 7: Brazil Capital Expenditure (US$ Billion), 2011–2016
Figure 8: Brazilian Defense Budget and Capital Expenditure Allocation (US$ Billion), 2010
Figure 9: ICD Research Terrorism Heat Map
Figure 10: Benchmarking with Key Markets, 2005–2010 vs 2011–2016
Figure 11: Benchmarking with Large Defense Spenders in the World (US$ Billion), 2010 and 2016
Figure 12: Benchmarking with Large Defense Spenders as Percentage of GDP (%), 2010
Figure 13: Equipment-wise Break-up of Brazilian Defense Import (% Share), 2005–2010 (TIV values*)
Figure 14: Brazilian Defense Export Trend (% Share), 2005–2010 (TIV values*)
Figure 15: Industry Dynamics – Porter’s Five Forces Analysis
Figure 16: Embraer – Revenue Trend Analysis (US$ Billion), 2006–2010
Figure 17: Embraer – Operating Profit Trend Analysis (US$ Million), 2006–2010
Figure 18: Embraer – Net Profit Trend Analysis (US$ Million), 2006–2010
Figure 19: Forjas Taurus SA – Revenue Trend Analysis (BRL Million), 2006–2010
Figure 20: Forjas Taurus SA – Operating Profit Trend Analysis (BRL Million), 2006–2010
Figure 21: Forjas Taurus SA – Net Profit Trend Analysis (BRL Million), 2006–2010
Figure 22: Industria de Material Belico do Brasil (IMBEL) – Revenue Trend Analysis (BRL Million), 2006–2010
Figure 23: Industria de Material Belico do Brasil (IMBEL) – Operating Profit Trend Analysis (BRL Million), 2006–2010
Figure 24: Industria de Material Belico do Brasil (IMBEL) – Net Profit Trend Analysis (BRL Million), 2006–2010
Figure 25: Bovespa Index – Market Capitalization (US$ Billion), 2003–2009
Figure 26: Brazil’s FDI Inflows by Sector (US$ Billion), 2003–2009
Figure 27: Brazil’s Deployment of Credit by Industry (US$ Billion), 2003–2009
Figure 28: Brazil’s GDP at Constant Prices (US$ Billion), 2003–2015
Figure 29: Brazil’s GDP Per Capita at Constant Prices (US$), 2003–2015
Figure 30: Brazil’s GDP at Current Prices (US$ Billion), 2003–2015
Figure 31: Brazil’s GDP Per Capita at Current Prices (US$), 2003–2015
Figure 32: Brazil’s GDP Split by Key Sectors, 2003 and 2008
Figure 33: Brazil’s Agriculture Output Value at Current Prices (BRL Billion), 2003–2015
Figure 34: Brazil’s Agriculture Net Output Value at Current Prices (US$), 2003–2015
Figure 35: Brazil’s Agriculture Net Output at Current Prices as a Percentage of GDP (%), 2003–2015
Figure 36: Brazil’s Manufacturing Net Output at Current Prices (BRL Billion), 2003–2015
Figure 37: Brazil’s Manufacturing Net Output at Current Prices (US$ Billion), 2003–2015
Figure 38: Brazil’s Manufacturing Net Output at Current Prices as a Percentage of GDP (%), 2003–2015
Figure 39: Brazil’s Mining, Manufacturing and Utilities Net Output at Current Prices (BRL Billion), 2003–2015
Figure 40: Brazil’s Mining, Manufacturing and Utilities Net Output at Current Prices (US$ Billion), 2003–2015
Figure 41: Brazil’s Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), 2003–2015
Figure 42: Brazil’s Construction Net Output at Current Prices (BRL Billion), 2003–2015
Figure 43: Brazil’s Construction Net Output at Current Prices (US$), 2003–2015
Figure 44: Brazil’s Construction Net Output at Current Prices as a Percentage of GDP (%), 2003–2015
Figure 45: Brazil’s Crude Steel Production (Million Metric Tons), 2003–2015
Figure 46: Brazil’s Crude Oil Consumption (Million Tons), 2003–2015
Figure 47: Brazil’s Inflation Rate (%), 2003–2015
Figure 48: Brazil’s Exports as a Percentage of GDP (%), 2003–2015
Figure 49: Brazil’s Imports as a Percentage of GDP (%), 2003–2015
Figure 50: Brazil’s Exports Growth (%), 2003–2015
Figure 51: Brazil’s Imports Growth, 2003–2015
Figure 52: Brazil’s External Debt as Percentage of GDP (%), 2003–2009
Figure 53: Brazil’s Annual Average Exchange Rate (US$-BRL), 2003–2009
Figure 54: Brazil’s End of Fiscal Year Exchange Rate (US$-BRL), 2003–2009
Figure 55: Brazil’s Debt Service Ratio (%), 2003–2009
Figure 56: Brazil’s Number of Airports, 2009
Figure 57: Brazil’s Commercial Vehicle Production (Units), 2003–2015
Figure 58: Brazil’s Passenger Vehicle Exports (Units), 2003–2015
Figure 59: Brazil’s Commercial Vehicle Exports (Units), 2003–2015
Figure 60: Brazil’s Automobile Components Exports (US$ Billion), 2003–2015
Figure 61: Brazil’s Automobile Components Imports (US$ Billion), 2003–2015
Figure 62: Brazil’s Motorcycle Penetration (per Thousand People), 2003–2015
Figure 63: Brazil’s Total Installed Capacity for Electricity Generation (Million Kilowatts), 2003–2015
Figure 64: Brazil’s Installed Capacity for Conventional Thermal Electricity Generation (Million Kilowatts), 2003–2015
Figure 65: Brazil’s Electricity Production (Billion Kilowatt Hours), 2003–2015
Figure 66: Brazil’s Installed Capacity for Hydro-electricity Generation (Million Kilowatts), 2003–2015
Figure 67: Brazil’s Installed Capacity for Renewable Electricity Generation (Million Kilowatts), 2003–2015
Figure 68: Brazil’s Electric Power Consumption (Billion Kilowatt Hours), 2003–2015
Figure 69: Brazil’s Electricity Exports (Million Kilowatt Hours), 2003–2015
Figure 70: Brazil’s Electricity Imports (Billion Kilowatt Hours), 2003–2015
Figure 71: Brazil’s Healthcare Expenditure (US$ Billion), 2003–2015
Figure 72: Brazil’s Healthcare Expenditure as a Percentage of GDP (%), 2003–2015
Figure 73: Brazil’s Per Capita Healthcare Expenditure (US$), 2003–2015
Figure 74: Brazil’s Internet Subscribers (Million), 2003–2015
Figure 75: Brazil’s Broadband Internet Subscribers (Million), 2003–2015
Figure 76: Brazil’s Personal Computer Penetration (per Hundred People), 2003–2015
Figure 77: Brazil’s Mobile Phone Penetration (per Hundred People), 2003–2015
Figure 78: Brazil’s R&D Expenditure as a Percentage of GDP (%), 2003–2015
Figure 79: Brazil’s Labour Force Size (Million), 2003–2015
Figure 80: Brazil’s Unemployment Rate (%), 2003–2015
Figure 81: Brazil’s Annual Disposable Income (US$ Billion), 2003–2015
Figure 82: Brazil’s Consumer Expenditure on Food (US$ Billion), 2003–2015
Figure 83: Brazil’s Urban and Rural Population (%), 2003–2015
Figure 84: Brazil’s Female as a Percentage of the Population (%), 2003–2015
Figure 85: Brazil’s Males as a Percentage of the Population (%), 2003–2015
Figure 86: Brazil’s Mean Age of Population (Years), 2003–2015
Figure 87: Brazil’s Median Age of Population (Years), 2003–2015
Figure 88: Brazil’s Population Density (per Square Kilometers), 2003–2015
Figure 89: Brazil’s Age-wise Population Distribution (%), 2003–2015
Figure 90: Brazil’s Age-wise Male Population Distribution (%), 2003–2015
Figure 91: Brazil’s Age-wise Female Population Distribution (%), 2003–2015
Figure 92: Brazil’s Number of Households (Million), 2003–2015
Figure 93: Global Terrorism Heat Map, 2009
Figure 94: Brazil’s Transparency Index, 2003–2009