Future of the argentine defense industry market attractiveness, competitive landscape and forecasts to 2018
RCReports CornerFuture of the Argentine Defense Industry - MarketAttractiveness, Competitive Landscape and Forecasts to 2018
DescriptionDescriptionReports Cornerwww.reportscorner.com"Product Synopsis:This report is the result of SDIs extensivemarket and company research covering the Argentine defenseindustry, and provides detailed analysis of both historic andforecast defense industry values including key growthstimulators, analysis of the leading companies in the industry, andkey news."
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comProduct SynopsisThis report is the result of SDIs extensive market and companyresearch covering the Argentine defense industry, and providesdetailed analysis of both historic and forecast defense industryvalues including key growth stimulators, analysis of the leadingcompanies in the industry, and key news.Introduction and LandscapeWhy was the report written?The Future of the Argentine Defense Industry - MarketAttractiveness, Competitive Landscape and Forecasts to 2018offers the reader an insight into the market opportunities andentry strategies adopted by foreign original equipmentmanufacturers (OEMs) to gain a market share in the Argentinedefense industry.What is the current market landscape and what is changing?
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comArgentine defense expenditure increased at a CAGR of 15.37%during the review period and values US$4.1 billion in 2013. Thefocus of the Argentine government will be on the modernization ofits armed forces, participation in peacekeeping operations, andthe Falkland Islands dispute with the UK.What are the key drivers behind recent market changes?Modernization of its armed forces, participation in peacekeepingoperations, and the Falkland Islands dispute with the UK.What makes this report unique and essential to read?The Future of the Argentine Defense Industry - MarketAttractiveness, Competitive Landscape and Forecasts to 2018provides detailed analysis of the current industry size and growthexpectations from 2014 to 2018, including highlights of keygrowth stimulators.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comIt also benchmarks the industry against key global markets andprovides a detailed understanding of emerging opportunities inspecific areas.Key Features and BenefitsThe report provides detailed analysis of the current industry sizeand growth expectations from 2014 to 2018, including highlightsof key growth stimulators, and also benchmarks the industryagainst key global markets and provides a detailed understandingof emerging opportunities in specific areas.The report includes trend analysis of imports and exports,together with their implications and impact on the Argentinedefense industry.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comThe report allows readers to identify possible ways to enter themarket, together with detailed descriptions of how existingcompanies have entered the market, including key contracts,alliances, and strategic initiatives.The report helps the reader to understand the competitivelandscape of the defense industry in Argentina. It provides anoverview of key defense companies, both domestic and foreign,together with insights such as key alliances, strategic initiatives,and a brief financial analysis.Key Market IssuesThe Argentine defense market has experienced a lack ofinvestment due to the countrys budgetary constraints.Argentinas armed forces are using obsolete defense equipmentwhich needs to be replaced by more advanced equipment.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comThere are many naval vessels that are not operational and needrepair and maintenance, but the armed forces procurement plansare halted by a fluctuating defense budget. However, Argentina isreceiving help from countries such as Russia and China, who areready to replace the obsolete military equipment on credit terms.The country has also postponed many of its modernization planssuch as the replacement of the Mirage III fighter in 2009, due toeconomic constraints. However, it is expected that the countrywill establish a strong defense force during the forecast period.In October 2012 a naval training ship “ARA Liberated” was seizedby court order from Ghana for its nonpayment of the loan to itscreditors during 2001-2002. Argentina had a debt of US$100 billionin 2001 which had been restructured and 30% of the amount waspaid during 2005-2010. This default background may deter manycompanies from investing their capital in Argentinas defensemarket.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comKey HighlightsForeign defense companies can supply the Argentine defensemarket through FMS arrangements. For example, in September2010, the Argentine government signed a contract with Russia toprocure two Mi-17 helicopters for the Argentine air force. This wasthe first time the Argentine government purchased Russianequipment. The majority of defense purchases from the US, whichis the largest supplier of arms to Argentina, are made throughFMS. There are approximately US$ 25.79 million and $ 0.37 millionof arms and equipment sold to Argentina through FMS in the yearof 2010 and 2011 respectively.Foreign defense companies can enter the Argentine defensemarket through technology transfers, sub-contracting agreementsand long-term supply contracts, favored by Argentinas offsetpolicy.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comFor example, in October 2010, Brazilian firm Embraer establisheda partnership with Argentina for the development of the KC-390medium transport aircraft. Argentina is expected to join theprogram through the Fábrica Argentina de Aviones aerospacecompany and initially purchase six KC-390 aircraft. Additionally,Argentina signed an agreement with South Africa in 2010 toexchange their security technologies, participation in various jointtraining exercises, military health development initiatives andrescue operations in the Southern Atlantic Ocean. Moreover, theSouth African defense company, Paramount Group, and theArgentine company, Codesur signed an agreement in December2012 to introduce Paramount Groups security and land systems,and electronic and aerospace systems to Latin America.
Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comWith a limited domestic defense industry, Argentina importsadvanced defense equipment from countries such as the US,Russia, Spain, China, Brazil, and Austria. During 2008-2012, thecountry imported the highest share of arms from the US,constituting 78.8% of the total arms imports. During the forecastperiod, the US is expected to continue to dominate the market,with China expected to enter the market through the sale ofhelicopters. Argentina is expected to acquire fighter aircraft,including the possibility of acquiring second-hand aircraft whichwould allow other European countries to enter the market.
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com1 Introduction1.1. What is this Report about?1.2. Definitions1.3. Summary Methodology1.4. SDI Terrorism Index1.5. About Strategic Defence Intelligence2 Executive Summary3 Market Attractiveness and Emerging Opportunities3.1. Argentine Defense Market Size Historical and Forecast3.1.1. Argentine defense budget forecasted to grow at a CAGR of 14.97% by 20183.1.2. Defense expenditure to be driven by modernization programs, contributions to internationalpeacekeeping missions and the Falkland Islands dispute with the UK3.1.3. Defense expenditure as a percentage of GDP to reach 1.5% by 20183.1.4. Per capita defense spending forecast to increase over the forecast period3.2. Analysis of Defense Budget Allocation3.2.1. Capital expenditure allocation expected to increase during the forecast period
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com3.2.2. Revenue expenditure accounts for majority of defense expenditure3.2.3. Argentine army enjoys the highest share of the total defense budget3.2.4. Spending on Navy driven by new procurement plans3.2.5. Argentine Air Force marginally increase to $ 0.9 billion over the review period3.3. Homeland Security Market Size and Forecast3.3.1. The homeland security expenditure is increased to 3.8 in 20133.3.2. Illegal immigration and organized crime to drive homeland security expenditure3.4. Benchmarking with Key Global Markets3.4.1. Argentine defense expenditure is to increase at a CAGR of 14.97% during the forecast period3.4.2. Argentine defense expenditure is the lowest in South America3.4.3. Argentinas defense budget as a percentage of GDP to increase3.5. Market Opportunities: Key Trends and Growth Stimulators:3.5.1. Armored vehicles MRO:3.5.2. Unmanned Aerial Vehicles (UAV):4 Defense Procurement Market Dynamics
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com4.1. Import Market Dynamics4.1.1. Argentine defense imports increased to $ 34 million by 20124.1.2. The US is a major arms supplier to Argentina4.1.3. Aircraft and sensors constitute a majority of Argentine arms imports4.2. Export Market Dynamics4.2.1. Argentina has negligible arms exports5 Industry Dynamics5.1. Five Forces Analysis5.1.1. Bargaining power of Supplier: Medium to low5.1.2. Bargaining power of Buyer: High5.1.3. Barrier to entry: Medium5.1.4. Intensity of rivalry: Low to high5.1.5. Threat of Substitution: Low to high6 Market Entry Strategy6.1. Market Regulation
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com6.1.1. Offset policy aids development of domestic defense industry6.1.2. Open foreign direct investment policy6.2. Market Entry Route6.2.1. Foreign FMS is an effective entry route for foreign defense companies6.2.2. Technology transfers and partnerships encouraged by offset policy6.2.3. Argentine defense industry open to foreign investment6.3. Key Challenges6.3.1. Defense budget constraints descends the growth of domestic defense industry6.3.2. Countrys debt default history might be an hindrance for the entrance of private investors7 Competitive Landscape and Strategic Insights7.1. Competitive Landscape Overview7.2. Domestic Public Companies7.2.1. Fábrica Argentina de Aviones: overview7.2.2. Fábrica Argentina de Aviones: defense products7.2.3. Fábrica Argentina de Aviones: recent announcements and strategic initiatives
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.4. Fábrica Argentina de Aviones: alliances7.2.5. Fábrica Argentina de Aviones: recent contract wins7.2.6. Astillero Río Santiago: overview7.2.7. Astillero Río Santiago: products and services7.2.8. Astillero Río Santiago: recent announcements and strategic initiatives7.2.9. Astillero Río Santiago: alliances7.2.10. Citedef: overview7.2.11. Citedef: products and services7.2.12. Citedef: recent announcements and strategic initiatives7.2.13. Tandanor: overview7.2.14. Tandanor: recent announcements and strategic initiatives7.2.15. Tandanor: recent contract wins7.2.16. Dirección General de Fabricaciones Militares: overview7.2.17. Dirección General de Fabricaciones Militares: defense products7.2.18. Dirección General de Fabricaciones Militares: recent announcements and strategic initiatives
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.19. Dirección General de Fabricaciones Militares: alliances7.2.20. INVAP SE: overview7.2.21. INVAP SE: defense products7.2.22. INVAP S.E.: recent announcements and strategic initiatives7.2.23. INVAP S.E.: alliances7.2.24. Nostromo Defensa SA: overview7.2.25. Nostromo Defensa SA: products and services7.2.26. Nostromo Defensa SA: recent announcements and strategic initiatives7.2.27. Nostromo Defensa SA: alliances7.2.28. Nostromo Defensa SA: recent contract wins8 Business Environment and Country Risk8.1. Demographics and Social Statistics8.1.1. Total Rural Population8.1.2. Total Urban Population8.1.3. Overall Life expectancy
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.1.4. Number of Households8.1.5. Unemployment Rate8.2. Economic Performance8.2.1. GDP Per Capita8.2.2. GDP, Current Prices8.2.3. Consumer Price Index8.2.4. Wholesale Price Index8.2.5. Local Currency Unit per USD8.2.6. Lending Rate8.2.7. Real Interest Rate8.2.8. Market Capitalization of Listed Companies8.2.9. Market Capitalization of Listed Companies (% of GDP)8.2.10. Goods exports as % of GDP8.2.11. Goods imports as % of GDP8.2.12. Service Imports as % of GDP
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.2.13. Service Exports as % of GDP8.2.14. Foreign Direct Investment8.2.15. Net foreign direct investment as % of GDP8.2.16. International reserves, including gold8.3. Energy and Utilities8.3.1. Conventional Thermal Electricity Net Generation8.3.2. Hydroelectricity Net Generation8.3.3. Nuclear Electricity Net Generation8.3.4. Conventional Thermal Electricity Installed Capacity8.3.5. Electricity Exports8.3.6. Electricity Imports8.3.7. Proved Natural Gas Reserves8.3.8. Petroleum Consumption8.3.9. Crude Oil Proved Reserves8.3.10. Total Non-Hydro Renewable Electricity Net Generation
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.4. Infrastructure8.4.1. Air transport, freight8.4.2. Overall Construction8.5. Minerals8.5.1. Mining, Manufacturing, Utilities Output8.6. Technology8.6.1. Research and Development Expenditure8.6.2. Patents Granted8.7. Telecommunication8.7.1. Telephone Lines8.7.2. Telephone Lines Penetration Rate8.7.3. Mobile Cellular Subscriptions8.7.4. Mobile Cellular Subscriptions Penetration Rate8.7.5. Fixed Broadband Internet Subscribers9 Appendix
Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com9.1. About SDI9.2. Disclaimer
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