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Future of the brazilian defense industry market attractiveness, competitive landscape and forecasts to 2018 - Reports Corner


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This report is the result of SDI's extensive market and company research covering the Brazilian defense industry, and provides detailed analysis of both historic and forecast defense industry values …

This report is the result of SDI's extensive market and company research covering the Brazilian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.,-Competitive-Landscape-and-Forecasts-to-2018/

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  • 1. RCReports CornerFuture of the Brazilian Defense Industry - Market Attractiveness,Competitive Landscape and Forecasts to 2018
  • 2. DescriptionDescriptionReports Cornerwww.reportscorner.comThis report is the result of SDIs extensive market and companyresearch covering the Brazilian 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.
  • 3. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comProduct SynopsisThis report is the result of SDIs extensivemarket and company research covering the Brazilian 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.Introduction and LandscapeWhy was the report written?The Future of the Brazilian 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 Braziliandefense industry.What is the current market landscape and whatis changing?Brazilian defense expenditure increased at a CAGRof 8.29% during the review period and valued US$35.85 billion in2013. The focus of the Brazilian government will be on themodernization of its armed forces, participation in peacekeepingoperations, and military procurements.
  • 4. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comWhat are the key drivers behind recent market changes?Themodernization of the armed forces, development of indigenousdefense capabilities, and large defense procurement projectsare the major drivers of the Brazilian defense industry.Whatmakes this report unique and essential to read?The Future of theBrazilian Defense Industry - Market Attractiveness, CompetitiveLandscape and Forecasts to 2018 provides detailed analysis ofthe current industry size and growth expectations from 2014 to2018, including highlights of key growth stimulators. It alsobenchmarks the industry against key global markets and providesa detailed understanding of emerging opportunities in specificareas.Key Features and BenefitsThe report provides detailedanalysis of the current industry size and growth expectations from2014 to 2018, including highlights of key growth stimulators, andalso benchmarks the industry against key global markets andprovides a detailed understanding of emerging opportunities inspecific areas.
  • 5. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comThe report includes trend analysis of imports and exports,together with their implications and impact on the Braziliandefense industry.The report covers five forces analysis to identifyvarious power centers in the industry and how these are expectedto develop in the future.The report allows readers to identifypossible ways to enter the market, together with detaileddescriptions of how existing companies have entered the market,including key contracts, alliances, and strategic initiatives.Thereport helps the reader to understand the competitive landscapeof the defense industry in Brazil. It provides an overview of keydefense companies, both domestic and foreign, together withinsights such as key alliances, strategic initiatives, and a brieffinancial analysis.Key Market IssuesBrazil has a strict offsetobligation for defense deals, equivalent to 100% of the contractvalue. This has proved a challenge for those foreign OEMs whosegovernment has a policy of limited technology transfer, includingthe US-based company Boeing.
  • 6. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comMoreover, Brazils offset policy requires that defense contractsuse domestic companies for the manufacture and assembly ofdefense systems. A number of foreign OEMs have agreed to suchoffset requirements due to the availability of inexpensive laborand raw materials in the country. However, a significant portion ofthese companies are reluctant to share proprietary informationwith Brazil, and often fail to supply defense systems to thecountry as a consequence. These rigorous requirements by Braziloften delay the approval of defense deals.]A significant challengefaced by defense suppliers to Brazil is the time taken by theMinistry of Defense to ratify defense deals. As defenseprocurements occur through competitive bidding, competingcompanies must undergo technical compliance checks, afterwhich the ministry enters a lengthy negotiation process withbidders, designed to secure the maximum technology transfer atthe lowest price. As such, the ratification process is furtherdelayed by long
  • 7. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comnegotiation periods and competing offers given by the variousdefense firms. Examples include the delay in selecting a supplierfor the fourth-generation fighter jets and the delayed purchase ofarmored personnel carriers from the Italian branch of InvescoLtd.Despite having the eleventh-largest defense expenditureglobally, Brazil only allocates around 6-7% of its total defenseexpenditure to arms procurement. The country currently allocates41% of its defense budget towards providing pensions for retiredmilitary personnel, and a significant amount is spent on theadministration of its defense forces. Although domesticadvancements by Brazilian defense firms are fueling thecomponent procurement market, the deal value for thesecomponents is often small. This results in the Brazilian defenseindustry appearing as a relatively less attractive investmentopportunity for foreign OEMs.Key HighlightsAll defenseprocurement and acquisitions made by the Ministry of Defenseand associated bodies follow a competitive bidding process.
  • 8. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comThe Ministry of Defense decides which company from which toprocure equipment, depending on whether the equipmentcomplies with the ministrys requirements, which company offersthe lowest price, and which company offers the most technologytransfer. The rule applies for both domestic and foreign supplierswithout any preferential treatment for domestic suppliers.Brazilianaircraft imports account for almost 46% of its total armsprocurements, and involves the import of advanced fighter jetsand components for the manufacture of indigenous aircraftsystems such as helicopters and cargo aircraft. As the countryscurrency is strengthening and import duties are waved off,importing aircraft seems to be lucrative for the country. Thecountrys naval procurements include submarines from Brazil andFrance. France has emerged as Brazils leading arms supplier,with 17.5% share in countrys total defense imports.
  • 9. Brief SummaryBrief SummaryReports Cornerwww.reportscorner.comOn a number of occasions France has offered technology transferto Brazil, which has helped it secure defense contracts with thecountry. Brazil supplies engines to Brazilian aircraft andsubmarine manufacturers, and is the second-largest armssupplier to the country. The implementation of the AmazonProtection System (SIVAM) has lead the country to procure radarand satellite components, most of which are supplied by the USdefense firm Raytheon. During the review period, Brazil has alsoprocured missile systems from Israel, the US, and Spain, whichincluded anti-ship, anti-submarine, and beyond visual rangemissiles.During 2008-2012, aircraft were the major exportedproduct, with total 81% of the defense exports. This largestpercentage of aircraft can be attributed to multiple deals ofEmbraer with foreign countries like Chile, Ecuador and Colombiaetc.
  • 10. 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 Intelligence ( Executive Summary3 Market Attractiveness and Emerging Opportunities3.1. Defense Market Size Historical and Forecast3.1.1. Brazilian annual defense expenditure valued US$35.85 billion in 20133.1.2. Modernization of defense systems, development of indigenous defense capabilities, and largedefense procurement projects expected to drive the Brazilian defense expenditure3.1.3. Defense expenditure as a percentage of GDP is expected to average 1.92% during the forecastperiod3.2. Analysis of Defense Budget Allocation
  • 11. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com3.2.1. The majority of Brazils defense budget is allocated for revenue expenditure3.2.2. Overall capital expenditure is expected to grow at a CAGR of 8.54% during the forecast period3.2.3. Army accounted for the largest percentage share during the review period3.3. Homeland Security Market Size and Forecast3.3.1. Brazil is expected to invest US$35.22 billion on homeland security during the forecast period3.3.2. Protection of natural resources and improvement of security for Brazilian sporting events expectedto stimulate homeland security expenditure3.3.3. SDI Terrorism Index rates Brazil to be a “low risk” region3.3.4. Brazil faces minimal threat from terrorists3.4. Benchmarking with Key Global Markets3.4.1. Brazil defense expenditure is expected to grow faster than the majority of the largest global defensebudgets3.4.2. Brazil set to continue its high defense expenditure3.4.3. Brazil expected to spend an average of 1.9% of its GDP on defense over the forecast period3.4.4. Brazil faces “low risk” by acts of terrorism3.5. Market Opportunities: Key Trends and Driversal defense expenditure
  • 12. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com3.5.1. Soldier Modernization- Lethality3.5.2. Border security3.5.3. Fighters and Multi-role aircraft3.5.4. Homeland Security Infrastructure3.5.5. Transport and Utility Aircraft3.5.6. Armored Personal Carrier MRO3.5.7. Software Infrastructure4 Defense Procurement Market Dynamics4.1. Import Market Dynamics4.1.1. Aircraft and its component contributes a significant chunk out of the total defense procurement overthe review period4.1.2. Modernization of defense systems expect to drive arms imports4.1.3. Stringent offset obligations in a highly competitive market4.1.4. Aircraft, armored vehicles, missiles and ships were the key defense imports during 2008-20124.2. Export Market Dynamics
  • 13. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com4.2.1. Development of domestic defense capability is expected to fuel exports in Brazils emerging militaryindustry4.2.2. Customized aircraft systems expected to drive exports during the forecast period4.2.3. Aircraft was the main exported defense product during 2008-20125 Industry Dynamics5.1. Five Forces Analysis5.1.1. Bargaining power of supplier: low to medium5.1.2. Bargaining power of buyer: medium to high5.1.3. Barrier to entry: medium5.1.4. Intensity of rivalry: low to medium5.1.5. Threat of substitution: high6 Market Entry Strategy6.1. Market Regulation6.1.1. International and domestic defense procurement deals are primarily decided by competitive bidding6.1.2. Stringent offsets requirements for all defense procurements
  • 14. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com6.2. Market Entry Route6.2.1. Foreign OEMs follow direct offset route to enter defense market6.3. Key Challenges6.3.1. Complying with Brazils requirement for extensive technology transfer6.3.2. Delay in the closure of defense deals and low allocation for capit7 Competitive Landscape and Strategic Insights7.1. Competitive Landscape Overview7.2. Key Domestic Companies7.2.1. Embraer: overview7.2.2. Embraer: products and services7.2.3. Embraer: recent announcement and strategic initiatives7.2.4. Embraer - alliances7.2.5. Embraer: recent contract wins7.2.6. Embraer - financial analysis7.2.7. Forjas Taurus SA: overview
  • 15. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.8. Forjas Taurus SA: products and services7.2.9. Forjas Taurus SA: recent announcement and strategic initiatives7.2.10. Forjas Taurus SA: alliances7.2.11. Forjas Taurus SA: recent contract wins7.2.12. Forjas Taurus SA: financial analysis7.2.13. Avibras Industria Aerospacial: overview7.2.14. Avibras Industria Aerospacial: products and services7.2.15. Avibras Industria Aerospacial: recent announcement and strategic initiatives7.2.16. Avibras Industria Aerospacial: alliances7.2.17. Avibras Industria Aerospacial: recent contract wins7.2.18. Companhia Brasileira de Cartuchos: overview7.2.19. Companhia Brasileira de Cartuchos: products and services7.2.20. Companhia Brasileira de Cartuchos: recent announcement and strategic initiatives7.2.21. Companhia Brasileira de Cartuchos: recent contract wins7.2.22. Helibras: overview
  • 16. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.23. Helibras: products and services7.2.24. Helibras: recent announcement and strategic initiatives7.2.25. Helibras: alliances7.2.26. Helibras: recent contract wins7.2.27. Helibras: financial analysis7.2.28. Industria de Material Belico do Brasil (IMBEL): overview7.2.29. Industria de Material Belico do Brasil (IMBEL): products and services7.2.30. Industria de Material Belico do Brasil (IMBEL): recent announcement and strategic initiatives7.2.31. Industria de Material Belico do Brasil (IMBEL): alliances7.2.32. Industria de Material Belico do Brasil (IMBEL): recent contract wins7.2.33. Industria de Material Belico do Brasil (IMBEL): financial analysis7.2.34. Aeroelectronica: overview7.2.35. Aeroelectronica: products and services7.2.36. Aeroelectronica: recent announcement and strategic initiatives7.2.37. Aeroelectronica: alliances
  • 17. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.38. Aeroelectronica: recent contract wins7.2.39. Indústria Naval do Ceará: overview7.2.40. Indústria Naval do Ceará: products and services7.2.41. Indústria Naval do Ceará: recent announcement and strategic initiatives7.2.42. Indústria Naval do Ceará: recent contract wins7.2.43. Northrop Grumman Brazil: overview7.2.44. Northrop Grumman Brazil: products and services7.2.45. Northrop Grumman Brazil: recent announcement and strategic initiatives7.2.46. Northrop Grumman Brazil: alliances7.2.47. Northrop Grumman Brazil: recent contract wins7.2.48. EADS Brazil: overview7.2.49. EADS Brazil: products and services7.2.50. EADS Brazil: recent announcement and strategic initiatives7.2.51. EADS Brazil: alliances7.2.52. EADS Brazil: recent contract wins
  • 18. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com7.2.53. Lockheed Martin Brazil: overview7.2.54. Lockheed Martin Brazil: products and services7.2.55. Lockheed Martin Brazil: recent announcement and strategic initiatives7.2.56. Lockheed Martin Brazil: alliances7.2.57. Lockheed Martin Brazil: recent contract wins8 Business Environment and Country Risk8.1. Demographics and Social Statistics8.1.1. Population - Rural8.1.2. Population - Urban8.1.3. Population - Number of Households8.2. Economic Performance8.2.1. Gross Domestic per Capita8.2.2. Gross Domestic Product, current US$8.2.3. Exports of Goods and Services8.2.4. Imports of Goods and Services
  • 19. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.2.5. Gross National Disposable Income8.2.6. Manufacturing Output8.2.7. Consumer Price Index8.2.8. Wholesale Price Index8.2.9. Local Currency Unit per USD8.2.10. Market Capitalization of Listed Companies8.2.11. Market Capitalization of Listed Companies (% of GDP)8.2.12. Total Government Cash Surplus/Deficit (LCU bn)8.2.13. Goods Exports as a % of GDP8.2.14. Goods Imports as a % of GDP8.2.15. Goods balance as a % of GDP8.2.16. Services Imports as a % of GDP8.2.17. Services Exports as a % of GDP8.2.18. Services balance (% of GDP)8.2.19. Net Foreign Direct Investment (BoP, current US$ bn)
  • 20. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.2.20. Net FDI as a % of GDP8.2.21. International reserves, including Gold (US$ bn)8.3. Energy and Utilities8.3.1. Total Conventional Thermal Electricity Net Generation (Bn KWH)8.3.2. Hydroelectricity Net Generation (Billion KWh)8.3.3. Nuclear Electricity Net Generation (Billion kWh)8.3.4. Total Conventional Thermal Electricity Installed Capacity (Million kW)8.3.5. Proved reserves of Natural Gas (Trillion Cubic Feet)8.3.6. Total Petroleum Consumption (Thousand Barrels Per Day)8.4. Infrastructure Quality and Availability8.4.1. Rail lines (total route km)8.4.2. Air transport, freight (Million ton-km)8.4.3. Overall Construction (US$ million)8.5. Minerals8.5.1. Mining, Manufacturing, Utilities Output (US$ billion)
  • 21. Table of ContentsTable of ContentsReports Cornerwww.reportscorner.com8.6. Technology8.6.1. Research and development expenditure (thousands LCU)8.6.2. Patents Granted8.7. Telecommunication8.7.1. Telephone lines (in mn)8.7.2. Telephone lines Penetration Rate (per 100 people)9 Appendix9.1. About SDI9.2. Disclaimer
  • 22. For more informationFor more informationReports Cornerwww.reportscorner.comFor more information please visit our website,-Competitive-Landscape-and-Forecasts-to-2018/
  • 23. Reports CornerThank YouThank Youwww.reportscorner.comRCContact us: