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Future of the venezuelan defense industry - Reports Corner

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Product Synopsis
This report is the result of SDI's extensive market and company research covering the Venezuelan 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.

https://www.reportscorner.com/reports/27223/Future-of-the-Venezuelan-Defense-Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/

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  • 1. RC Reports Corner Future of the Venezuelan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
  • 2. DescriptionDescription Reports Cornerwww.reportscorner.com Product Synopsis This report is the result of SDI's extensive market and company research covering the Venezuelan 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.
  • 3. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com Product Synopsis This report is the result of SDI's extensive market and company research covering the Venezuelan 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. Introduction and Landscape Why was the report written? The Future of the Venezuelan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain a market share in the Venezuelan defense industry.
  • 4. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com What is the current market landscape and what is changing? Venezuelan defense expenditure recorded a CAGR of 7.82% during the review period and is expected to value US$5.7 billion in 2013. Modernization activities and border disputes drove expenditure during the review period, and both factors are expected to continue to be drivers throughout the forecast period. Defense expenditure in Venezuela is expected to register a CAGR of 11.37% and reach a value ofUS$8.0 billion by 2018. As a percentage of gross domestic product (GDP) the Venezuelan defense budget stood at 1.64% in 2013, and is expected to increase to 2.08% of GDP by 2018, largely due to the expected increase in defense expenditure. The capital expenditure allocation of the Venezuelan defense budget, which stood at 41.6% during the review period, is expected to increase to 68.9% during the forecast period, as a result of increased budget allocation for equipment purchases. Consequently, revenue expenditure is likely to decrease from 58.4% in the review period to 31.1% in the forecast period.
  • 5. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com Key opportunities for equipment suppliers are expected in the areas of fighter and multi-role aircrafts, transport and utility aircraft, and attack aircraft. Other areas expected to provide opportunities for equipment suppliers are the purchase of main battle tanks, diesel electric submarines, as well as surface-to-air and surface-to-surface missiles. What are the key drivers behind recent market changes? Modernization, border disputes and development of domestic defense industry to drive defense expenditure in the forecast period. What makes this report unique and essential to read? The Future of the Venezuelan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators.
  • 6. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas. Key Features and Benefits The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas. The report includes trend analysis of imports and exports, together with their implications and impact on the Venezuelan defense industry. The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
  • 7. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives. The report helps the reader to understand the competitive landscape of the defense industry in Venezuela. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis. Key Market Issues In 2013, Venezuela recorded a defense budget of US$5.7 billion, which was low compared to some other Latin American countries. Furthermore, during the review period, capital expenditure accounted for 41.6% of Venezuela's total defense budget, expected to increase to 68.9% over the forecast period.
  • 8. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com This increase in capital expenditure translates into a higher budget allocation for the purchase of equipment, and hi-tech arms and ammunition. Nevertheless, a relatively smaller defense budget has become a barrier to entry for foreign companies, despite the country maintaining an open economy. The Venezuelan defense industry comprises only of state-owned companies with little specialization in weapon categories, this results in a lack of advanced defense technology and means that foreign weapon suppliers, who intend to conduct business in Venezuela, face infrastructure challenges. Although foreign suppliers can bring advanced technology into the country, this can result in technology imports without offset incentives. At the same time, as the country plans to develop its domestic defense industry, it might encourage domestic suppliers to produce more defense equipment, ending a reliance on foreign companies.
  • 9. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com Corruption has become a major obstacle for foreign companies aiming to enter the Venezuelan defense market, as it can result in unfair contract awards. According to Transparency International's corruption perceptions index, Venezuela is a highly corrupt country with a score of 19, and the country ranks 165th out of 174 countries. Government tenders are often unreliable in Venezuela because the process frequently lacks transparency; in May 2010, the former Venezuelan defense minister was sentenced to nearly eight years in prison for misappropriating state funds while in office. As part of the anti- corruption drive initiated by the Venezuelan government, in June 2013, a senior tax official was arrested on charges of corruption. The authorities had previously apprehended senior officials from government ministries, state companies and other organizations on charges of corruption.
  • 10. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com Key Highlights Although Venezuela allows 100% FDI in its defense industry, its underdeveloped defense market, lack of advanced technology, and small defense budget mean many foreign OEMs prefer to enter the industry through direct selling. High corruption levels, increasing government intervention, and economic and political instability also make the Venezuelan defense industry unattractive to foreign investment. A large proportion of military procurement is undertaken through government-to-government, or government-to-supplier deals.
  • 11. Brief SummaryBrief Summary Reports Cornerwww.reportscorner.com In May 2006, the US judged that Venezuela had not been fully co- operating in counter terrorism efforts and announced an arms embargo against the country, banning the export and re-export of US originated defense equipment to Venezuela. Consequently, the country started to import defense equipment from Russia and Spain, who were prepared to export to Venezuela. During 2007-2011, Venezuela imported around US$2.0 billion of arms from Russia, including 24 Sukhoi fighter jets, over 100 T72 tanks, dozens of combat helicopters, and air defense systems. China is also an important import partner for the country, and during the review period Venezuela purchased long-rage surveillance radar systems and fighter jets from China. Other import partners include the Netherlands, Switzerland, Ukraine, Germany, and Italy. Venezuela purchased naval patrol boats from Spain, and radar systems from the Netherlands. Over the review period, Venezuela imported weapons worth US$11.0 billion from Russia.
  • 12. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 1 Introduction 1.1. What is this Report About? 1.2. Definitions 1.3. Summary Methodology 1.4. SDI Terrorism Index 1.5. About Strategic Defence Intelligence 2 Executive Summary 3 Market Attractiveness and Emerging Opportunities 3.1. Defense Market Size Historical and Forecast 3.1.1. Venezuelan defense expenditure expected to register higher growth during the forecast period 3.1.2. Modernization, border disputes and development of domestic defense industry to drive defense expenditure in the forecast period 3.2. Analysis of Defense Budget Allocation 3.2.1. Revenue expenditure accounts for the majority of the Venezuelan defense budget 3.2.2. Defense budget as a percentage of GDP expected to increase during the forecast period
  • 13. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 3.2.3. Per-capita defense expenditure expected to increase during the forecast period 3.2.4. Capital expenditure budget is expected to increase during the forecast period 3.2.5. Revenue expenditure expected to grow more quickly in the forecast period 3.2.6. Personnel expenditure accounts for the majority of the revenue expenditure budget 3.3. Homeland Security Market Size and Forecast 3.3.1. Homeland security (HLS) budget projected to increase in the forecast period 3.3.2. Cybercrime, drug trafficking, civil unrest, the threat of terrorism and organized crime to drive the HLS market 3.3.3. Venezuela considered to be at 'some risk' from terrorist attack 3.3.4. Venezuela experienced low levels of terrorist activity during the review period 3.4. Benchmarking with Key Global Markets 3.4.1. Venezuela's defense budget expected to increase in the forecast period 3.4.2. Venezuela's military expenditure is limited compared to the countries with the highest defense expenditures 3.4.3. Venezuela allocates a low percentage of GDP to defense
  • 14. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 3.5. Market Opportunities: Key Trends and Growth Stimulators 3.5.1. Fighters and Multirole 3.5.2. Transport and Utility aircraft 3.5.3. Main Battle Tanks 3.5.4. Diesel Electric Submarines 3.5.5. Surface-to-surface Missiles 4 Defense Procurement Market Dynamics 4.1. Import Market Dynamics 4.1.1. Limited capability of domestic defense market drives imports 4.1.2. Russia, China and Spain account for the majority of Venezuela's defense imports 4.1.3. Aircraft, missiles and sensors are the most imported military hardware 4.2. Export Market Dynamics 4.2.1. Defense exports increased in the review period 4.2.2. Ecuador was the largest importer of Venezuelan aircraft parts and missiles in the review period 4.2.3. Aircraft were the largest exported defense equipment in the review period
  • 15. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 5 Industry Dynamics 5.1. Five Forces Analysis 5.1.1. Bargaining power of supplier: low to high 5.1.2. Bargaining power of buyer: medium to low 5.1.3. Barriers to entry: medium to low 5.1.4. Intensity of rivalry: low to medium 5.1.5. Threat of substitution: low to medium 6 Market Entry Strategy 6.1. Market Regulation 6.1.1. Venezuela does not disclose any offset obligations 6.1.2. Venezuela allows 100% FDI in defense industry 6.2. Market Entry Route 6.2.1. Direct selling is the preferred market entry route for foreign OEMs
  • 16. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 6.3. Key Challenges 6.3.1. Small defense budget and limited technological capability limits market entry for foreign companies 6.3.2. Corruption acts as an obstacle for market entry 6.3.3. The arms embargo against Venezuela makes market entry difficult for foreign defense companies 6.3.4. Economic and political instability 7 Competitive Landscape and Strategic Insights 7.1. Competitive Landscape Overview 7.2. Key Domestic Companies 7.2.1. CA Venezolana de Industrias Militares (CAVIM): overview 7.2.2. CA Venezolana de IndustriasMilitares (CAVIM): products and services 7.2.3. CA Venezolana de IndustriasMilitares (CAVIM): recent announcements and strategic initiatives 7.2.4. UCOCAR CA: overview 7.2.5. UCOCAR CA: products and services 7.2.6. UCOCAR CA: recent announcements and strategic initiatives
  • 17. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 7.2.7. UCOCAR CA: recent contract awards 7.2.8. Diques y AstillerosNacionales CA (DIANCA): overview 7.2.9. Diques y AstillerosNacionales CA (DIANCA): products and services 7.2.10. Diques y Astilleros Nacionales CA (DIANCA): alliances 7.2.11. Diques y AstillerosNacionales CA (DIANCA): recent contract awards 8 Business Environment and Country Risk 8.1. Demographics and Social Statistics 8.1.1. Total Rural Population 8.1.2. Total Urban Population 8.1.3. Number of Households 8.2. Economic Performance 8.2.1. GDP Per Capita 8.2.2. GDP, Current Prices (US$ Billion) 8.2.3. GDP Per Capita 8.2.4. Imports of Goods and Services (current US$ billion)
  • 18. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 8.2.5. Gross National Disposable Income (US$ billion) 8.2.6. Manufacturing Output, (US$ billion) 8.2.7. Consumer Price Index 8.2.8. Wholesale Price Index 8.2.9. Local Currency Unit per US$ (period average) 8.2.10. Local Currency Unit per EUR (period average) 8.2.11. Lending Rate 8.2.12. Deposit Rate 8.2.13. Real Interest Rate 8.2.14. Market Capitalization of Listed Companies 8.2.15. Market Capitalization of Listed Companies (% of GDP) 8.2.16. Goods Export as % of GDP 8.2.17. Goods Imports as % of GDP 8.2.18. Goods Balance as % of GDP
  • 19. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 8.2.19. Service Imports as % of GDP 8.2.20. Service Exports as % of GDP 8.2.21. Service Balance as % of GDP 8.2.22. Foreign Direct Investment 8.2.23. Net Foreign Direct Investment as % of GDP 8.2.24. International Reserves, including gold 8.2.25. External Debt as % of GDP 8.3. Energy and Utilities 8.3.1. Conventional Thermal Electricity Net Generation 8.3.2. Hydroelectricity Net Generation 8.3.3. Nuclear electricity Net Generation 8.3.4. Conventional Thermal Electricity Installed Capacity 8.3.5. Electricity Exports 8.3.6. Proved Natural Gas Reserves 8.3.7. Petroleum Consumption
  • 20. Table of ContentsTable of Contents Reports Cornerwww.reportscorner.com 8.3.8. Crude Oil Proved Reserves 8.4. Infrastructure 8.4.1. Air transport, freight 8.4.2. Overall Construction 8.5. Minerals 8.5.1. Mining, Manufacturing, Utilities Output 8.6. Technology 8.6.1. Patents Granted 8.7. Telecommunications 8.7.1. Telephone Lines 8.7.2. Telephone Lines Penetration Rate 9 Appendix 9.1. About SDI 9.2. Disclaimer
  • 21. For more informationFor more information Reports Cornerwww.reportscorner.com For more information please visit our website https://www.reportscorner.com/reports/27223/Future-of-the-Venezuelan-Defense- Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/
  • 22. Reports Corner Thank YouThank You www.reportscorner.com RC Contact us: contact@reportscorner.com