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Reports Corner
Future of the Argentine Defense Industry - Market
Attractiveness, Competitive Landscape and Forecasts to 2018

2. DescriptionDescription
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"Product Synopsis:This report is the result of SDI's extensive
market and company research covering the Argentine 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."

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Product Synopsis
This report is the result of SDI's extensive market and company
research covering the Argentine 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 Argentine 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 Argentine
defense industry.
What is the current market landscape and what is changing?

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Argentine defense expenditure increased at a CAGR of 15.37%
during the review period and values US$4.1 billion in 2013. The
focus of the Argentine government will be on the modernization of
its armed forces, participation in peacekeeping operations, and
the Falkland Islands dispute with the UK.
What are the key drivers behind recent market changes?
Modernization of its armed forces, participation in peacekeeping
operations, and the Falkland Islands dispute with the UK.
What makes this report unique and essential to read?
The Future of the Argentine 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.

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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 Argentine
defense industry.

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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 Argentina. 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
The Argentine defense market has experienced a lack of
investment due to the country's budgetary constraints.
Argentina's armed forces are using obsolete defense equipment
which needs to be replaced by more advanced equipment.

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There are many naval vessels that are not operational and need
repair and maintenance, but the armed forces' procurement plans
are halted by a fluctuating defense budget. However, Argentina is
receiving help from countries such as Russia and China, who are
ready to replace the obsolete military equipment on credit terms.
The country has also postponed many of its modernization plans
such as the replacement of the Mirage III fighter in 2009, due to
economic constraints. However, it is expected that the country
will establish a strong defense force during the forecast period.
In October 2012 a naval training ship “ARA Liberated” was seized
by court order from Ghana for its nonpayment of the loan to its
creditors during 2001-2002. Argentina had a debt of US$100 billion
in 2001 which had been restructured and 30% of the amount was
paid during 2005-2010. This default background may deter many
companies from investing their capital in Argentina's defense
market.

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Key Highlights
Foreign defense companies can supply the Argentine defense
market through FMS arrangements. For example, in September
2010, the Argentine government signed a contract with Russia to
procure two Mi-17 helicopters for the Argentine air force. This was
the first time the Argentine government purchased Russian
equipment. The majority of defense purchases from the US, which
is the largest supplier of arms to Argentina, are made through
FMS. There are approximately US$ 25.79 million and $ 0.37 million
of arms and equipment sold to Argentina through FMS in the year
of 2010 and 2011 respectively.
Foreign defense companies can enter the Argentine defense
market through technology transfers, sub-contracting agreements
and long-term supply contracts, favored by Argentina's offset
policy.

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For example, in October 2010, Brazilian firm Embraer established
a partnership with Argentina for the development of the KC-390
medium transport aircraft. Argentina is expected to join the
program through the Fábrica Argentina de Aviones aerospace
company and initially purchase six KC-390 aircraft. Additionally,
Argentina signed an agreement with South Africa in 2010 to
exchange their security technologies, participation in various joint
training exercises, military health development initiatives and
rescue operations in the Southern Atlantic Ocean. Moreover, the
South African defense company, Paramount Group, and the
Argentine company, Codesur signed an agreement in December
2012 to introduce Paramount Group's security and land systems,
and electronic and aerospace systems to Latin America.

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With a limited domestic defense industry, Argentina imports
advanced defense equipment from countries such as the US,
Russia, Spain, China, Brazil, and Austria. During 2008-2012, the
country imported the highest share of arms from the US,
constituting 78.8% of the total arms imports. During the forecast
period, the US is expected to continue to dominate the market,
with China expected to enter the market through the sale of
helicopters. Argentina is expected to acquire fighter aircraft,
including the possibility of acquiring second-hand aircraft which
would allow other European countries to enter the market.

11. Table of ContentsTable of Contents
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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. Argentine Defense Market Size Historical and Forecast
3.1.1. Argentine defense budget forecasted to grow at a CAGR of 14.97% by 2018
3.1.2. Defense expenditure to be driven by modernization programs, contributions to international
peacekeeping missions and the Falkland Islands dispute with the UK
3.1.3. Defense expenditure as a percentage of GDP to reach 1.5% by 2018
3.1.4. Per capita defense spending forecast to increase over the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Capital expenditure allocation expected to increase during the forecast period

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3.2.2. Revenue expenditure accounts for majority of defense expenditure
3.2.3. Argentine army enjoys the highest share of the total defense budget
3.2.4. Spending on Navy driven by new procurement plans
3.2.5. Argentine Air Force marginally increase to $ 0.9 billion over the review period
3.3. Homeland Security Market Size and Forecast
3.3.1. The homeland security expenditure is increased to 3.8 in 2013
3.3.2. Illegal immigration and organized crime to drive homeland security expenditure
3.4. Benchmarking with Key Global Markets
3.4.1. Argentine defense expenditure is to increase at a CAGR of 14.97% during the forecast period
3.4.2. Argentine defense expenditure is the lowest in South America
3.4.3. Argentina's defense budget as a percentage of GDP to increase
3.5. 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

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4.1. Import Market Dynamics
4.1.1. Argentine defense imports increased to $ 34 million by 2012
4.1.2. The US is a major arms supplier to Argentina
4.1.3. Aircraft and sensors constitute a majority of Argentine arms imports
4.2. Export Market Dynamics
4.2.1. Argentina has negligible arms exports
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of Supplier: Medium to low
5.1.2. Bargaining power of Buyer: High
5.1.3. Barrier to entry: Medium
5.1.4. Intensity of rivalry: Low to high
5.1.5. Threat of Substitution: Low to high
6 Market Entry Strategy
6.1. Market Regulation

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6.1.1. Offset policy aids development of domestic defense industry
6.1.2. Open foreign direct investment policy
6.2. Market Entry Route
6.2.1. Foreign FMS is an effective entry route for foreign defense companies
6.2.2. Technology transfers and partnerships encouraged by offset policy
6.2.3. Argentine defense industry open to foreign investment
6.3. Key Challenges
6.3.1. Defense budget constraints descends the growth of domestic defense industry
6.3.2. Country's debt default history might be an hindrance for the entrance of private investors
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Domestic Public Companies
7.2.1. Fábrica Argentina de Aviones: overview
7.2.2. Fábrica Argentina de Aviones: defense products
7.2.3. Fábrica Argentina de Aviones: recent announcements and strategic initiatives

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7.2.4. Fábrica Argentina de Aviones: alliances
7.2.5. Fábrica Argentina de Aviones: recent contract wins
7.2.6. Astillero Río Santiago: overview
7.2.7. Astillero Río Santiago: products and services
7.2.8. Astillero Río Santiago: recent announcements and strategic initiatives
7.2.9. Astillero Río Santiago: alliances
7.2.10. Citedef: overview
7.2.11. Citedef: products and services
7.2.12. Citedef: recent announcements and strategic initiatives
7.2.13. Tandanor: overview
7.2.14. Tandanor: recent announcements and strategic initiatives
7.2.15. Tandanor: recent contract wins
7.2.16. Dirección General de Fabricaciones Militares: overview
7.2.17. Dirección General de Fabricaciones Militares: defense products
7.2.18. Dirección General de Fabricaciones Militares: recent announcements and strategic initiatives

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7.2.19. Dirección General de Fabricaciones Militares: alliances
7.2.20. INVAP SE: overview
7.2.21. INVAP SE: defense products
7.2.22. INVAP S.E.: recent announcements and strategic initiatives
7.2.23. INVAP S.E.: alliances
7.2.24. Nostromo Defensa SA: overview
7.2.25. Nostromo Defensa SA: products and services
7.2.26. Nostromo Defensa SA: recent announcements and strategic initiatives
7.2.27. Nostromo Defensa SA: alliances
7.2.28. Nostromo Defensa SA: recent contract wins
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. Overall Life expectancy

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8.1.4. Number of Households
8.1.5. Unemployment Rate
8.2. Economic Performance
8.2.1. GDP Per Capita
8.2.2. GDP, Current Prices
8.2.3. Consumer Price Index
8.2.4. Wholesale Price Index
8.2.5. Local Currency Unit per USD
8.2.6. Lending Rate
8.2.7. Real Interest Rate
8.2.8. Market Capitalization of Listed Companies
8.2.9. Market Capitalization of Listed Companies (% of GDP)
8.2.10. Goods exports as % of GDP
8.2.11. Goods imports as % of GDP
8.2.12. Service Imports as % of GDP

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8.2.13. Service Exports as % of GDP
8.2.14. Foreign Direct Investment
8.2.15. Net foreign direct investment as % of GDP
8.2.16. International reserves, including gold
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. Electricity Imports
8.3.7. Proved Natural Gas Reserves
8.3.8. Petroleum Consumption
8.3.9. Crude Oil Proved Reserves
8.3.10. Total Non-Hydro Renewable Electricity Net Generation

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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. Research and Development Expenditure
8.6.2. Patents Granted
8.7. Telecommunication
8.7.1. Telephone Lines
8.7.2. Telephone Lines Penetration Rate
8.7.3. Mobile Cellular Subscriptions
8.7.4. Mobile Cellular Subscriptions Penetration Rate
8.7.5. Fixed Broadband Internet Subscribers
9 Appendix

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9.1. About SDI
9.2. Disclaimer

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https://www.reportscorner.com/reports/22397/Future-of-the-Argentine-Defense-
Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/

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