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. https://www.reportscorner.com/reports/15627/Future-of-the-Brazilian-Defense-Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/

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

2. DescriptionDescription
Reports Cornerwww.reportscorner.com
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.

3. Brief SummaryBrief Summary
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Product SynopsisThis 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.Introduction and LandscapeWhy was the report written?
The Future of the Brazilian 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 Brazilian
defense industry.What is the current market landscape and what
is changing?Brazilian defense expenditure increased at a CAGR
of 8.29% during the review period and valued US$35.85 billion in
2013. The focus of the Brazilian government will be on the
modernization of its armed forces, participation in peacekeeping
operations, and military procurements.

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What are the key drivers behind recent market changes?The
modernization of the armed forces, development of indigenous
defense capabilities, and large defense procurement projects
are the major drivers of the Brazilian defense industry.What
makes this report unique and essential to read?The Future of the
Brazilian 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. It also
benchmarks the industry against key global markets and provides
a detailed understanding of emerging opportunities in specific
areas.Key Features and BenefitsThe 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.

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The report includes trend analysis of imports and exports,
together with their implications and impact on the Brazilian
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.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 Brazil. 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 IssuesBrazil has a strict offset
obligation for defense deals, equivalent to 100% of the contract
value. This has proved a challenge for those foreign OEMs whose
government has a policy of limited technology transfer, including
the US-based company Boeing.

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Moreover, Brazil's offset policy requires that defense contracts
use domestic companies for the manufacture and assembly of
defense systems. A number of foreign OEMs have agreed to such
offset requirements due to the availability of inexpensive labor
and raw materials in the country. However, a significant portion of
these companies are reluctant to share proprietary information
with Brazil, and often fail to supply defense systems to the
country as a consequence. These rigorous requirements by Brazil
often delay the approval of defense deals.]A significant challenge
faced by defense suppliers to Brazil is the time taken by the
Ministry of Defense to ratify defense deals. As defense
procurements occur through competitive bidding, competing
companies must undergo technical compliance checks, after
which the ministry enters a lengthy negotiation process with
bidders, designed to secure the maximum technology transfer at
the lowest price. As such, the ratification process is further
delayed by long

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negotiation periods and competing offers given by the various
defense firms. Examples include the delay in selecting a supplier
for the fourth-generation fighter jets and the delayed purchase of
armored personnel carriers from the Italian branch of Invesco
Ltd.Despite having the eleventh-largest defense expenditure
globally, Brazil only allocates around 6-7% of its total defense
expenditure to arms procurement. The country currently allocates
41% of its defense budget towards providing pensions for retired
military personnel, and a significant amount is spent on the
administration of its defense forces. Although domestic
advancements by Brazilian defense firms are fueling the
component procurement market, the deal value for these
components is often small. This results in the Brazilian defense
industry appearing as a relatively less attractive investment
opportunity for foreign OEMs.Key HighlightsAll defense
procurement and acquisitions made by the Ministry of Defense
and associated bodies follow a competitive bidding process.

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The Ministry of Defense decides which company from which to
procure equipment, depending on whether the equipment
complies with the ministry's requirements, which company offers
the lowest price, and which company offers the most technology
transfer. The rule applies for both domestic and foreign suppliers
without any preferential treatment for domestic suppliers.Brazilian
aircraft imports account for almost 46% of its total arms
procurements, and involves the import of advanced fighter jets
and components for the manufacture of indigenous aircraft
systems such as helicopters and cargo aircraft. As the country's
currency is strengthening and import duties are waved off,
importing aircraft seems to be lucrative for the country. The
country's naval procurements include submarines from Brazil and
France. France has emerged as Brazil's leading arms supplier,
with 17.5% share in country's total defense imports.

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On a number of occasions France has offered technology transfer
to Brazil, which has helped it secure defense contracts with the
country. Brazil supplies engines to Brazilian aircraft and
submarine manufacturers, and is the second-largest arms
supplier to the country. The implementation of the Amazon
Protection System (SIVAM) has lead the country to procure radar
and satellite components, most of which are supplied by the US
defense firm Raytheon. During the review period, Brazil has also
procured missile systems from Israel, the US, and Spain, which
included anti-ship, anti-submarine, and beyond visual range
missiles.During 2008-2012, aircraft were the major exported
product, with total 81% of the defense exports. This largest
percentage of aircraft can be attributed to multiple deals of
Embraer with foreign countries like Chile, Ecuador and Colombia
etc.

10. 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 (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Brazilian annual defense expenditure valued US$35.85 billion in 2013
3.1.2. Modernization of defense systems, development of indigenous defense capabilities, and large
defense procurement projects expected to drive the Brazilian defense expenditure
3.1.3. Defense expenditure as a percentage of GDP is expected to average 1.92% during the forecast
period
3.2. Analysis of Defense Budget Allocation

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3.2.1. The majority of Brazil's defense budget is allocated for revenue expenditure
3.2.2. Overall capital expenditure is expected to grow at a CAGR of 8.54% during the forecast period
3.2.3. Army accounted for the largest percentage share during the review period
3.3. Homeland Security Market Size and Forecast
3.3.1. Brazil is expected to invest US$35.22 billion on homeland security during the forecast period
3.3.2. Protection of natural resources and improvement of security for Brazilian sporting events expected
to stimulate homeland security expenditure
3.3.3. SDI Terrorism Index rates Brazil to be a “low risk” region
3.3.4. Brazil faces minimal threat from terrorists
3.4. Benchmarking with Key Global Markets
3.4.1. Brazil defense expenditure is expected to grow faster than the majority of the largest global defense
budgets
3.4.2. Brazil set to continue its high defense expenditure
3.4.3. Brazil expected to spend an average of 1.9% of its GDP on defense over the forecast period
3.4.4. Brazil faces “low risk” by acts of terrorism
3.5. Market Opportunities: Key Trends and Driversal defense expenditure

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3.5.1. Soldier Modernization- Lethality
3.5.2. Border security
3.5.3. Fighters and Multi-role aircraft
3.5.4. Homeland Security Infrastructure
3.5.5. Transport and Utility Aircraft
3.5.6. Armored Personal Carrier MRO
3.5.7. Software Infrastructure
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Aircraft and its component contributes a significant chunk out of the total defense procurement over
the review period
4.1.2. Modernization of defense systems expect to drive arms imports
4.1.3. Stringent offset obligations in a highly competitive market
4.1.4. Aircraft, armored vehicles, missiles and ships were the key defense imports during 2008-2012
4.2. Export Market Dynamics

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4.2.1. Development of domestic defense capability is expected to fuel exports in Brazil's emerging military
industry
4.2.2. Customized aircraft systems expected to drive exports during the forecast period
4.2.3. Aircraft was the main exported defense product during 2008-2012
5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to medium
5.1.2. Bargaining power of buyer: medium to high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. International and domestic defense procurement deals are primarily decided by competitive bidding
6.1.2. Stringent offsets requirements for all defense procurements

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6.2. Market Entry Route
6.2.1. Foreign OEMs follow direct offset route to enter defense market
6.3. Key Challenges
6.3.1. Complying with Brazil's requirement for extensive technology transfer
6.3.2. Delay in the closure of defense deals and low allocation for capit
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Embraer: overview
7.2.2. Embraer: products and services
7.2.3. Embraer: recent announcement and strategic initiatives
7.2.4. Embraer - alliances
7.2.5. Embraer: recent contract wins
7.2.6. Embraer - financial analysis
7.2.7. Forjas Taurus SA: overview

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7.2.8. Forjas Taurus SA: products and services
7.2.9. Forjas Taurus SA: recent announcement and strategic initiatives
7.2.10. Forjas Taurus SA: alliances
7.2.11. Forjas Taurus SA: recent contract wins
7.2.12. Forjas Taurus SA: financial analysis
7.2.13. Avibras Industria Aerospacial: overview
7.2.14. Avibras Industria Aerospacial: products and services
7.2.15. Avibras Industria Aerospacial: recent announcement and strategic initiatives
7.2.16. Avibras Industria Aerospacial: alliances
7.2.17. Avibras Industria Aerospacial: recent contract wins
7.2.18. Companhia Brasileira de Cartuchos: overview
7.2.19. Companhia Brasileira de Cartuchos: products and services
7.2.20. Companhia Brasileira de Cartuchos: recent announcement and strategic initiatives
7.2.21. Companhia Brasileira de Cartuchos: recent contract wins
7.2.22. Helibras: overview

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7.2.23. Helibras: products and services
7.2.24. Helibras: recent announcement and strategic initiatives
7.2.25. Helibras: alliances
7.2.26. Helibras: recent contract wins
7.2.27. Helibras: financial analysis
7.2.28. Industria de Material Belico do Brasil (IMBEL): overview
7.2.29. Industria de Material Belico do Brasil (IMBEL): products and services
7.2.30. Industria de Material Belico do Brasil (IMBEL): recent announcement and strategic initiatives
7.2.31. Industria de Material Belico do Brasil (IMBEL): alliances
7.2.32. Industria de Material Belico do Brasil (IMBEL): recent contract wins
7.2.33. Industria de Material Belico do Brasil (IMBEL): financial analysis
7.2.34. Aeroelectronica: overview
7.2.35. Aeroelectronica: products and services
7.2.36. Aeroelectronica: recent announcement and strategic initiatives
7.2.37. Aeroelectronica: alliances

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7.2.38. Aeroelectronica: recent contract wins
7.2.39. Indústria Naval do Ceará: overview
7.2.40. Indústria Naval do Ceará: products and services
7.2.41. Indústria Naval do Ceará: recent announcement and strategic initiatives
7.2.42. Indústria Naval do Ceará: recent contract wins
7.2.43. Northrop Grumman Brazil: overview
7.2.44. Northrop Grumman Brazil: products and services
7.2.45. Northrop Grumman Brazil: recent announcement and strategic initiatives
7.2.46. Northrop Grumman Brazil: alliances
7.2.47. Northrop Grumman Brazil: recent contract wins
7.2.48. EADS Brazil: overview
7.2.49. EADS Brazil: products and services
7.2.50. EADS Brazil: recent announcement and strategic initiatives
7.2.51. EADS Brazil: alliances
7.2.52. EADS Brazil: recent contract wins

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7.2.53. Lockheed Martin Brazil: overview
7.2.54. Lockheed Martin Brazil: products and services
7.2.55. Lockheed Martin Brazil: recent announcement and strategic initiatives
7.2.56. Lockheed Martin Brazil: alliances
7.2.57. Lockheed Martin Brazil: recent contract wins
8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Rural
8.1.2. Population - Urban
8.1.3. Population - Number of Households
8.2. Economic Performance
8.2.1. Gross Domestic per Capita
8.2.2. Gross Domestic Product, current US$
8.2.3. Exports of Goods and Services
8.2.4. Imports of Goods and Services

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8.2.5. Gross National Disposable Income
8.2.6. Manufacturing Output
8.2.7. Consumer Price Index
8.2.8. Wholesale Price Index
8.2.9. Local Currency Unit per USD
8.2.10. Market Capitalization of Listed Companies
8.2.11. 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 GDP
8.2.14. Goods Imports as a % of GDP
8.2.15. Goods balance as a % of GDP
8.2.16. Services Imports as a % of GDP
8.2.17. Services Exports as a % of GDP
8.2.18. Services balance (% of GDP)
8.2.19. Net Foreign Direct Investment (BoP, current US$ bn)

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8.2.20. Net FDI as a % of GDP
8.2.21. International reserves, including Gold (US$ bn)
8.3. Energy and Utilities
8.3.1. 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 Availability
8.4.1. Rail lines (total route km)
8.4.2. Air transport, freight (Million ton-km)
8.4.3. Overall Construction (US$ million)
8.5. Minerals
8.5.1. Mining, Manufacturing, Utilities Output (US$ billion)

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8.6. Technology
8.6.1. Research and development expenditure (thousands LCU)
8.6.2. Patents Granted
8.7. Telecommunication
8.7.1. Telephone lines (in mn)
8.7.2. Telephone lines Penetration Rate (per 100 people)
9 Appendix
9.1. About SDI
9.2. Disclaimer

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