argentine defense industry

The Argentine Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 Published : April 2012

No. of Pages : 148

Price: Single User-US$1250

Corporate User-US$2500

Synopsis This report is the result of ICD’s extensive market and company research covering the Argentine defense industry. It 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.

Why was the report written?

The Argentine Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Argentine defense industry.

What is the current market landscape and what is changing?

The Argentine defense budget stood at US$3.64 billion in 2011 and recorded a CAGR of 16.55% during the review period. This healthy growth is expected to continue with a CAGR of 16.40% during the forecast period. During the review period, capital expenditure was allocated an average of 3.6% of the defense budget and this low allocation was due to the high expenditure on salaries and pensions, which account for 70% of the defense budget.

What are the key drivers behind recent market changes?

The strong growth in the Argentine defense budget is mainly driven by modernization plans, participation in peacekeeping missions and disputes over the sovereignty of the Falkland Islands and their natural resources. The Argentine government has announced plans to increase defense expenditure, which stood at 0.7% of GDP in 2011, to 1.5% of GDP over an unspecified period.

What makes this report unique and essential to read?

The Argentine Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.

Scope The report provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, 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.

The report includes trend analysis of imports and exports, together with its implications and impact on the Argentine 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, 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.

Reasons To Buy The report looks at historical performance as well as future industry projections using the in-house model.

The report is a mixture of graphs, charts, tables and text in an effort to give the reader the maximum possible information in the most efficient and visually appealing manner.

The report helps marketing agencies in the industry to promote their business by aligning their capabilities and business practices with their customers’ changing needs, while it also helps suppliers to benchmark their efforts with those of their competitors.

Key Highlights Argentina, similar to other Latin American countries, is increasing its defense budget at a robust pace.

The defense budget, which stood at US$2.96 billion in 2011, recorded a CAGR of 16.55% during the review period, largely due to increased personnel salaries. The Argentine defense budget is expected to register a CAGR of 16.40% during the forecast period to reach US$6.68 billion by 2016.

Argentina mandates 100% offsets for its defense procurements. The country is in the process of reviving its domestic defense industry and encourages technology transfers, partnerships and research and development (R&D) as offsets. Foreign defense companies are free to invest in the Argentine defense sector and do not need to attain any prior approval from the government for investments.

Argentine homeland security expenditure is represented by the Ministry of Security, created in 2011 after the failure of domestic forces to control civil disturbances in December 2010. Argentine homeland security budget stood at US$2.3 billion in 2010. Civil disturbances in December 2010 highlighted the inefficiency of domestic forces, which resulted in an increase in homeland security expenditure of 40%, to US$3.2 billion, in 2011.

Defense companies can cater for the Argentine defense industry through Foreign Military Sales (FMS), which involve direct government-to-government transactions. Foreign companies can also establish partnerships and use technology transfers to gain access to the Argentine defense market.

Argentine arms imports reached their peak in 2007, when the Argentine military announced a multi-year funding program to restore and enhance the operational capabilities of its armed forces.

Argentine Defense Industry Table of Contents 1 Introduction 2 Executive Summary 3 Market Attractiveness and Emerging Opportunities 4 Defense Procurement Market Dynamics 5 Industry Dynamics 6 Market Entry Strategy 7 Competitive Landscape and Strategic Insights 8 Business Environment and Country Risk 9 Appendix List of Tables List of Figures