DUBLIN–(BUSINESS WIRE)–The “Future
of the Peruvian Defense Industry – Market Attractiveness, Competitive
Landscape and Forecasts to 2024” report has been added to ResearchAndMarkets.com’s
offering.
This report offers a detailed analysis of the Peruvian defense industry
with market size forecasts covering the next five years. This report
will also analyze factors that influence demand for the industry, key
market trends, and challenges faced by industry participants.
Select Findings
-
In 2019, Peru’s defense budget is US$2.3 billion registering a CAGR of
0.57% during the historic period. Active participation in peacekeeping
missions, narco-terrorism, and defense sector reforms, the persistent
threat from insurgent guerrilla organization Shining Path, border
conflicts with Chile, and modernization initiatives drove defense
expenditure over the historic period. -
The country’s defense expenditure is anticipated to value US$2.6
billion in 2024 and register a CAGR of 2.53% over the forecast period.
The defense budget as a percentage of GDP is expected to decrease to
an average of 0.84% in the forecast period, compared to an average of
1.04% during the historic period.
The capital expenditure allocation is expected to decrease to an average
of 5.8% during the forecast period which stood at an average of 9.9%
during the historic period. Procurements that are expected to account
for capital expenditure over the forecast period include frigates,
multi-role aircraft, submarines, and main battle tanks (MBTs), TGS-MIL &
TGM MIL, and BTR-82 APC among others. Consequently, the remaining budget
will be allocated to personnel salaries, development programs for
military personnel, and training.
Peruvian homeland security (HLS) expenditure is US$3.1 billion in 2019
and is expected to grow at a CAGR of 4.44% over the forecast period to
reach US$4 billion in 2024. The budget of homeland security will be
driven by police reforms and modernization, as well as the need to curb
cocaine trafficking and organized crime.
Between 2014 and 2018, South Korea emerged as the largest supplier of
military hardware to Peru, with a share of 33.9% of total defense
imports, followed by Russia and Italy with 21.8% and 14.0% respectively.
Aircraft accounted for the majority of defense imports with a share of
39.5% during the period 2014-2018. During the period 2014-2018, Peru
acquired 32 Piranha APC, 16 MM-40-3 Exocet anti-ship SSM, 175
Spike-ERanti tank missile and C-27J Spartan transport aircraft. Other
ongoing contracts include TGS and TGM MIL Rheinmetall MAN Military
Vehicles and the modernization of four HDW 209/1200-class submarines.
In particular, the report provides an in-depth analysis of the
following:
-
The defense industry market size and drivers: detailed analysis of the
Peruvian defense industry during 2020-2024, including highlights of
the demand drivers and growth stimulators for the industry. It also
provides a snapshot of the country’s expenditure and modernization
patterns -
Budget allocation and key challenges: insights into procurement
schedules formulated within the country and a breakdown of the defense
budget with respect to capital expenditure and revenue expenditure. It
also details the key challenges faced by defense market participants
within the country -
Porter’s Five Force analysis of the Peruvian defense industry:
analysis of the market characteristics by determining the bargaining
power of suppliers, bargaining power of buyers, threat of
substitution, intensity of rivalry, and barriers to entry -
Import and Export Dynamics: analysis of prevalent trends in the
country’s imports and exports over the last five years -
Market opportunities: details of the top five defense investment
opportunities -
Competitive landscape and strategic insights: analysis of the
competitive landscape of the Peruvian defense industry. It provides an
overview of key players, together with insights such as key alliances,
strategic initiatives, and a brief financial analysis
Import Market Dynamics
- Defense imports expected to increase during the forecast period
-
South Korea to account for the majority of Peru’s defense imports
during the forecast period - Aircraft and naval vessels are the most imported military hardware
Market Regulation
- Budgeting process
- Procurement Policy and Process
- Offset policy aids development of domestic defense industry
- Peru allows 100% FDI in the defense industry
Market Entry Route
-
The country’s biennial defense exhibition provides an attractive entry
route - Direct selling is the preferred market entry route for foreign OEMs
Key Challenges
-
Small defense budget and infrastructure challenge limits the market
entry of foreign companies -
Lack of transparency hampers the growth of the Peruvian defense
industry
Companies Mentioned
- Los Servicios Industriales de la Marina (SIMA)
- The Army Ammunition Factory (FAME)
- Desarrollos Industriales Casanave
For more information about this report visit https://www.researchandmarkets.com/r/sw0d6l
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Related
Topics: Military
Aerospace and Defense
