2013-09-09 19:39:30 - Recently published research from Strategic Defence Intelligence, "Future of the Peruvian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018", is now available at Fast Market Research
This report is the result of SDI's extensive market and company research covering the Peruvian 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 Peruvian 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 market share in the Peruvian defense industry.
What is the current market landscape and what is changing?
During the review period, the Peruvian defense budget recorded a CAGR of 13.87%. Expenditure was supported by a modernization
program, participation in peacekeeping missions, and measures to counter narco-terrorism and border disputes, and the initiation of defense reforms by the government. In 2013, the Peruvian defense budget stood at 1.3% of GDP and is expected to increase to 1.6% of GDP by 2018. During the review period, Peru's capital expenditure allocation stood at 17.1% of the total defense budget, and this is expected to increase to 21.7% over the forecast period due to the government's weapons procurement plans. Consequently, the share of revenue expenditure in the total defense budget is expected to decrease from 82.9% in the review period to 78.3% in the forecast period.
Full Report Details at
- www.fastmr.com/prod/684428_future_of_the_peruvian_defense_indust ..
What are the key drivers behind recent market changes?
Threat of narco-terrorism, defense reforms and modernization, border disputes, peacekeeping operations, an arms race with neighboring countries, and an enhanced role of the military in internal policing to drive defense expenditure in the forecast period
What makes this report unique and essential to read?
The Future of the Peruvian 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 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 Peruvian 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 Peru. 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
With a 2013 defense budget of US$2.9 billion, Peru invests a relatively small portion of its GDP towards defense compared to European countries such as the UK and France. Even though the country's defense budget is expected to increase at a CAGR of 13.38% over the forecast period, to stand at US$5.5 billion in 2018, it is still relatively low compared to the global leading spenders. Even within Latin America, Peru is not among the top five defense spending nations of the region. Capital expenditure currently accounts for an average of only 17.1% of the country's total defense budget, which translates to a relatively small allocation for the purchase of equipment and high-technology arms and ammunition. Consequently, the country's relatively small defense budget has become a barrier to entry for foreign companies. Despite the country maintaining an open economy and providing a number of investment incentives, a small defense budget acts as a key challenge for foreign companies interested in entering the Peruvian defense industry.
The arms procurement process in Peru is not transparent, with purchases often deemed to be classified and not shared outside the concerned department. The law on contracts and acquisitions requires all state institutions, without exception, to consult the Office of the Comptroller General before making a purchase, but this rule has been violated by the MoD on many occasions. This further creates doubt among international suppliers as the defense contract bidders don't have a clear understanding of the parameters required to be fulfilled in order to secure a contract. The defense reforms announced by the Peruvian government include a proposal for the creation of a centralized purchasing agency for defense acquisitions. However, the Army, Navy, and Air Force are opposed to the idea, contending that a centralized agency would further complicate the acquisition process.
About Strategic Defence Intelligence
Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defence industry. View more research from Strategic Defence Intelligence at www.fastmr.com/catalog/publishers.aspx?pubid=1040
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