Summary
The Future of the Peruvian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
Key Findings
- The Peruvian defense budget values US$2.3 billion in 2016, and recorded a CAGR of 2.18% during the historic period. Expenditure is anticipated to grow at a CAGR of 3.54% over the forecast period to value US$2.4 billion in 2021. The Peruvian defense budget is mainly driven by the modernization efforts to replace its aging military hardware, threats from the Shining Path separatist group, the country's participation in international peacekeeping missions, and volatile relationships with its neighbors, especially Chile.
- On a cumulative basis, the country is expected to invest US$11.8 billion for defense purposes, of which US$1.6 billion is earmarked for capital expenditure to fund defense procurements. The government's well-defined military modernization plans to counter influence of narco-terrorists, drug traffickers, human traffickers and weapon traffickers is expected to fuel procurement of defense equipment.
- The MoD is expected to invest in transport aircrafts, frigates, multi-role aircrafts, training aircraft and main battle tanks (MBT) over the coming years.
Synopsis
This report offers 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.
In particular, it provides an in-depth analysis of the following:
- The Peruvian defense industry market size and drivers: detailed analysis of the Peruvian defense industry during 2017-2021, 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 the army, navy, and air force. 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 over the next 10 years
- 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
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Peruvian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Peruvian defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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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. Defense Market Size Historical and Forecast
3.1.1. Defense expenditure to grow at a CAGR of 3.54% over the forecast period
3.1.2. Threat of narco-terrorism, defense reforms and modernization, border disputes, and peacekeeping operations to drive defense expenditure
3.1.3. Defense budget as a percentage of GDP is anticipated to average 1.1% during the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Revenue expenditure accounts for the majority of the Peruvian defense budget
3.2.2. Peruvian defense capital expenditure is expected to grow at a CAGR of 3.93% during the forecast period
3.2.3. Per capita defense expenditure expected to increase during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security expenditure is expected to grow at a CAGR of 7.64% during the forecast period
3.3.2. Measures to prevent cocaine trafficking and organized crime to drive HLS expenditure
3.3.3. Peru considered at 'moderate risk' of terrorist attack
3.3.4. Peru experiences moderate levels of terrorist activity
3.3.5. Peru has a SDI terrorism index score of 3.3
3.4. Benchmarking with Key Global Markets
3.4.1. Peruvian defense budget expected to register marginal growth in the forecast period
3.4.2. Peru's military expenditure is limited compared to countries with the largest defense expenditure
3.4.3. Peru allocates a low percentage of GDP to defense
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Transport Aircraft
3.5.2. Frigates
3.5.3. Multi-role Aircraft
3.5.4. Training Aircraft
3.5.5. Main Battle Tank
4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Defense imports expected to increase during the forecast period
4.1.2. Russia to account for the majority of Peru's defense imports during the forecast period
4.1.3. Aircraft and missiles are the most imported military hardware
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. Barriers to entry: medium
5.1.4. Intensity of rivalry: medium to high
5.1.5. Threat of substitution: medium to high
6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Offset policy aids development of domestic defense industry
6.1.2. Peru allows 100% FDI in defense industry
6.2. Market Entry Route
6.2.1. The country's biennial defense exhibition provides an attractive entry route
6.2.2. Direct selling is the preferred market entry route for foreign OEMs
6.3. Key Challenges
6.3.1. Small defense budget and limited technological capability limits the market entry of foreign companies
6.3.2. Lack of transparency hampers the growth of the Peruvian defense industry
7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Los Servicios Industriales de la Marina (SIMA): overview
7.2.2. Los Servicios Industriales de la Marina (SIMA): products and services
7.2.3. Los Servicios Industriales de la Marina (SIMA): recent announcements and strategic initiatives
7.2.4. Los Servicios Industriales de la Marina (SIMA): alliances
7.2.5. Los Servicios Industriales de la Marina (SIMA): recent contract wins
7.2.6. The Army Ammunition Factory (FAME): overview
7.2.7. The Army Ammunition Factory (FAME): products and services
7.2.8. The Army Ammunition Factory (FAME): recent announcements and strategic initiatives
7.2.9. Desarrollos Industriales Casanave: overview
7.2.10. Desarrollos Industriales Casanave: products and services
7.2.11. Desarrollos Industriales Casanave: recent announcements and strategic initiatives
7.2.12. Desarrollos Industriales Casanave: alliances
8 Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita
8.1.2. GDP, Current Prices (US$ Billion)
8.1.3. Exports of goods and services, current prices (LCU billion)
8.1.4. Imports of goods and services, current prices (LCU billion)
8.1.5. Gross National Disposable Income (US$ billion)
8.1.6. Local Currency Unit per US$ (period average)
8.1.7. Market Capitalization of Listed Companies (US$ Billion)
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Government Cash Surplus/ Deficit as % of GDP (LCU)
8.1.10. Goods Exports as % of GDP
8.1.11. Goods Imports as % of GDP
8.1.12. Services Imports as % of GDP
8.1.13. Services Exports as % of GDP
8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)
8.1.15. Net Foreign Direct Investment, as % of GDP
8.1.16. Mining, Manufacturing, Utilities Output
9 Appendix
9.1. About SDI
9.2. Disclaimer
Table 1: Peruvian Defense Expenditure (S/. Billion and US$ billion), 2012-2021
Table 2: Peruvian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2012-2021
Table 3: Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2021
Table 4: Peruvian Defense Capital Expenditure (S/. Billion and US$ Million), 2012-2021
Table 5: Peruvian Per Capita Defense Expenditure (US$), 2012-2021
Table 6: Peruvian Homeland Security Expenditure (S/. Billion and US$ billion), 2012-2021
Table 7: SDI Terrorism Index, 2016
Table 8: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021
Table 9: Defense Offset Regulations in Peru
Table 10: Los Servicios Industriales de la Marina (SIMA)- Products and Services
Table 11: Los Servicios Industriales de la Marina (SIMA): Alliances
Table 12: Los Servicios Industriales de la Marina (SIMA) - Recent Contract Wins
Table 13: The Army Ammunition Factory (FAME)- Product Focus
Table 14: Desarrollos Industriales Casanave- Product Focus
Table 15: Desarrollos Industriales Casanave: Alliances
Figure 1: Peruvian Defense Expenditure (S/. Billion), 2012-2021
Figure 2: Peruvian Defense Expenditure (US$ Billion), 2012-2021
Figure 3: Peruvian GDP Growth vs. Defense Expenditure as Percentage of GDP, 2012-2021
Figure 4: Peruvian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2021
Figure 5: Peruvian Capital Budget Allocation (S/. Million), 2012-2021
Figure 6: Peruvian Capital Budget Allocation (US$ Million), 2012-2021
Figure 7: Peruvian Per Capita Defense Expenditure (US$), 2012-2021
Figure 8: Peruvian Homeland Security Budget (S/. billion), 2012-2021
Figure 9: Peruvian Homeland Security Budget (US$ billion), 2012-2021
Figure 10: SDI Terrorism Heat Map, 2016
Figure 11: SDI Terrorism Index, 2015
Figure 12: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021
Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2016 and 2021
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016
Figure 15: Transport Aircraft Market Size (US$ Million), 2016-2026
Figure 16: Frigates Market Size (US$ Million), 2016-2026
Figure 17: Multi-role Aircraft Market Size (US$ Million), 2016-2026
Figure 18: Training Aircraft Market Size (US$ Million), 2016-2026
Figure 19: Main Battle Tank Market Size (US$ Million), 2016-2026
Figure 20: Peruvian Defense Import Trend, 2011-2015 (TIV values)
Figure 21: Peruvian Defense Imports by Country (%), 2011-2015
Figure 22: Peruvian Defense Imports by Category (%), 2011-2015
Figure 23: Industry Dynamics Porter's Five Forces Analysis
Figure 24: Peruvian GDP Per Capita, 2015-2025
Figure 25: Peruvian GDP at Current Prices (US$ Billion), 2015-2025
Figure 26: Peruvian Exports of Goods and Services, Current Prices (LCU Billion), 2005-2014
Figure 27: Peruvian Imports of Goods and Services, Current Prices (LCU Billion), 2005-2014
Figure 28: Peruvian Gross National Disposable Income (US$ billion) 2007-2014
Figure 29: Local Currency Unit per US$, 2015-2024
Figure 30: Market Capitalization of Listed Companies in Peru (US$ Billion), 2005-2012
Figure 31: Market Capitalization of Listed Companies in Peru (% of GDP), 2005-2012
Figure 32: Peruvian Government Cash Surplus/ Deficit as % of GDP (LCU), 2005-2012
Figure 33: Peruvian Goods Exports as % of GDP, 2005-2013
Figure 34: Peruvian Goods Imports as % of GDP, 2005-2013
Figure 35: Peruvian Services Imports as % of GDP, 2005-2013
Figure 36: Peruvian Services Exports as % of GDP, 2005-2013
Figure 37: Peruvian Foreign Direct Investment, net (BoP, current US$ Billion), 2005-2013
Figure 38: Peruvian Net Foreign Direct Investment as % of GDP, 2005-2013
Figure 39: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014
Los Servicios Industriales de la Marina (SIMA)
The Army Ammunition Factory (FAME) and Desarrollos Industriales Casanave
