Summary
"Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", published by GlobalData, 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.
This report offers detailed analysis of the Mexican 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 defense industry market size and drivers: detailed analysis of the Mexican 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 Mexican 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 Mexican defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Scope
- Mexican defense expenditure recorded a CAGR of 0.83% during the historic period and stood at US$6.4 billion in 2019.
- Over the forecast period, it is anticipated to register a CAGR of 4.45% to value US$8.0 billion in 2024.
- Being one of the largest oil and gas exporters in the North American and Latin American region, Mexico was hit hard by the fall in energy prices, which prompted the government to cut back on overall government spending.
- Due to this, the Mexican defense budget contracted for three consecutive years, 2015, 2016 and 2017, by -8.21%, -13.84% and -5.02%, respectively.
- This had an impact on the overall CAGR during the historic period.
- The defense budget as a percentage of GDP is expected to remain almost the same at an average of 0.49% over the forecast period, compared to an average of 0.49% during the historic period.
Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Mexican 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 Mexican defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.
Companies Mentioned
Productos Mendoza
Aviabaltika de Mexico Company
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Table of Contents
1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About GlobalData
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Mexican Military Equipment
3.1.4. Procurement Programs
3.1.4.1. Ongoing Procurement Programs
3.1.4.2. Future Procurement Programs
3.1.4.3. Top Procurement Programs by Value (US$ Million), 2019-2024
3.1.5. Geopolitical, Social, and Economic Scenario
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Mexican defense budget to grow at a forecast-period CAGR of 4.45%
3.2.2. The government’s fight against drug trafficking is set to drive defense expenditure over the forecast period
3.2.3. Defense budget as a percentage of GDP to remain at an average of 0.49% over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Capital expenditure will increase over the forecast period
3.3.2. Capital expenditure is anticipated to record a forecast-period CAGR of 4.84%
3.3.3. Per capita defense expenditure to rise over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security will post a forecast-period CAGR of 5.87%
3.4.2. Organized crime and money laundering to drive the HLS market
3.5. Benchmarking with Key Global Markets
3.5.1. Mexico’s defense budget is expected to increase over the forecast period
3.5.2. Mexico’s military expenditure is limited compared to countries with the largest defense expenditures
3.5.3. The country’s defense budget as a percentage of GDP is set to remain the same over the forecast period
3.6. Market Opportunities: Key Trends
3.6.1. Critical Infrastructure Protection (CIP) - Physical Security
3.6.2. Multi-mission and Maritime Helicopters
Figure 19: Mexican Multi-mission and Maritime Helicopter Market Size (US$ Million), 2019-2024
3.6.3. Corvettes
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited domestic defense capabilities to drive the country’s defense imports
4.1.2. The US, France and the Netherlands are Mexico’s major suppliers
4.1.3. Aircraft and armored vehicles accounted for 83.3% of defense imports
4.2. Export Market Dynamics
4.2.1. Mexico does not export arms due to an underdeveloped domestic arms industry
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of the Supplier: Low
5.1.2. Bargaining Power of the Buyer: Medium
5.1.3. Barriers to Entry: Low
5.1.4. Intensity of Rivalry: Low
5.1.5. Threat of Substitution: Medium to High
6. Market Entry strategy
6.1. Market Regulation
6.1.1. Mexico has not disclosed any offset obligations
6.1.2. Mexico allows 100% FDI in the defense industry
6.2. Market Entry Route
6.2.1. Budgeting process
6.2.2. Procurement Policy and Process
6.2.3. Military collaborations provide virtuous market entry opportunities
6.3. Key Challenges
6.3.1. The completion of military modernization plans, project delays, and cost escalation to limit new projects
6.3.2. Lack of domestic defense technological know-how acts as a deterrent to market entry
6.3.3. Corruption and lack of transparency impedes the growth of Mexico’s defense industry
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Mexican Market Share Analysis, 2019-2024
7.3. Key Domestic Companies
7.3.1. Productos Mendoza: Overview
7.3.2. Productos Mendoza: Products
7.3.3. Aviabaltika de Mexico Company: Overview
7.3.4. Aviabaltika de Mexico Company: Products and Services
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP Per Capita at Constant Prices (US$)
8.1.2. GDP at Current Prices (US$)
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income
8.1.6. LCU per US$ (Period Average)
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies (% of GDP)
8.1.9. Goods Exports (% of GDP)
8.1.10. Goods Imports (% of GDP)
8.1.11. Services Imports (% of GDP)
8.1.12. Services Exports (% of GDP)
8.1.13. Foreign Direct Investment (FDI), net (BoP, current US$ Billion)
8.1.14. Net FDI (% of GDP)
8.1.15. Mining, Manufacturing, Utilities Output
9. Appendix
9.1. About GlobalData
9.2. Disclaimer
List of Tables
Table 1: Mexican Army Strength
Table 2: Mexican Navy Strength
Table 3: Mexican Air Force Strength
Table 4: Mexican Ongoing Development and Procurement Programs (US$ Million)
Table 5: Mexican Future Procurement Programs
Table 6: Top Mexican Defense Procurement Programs by Value (US$ Million), 2019-2024
Table 7: Mexican Defense Expenditure (MXN Billion and US$ Billion), 2015-2024
Table 8: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2015-2024
Table 9: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Table 10: Mexican Defense Capital Expenditure (MXN Billion and US$ Billion), 2015-2024
Table 11: Mexican Per Capita Defense Expenditure (US$), 2015-2024
Table 12: Mexican Homeland Security Expenditure (MXN Billion and US$ Billion), 2015-2024
Table 13: Benchmarking with Key Markets - 2015-2019 vs 2020-2024
Table 14: Top Mexican Defense Sectors by Value (US$ Million), 2019-2024
Table 15: Mexican - Competitive Landscape of Defense Industry, 2019
Table 16: Top Defense Suppliers in Mexican Defense Industry By Value (US$ Million), 2019-2024
Table 17: Productos Mendoza - Products
Table 18: Aviabaltika de Mexico Company - Products and Services
List of Figures
Figure 1: Mexican Defense Budget: 2020 and 2024
Figure 2: Mexican Defense Imports: 2014 and 2018
Figure 3: Mexican Top Prospective Procurements/Developments
Figure 4: Mexican National Security Threats
Figure 5: Mexico’s Partner Countries for Defense Cooperation and Military Training
Figure 6: Mexican Defense Expenditure (MXN Billion), 2015-2024
Figure 7: Mexican Defense Expenditure (US$ Billion), 2015-2024
Figure 8: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2015-2024
Figure 9: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
Figure 10: Mexican Defense Capital Expenditure (MXN Billion), 2015-2024
Figure 11: Mexican Defense Capital Expenditure (US$ Billion), 2015-2024
Figure 12: Mexican Per Capita Defense Expenditure (US$), 2015-2024
Figure 13: Mexican Homeland Security Expenditure (MXN Billion), 2015-2024
Figure 14: Mexican Homeland Security Expenditure (US$ Billion), 2015-2024
Figure 15: Mexico - Benchmarked Against Key Markets (%), 2015-2019 vs 2020-2024
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2019 and 2024
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
Figure 18: Mexican Critical Infrastructure Protection- Physical Security Market Size (US$ Million), 2019-2024
Figure 19: Mexican Multi-mission and Maritime Helicopter Market Size (US$ Million), 2019-2024
Figure 20: Mexican Corvettes Market Size (US$ Million), 2019-2024
Figure 21: Mexican Defense Imports (US$ Million), 2014-2018 (TIV Values*)
Figure 22: Mexican Defense Imports by Country (%), 2014-2018
Figure 23: Mexican Defense Imports by Category (%), 2014-2018
Figure 24: Industry Dynamics Porter’s Five Forces Analysis
Figure 25: Mexican Budgeting Process
Figure 26: Key Challenges in Mexican Defense Market
Figure 27: Mexican Market Share Analysis, 2019-2024
Figure 28: Mexican GDP Per Capita at Constant Prices (US$), 2015-2025
Figure 29: Mexican GDP at Current Prices (US$ Billion), 2015-2025
Figure 30: Mexican Exports of Goods and Services (LCU Trillion), 2005-2014
Figure 31: Mexican Imports of Goods and Services (LCU Trillion), 2005-2014
Figure 32: Mexican Gross National Disposable Income (US$ Billion), 2005-2012
Figure 33: Mexican LCU per US$, 2015-2024
Figure 34: Mexican Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 35: Mexican Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 36: Mexican Goods Exports (% of GDP), 2005-2014
Figure 37: Mexican Goods Imports (% of GDP), 2005-2014
Figure 38: Mexican Services Imports (% of GDP), 2005-2014
Figure 39: Mexican Services Exports (% of GDP), 2005-2014
Figure 40: Mexican FDI, Net (BoP, Current US$ Billion), 2005-2014
Figure 41: Mexican Net FDI (% of GDP), 2005-2014
Figure 42: Mexican Mining, Manufacturing, Utilities Output (LCU Trillion), 2005-2014
