Mexican homeland security (HLS) expenditure stands at around US$3 Billion in 2018
LONDON, Jan. 18, 2018 /PRNewswire/ -- Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
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Summary
Mexican defense budget values at just over US$5 Billion in 2017, and registered a CAGR of -5.89% during the historic period. Being one of the largest oil and gas exporters in the North 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. As a result, the Mexican defense budget contracted during 2015, 2016 and 2017 by around -8%, -13% and -4%, respectively.
Mexican homeland security (HLS) expenditure stands at around US$3 Billion in 2018 and is expected to grow at a CAGR of more than 8.5% over the forecast period, and is expected to cross US$4.5 Billion in 2022. In early 2013, under the anti-crime strategy, President Enrique Peña Nieto dissolved the Secretariat of Public Security (SSP), the official body that handled internal security. Consequently, the responsibility of internal security has been passed to the Interior Ministry. The need to protect the country from the growing threats of human, weapon, and drug traffickers are expected to drive HLS expenditure over the forecast period.
Moreover, the country's policy on foreign direct investments (FDI) is favorable to foreign companies as it allows 100% FDI in the defense sector. Mexico is also inviting foreign OEMs to invest in the aerospace and defense sector, encouraging foreign OEM's to establish manufacturing and assembly lines within the country. In 1997, Cobham, Plc., a major manufacturer of defense equipment, established a manufacturing facility in Mexico.
The report "Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" 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, this report provides the following -
- The Mexican defense industry market size and drivers: Detailed analysis of the Mexican defense industry during 2018–2022, 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 over the next 10 years.
- 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.
Companies mentioned in this report: Productos Mendoza and AVIABALTIKA Aviation Company
Scope
- Mexico's defense budget stands at US$5.1 billion in 2017, and the country is expected to cumulatively spend US$33.8 billion on its military over the forecast period.The main factors driving this growth are the rapid modernization of the country's armed forces in recent years.
- During 2013-2017, an average of 11.0% of the country's total defense budget was allocated to capital expenditure; while an average of 89.0% was reserved for revenue expenditure.
- This is primarily due to Mexico's future modernization programs. For instance, In April 2016, Mexico placed an US$54.9 million order for the acquisition of highly customized variants of the UH-60M Black Hawk utility helicopters. Similarly, in September 2016, the Mexican Navy took delivery of the first of ten units of Airbus AS565 MBe Panther helicopters, which were ordered in 2014.
- The MoD is expected to invest in corvettes, multi mission helicopter, transport aircraft and corvettes MRO.
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
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