Naperville, IL -- (SBWIRE) -- 06/25/2012 -- Product Synopsis: This report is the result of SDI/ICD Research’s extensive market and company research covering the Chilean defense industry. It 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 Chilean Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) in order to gain market share in the Chilean defense industry.
What is the current market landscape and what is changing?
The Chilean defense market, which registered significant growth during the review period, is expected to retain the growth rate during forecast period. Due to transfer of certain institutions such as Carabineros de Chile and Investigations Police of Chile to the Ministry of Interior and Public Security, the defense expenditure will reduce steeply in 2012. The country’s defense expenditure will continue to be driven by border disputes, military modernization, and international peacekeeping missions. After the steep fall in 2012, defense expenditure as a percentage of GDP is also projected to increase, as a result of the good economic growth.
What are the key drivers behind recent market changes?
Chile is expected to investUS$15.4 billion of its defense expenditure in the fulfillment of its defense requirements. Factors such as border disputes, military modernization, and international peacekeeping missions, are expected to stimulate defense expenditure during the forecast period. The transfer of Carabineros de Chile and Investigations Police of Chile to interior ministry will result in a decline of defense expenditure in 2012. This would result in more thought on development of the Chilean armed forces by the defense department.
What makes this report unique and essential to read?
The Chilean Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas of defense market.
Key Features and Benefits
The report provides detailed analysis of the current chilean defense industry size and growth expectations from 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with its implications and impact on the Chilean 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 Chile. 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
According to CPL, 10% of all export revenues from the state-owned copper company Codelco were automatically transferred each year to the military, for the purpose of purchasing weapons and equipment. During 2006-2009, US$4.2 billion were transferred to the military under the CPL. After the 2010 earthquake, funding from CPL to the military was opposed by the public due to lack of funds for recovery and development funds. According to the new law, the funding from CPL would be transferred to Economic and Social Stabilization Fund (ESSF) for better use by government departments.
The defense imports declined from US$696 million in 2007 to US$323 million in 2011. During the review period, funds from CRL were used to make the procurements of weapons and equipments. However, CRL was removed from 2012 onwards will result to the deficit of funds for more procurement leading to further decrease in imports during the forecast period.
Key Highlights
Chilean defense expenditure, estimated at US$2.5 billion during 2012, grew at a CAGR of 12.62% during the review period. During the forecast period, it is expected to record a CAGR of 11.49% and reach US$3.8 billion by 2016. Over the next five years the country’s defense expenditure is expected to be driven by factors such as border disputes, military modernization, and international peacekeeping missions.
During the review period, aircraft and ships were the main categories in defense imports by Chile. The modernization program for the armed forces and joint training practices for peacekeeping mission will drive the imports of advanced weapons and technologies. Defense imports are expected to remain consistently high during the forecast period.
Companies Mentioned
FAMAEDesarrollo de Tecnologias y Sistemas (DTS)Linktronic Radar SystemsSISDEF Ltda
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