subject: The Colombian Defense Sector Market Opportunities And Entry Strategies, Analyses And Forecasts [print this page] Summary Summary
This report offers insights into the market opportunities and entry strategies adopted by foreign OEMs
(original equipment manufacturers) to gain a market share in the Colombiandefense industry. In
particular, it offers in-depth analysis of the following:
Market opportunity and attractiveness: detailed analysis of the current industry size and
growth expectations during 20102015, including highlights of the key growth stimulators. It also
benchmarks the industry against key global markets and provides detailed understanding of
emerging opportunities in specific areas.
Procurement dynamics: trend analysis of imports and exports, together with its implications and impact on the Colombian defense industry.
Industry structure: five forces analysis to identify various power centers in the industry and how these are likely to develop in the future.
Market entry strategy: analysis of possible ways to enter the market, together with detailed descriptions of how existing players have entered the market, including key contracts, alliances, and strategic initiatives.
Competitive landscape and strategic insights: analysis of competitive landscape of the defense industry in Colombia. 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.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and
availability, labor force, demographics, and political and social risk.
Scope
analysis of Defense industry market size from 2004 through 2009 and forecasts till 2015
analysis of defense budget allocation
Benchmarking with key global markets
Market opportunities
Defense procurement dynamics
Industry dynamics
Market entry strategy
Competitive landscape and strategic insights
Business environment and country risk
Reasons To Buy
Gain insight into Colombian defense industry with current, historic and forecast market values
Get insight on market opportunity and attractiveness
Get insight on industry procurement dynamics
Gain insight on industry structure
Gain insight into the regulations governing the Colombian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Colombian defense industry along with profiles of all those companies
Key Highlights
The defense expenditure of Colombia recorded a CAGR of 17.22% during the review period. However, due to economic recession, the defense expenditure of the country is expected to grow at a slower CAGR of 9.95% over the forecast period. The defense expenditure of Colombia is primarily driven by external factors such as the threat and military buildup of Venezuela, internal factors such as the threat from rebel groups, Revolutionary Armed Forces of Colombia (FARC) and the National Liberation Army (ELN), and the fight against drug trafficking and related crime. The governments military modernization program, which is now underway, has also moderately increased the defense expenditure of Colombia, despite the financial constraints associated with economic recession.
The country allocates a major portion of its defense budget for revenue expenditure. During the review period, the average allocation for revenue expenditure was 88% of the total defense budget, with the remaining 12% allocated for capital expenditure. This distribution is not expected to change considerably in the next five years, as the government has not announced any significant procurement during the forecast period. Colombias defense expenditure also funds the police force. During the review period, police force received, on average, a 23% share of the defense budget.
Keywords
Defense, Colombia,Industria Militar, Sudamin Aeronautica y Defensa S.A, Cotecmar
Table of Contents :
1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Intelligence Terrorism Index
1.5 About ICD Research Defense Intelligence Center
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Industry Size Review and Forecast
3.1.1 Colombian defense expenditure expected to reach US$18.98 billion by 2015
3.1.2 Threat from Venezuela, high crime levels, military modernization, threats from rebel groups and drug trafficking set to increase defense expenditure
3.1.3 Defense expenditure as a percentage of GDP expected to rise to 5.1% by 2015
3.2 Analysis of Defense Budget Allocation
3.2.1 Majority of defense budget allocated for revenue expenditure
3.2.2 Police and other defense expenses account for majority of defense budget
3.2.3 Budget allocation for army higher than remaining military divisions
3.2.4 Navy receives limited defense budget allocation
3.2.5 Government plans substantial investment in air force to boost air power
3.2.6 Police force receives a quarter of the total defense budget
3.2.7 Other expenses account for majority of defense budget
3.3 Homeland Security Market Size - Review and Forecast
3.3.1 Colombian HLS market to grow steadily over 201115
3.3.2 Internal security challenges expected to increase homeland security expenditure
3.3.3 ICD Research Intelligence Terrorism Index rates Colombia to be a highly affected region
3.3.4 Columbia scores 2.2 on the terrorism index
3.4 Benchmarking with Key Global Markets
3.4.1 Colombian defense expenditure forecast to grow faster than the majority of largest global defense budgets
3.4.2 Colombian defense expenditure is one of the highest in South America
3.4.3 Colombia spends more than 4% of its GDP on defense
3.4.4 Colombia is highly affected by acts of terrorism
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Increased demand for medium-lift utility helicopters expected in the next two years
3.5.2 Lack of battle tanks to lead to new army procurement
3.5.3 UAV procurement will increase as a part of the military modernization program
3.5.4 US$3 billion proposal to enhance air defense systems will create new opportunities
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Limitations of the domestic defense industry will support arms imports
4.1.2 Defense imports have grown significantly over the last five years
4.1.3 US and Israel continue to be major arms suppliers
4.1.4 Aircraft account for majority of defense imports
4.2 Export Market Dynamics
4.2.1 Colombia is not a major defense exporting country
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: high to medium
5.1.3 Barrier to entry: low to high
5.1.4 Intensity of rivalry: low
5.1.5 Threat of substitution: medium
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Offset guidelines are channeled to benefit industrial and social sectors
6.1.2 FDI in defense sector is closed
6.2 Market Entry Route
6.2.1 Direct selling is the preferred market entry route for foreign OEMs
6.3 Key Challenges
6.3.1 Corruption, bribery and influence of anti-state elements damages the credibility of military
6.3.2 Low capital expenditure discourages both foreign and domestic firms
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Public Sector Company
7.2.1 Industria Militar: overview
7.2.2 Industria Militar: products and services
7.2.3 Industria Militar: recent announcements and strategic initiatives
7.2.4 Industria Militar: alliances
7.2.5 Industria Militar: recent contract wins
7.2.6 Industria Militar: financial analysis
7.3 Key Private Sector Company
7.3.1 Sudamin Aeronautica y Defensa S.A.: overview
7.3.2 Sudamin Aeronautica y Defensa S.A.: products and services
7.3.3 Sudamin Aeronautica y Defensa S.A.: recent announcements and strategic initiatives
7.3.4 Sudamin Aeronautica y Defensa S.A.: alliances
7.3.5 Sudamin Aeronautica y Defensa S.A.: recent contract wins
7.3.6 Sudamin Aeronautica y Defensa S.A.: financial analysis
7.3.7 Cotecmar: overview
7.3.8 Cotecmar: products and services http://www.cotecmar.com/pagina1/english.htm
7.3.9 Cotecmar: recent announcements and strategic initiatives
