Summary
Colombia’s drive towards economic prosperity, which was stifled by internal insurgencies from FARC (Revolutionary Armed Forces of Colombia) and ELN (National Liberation Army), is steadily returning to normalcy. The country successfully ended a five decade old conflict with FARC rebels in 2017; the justice deal between FARC and the government will alleviate pressure from the country.

The Colombian defense industry is expected to register steady growth over the next five years due to the rise of both external and internal security threats, along with the stabilization of the economy. Valued at US$11.1 billion in 2018, defense expenditure will increase at a CAGR of 5.69%.

The reasons behind the rise of military expenditure are the threats from Venezuela over political issues, internal insurgencies rising in the rebel forces, and the ongoing fight against drug trafficking. Increased defense expenditure is expected to be used for the purchase of helicopters, main battle tanks, UAVs, and air defense systems.

Although the country allocated an average of 1.8% of its GDP to defense; it is expected to allocate an average of 4.6% of its total defense budget to capital expenditure and the remaining 95.4% for revenue expenses. The share of capital expenditure is expected to decrease to an average of 3.3% of the country’s defense budget over the forecast period, with the remaining 96.7% being allocated to operating expenditure or revenue expenditure.

Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, 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 Colombian 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 Colombian defense industry market size and drivers: detailed analysis of the Colombian defense industry during 2019–2023, 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 Colombian 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 Colombian 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 - Industria Militar, Sudamin S.A, Cotecmar and Bell

Scope

  • The Colombian defense industry is expected to register steady growth over the next five years due to the rise of both external and internal security threats, along with the stabilization of the economy. Valued at US$11.1 billion in 2018.
  • During the historic period, Colombia allocated an average of 4.6% of its total defense budget to capital expenditure and the remaining 95.4% for revenue expenses. The share of capital expenditure is expected to decrease to an average of 3.3% of the country’s defense budget over the forecast period, with the remaining 96.7% being allocated to operating expenditure or revenue expenditure.
  • The MoD is expected to invest in Land-based physical security of critical infrastructure, frigates and land based C4ISR.


Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Colombian 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 Colombian defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts