Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024

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