Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction 6

• 1.1. What is this Report About? 6
• 1.2. Definitions 6
• 1.3. Summary Methodology 8
• 1.4. About GlobalData 9

2. Executive Summary 10

3. Market Attractiveness and Emerging Opportunities 11

• 3.1. Current Market Scenario 12
  • 3.1.1. Military Fleet size 12
  • 3.1.2. Procurement Programs 16
  • 3.1.3. Key Drivers and Challenges 17
• 3.2. Defense Market Size Historical and Forecast 18
  • 3.2.1. Mexican defense budget to grow at a forecast-period CAGR of 4.23% 18
  • 3.2.2. The government’s fight against drug trafficking is set to drive defense expenditure over the forecast period 20
  • 3.2.3. Defense budget as a percentage of GDP to remain at an average of 0.46% over the forecast period 21
• 3.3. Analysis of Defense Budget Allocation 23
  • 3.3.1. Capital expenditure will increase over the forecast period 23
  • 3.3.2. Capital expenditure is anticipated to record a forecast-period CAGR of 4.47% 25
  • 3.3.3. Per capita defense expenditure to rise over the forecast period 27
• 3.4. Homeland Security Market Size and Forecast 28
  • 3.4.1. Homeland security will post a forecast-period CAGR of 6.26% 28
  • 3.4.2. Organized crime and money laundering to drive the HLS market 30
  • 3.4.3. Mexico falls under the “moderately affected” category on the terrorism index 31
  • 3.4.4. Mexico faces a moderate threat from terrorist organizations 32
  • 3.4.5. Mexico has a terrorism index score of 3.3 34
• 3.5. Benchmarking with Key Global Markets 35
  • 3.5.1. Mexico’s defense budget expected to increase over the forecast period 35
  • 3.5.2. Mexico’s military expenditure is limited compared to countries with the largest defense expenditures 37
  • 3.5.3. The defense budget as a percentage of GDP is set to decline over the forecast period 38
• 3.6. Market Opportunities: Key Trends and Drivers 39

4. Defense Procurement Market Dynamics 40

• 4.1. Import Market Dynamics 41
  • 4.1.1. Limited domestic defense capabilities to drive the country’s defense imports 41
  • 4.1.2. The US, France and the Netherlands are Mexico’s major suppliers for the Mexico 42
  • 4.1.3. Aircraft and armored vehicles accounted for 88.6% of defense imports 43
• 4.2. Export Market Dynamics 44
  • 4.2.1. Mexico does not export arms due to an underdeveloped domestic arms industry 44

5. Market Entry strategy 45

• 5.1. Market Regulation 45
  • 5.1.1. Mexico has not disclosed any offset obligations 45
  • 5.1.2. Mexico allows 100% FDI in the defense industry 45
• 5.2. Market Entry Route 46
  • 5.2.1. Budgeting process 46
  • 5.2.2. Procurement Policy and Process 47
  • 5.2.3. Military collaborations provide good market entry opportunities 47

6. Competitive Landscape and Strategic Insights 48

• 6.1. Competitive Landscape Overview 48

7. Business Environment and Country Risk 49

• 7.1. Economic Performance 49
  • 7.1.1. GDP Per Capita at Constant Prices (US$) 49
  • 7.1.2. GDP at Current Prices (US$) 50
  • 7.1.3. Exports of Goods and Services 51
  • 7.1.4. Imports of Goods and Services 52
  • 7.1.5. Gross National Disposable Income 53
  • 7.1.6. LCU per US$ (Period Average) 54
  • 7.1.7. Market Capitalization of Listed Companies 55
  • 7.1.8. Market Capitalization of Listed Companies (Percentage of GDP) 56
  • 7.1.9. Goods Exports as a Percentage of GDP 57
  • 7.1.10. Goods Imports as a Percentage of GDP 58
  • 7.1.11. Service Imports as a Percentage of GDP 59
  • 7.1.12. Services Exports as a Percentage of GDP 60
  • 7.1.13. Foreign Direct Investment (FDI), net (BoP, current US$ Billion) 61
  • 7.1.14. Net FDI as a Percentage of GDP 62
  • 7.1.15. Mining, Manufacturing, Utilities Output 63

8. Appendix 64

• 8.1. About GlobalData 64