Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018

With a defense budget of US$6.5 billion in 2013, Mexico is expected to cumulatively spend a US$42 billion on its military during 2013-2018. The country's military expenditure is estimated to grow at a CAGR of 11.2% to reach US$10.28 billion in 2018, compared to 10.1% CAGR recorded during the review period. For more information visit: Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018

As the Mexican domestic defense industrial base is limited, the nation is dependent on foreign sources of arms to fulfill its military requirements. As the country lacks a formal offset obligation for arms procurement, foreign OEMs aren't incentivized to set up a branch or subsidiary in Mexico and prefer direct sales when entering the industry, which was evidenced by the EADS contract from the Mexican Air Force to provide CN-235-300M Persuader maritime patrol aircraft; likewise, Textron Marine and Land Systems also won an order to deliver six Motor Lifeboats to the Mexican Navy in 2008.

The Mexican MoD is exploring options to strengthen its ties with various countries such as the US, France, China, Spain, and Israel in terms of technology or product development. This initiative has opened up defense collaborations as another option for foreign companies to enter the Mexican defense market. In 2009, Eurocopter, an EADS company, announced plans to install a US$700 million assembly facility in Mexico, and in turn, the Mexican government agreed to buy six EC 725 multipurpose helicopters made by Eurocopter, worth US$300 million. The package also included training for Mexican military personnel along with surveillance and reconnaissance electronic equipment. The government is also expected to acquire more Cougar helicopters and AS565 Panthers from EADS.

Spain emerged as the largest supplier of military hardware to Mexico with a share of 34% of total defense imports, followed by US with 32%, and France with 12%. This was a result of Mexico's acquisition of aircraft and aircraft parts from Spain in 2009 and 2010 and the purchase of sensors, engines, and aircraft from the US, which resulted in the US becoming the second largest exporter of arms to Mexico during the review period. Other important import partners of Mexico's defense industry are Italy, Canada, and Russia.

Spanning over 105 pages, 29 tables and 72 figures, “Future of the Mexican Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018” report presents an in-depth assessment of the Mexican defense industry from 2013 till 2018.

In addition to covering the market opportunities, market dynamics, industry dynamics, market entry strategies, competitive landscape and business environment, the report also presents comprehensive forecasts for the market from 2013 till 2018. The report covers 2 key industry players Productos Mendoza and Aviabaltika de Mexico Company. Browse more: Defense Market Research Reports