Brazil Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028
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Brazil Defense Market Report Overview
The Brazil defense budget is estimated to be $23.8 billion in 2023 and is expected to achieve a CAGR of more than 4% during 2024-2028. Severe economic crisis led to sluggish economic growth even before the pandemic hit Brazil, this led to cuts throughout the historic period, particularly in 2020 to divert funds toward the healthcare sector, which was reeling under the pressure of COVID-19’s effects. With the Brazilian economy steadily recovering, it is anticipated that a greater allocation of funds will be set aside for the defense sector over the forecast period. It is forecast that the defense budget will increase at a CAGR of more than 4% by 2028.
Brazil Defense Market Outlook, 2023-2028 ($ Billion)
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The Brazil defense market research report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.
Market Size (2023) | $23.8 billion |
CAGR (2024-2028) | >4% |
Forecast Period | 2024-2028 |
Historic Period | 2019–2023 |
Key Sectors | · Naval Vessels and Surface Combatants
· Missiles and Missile Defense Systems · Military Fixed-Wing Aircraft · Tactical Communications Systems · Military Simulation and Training · EOIR · Military Radar · INS GNSS |
Leading Companies | · Iveco Defense Vehicles
· Saab AB · Naval Group · Embraer · Helibras |
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Brazil Defense Market Drivers
The drug trafficking and organized crime and the modernization of the armed forces is one of the key factors driving Brazil’s defense market. Armed gangs pose a serious state security threat, especially against the police. These gangs control the slum areas in the country’s major cities and are heavily armed. Time and again, the government has resorted to temporary military interventions to curb the rising gang crime rate.
Programs such as the submarine development program (PROSUB), the navy nuclear program (PNM), SIVAM/SIPAM Amazon surveillance system projects, and SiMCosta coastal surveillance system project, among others, are being undertaken to strengthen Brazil’s stance against internal and external threats.
Brazil Military Doctrines and Defense Strategies
Brazil traditionally aligned with the West during the Cold War and continues to be an important strategic ally of the US in the region. Brazil is a founding member of the 1947 Inter-American Treaty of Reciprocal Assistance, also known as the Rio Treaty. Brazil, the US, Argentina, the Bahamas, Chile, Colombia, Panama, Costa Rica, the Dominican Republic, El Salvador, Haiti, Guatemala, Uruguay, Peru, Paraguay, Honduras, and Trinidad and Tobago are signatories to the Rio Treaty, which specifies that any assault on an American country will be deemed as an assault against all the American countries and allows for each and every American country to undertake specific measures to help counter the assault.
Brazil originally signed a Defense Cooperation Agreement (DCA) with the US in the 1950s. Brazil withdrew from the DCA in the 1970s over differences with the Carter administration over its criticism of Brazil’s human rights record, but the country signed a new DCA agreement with the US in 2010, which was approved in 2015., Under the leadership of the former soldier president, Jair Bolsonaro, Brazil adopted a more proactive strategy regarding military modernization and engaged in extensive dialogue to foster a closer military-to-military relationship between the two countries over the last two years. However, as of 2023, the Bolsonaro administration lost the election, and former president Luiz Inácio Lula da Silva was elected to the office once again.
Brazil Defense Market Segmentation by Sectors
The key sectors in the Brazil defense market are naval vessels and surface combatants, missiles and missile defense systems, military fixed-wing aircraft, tactical communications systems, military land vehicles, military simulation, and training, EOIR, military radar, and INS GNSS among others. Military fixed-wing aircraft is the leading sector in the defense market of Brazil. The submarine is the second-most attractive sector in the Brazilian market. With the Brazilian armed forces undergoing a major modernization program, many active and planned projects related to the Submarine are ongoing, as defined under the National Defence White Paper.
Brazil Defense Market Analysis by Sectors, 2023 (%)
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Brazil Defense Market - Competitive Landscape
Some of the leading defense companies in Brazil are Iveco Defense Vehicles, Saab AB, Naval Group, Embraer, and Helibras among others.
Segments Covered in the Report
Brazil Defense Sectors Outlook (Value, US$ Billion, 2019-2028)
- Naval Vessels and Surface Combatants
- Missiles and Missile Defense Systems
- Military Fixed-Wing Aircraft
- Tactical Communications Systems
- Military Land Vehicles
- Military Simulation and Training
- EOIR
- Military Radar
- INS GNSS
Scope
This report offers a detailed analysis of Brazil’s defense market 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 –
- Brazil defense budget: detailed analysis of Brazil’s 2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
- Regulation: the procurement policy and process is explained. This is coupled with an analysis of Brazil’s military doctrine and strategy to provide a comprehensive overview of Brazil’s military procurement regulation.
- Security Environment: political alliances and perceived security threats to Brazil are examined; there help to explain trends in spending and modernization.
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Competitive landscape and strategic insights: analysis of the competitive landscape of Brazil’s defense industry.
Key Highlights
• In 2023, the defense budget of Brazil reached $23.8 billion, reflecting a negative compound annual growth rate (CAGR) of -4.3% during the historical period. However, as the Brazilian economy shows signs of steady recovery, it is expected that a larger portion of funds will be allocated to the defense sector in the projected timeframe. It is forecasted that the defense budget will rise from $25.2 billion in 2024 to $29.9 billion in 2028, exhibiting a positive CAGR of 4.4%.
• The primary reasons attributed to this gradual increase in the defense budget stem from the need to better control organized crime, cross-border drug trafficking, and arms smuggling, as well as to accommodate the armed forces’ modernization plans. •Programs such as the submarine development program (PROSUB), the navy nuclear program (PNM), SIVAM/SIPAM amazon surveillance system projects, and SiMCosta coastal surveillance system project, among others, are being undertaken to strengthen Brazil’s stance against internal and external threats.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of Brazil’s defence market over the next five years
- Gain an in-depth understanding of the underlying factors driving demand for different defence and internal security segments in the Brazil market and identify the opportunities offered.
- Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others
- Identify the major threats that are driving Brazil’s defence market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion
- Channel resources by focusing on the ongoing programs that are being undertaken by the Brazil government
- Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defence equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available
Helibras
Embraer
Table of Contents
Frequently asked questions
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What is the Brazil's defense budget in 2023?
The defense market size in Brazil is estimated to be $23.8 billion in 2023.
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What is the growth rate of Brazil defense sector?
The defense sector in Brazil is expected to achieve a CAGR of more than 4% during 2024-2028.
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Which are the key drivers supporting the growth of Brazil defense sector?
Drug trafficking & organized crime and the modernization of the armed forces are some of the factors driving Brazil’s defense sector.
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Which sector accounted for the largest share in the Brazil defense market?
The military fixed-wing aircraft is the largest sector in Brazil in 2023.
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Who are the major players operating in the Brazil defense market?
Some of the leading defense companies in Brazil are Iveco Defense Vehicles, Saab AB, Naval Group, Embraer, and Helibras among others.
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