Future of the Peruvian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2021

1 Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. SDI Terrorism Index

1.5. About Strategic Defense Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

3.1. Defense Market Size Historical and Forecast

3.1.1. Defense expenditure to grow at a CAGR of

3.54% over the forecast period

3.1.2. Threat of narco-terrorism, defense reforms & modernization, border disputes, and peacekeeping operations to drive defense expenditure

3.1.3. Defense budget as a percentage of GDP is anticipated to average

1.1% during the forecast period

3.2. Analysis of Defense Budget Allocation

3.2.1. Revenue expenditure accounts for the majority of the Peruvian defense budget

3.2.2. Peruvian defense capital expenditure is expected to grow at a CAGR of

3.93% during the forecast period

3.2.3. Per capita defense expenditure expected to increase during the forecast period

3.3. Homeland Security Market Size and Forecast

3.3.1. Homeland security expenditure is expected to grow at a CAGR of

7.64% during the forecast period

3.3.2. Measures to prevent cocaine trafficking and organized crime to drive HLS expenditure

3.3.3. Peru considered at 'moderate risk' of terrorist attack

3.3.4. Peru experiences moderate levels of terrorist activity

3.3.5. Peru has a SDI terrorism index score of

3.3

3.4. Benchmarking with Key Global Markets

3.4.1. Peruvian defense budget expected to register marginal growth in the forecast period

3.4.2. Peru's military expenditure is limited compared to countries with the largest defense expenditure

3.4.3. Peru allocates a low percentage of GDP to defense

3.5. Market Opportunities: Key Trends and Growth Stimulators

3.5.1. Transport Aircraft

3.5.2. Frigates

3.5.3. Multi-role Aircraft

3.5.4. Training Aircraft

3.5.5. Main Battle Tank

4 Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports expected to increase during the forecast period

4.1.2. Russia to account for the majority of Peru's defense imports during the forecast period

4.1.3. Aircraft and missiles are the most imported military hardware

5 Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of supplier: low to medium

5.1.2. Bargaining power of buyer: medium to high

5.1.3. Barriers to entry: medium

5.1.4. Intensity of rivalry: medium to high

5.1.5. Threat of substitution: medium to high

6 Market Entry Strategy

6.1. Market Regulation

6.1.1. Offset policy aids development of domestic defense industry

6.1.2. Peru allows 100% FDI in defense industry

6.2. Market Entry Route

6.2.1. The country's biennial defense exhibition provides an attractive entry route

6.2.2. Direct selling is the preferred market entry route for foreign OEMs

6.3. Key Challenges

6.3.1. Small defense budget and limited technological capability limits the market entry of foreign companies

6.3.2. Lack of transparency hampers the growth of the Peruvian defense industry

7 Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.2. Key Domestic Companies

7.2.1. Los Servicios Industriales de la Marina (SIMA): overview

7.2.2. Los Servicios Industriales de la Marina (SIMA): products and services

7.2.3. Los Servicios Industriales de la Marina (SIMA): recent announcements and strategic initiatives

7.2.4. Los Servicios Industriales de la Marina (SIMA): alliances

7.2.5. Los Servicios Industriales de la Marina (SIMA): recent contract wins

7.2.6. The Army Ammunition Factory (FAME): overview

7.2.7. The Army Ammunition Factory (FAME): products and services

7.2.8. The Army Ammunition Factory (FAME): recent announcements and strategic initiatives

7.2.9. Desarrollos Industriales Casanave: overview

7.2.10. Desarrollos Industriales Casanave: products and services

7.2.11. Desarrollos Industriales Casanave: recent announcements and strategic initiatives

7.2.12. Desarrollos Industriales Casanave: alliances

8 Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP Per Capita

8.1.2. GDP, Current Prices (US$ Billion)

8.1.3. Exports of goods and services, current prices (LCU billion)

8.1.4. Imports of goods and services, current prices (LCU billion)

8.1.5. Gross National Disposable Income (US$ billion)

8.1.6. Local Currency Unit per US$ (period average)

8.1.7. Market Capitalization of Listed Companies (US$ Billion)

8.1.8. Market Capitalization of Listed Companies (% of GDP)

8.1.9. Government Cash Surplus/ Deficit as % of GDP (LCU)

8.1.10. Goods Exports as % of GDP

8.1.11. Goods Imports as % of GDP

8.1.12. Services Imports as % of GDP

8.1.13. Services Exports as % of GDP

8.1.14. Foreign Direct Investment, net (BoP, current US$ Billion)

8.1.15. Net Foreign Direct Investment, as % of GDP

8.1.16. Mining, Manufacturing, Utilities Output

9 Appendix

9.1. About SDI

9.2. Disclaimer