Mexico defense budget is $6.9 billion in 2022. The market is expected to achieve a CAGR of more than 5% during 2023-27. The Mexico 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.
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Mexico Defense Market Drivers
A network of illegal activities, ranging across extensive cartel operations, trafficking, and illegal immigration, runs through Mexico. These threats were the focus of the Merida Initiative, and despite AMLO’s decreasingly militarized approach, ongoing spending in the defense and security sectors will be required.
The increase in drug trafficking and associated violence has compelled the Mexican government to focus on the modernization of its armed forces. The Mexican Air Force initiated “Plan 2030” to better equip the country’s defense forces to combat drug cartels and other related groups.
Military Doctrines and Defense Strategies in Mexico
The Mexican Armed Forces comprise the Secretary of National Defense (SEDENA), which is responsible for the air force and army, and the Secretariat of the Navy (SEMAR). SEDENA’s military doctrine revolves around the protection of the independence and sovereignty of Mexico and guaranteeing the internal stability and security of the state. SEDENA is also responsible for protecting civilians in times of public need or disaster. SEMAR’s doctrine largely reflects that of SEDENA but has a greater focus on upholding security by maintaining the rule of law in marine areas.
One of Mexico’s primary military strategies revolves around countering illegal drug trafficking and the associated cartel presence. This involves trying to reduce violence, intercepting cartel operations, and destroying drugs and plantations.
Both SEDENA and SEMAR forces attempt to regulate Mexico’s borders and prevent illegal movements across them. This includes manning border stations, patrolling land borders and marine border areas, and carrying out surveillance missions.
Key Sectors in the Mexico Defense Market
Naval vessels and surface combatants, military ammunitions, and tactical communications are the most attractive sectors in the market. Other prominent sectors include missile and missile defense systems, military radar, underwater warfare systems, EOIR systems, artillery, military simulation and training, electronic warfare systems, INS GNSS, and body armor and personal protection.
Mexico Defense Market Outlook, by Sectors
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Key Companies in the Mexico Defense Market
Some of the key companies in the Mexico defense market are America Movil SAB DE CV, Maquinaria IGSA Group, Ciateq AC, Honeywell Aerospace de México, S.A. de C.V., SDM Composites, Aernnova Aerospace SA, Air France Industries KLM Engineering and Maintenance, Airbus SE, Aircraft Industries AS, and Arotech Corp.
Mexico Defense Market Report Overview
|Market Size (2022)||$6.9 billion|
|Key Sectors||Naval Vessels and Surface Combatants, Military Ammunitions, Tactical Communications, Missile and Missile Defense Systems, Military Radar, Underwater Warfare Systems, EOIR Systems, Artillery, Military Simulation and Training, Electronic Warfare Systems, INS GNSS, and Body Armor and Personal Protection|
|Key Companies||America Movil SAB DE CV, Maquinaria IGSA Group, Ciateq AC, Honeywell Aerospace de México, S.A. de C.V., SDM Composites, Aernnova Aerospace SA, Air France Industries KLM Engineering and Maintenance, Airbus SE, Aircraft Industries AS, and Arotech Corp|
This report provides:
- Detailed analysis of the Mexican 2022 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
- Explanation of the procurement policy and process. This is coupled with an analysis of the Mexican military doctrine and strategy to provide a comprehensive overview of Mexican military regulation.
- Examination of political alliances and perceived security threats to Mexico. They help to explain trends in spending and modernization.
- Analysis of prevalent trends in the country’s imports and exports over the last five years.
- Analysis of the competitive landscape of Mexico’s defense industry.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the Mexican defense market over the next five years.
- Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Mexican 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 the Mexican defense 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 Mexican government.
- Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.
America Movil SAB DE CV
Maquinaria IGSA Group
Honeywell Aerospace de México S.A. de C.V.
Table of Contents
Table of Contents
Defense Budget Assessment
Defense Market Size Historic And Forecast
Drivers Of Defense Expenditure
Analysis Of Defense Budget Allocation
Military Doctrine And Security Environment
Military Doctrine And Strategy
Political And Strategic Alliances
Market Entry Strategy And Regulations
Defense Procurement Bodies
Trade Associations and Defense Clusters
Types of Contracts and Opportunities
Types of Procurement Procedure
Procurement Policy and Market Regulations
Market Entry Routes
Major Deals and MandA
Market Attractiveness And Emerging Opportunities
Market Attractiveness, 2022-27
Top Defense Segments By Value
Import And Export Market Dynamics
Import Market Dynamics
Export Market Dynamics
Defense Platform Acquisitions
Defense Platform Acquisitions By Value
POLA-101 Long Range Ocean Patrol Ships
Defense Companies Operating In Mexico
Main Defense Companies
About This Report
List of Tables
List of Tables
Table1: Mexico – Ongoing Development and Procurement Programs
Table 2: Mexican Future Procurement Programs
Table 3: Top Mexican Defense Procurement Programs by Value (US$ Million), 2020-2025
Table 4: Mexican Defense Expenditure (MXN Billion and US$ Billion), 2016-2025
Table 5: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2016-2025
Table 6: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Table 7: Mexican Defense Capital Expenditure (MXN Billion and US$ Billion), 2016-2025
Table 8: Mexican Per Capita Defense Expenditure (US$), 2016-2025
Table 9: Mexican Homeland Security Expenditure (MXN Billion and US$ Billion), 2016-2025
Table 10: Benchmarking with Key Markets – 2016-2020 vs2021-2025
Table 11: Top Mexican Defense Sectors by Value (US$ Million), 2020-2025
Table 12: Mexican – Competitive Landscape of Defense Industry, 2020
Table 13: Productos Mendoza – Products
Table 14: Aviabaltika de Mexico Company – Products and Services
List of Figures
List of Figures
Figure 1: Mexican Defense Budget: 2021 and 2025
Figure 2: Mexican Defense Imports: 2015 and 2019
Figure 3: Mexican Top Prospective Procurements/Developments
Figure 4: Mexican National Security Threats
Figure 5: Mexico’s Partner Countries for Defense Cooperation and Military Training
Figure 6: Mexican Defense Expenditure (MXN Billion), 2016-2025
Figure 7: Mexican Defense Expenditure (US$ Billion), 2016-2025
Figure 8: Mexican GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2016-2025
Figure 9: Mexican Defense Budget Split Between Capital and Revenue Expenditure (%), 2016-2025
Figure 10: Mexican Defense Capital Expenditure (MXN Billion), 2016-2025
Figure 11: MexicanDefense Capital Expenditure (US$ Billion), 2016-2025
Figure 12: Mexican Per Capita Defense Expenditure (US$), 2016-2025
Figure 13: Mexican Homeland Security Expenditure (MXN Billion), 2016-2025
Figure 14: Mexican Homeland Security Expenditure (US$ Billion), 2016-2025
Figure 15: Mexico – Benchmarked Against Key Markets (%), 2016-2020 vs2021-2025
Figure 16: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2020 and 2025
Figure 17: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2020
Figure 18: Mexican Defense Imports (US$ Million), 2015-2019 (TIV Values*)
Figure 19: Mexican Defense Imports by Country (%), 2015-2019
Figure 20: Mexican Defense Imports by Category (%), 2015-2019
Figure 21: Industry Dynamics Porter’s Five Forces Analysis
Figure 22: Mexican Budgeting Process
Figure 23: Key Challenges in Mexican Defense Market
Figure 24: Real GDP Growth, 2016-2025
Figure 25: Nominal GDP Per Capita (US$), 2016-2025
Figure 26: Consumer Price Inflation (%), 2016-2025
Figure 27: Unemployment Rate, 2016-2025
Figure 28: Mexican Public Sector Finances: Budget Surplus/Deficit (% of GDP), 2016-2025
Frequently Asked Questions
The defense budget of Mexico is $6.9 billion in 2022.
The Mexico defense market is expected to achieve a CAGR of more than 5% during 2023-27.
The key sectors in the Mexico defense market are naval vessels and surface combatants, military ammunitions, tactical communications, missile and missile defense systems, military radar, underwater warfare systems, EOIR systems, artillery, military simulation and training, electronic warfare systems, INS GNSS, and body armor and personal protection.
Some of the key companies in the Mexico defense market are America Movil SAB DE CV, Maquinaria IGSA Group, Ciateq AC, Honeywell Aerospace de México, S.A. de C.V., SDM Composites, Aernnova Aerospace SA, Air France Industries KLM Engineering and Maintenance, Airbus SE, Aircraft Industries AS, and Arotech Corp
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