Mexico Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027

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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.

Mexico Defense Market Size and Trends

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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

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
CAGR (2023-2027) >5%
Forecast Period 2023-2027
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

Scope

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.

Damen Schelde Naval Shipbuilding
Raytheon Technologies
BAE Systems
America Movil SAB DE CV
Maquinaria IGSA Group
Ciateq AC
Honeywell Aerospace de México S.A. de C.V.
SDM Composites

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

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

Funding Opportunities

Trade Associations and Defense Clusters

Types of Contracts and Opportunities

Types of Procurement Procedure

Procurement Policy and Market Regulations

Market Entry Routes

Key Challenges

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

Fleet Size

Competitive Landscape

Defense Companies Operating In Mexico

Main Defense Companies

Appendix

About This Report

About Us

Contact Us

Table

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

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

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