Wednesday, September 11, 2013

Market Overview: Future of the Colombian Defense Market Forecasts Industry to 2018



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

Product Synopsis

This report is the result of SDI's extensive market and company research covering the Colombian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.


Introduction and Landscape

Why was the report written?

The Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Colombian defense industry.

What is the current market landscape and what is changing?

The Colombian defense industry is expected to register strong growth in the next five years due to the rise of both external and internal security threats. The significant reasons behind the rise of military expenditure are the threats from Venezuela and rebel forces to internal security and the fight against drug trafficking. This increase is required for the purchase of helicopters, battle tanks, UAVs, and air defense systems as, even though the country allocated an average of 4.4% of its GDP for defense during the review period, the majority of the budget was allocated to revenue expenditure.

What are the key drivers behind recent market changes?

Threat from Venezuela, high crime levels, military modernization, threats from rebel groups, and drug trafficking set to increase defense expenditure

What makes this report unique and essential to read?

The Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.

Key Features and Benefits

  • The report provides detailed analysis of the current industry size and growth expectations from 2014to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
  • The report includes trend analysis of imports and exports, together with their implications and impact on the Colombian defense industry.
  • The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
  • The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
  • The report helps the reader to understand the competitive landscape of the defense industry in Colombia. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

To Buy The Copy of This Report Visit: http://www.marketresearchreports.biz/analysis/174231

Key Market Issues

  • Recently, the Colombian MoD acknowledged that cocaine smugglers and leftist rebels had infiltrated senior levels of the Colombian Army, impeding efforts to defeat guerrilla organizations and combat the drug trade. The Army discovered classified military information in computer files of guerrillas from the FARC rebel group, which led the MoD to believe senior military officials may be sharing information in exchange for bribes. In another incident, Diego Montoya, who is the perceived head of the Norte del Valle cartel and has been accused of exporting hundreds of tons of cocaine to the US, is believed to have recruited Army officers to provide him with protection and help his brother, Eugenio Montoya, to escape from a high-security prison.
  • The total Colombian defense budget was US$6.8 billion in 2013, of which only US$1.2 billion was allocated for capital expenditure purposes. Currently, domestic defense firms meet the majority of defense requirements in the low technology area, while foreign procurement is undertaken when the adequate sophistication and technology is not available in the domestic market. Many foreign OEMs consider such a low level of defense expenditure as an unfavorable condition in which to enter the Colombian defense industry. Furthermore, the Colombian government does not currently allow foreign investment in its defense industry, which further prevents foreign OEMs from entering the industry.

For More Information Defense And Security Market Research Reports @ :

Key Highlights

  • Threat from Venezuela: Following the independence of Colombia and its neighbor Venezuela in the 19th century, problems with border security up until the late 1980s triggered serious diplomatic conflicts and overshadowed important bilateral trade. Colombia's relations with Venezuela underwent a substantial change in the 1990s, when both countries began to perceive the other as a threat. During the last decade, under the leadership of the Venezuelan president, Hugo Chavez, and Colombian president, Álvaro Uribe, political and diplomatic relations between the two countries ranged between periods of mutual understanding and tension. Colombia's close relationship with the US also triggered distrust between Colombia and Venezuela. In 2009, the US and Colombia signed a 10-year bilateral defense agreement, which gave the US increased access to seven military bases in Colombia for counter-narcotics and counter-terrorism co-operation. However, Venezuela claims that the US intends to use Colombia as a strategic platform to potentially invade Venezuela. Finally, in July 2010, Venezuela broke off diplomatic relations with Colombia soon after President Uribe accused Venezuela of harboring 1,500 leftist Colombian rebels in its territory, a charge Venezuela strongly denied. Venezuela and Colombia agreed to restore diplomatic relations the following August, and increase security along the shared border to prevent Marxist guerrillas and drug traffickers from mounting attacks or hiding in dense jungle. However, this was viewed as a temporary solution, rather than a long-term peace agreement.
  • High crime levels: In addition to the external threat from Venezuela, Colombia suffers from a high threat level of indigenous terrorism and crime, and has the highest homicide rate in the world. Although the security situation has improved in most urban areas in recent years, compared to the situation a decade ago, crimes such as muggings, assaults, burglaries, theft, and credit card fraud all remain major problems. Despite the government's efforts to ensure internal security during the last 10 years, several criminal groups still operate in Colombia such as Rastrojos, ERPAC, Paisas, Oficina de Envigado, Urabeños, and El Loco. These criminal groups are involved in drug production and its illicit trade, arms trafficking, money laundering, kidnapping, and extortion.
  • The Colombian defense industry is underdeveloped and, therefore, has limited manufacturing and technological capabilities. Indeed, most of the country's defense requirements are met through imports, as the majority of domestic firms cater to low-end defense equipment. In 2013, the Colombian government was planning to develop its domestic defense industry as a source of revenue. However, although the Colombian government has recognized this challenge, it is expected that significant time will be needed to adequately develop the domestic defense industry to be capable of competing with foreign OEMs. Moreover, the country does not have a large number of defense companies that could collectively engage in research and development, or a significant defense research organization under the MoD. Without an established defense industry, the majority of the country's defense requirements will be fulfilled by imports over the forecast period. With the country planning to modernize its military, imports are expected in the areas of military hardware including aircraft, armored vehicles and small arms.

About Us
Marketresearchreports.biz is the most comprehensive collection of market research reports. Marketresearchreports.biz services are especially designed to save time and money of our clients. We are a one stop solution for all your research needs, our main offerings are syndicated research reports, custom research, subscription access and consulting services. We serve all sizes and types of companies spanning across various industries.
With a team of experienced consultants we are committed to serve our clients in a way which increase their efficiency, reduce costs and saves time. Our professional search engine helps you in finding the best and latest market research report with just one click of the mouse. Our database represents the most updates and latest market research report collections form all the leading market research publishers across the globe

Contact

M/s Sheela
90 Sate Street, Suite 700
Albany, NY 12207
USA – Canada Toll Free: 866-997-4948

No comments:

Post a Comment