1 Introduction
1.1 About this Report
1.2 Definitions
1.3 Methodology
1.3.1 Secondary research
1.3.2 Primary research
1.3.3 Conventions
1.4 ICD Research Intelligence Terrorism Index
1.5 About ICD Research Defense Intelligence Center
1.6 About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size and Forecast
3.1.1 Peruvian defense expenditure expected to register negative growth during the forecast period
3.1.2 Threat from the shining path group, modernization, border disputes, peacekeeping and an arms race with neighboring countries to drive defense expenditure in the forecast period
3.1.3 Defense expenditure as a percentage of Gross Domestic Product (GDP) likely to increase marginally 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
3.2.3 Per capita defense expenditure expected to decline during the forecast period
3.2.4 Other expenditures account for the majority of the Peruvian defense budget
3.2.5 Budget allocation for the army higher than the navy and the air force
3.2.6 Defense budget allocation for the navy expected to be the lowest
3.2.7 Defense budget allocation for the Air Force expected to increase
3.2.8 Other expenses expected to decrease during the forecast period
3.3 HLS Market Size and Forecast
3.3.1 HLS budget projected to increase in the forecast period
3.3.2 Cocaine trafficking and organized crime to drive HLS market
3.3.3 Peru considered at ‘some risk’ of terrorist attack
3.3.4 Peru experienced low levels of terrorist activity during the review period
3.4 Benchmarking with Key Global Markets
3.4.1 Peru’s defense budget expected to register marginal decline 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 Increased demand for main battle tanks expected
3.5.2 The need to combat drug trafficking, illegal logging and exploitation of natural resources will drive demand for surveillance equipment
3.5.3 Threat from the Shining Path group to generate demand for precise ammunition, unmanned aerial vehicles (UAVs), assault rifles and other combat equipment
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Limited capability of domestic defense market drives imports
4.1.2 Defense imports expected to increase marginally during the forecast period
4.1.3 Italy accounted for the majority of Peru’s defense imports during the review period
4.1.4 Ships, 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: high
5.1.3 Barriers to entry: medium
5.1.4 Intensity of rivalry: low to high
5.1.5 Threat of substitution: low 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 Los Servicios Industriales de la Marina (SIMA): financial analysis
7.2.7 The Army Ammunition Factory (FAME): overview
7.2.8 The Army Ammunition Factory (FAME): products and services
7.2.9 The Army Ammunition Factory (FAME): recent announcements and strategic initiatives
7.2.10 The Army Ammunition Factory (FAME): alliances
7.2.11 The Army Ammunition Factory (FAME): recent contract wins
7.2.12 The Army Ammunition Factory (FAME): financial analysis
7.2.13 Desarrollos Industriales Casanave: overview
7.2.14 Desarrollos Industriales Casanave: products and services
7.2.15 Desarrollos Industriales Casanave: recent announcements and strategic initiatives
7.2.16 Desarrollos Industriales Casanave: alliances
7.2.17 Desarrollos Industriales Casanave: recent contract wins
7.2.18 Desarrollos Industriales Casanave: financial analysis
8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 Market capitalization trend – Lima stock exchange, Peru
8.1.2 FDI inflows by sector
8.1.3 Deployment of Credit by Sector
8.2 Economic Performance
8.2.1 GDP at constant prices (US dollars)
8.2.2 GDP per capita at constant prices (US dollars)
8.2.3 GDP at current prices (US dollars)
8.2.4 GDP per capita at current prices (US dollar)
8.2.5 GDP split by industry
8.2.6 Agriculture net output at current prices (Peruvian nuevo sol)
8.2.7 Agriculture net output at current prices (US dollars)
8.2.8 Agriculture net output at current prices as a percentage of GDP
8.2.9 Manufacturing net output at current prices (Peruvian nuevo sol)
8.2.10 Manufacturing net output at current prices (US dollars)
8.2.11 Manufacturing net output at current prices as a percentage of GDP
8.2.12 Mining, manufacturing and utilities net output at current prices (Peruvian nuevo sol)
8.2.13 Mining, manufacturing and utilities at current prices (US dollars)
8.2.14 Mining, manufacturing and utilities at current prices as a percentage of GDP
8.2.15 Construction net output at current prices (Peruvian nuevo sol)
8.2.16 Construction net output at current prices (US dollar)
8.2.17 Construction net output at current prices as a percentage of GDP
8.2.18 Crude steel production
8.2.19 Crude oil consumption
8.2.20 Inflation rate
8.2.21 Current account balance as a percentage of GDP
8.2.22 Exports as a percentage of GDP
8.2.23 Imports as a percentage of GDP
8.2.24 Exports growth
8.2.25 Imports growth
8.2.26 External debt as a percentage of GDP
8.2.27 Annual average exchange rate US$–PEN
8.2.28 End of period exchange rate US$–PEN
8.3 Infrastructure Quality and Availability
8.3.1 Total airports and sea ports
8.3.2 Railways and roadways
8.3.3 Automotive components export trends
8.3.4 Automotive products import trends
8.3.5 Passenger car penetration
8.3.6 Total installed capacity for electricity generation
8.3.7 Installed capacity for the generation of conventional thermal electricity
8.3.8 Electricity production
8.3.9 Installed capacity for the generation of hydro-electricity
8.3.10 Installed capacity for renewable electricity generation
8.3.11 Electricity consumption
8.3.13 Healthcare expenditure
8.3.14 Healthcare expenditure as a percentage of GDP
8.3.15 Healthcare expenditure per capita
8.3.16 Total internet subscriptions
8.3.17 Broadband internet subscriptions
8.3.18 Personal computer penetration rate
8.3.19 Mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Total population
8.5.5 Urban and rural population
8.5.6 Female percentage of population
8.5.7 Male percentage of population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age distribution of the total population
8.5.12 Age distribution of the male population
8.5.13 Age distribution of the female population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political stability
8.6.2 Terrorism index
8.6.3 Transparency index
9 Appendix
9.1 Contact Us
9.2 About ICD Research
9.3 Disclaimer