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 Venezuelan defense expenditure expected to register higher growth during the forecast period
3.1.2 Modernization and border disputes to drive defense expenditure in the forecast period
3.2 Analysis of Defense Budget Allocation
3.2.1 Revenue expenditure accounts for the majority of the Venezuelan defense budget
3.2.2 Defense budget as a percentage of GDP expected to decline during the forecast period
3.2.3 Per-capita defense expenditure expected to decline during the forecast period
3.2.4 Capital expenditure budget expected to register a higher CAGR growth in the forecast period
3.2.5 Revenue expenditure expected to grow more quickly in the forecast period
3.2.6 Personnel expenditure accounts for the majority of the revenue expenditure budget
3.3 HLS Market Size and Forecast
3.3.1 HLS budget projected to decline in the forecast period
3.3.2 Cybercrime, drug trafficking and organized crime to drive the HLS market
3.3.3 Venezuela considered at ‘some risk’ of terrorist attack
3.3.4 Venezuela experienced low levels of terrorist activity during the review period
3.4 Benchmarking with Key Global Markets
3.4.1 Venezuela’s defense budget expected to increase in the forecast period
3.4.2 Venezuela’s military expenditure is limited compared to countries with the highest defense expenditures
3.4.3 Venezuela allocates a low percentage of GDP to defense
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Demand for jet trainer and light attack aircraft to increase
3.5.2 Military utility helicopters and fighter aircraft will provide attractive market opportunities
3.5.3 Demand for battle tanks expected to increase
3.5.4 Su-30MK2 fighters will provide attractive market opportunities
3.5.5 Demand for armored fighting vehicles to increase
3.5.6 Submarines and ships will provide attractive market opportunities
3.5.7 Demand for S-300 air defense missile system components to increase
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 in the forecast period
4.1.3 Russia and China account for the majority of Venezuela’s defense imports
4.1.4 Aircraft, missiles and sensors are the most imported military hardware
4.2 Export Market Dynamics
4.2.1 Defense exports increased in the review period
4.2.2 Ecuador was the largest importer of Venezuelan aircraft parts and missiles in the review period
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to high
5.1.2 Bargaining power of buyer: medium
5.1.3 Barriers to entry: medium
5.1.4 Intensity of rivalry: low to medium
5.1.5 Threat of substitution: low to medium
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Venezuela does not disclose any offset obligations
6.1.2 Venezuela allows 100% FDI in defense industry
6.2 Market Entry Route
6.2.1 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 market entry for foreign companies
6.3.2 Corruption acts as an obstacle for market entry
6.3.3 Arms embargo against Venezuela makes market entry difficult for foreign defense companies
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.2 Key Domestic Companies
7.2.1 CA Venezolana de Industrias Militares (CAVIM): overview
7.2.2 CA Venezolana de Industrias Militares (CAVIM): products and services
7.2.3 CA Venezolana de Industrias Militares (CAVIM): recent announcements and strategic initiatives
7.2.4 CA Venezolana de Industrias Militares (CAVIM): alliances
7.2.5 CA Venezolana de Industrias Militares (CAVIM): recent contract awards
7.2.6 CA Venezolana de Industrias Militares (CAVIM): financial analysis
7.2.7 UCOCAR CA: overview
7.2.8 UCOCAR CA: products and services
7.2.9 UCOCAR CA: recent announcements and strategic initiatives
7.2.10 UCOCAR CA: alliances
7.2.11 UCOCAR CA: recent contract awards
7.2.12 UCOCAR CA: financial analysis
7.2.13 Diques y Astilleros Nacionales CA (DIANCA): overview
7.2.14 Diques y Astilleros Nacionales CA (DIANCA): products and services
7.2.15 Diques y Astilleros Nacionales CA (DIANCA): recent announcements and strategic initiatives
7.2.16 Diques y Astilleros Nacionales CA (DIANCA): alliances
7.2.17 Diques y Astilleros Nacionales CA (DIANCA): recent contract awards
7.2.18 Diques y Astilleros Nacionales CA (DIANCA): financial analysis
8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 Market capitalization trend – Caracas stock exchange
8.1.2 FDI inflows
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 dollars)
8.2.5 GDP split by key segments
8.2.6 Agriculture net output at current prices (Venezuelan Bolivar)
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 (Venezuelan Bolivar)
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 (Venezuelan Bolivar)
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 (Bolivar)
8.2.16 Construction net output at current prices, (US dollars)
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 Fiscal balance as a percentage of GDP
8.2.22 Current account balance as a percentage of GDP
8.2.23 Exports as a percentage of GDP
8.2.24 Imports as a percentage of GDP
8.2.25 Exports growth
8.2.26 Imports growth
8.2.27 Annual average exchange rate US$–VEB
8.2.28 End-of-period exchange rate US$–VEB
8.3 Infrastructure Quality and Availability
8.3.1 Total airports and sea ports
8.3.2 Roadways
8.3.3 Automotive components exports trend
8.3.4 Automotive components imports trend
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 hydroelectricity generation
8.3.10 Installed capacity for renewable electricity generation
8.3.11 Electricity consumption
8.3.12 Electricity exports
8.3.13 Electricity imports
8.3.14 Healthcare expenditure
8.3.15 Healthcare expenditure as percentage of GDP
8.3.16 Healthcare expenditure per capita
8.3.17 Total internet subscribers
8.3.18 Broadband internet subscribers
8.3.19 Personal computer penetration rate
8.3.20 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