Future of the Venezuelan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About the Publisher

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities
3.1.1. Military Fleet Size
3.1.2. Procurement Programs
3.1.3. Key Drivers and Challenges
3.1.4. Small defense budget and underdeveloped domestic industry discourages foreign participation
3.1.5. Corruption serves as an obstacle for market entry
3.1.6. The arms embargo against Venezuela makes market entry difficult for foreign defense companies
3.1.7. Venezuelan economic crisis
3.2. Defense Market Size, Historical and Forecast
3.2.1. Venezuelan defense expenditure expected to increase at a CAGR of 0.32% over 2019-2023
3.2.2. Modernization, border disputes, and the development of the domestic defense industry are expected to drive defense expenditure over the forecast period
3.2.3. Venezuelan defense expenditure as a percentage of GDP to increase
3.3. Analysis of Defense Budget Allocation
3.3.1. Revenue expenditure accounts for the majority of the Venezuelan defense budget over the forecast period
3.3.2. Capital expenditure is anticipated to grow at a CAGR of 0.02% over the forecast period
3.3.3. Per-capita defense expenditure expected to decrease during the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security budget to register a CAGR of 0.91% over the forecast period
3.4.2. Civil unrest, drug trafficking, and organized crime to drive the HLS market
3.4.3. Venezuela to be at ‘moderate risk’ from terrorist attacks
3.4.4. Venezuela faces moderate threat from foreign terrorist organizations
3.4.5. Venezuela has a terrorism index score of 3.6
The terrorism index is calculated based on the following factors:
3.5. Benchmarking with Key Global Markets
3.5.1. Venezuela’s defense budget to remain low over the forecast period
3.5.2. Venezuela’s military expenditure is limited compared to countries with high defense expenditure
3.5.3. Venezuela allocates a high percentage of GDP to defense
3.6. Market Opportunities: Key Trends and Growth Stimulators
3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections Over 2018-2023

4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited capability of domestic defense market drives imports
4.1.2. Venezuela largely imports from Russia
4.1.3. Air defense systems, missiles, and armored vehicles are the most imported military hardware
4.2. Export Market Dynamics
4.2.1. Defense exports increased during the historic period

5. Market Entry Strategy
5.1. Market Regulation
5.1.1. Venezuela does not disclose any offset obligations
5.1.2. Venezuela allows 100% FDI in the defense industry
5.2. Market Entry Route
5.2.1. Budget Process
5.2.2. Procurement Policy and Process
5.2.3. Direct selling is the preferred market entry route for foreign OEMs
5.2.4. Joint product development and military collaborations provide market entry opportunities

6. Competitive Landscape and Strategic Insights
6.1. Competitive Landscape Overview

7. Business Environment and Country Risk
7.1. Economic Performance
7.1.1. Gross Domestic per Capita
7.1.2. Gross Domestic Product, current US$
7.1.3. Exports of Goods and Services
7.1.4. Imports of Goods and Services
7.1.5. Gross National Disposable Income
7.1.6. Local Currency Unit per US$
7.1.7. Market Capitalization of Listed Companies
7.1.8. Market Capitalization of Listed Companies as a Percentage of GDP
7.1.9. Total Government Cash Surplus/Deficit as a Percentage of GDP
7.1.10. Exported Goods as a Percentage of GDP
7.1.11. Imported Goods as a Percentage of GDP
7.1.12. Services Exports as a Percentage of GDP
7.1.13. Services Imports as a Percentage of GDP
7.1.14. Foreign Direct Investments, Net (BoP, Current US$ Billion)
7.1.15. Net Foreign Direct Investment as a Percentage of GDP
7.1.16. Mining, Manufacturing and Utilities Output (LCU Billion)

8. Appendix
8.1. About the researcher
8.2. Disclaimer

List of Tables
Table 1: Venezuelan Army Strength
Table 2: Venezuelan Air Force Strength
Table 3: Venezuelan Navy Strength
Table 4: Venezuelan - Ongoing Development and Procurement Programs
Table 5: Venezuelan - Future Procurement Programs
Table 6: Venezuelan Defense Expenditure (VEF Billion & US$ Billion), 2014-2023
Table 7: Venezuelan GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023
Table 8: Venezuelan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 9: Venezuelan Defense Capital Budget (VEF Billion & US$ Billion), 2014-2023
Table 10: Venezuelan Per Capita Defense Expenditure (US$), 2014-2023
Table 11: Venezuelan Homeland Security Expenditure (VEF Billion & US$ Billion), 2014-2023
Table 12: Terrorism Index, 2018
Table 13: Benchmarking with Key Markets, 2014-2018 vs. 2019-2023
Table 14: Top 10 Venezuelan Defense Market Sectors by Value (US$ Million) - 2018-2023
Table 15: The Venezuelan Budget Formation Timetable
Table 16: Competitive Landscape of the Venezuela Defense Industry

List of Figures
Figure 1: Venezuelan Defense Expenditure (VEF Billion), 2014-2023
Figure 2: Venezuelan Defense Expenditure (US$ Billion), 2014-2023
Figure 3: Venezuelan GDP Growth and Defense Expenditure as a Percentage of GDP Growth, 2014-2023
Figure 4: Venezuela Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: Venezuelan Capital Expenditure on Defense (VEF Billion), 2014-2023
Figure 6: Venezuelan Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: Venezuelan Per Capita Defense Expenditure (US$), 2014-2023
Figure 8: Venezuelan Homeland Security Expenditure (VEF Billion), 2014-2023
Figure 9: Venezuelan Homeland Security Budget (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets: 2014-2018 vs. 2019-2023
Figure 13: Defense Expenditure of Countries with the Highest Global Military Expenditure (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Venezuelan Defense Imports, 2013-2017 (TIV Values)
Figure 16: Venezuelan Defense Imports by Country (%), 2013-2017
Figure 17: Venezuelan Defense Imports by Category (%), 2013-2017
Figure 18: Venezuela GDP per Capita, 2015-2025
Figure 19: Venezuela Gross Domestic Product (current US$ Billion), 2015-2025
Figure 20: Venezuela Exports of Goods and Services (LCU Billion), 2005-2013
Figure 21: Venezuela Imports of Goods and Services (LCU Billion), 2005-2013
Figure 22: Venezuela Gross National Disposable Income (US$ Trillion), 2005-2013
Figure 23: Venezuela LCU per US$, 2015-2024
Figure 24: Venezuela Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 25: Venezuela Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012
Figure 26: Venezuelan Government Cash Surplus/Deficit as a Percentage of GDP, 2000-2005
Figure 27: Venezuelan Exported Goods as a Percentage of GDP, 2005-2013
Figure 28: Venezuelan Imported Goods as a Percentage of GDP, 2005-2013
Figure 29: Venezuelan Services Exports as a Percentage of GDP, 2005-2013
Figure 30: Venezuelan Services Imports as a Percentage of GDP, 2005-2013
Figure 31: Venezuelan Foreign Direct Investments, Net (BoP, Current US$ Billion), 2005-2013
Figure 32: Venezuela Net Foreign Direct Investment as % of GDP, 2005-2013
Figure 33: Mining, Manufacturing and Utilities Output (LCU Billion), 2005-2014

Samples

• G & F Tecnología CA
  
• ASTIMARCA
  
• CIDAE
  
• MAZVEN
  

Methodology