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The Future of the Colombian Defense Industry: Market Attractiveness, Competitive Landscape, and Forecasts to 2019

Strategic Insights

— 2 min read

Colombian defense expenditure has experienced significant growth, registering a 7.70% annual increase over the historic period from 2010 to 2014. The rise in expenditure is attributed to the threat from Venezuela, rebel groups, and the development of domestic industry. The Defense Ministry is expected to procure fighters and multi-role aircraft, transport and utility aircraft, main battle tanks, infantry fighting vehicles, and armored personnel carriers. According to Strategic Defence Intelligence, Colombia's military expenditure will reach US$7.5 billion in 2015 and is forecasted to increase to US$9.4 billion by 2019, with a Compound Annual Growth Rate (CAGR) of 5.64% over the forecast period.

Key Takeaways:

  • Colombian defense expenditure grew by 7.70% annually over the historic period from 2010 to 2014, increasing from US$5.2 billion to US$7.1 billion.
  • Colombia's military expenditure is expected to reach US$9.4 billion by 2019, driven by the threat from Venezuela and the need to develop domestic industry.
  • The Defense Ministry plans to acquire fighters and multi-role aircraft, transport and utility aircraft, main battle tanks, infantry fighting vehicles, and armored personnel carriers.
  • The Colombian defense industry is expected to experience a CAGR of 5.64% over the forecast period, driven by modernization efforts and the need to counter external threats.
  • The market opportunity section highlights the top five defense investment opportunities in Colombia over the coming 10 years, including the modernization of the air force and the development of the domestic industry.
  • Strategic Defence Intelligence provides detailed profiles of top domestic and foreign defense manufacturers, including their products, alliances, recent contract wins, and financial analysis.
  • The report provides a full qualitative analysis of the Colombian defense industry, covering factors such as demand drivers, Porter's Five Forces Analysis, key trends, and growth stimulators.

Statistics:

  • Colombian defense expenditure grew from US$5.2 billion in 2010 to US$7.1 billion in 2014, a 7.70% annual increase.
  • Colombia's military expenditure is expected to reach US$7.5 billion in 2015 and US$9.4 billion by 2019, with a CAGR of 5.64%.
  • The Defense Ministry plans to acquire US$20 billion worth of defense equipment between 2015 and 2019.
  • The top five defense investment opportunities in Colombia over the coming 10 years are expected to generate revenues of US$40 billion.
  • The Colombian defense industry is expected to experience a CAGR of 5.64% over the forecast period, driven by modernization efforts and the need to counter external threats.

Sources:

  • Strategic Defence Intelligence, "The Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019"
  • Reportlinker, "Future of the Colombian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2019" (PR Newswire, April 13, 2015)
  • Reportlinker, "Contact Clare: clare@reportlinker.com" (PR Newswire, April 13, 2015)

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